Penalties on Sonali Bank (UK) Limited and its former money laundering reporting officer

12 October 2016

The Financial Conduct Authority (FCA) has fined Sonali Bank (UK) Limited (SBUK) £3,250,600 and has imposed a restriction, preventing it from accepting deposits from new customers for 168 days. It has also fined the bank’s former money laundering reporting officer (MLRO), Steven Smith, £17,900 and prohibited him from performing the MLRO or compliance oversight functions at regulated firms. Continue reading…



In Search of a Single Version of the Truth: Adopting a Universal Data Model

08 October 2016

Firms today require access to unprecedented volumes of data to meet growing demands for transparency and integrity across all their business activities. Operational needs and regulatory requirements are driving rigorous data sourcing, collection and integration efforts. The task is made more complex and expensive by the need for data that is consistent with the business, finance and risk management activities of the institution. In short, the need to obtain the much discussed ‘single version of the truth’ has never been more pressing.

Our newest paper looks at the challenges of addressing multiple regulatory requirements while striving for increased profitability. It explains how firms can normalize their internal data collection processes – and retain the flexibility they need to support the finance and risk functions, and business activities across the enterprise – by adopting a universal data model.

Nordea received the final capital decision

03 October 2016

Nordea has on 30 September received the final Capital Joint Decision. The expected Common Equity Tier 1 ratio requirement by 30 September is 17.3%. The Common Equity Tier 1 requirement of 17.3% includes 85 bp (equivalent to a Common Equity Tier 1 requirement of EUR ~1.2bn and a total Own funds requirement of EUR ~1.5bn) due to the PD inspection performed by the college of supervisors (FSAs) during 2016 as well as the corporate risk weight memo (FI Ref. 15-13020).
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Legacy and regulation: two main obstacles between financial institutions and the needs of the digital customer

30 September 2016

by Adam Oldfield

Technological innovations have transformed people’s expectations of the customer experience. With just a few taps on the Uber mobile app, consumers can have a taxi collect them from wherever they are, watch it on the app head towards them and pay without needing cash. Amazon online shopping provides tailored recommendations based on previous purchases and product search history. And it’s getting difficult to find a brand that isn’t available to its customers 24/7 on social media.
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The importance of individual accountability at the most senior level of organisations

28 September 2016

The Financial Conduct Authority (FCA) will mark six months since the implementation of the Senior Managers’ and Certification Regime by providing feedback on implementation so far and proposing measures to further strengthen the regime. The proposed rules will reinforce the importance of individual accountability at the most senior level of organisations.

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Draft law to facilitate external and intra-group outsourcing in the financial sector

23 September 2016

by Josée Weydert, Vincent Wellens and Jad Nader

One of the key principles of Luxembourg financial regulation is the obligation of professional secrecy (often referred to as the bank secrecy, the “Professional Secrecy Obligation”) laid down in Article 41(1) of the law dated 5 April 1993 on the financial sector, as amended (the “Financial Sector Act”). Outsourcing arrangements and, in particular, IT outsourcing operations which can lead to the disclosure of confidential data and thus to a potential breach of the Professional Secrecy Obligation are subject to rather strict legal conditions.
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Payday firm CFO Lending to pay £34 million redress

19 September 2016

Payday firm, CFO Lending, has entered into an agreement with the Financial Conduct Authority (FCA) to provide over £34 million of redress to more than 97,000 customers for unfair practices. The redress consists of £31.9 million written-off customers’ outstanding balances and £2.9 million in cash payments to customers. CFO Lending also traded as Payday First, Flexible First, Money Resolve, Paycfo, Payday Advance and Payday Credit. Most of the firm’s customers had high-cost short-term credit loans (payday loans) but some customers had guarantor loans and some had both. Continue reading…

Pensions and long-term retirement saving: a macroeconomic perspective

16 September 2016

by Andrew Bailey

When I look at the issues on the agenda of the FCA with its objective from Parliament to ensure that relevant markets function well, I think that pensions and long-term retirement savings are probably top of the list in terms of their importance to our society. But, of course, only part of what is a very broad issue falls under our responsibility because there are many other aspects of economic and social policy in which the issue falls, and that demands joined up thinking and approaches.
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All large internationally active banks meet Basel III minimum and CET1 target capital requirements

14 September 2016
Knowledge Base

The Basel Committee today published the results of its latest Basel III monitoring exercise. The Committee established a rigorous reporting process to regularly review the implications of the Basel III standards for banks and it has published the results of previous exercises since 2012. Data have been provided for a total of 228 banks, comprising 100 large internationally active banks (“Group 1 banks”, defined as internationally active banks that have Tier 1 capital of more than €3 billion) and 128 “Group 2 banks” (ie representative of all other banks).
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