FCA to investigate use of personal guarantees in certain small business lending

15 March 2024

The Financial Conduct Authority (FCA) has committed to investigate the use of personal guarantees by lenders to support loans to certain small businesses. The steps come in response to a super complaint from the Federation of Small Businesses (FSB). The FSB has raised concerns that a growing demand for personal guarantees by lenders has a detrimental impact on small businesses, which they believe dissuades them from borrowing funds to grow. It has particular concerns about small limited companies. The FCA’s remit, which is set by Parliament, does not include lending to limited companies. However, the work announced by the FCA reflects its commitment to do what it can to support small businesses within its defined remit.
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Gen AI Interventions in Climate Risk Management

14 March 2024
Knowledge Base

by Ajay Katara

Climate risk is assuming a critical role for banks and financial institutions due to the mounting environmental challenges. As the frequency and severity of climate-related events increase, banks face heightened risks associated with their investments, loans, and overall financial stability. It’s no surprise that climate risk management features in the topmost agenda for CRO’s (Chief Risk Officers) globally as effectively managing these risks is imperative to safeguard assets, ensure regulatory compliance, and promote long-term sustainability in the context of a changing climate. Continue reading…

Hello, tomorrow!

13 March 2024

This is the message of the “Zero Corruption Forum”. The event organized in Rome – in the prestigious spaces of the LUMSA University – by the Business at OECD (BIAC) was an opportunity to launch the “Zero Corruption” Manifesto against Corruption. At the base of the Manifesto there is the renewed Responsibility of each of us, of companies, of the public sector “we are responsible for the future” and there are the concepts that are referred to in the SDG (Social Development Goals) of the UN and in the value of stakeholders. Corruption is fought through prevention, repression and the creation of a culture of integrity, especially through classroom training dedicated to students and, in the company, involving all staff, including top management

Three steps to ensure accurate compliance evaluation

12 March 2024
Knowledge Base

by Robert Houghton

Remaining compliant in today’s financial landscape is no easy feat. Every call, message, communication and snippet of information shared between employees, customers and trading partners must be captured, stored and monitored to prove compliance. To regulators, every financial institution is potentially guilty of wrongdoing, until proven innocent. On top of that, we’ve seen the emergence of regulations like the Digital Operational Resilience Act (DORA) showing that regulators’ demands are increasing and growing stricter1. This leaves many financial institutions wondering if their compliance status has changed. So, how can they ensure they are remaining compliant when the goalposts keep moving? Continue reading…

Eurojust supports an EPPO-led operation against carousel VAT fraud for the first time

11 March 2024
Knowledge Base

For the first time, Eurojust has supported an international joint action led by the European Public Prosecutor’s Office (EPPO) against large-scale cross-border carousel VAT fraud involving companies in several Member States. The joint operation, also supported by Europol, resulted in the arrest of 14 suspects and more than 180 simultaneous searches in 17 countries. Over 680 officers participated in the actions on the ground.

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Larger companies will have to work hard in the coming years as a result of the CSDDD

08 March 2024
Knowledge Base

by Michel Klompmaker

On 1 June 2023, The European Parliament reached a provisional agreement on the Corporate Sustainability Due Diligence Directive (CSDDD for short). This directive requires all large organisations in Europe to identify and, where necessary, prevent, eliminate or reduce the negative impact of their activities on human rights and the environment in their value chains. Thus, the CSDDD is a duty of due diligence that affects entire value chains. We talked about this directive with Johan Löfquist, Head of Sustainability Data at Worldfavor. Continue reading…

The Tone at the Top: Technology Enhancing Compliance Performance in the Financial Sector

06 March 2024
Knowledge Base

by Uzi Rosha

In an era marked by rapid technological advancements and increasing complexity, financial institutions face significant challenges in maintaining compliance with an ever-expanding array of legal and regulatory requirements. Financial firms have the opportunity to integrate technology to enhance effectiveness and efficiency, better meeting regulatory expectations and gaining competitive advantage. Continue reading…

New initiatives boosting European industrial leadership in advanced materials

05 March 2024

The Commission has proposed an encompassing strategy to move towards EU industrial leadership in advanced materials, a key enabling technology highly relevant for the twin green and digital transition. The Communication on Advanced Materials for Industrial Leadership puts forward concrete steps enabling to align research and innovation priorities and investments in the EU, ensuring European leadership in this key technology. This initiative, eagerly anticipated by the Member States and industry, is the first step towards a common European approach for advanced materials, laying the groundwork for further action. Advanced materials are intentionally designed and engineered materials to display superior performance or special functions, which can be developed with unprecedented speed thanks to today’s scientific understanding and computing power. They are fundamental for example for innovation in energy, electronics, construction and mobility, and therefore crucial for the green and digital transition. The first list of research areas is expected to be expanded overtime in dialogue with the Technology Council to be set-up. Continue reading…

CPMI-IOSCO publish discussion paper and call for comments on streamlining variation margin in centrally cleared markets

04 March 2024

The BIS Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (IOSCO) have recently published the report “Streamlining variation margin in centrally cleared markets – examples of effective practices“, which sets out for consultation eight effective practices addressing variation margin (VM) processes and transparency between CCPs, clearing members and their clients. Interested parties are invited to comment on this report. The eight effective practices aim to provide examples of how standards set out in the PFMI and CCP resilience guidance can be met. They are intended to inform CCPs in designing their VM call and collection processes. Continue reading…