Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

Helen Parry and Rachel Wolcott discuss the UK election gambling scandal, emphasizing the need for enhanced due diligence on PEPs. They touch on insider trading risks, compliance training importance, and the implications of politicians having access to sensitive information.

It’s been quite a month for elections in Europe, but in this episode, Regulatory Intelligence’s Lindsey Rogerson, Mike Cowan, and Rachel Wolcott pick out what financial services should be aware of after the Labour party’s win in the UK election on July 5. The financial services sector certainly will play a part in Labour’s growth plans. The party’s financial services plan, published in January said: “We will unashamedly champion our financial services sector as one of the UK’s greatest assets.”Rachel Reeves, the new Chancellor of the Exchequer and the first woman to hold the post in 800 years, has been warmly received by women working in Britain’s finance sector. Her appointment as well as the increase in diversity in members of parliament across all parties was called a break-through moment at this week’s Women in Finance summit held in London. Tulip Siddiq was appointed as City Minister as the podcast was going to press. She had been Labour’s shadow City Minister since 2021. On July 8 Reeves told an audience of financial services and green industry leaders that economic growth is a national mission. She also announced Labour will go ahead with a national wealth fund with a remit to invest in and catalyse private sector investment in new and growing industries.This discussion was recorded on 8th July, things will change when the government gets going with its first King’s Speech setting out its legislative agenda and announces its budget in the fall. There will be a wait to hear whether the new government prioritizes crypto and pushes forward with that regulatory workstream, where it lands on economic crime and how it will push forward the green finance agenda as well as changes to the car insurance market—to name but a few items in its bulging inbox. Perhaps the biggest question now, however, is whether the government will do something for financial services when it comes to doing business with the European Union. LinksLabour’s financing growth plan: https://labour.org.uk/updates/stories/financing-growth-labours-plan-for-financial-services/ UK Finance publishes financial services manifesto: https://www.ukfinance.org.uk/news-and-insight/press-release/uk-finance-publishes-financial-services-manifesto Contact us:Rachel.Wolcott@thomsonreuters.com, Lindsey.Rogerson@thomsonreuters.com, mike.cowan@thomsonreuters.com. Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Lindsey Rogerson and Rachel Wolcott, both senior editors at Thomson Reuters Regulatory Intelligence, dive into the world of AI and its implications for culture and conduct risk. They explore how AI can enhance compliance while warning about the potential dangers of employee surveillance and inherent biases. The conversation touches on the SEC's growing concerns over AI-washing and emphasizes the necessity of ethical AI adoption, particularly in managing sensitive data and ensuring workplace transparency.

In this episode, Lindsey Rogerson, senior editor and Mike Cowan senior regulatory intelligence expert discuss the UK Finance Conduct Authority’s actions in the first year of its flagship Consumer Duty initiative. The FCA has hit the ground running with the Consumer Duty since its launch on July 31, 2023. No sector has been left untouched as the regulator has run its rule over how firms are delivering the Duty’s requirement for firms to evidence and deliver fair outcomes to their customers. The conversation is split into two parts, a review of the first 11 months of the duty applying to open book products followed by a discussion as to how firms should be preparing for the arrival of the duty to closed product books from July 31. Links: FCA research into trading apps: https://www.fca.org.uk/publication/research-notes/research-note-digital-engagement-practices-trading-apps-experiment.pdfConsumer Duty: spotting and handling financial abuse of vulnerable customers: http://go-ri.tr.com/zv2gGfCustomer vulnerability: an extra layer to the UK FCA Customer Duty: http://go-ri.tr.com/zAurSHUK FCA’s motor finance complaints pause hands: http://go-ri.tr.com/WlImYgANALYSIS: Motor finance: UK firms face months of uncertainty, say experts: http://go-ri.tr.com/wLpB5IINSIGHT: FCA finds deficiencies in insurance claims handling when valuing written-off or stolen vehicles: http://go-ri.tr.com/RHfs7hOPINION: FCA fines HSBC £6.2 million for arrears handling failures: http://go-ri.tr.com/2WEPxuOPINION: 10 things UK compliance officers must consider when dealing with customer's deposit accounts: http://go-ri.tr.com/9Bf43IOPINION: FCA to review firms' approach to dealing with vulnerable customers in 2024: http://go-ri.tr.com/1aAjZQUK FCA allows four firms to resume selling GAP insurance: http://go-ri.tr.com/ZYv1yLFor more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or check the show notes for a link https://legal.thomsonreuters.com/en/products/regulatory-intelligence Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode, Rachel Wolcott senior editor in the UK speaks to Natalia Kubesch, a lawyer for Redress.org a non-governmental organization in London. This episode is about the victims of war crimes and crimes against humanity and why the current approach to sanctions and asset confiscation does not do enough to help them. Natalia specializes in using Magnitsky Sanctions to provide accountability for serious human rights violations. Redress represents victims of torture and helps them seek accountability and justice. Part of Natalia’s work is advocating for the use of sanctions and asset confiscation to respond to serious human rights abuses and corruption.Natalia talks about work to confiscate assets related to Bashar al-Assad’s uncle, the former Syrian vice president Rifaat al-Assad to be used to support the Syrian people. The Swiss Federal Prosecutor’s office filed charges (https://www.srf.ch/news/schweiz/graeueltaten-in-syrien-bundesanwaltschaft-klagt-gegen-onkel-von-baschar-al-assad) against Rifaat al-Assad in March this year. He is accused of crimes against humanity and war crimes. The UK has frozen an estimated £161 million in assets related to the Assad regime since 2011 when the Syrian civil war began. These assets could be used to help victims of the al-Assad regime, Natalia says.Redress is also working with civil society groups in Myanmar to expose the use of shell companies domiciled in UK overseas territories to avoid sanctions and provide funding for its military junta. Redress and its partners have reported these possible sanctions breaches by to UK law enforcement. Lastly, Natalia calls on the UK government to improve its approach to sanctions implementation and enforcement as well as to break the two-year impasse with Roman Abramovich, the former owner of Chelsea Football Club. He pledged £2.5 billion from Chelsea FC’s sale to help Ukrainians, but that help has not materialized. Natalia explains why.Links:UK should legislate to confiscate Russian state assets, accelerate financial crime enforcement, MPs hear (paywall) go-ri.tr.com/s2pP2aNew U.S. sanctions target Russian financial system, blacklist its operations in China and India and bolster 'secondary sanctions' risk (free) https://regintel-content.thomsonreuters.com/document/IC3FF985028EE11EFA4C58DA52BBFD8DA/New-U.S.-sanctions-target-Russian-financial-system,-blacklist-its-operations-in-China-and-India-and-bolster-'secondary-sanctions'-risk-13-06-2024FATF standards used by authoritarian regimes to justify suppression -RUSI report (free) https://regintel-content.thomsonreuters.com/document/I5D740E40271811EFA4C58DA52BBFD8DA/FATF-standards-used-by-authoritarian-regimes-to-justify-suppression--RUSI-report-11-06-2024Redress.org’s evidence to the UK parliament’s Treasury Committee https://committees.parliament.uk/writtenevidence/129074/html/Charities criticize delay to release £2.5 billion Chelsea FCA sale funds https://www.civilsociety.co.uk/news/charities-criticise-delay-to-release-2-5bn-chelsea-fc-sale-funds-two-years-since-pledge.html Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode of Compliance Clarified Helen Chan, regulatory intelligence expert in Hong Kong speaks to Rachel Wolcott, a senior editor in the UK about the current state of stablecoin regulation and financial crime trends in stablecoins and crypto. They unpick attempts at putting a dollar value on illicit crypto flows, and try to pin down the global approach to stablecoin regulation. Helen and Rachel discuss stablecoins use in superapps like South East Asia’s Grab and the use of tether in Telegram. Will these use cases run into the same financial crime issues as traditional finance has with open banking? They also highlight the risks and concerns stablecoins paired with weak know-your-customer and financial crime systems and controls pose to tradfi. Links: Steno Research on tether: https://stenoresearch.com/crypto-moves/the-european-unions-mica-removes-tether-from-the-market/Alison Jimenez on challenges assessing the scale of illicit crypto flows: https://docs.house.gov/meetings/BA/BA21/20231115/116579/HHRG-118-BA21-Wstate-JimenezA-20231115.pdfUK Financial Conduct Authority’s stablecoin discussion paper: https://www.fca.org.uk/publications/discussion-papers/dp23-4-regulating-cryptoassets-phase-1-stablecoinsUK snap election leaves crypto regulation in limbo (paywall): https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522PimebR%252522%25257D%2522%257D&bhcp=1 United States of America vs Enhua Fang (pre-trial detention motion): https://www.linkedin.com/feed/update/urn:li:activity:7188558094350589952/Tether partners with Telegram press release: https://tether.io/news/tether-collaborates-with-ton-foundation-and-oobit-to-create-seamless-crypto-payment-solution/Clarity for Payment Stablecoins Act of 2023 (U.S. Bill): https://www.congress.gov/bill/118th-congress/house-bill/4766Contact us:Helen.Chan@thomsonreuters.com & Rachel.Wolcott@thomsonreuters.com For more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or check the show notes for a link legal.thomsonreuters.com/en/products/regulatory-intelligence Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In this episode Lindsey Rogerson and Rachel Wolcott, senior editors in London talk through the UK Financial Conduct Authority's (FCA) changing approach to enforcement. They look at the number of enforcement cases closed since April 2023 when the former head of enforcement left. In all 155 cases have been closed with only 28 resulting in an enforcement action—about 18%. That discussion leads to a broader consideration of the FCA's publication of enforcement data, its resistance to some Freedom of Information Act requests for more information and a look at some of the detail it recently revealed in letters to UK lawmakers. Lindsey and Rachel assess the FCA's proposals to announce some enforcement investigations. This plan was first announced in February and has since been rebranded as "naming and shaming" by those opposed to the measures. Lindsey and Rachel question whether this description is justified, run through the ways investigations are sometimes announced, and make a case for the more frequent publication of richer, more descriptive enforcement data. Links: 2017 report about the HK SFC closing cases (paywall) https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522BRKGDI%252522%25257D%2522%257D&bhcp=1UK FCA seeks speedy closure for cases with "no future (paywall) https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522skxHi9%252522%25257D%2522%257D&bhcp=1UK FCA is still assessing more than 1,100 whistleblower reports from 2023/24 (paywall) https://signon.thomsonreuters.com/?productId=TRRIP&returnto=https%3A%2F%2Fregintel.thomsonreuters.com%2F%23login%2F%257B%2522redirect%2522%253A%2522ri%252Fresolve%252Fshorturl%252F%25257B%252522shortUrl%252522%25253A%252522O3tB1r%252522%25257D%2522%257D&bhcp=1Season 10, Episode 6: Insider dealing lists: lessons from a conviction https://podcasts.apple.com/gb/podcast/season-10-episode-6-insider-dealing-lists-lessons-from/id1548510826?i=1000647506230Season 9, Episode 4: The FCA and its difficulties dealing with whistleblowing https://open.spotify.com/episode/1l3pvrXW1J6LcJv2LOunRo FCA Board Minutes April 2023 https://www.fca.org.uk/publication/minutes/fca-board-minutes-27-april-2023.pdfFCA letter to House of Lords Financial Services Regulation Committee https://www.fca.org.uk/publication/correspondence/fca-response-lfsrc-april-24.pdfFCA letter to Treasury Committee https://committees.parliament.uk/publications/44666/documents/221907/default/FOIA request about recording keeping and messaging appshttps://www.whatdotheyknow.com/request/refined_request_foi10578_recordi#incoming-2645944 UK FCA opened no investigations into communications retention; opened first Mifid II transaction reporting investigation (article) https://www.linkedin.com/feed/update/urn:li:activity:7199352605670555649/FOIA request for updated enforcement data to show closed investigations https://www.whatdotheyknow.com/request/enforcement_data_update_of_foi10#incoming-2661174CP 24/2 Our enforcement guide and publicizing enforcement investigations—a new approach (the naming and shaming one ;-)) https://www.fca.org.uk/publication/consultation/cp24-2.pdfUK Finance response to CP24/2 https://www.ukfinance.org.uk/system/files/2024-04/UK%20Finance%20%20response%20to%20FCA%20enforcement%20guidance%20CP24-2.pdf Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

Today we’re joined by Klaus Moosmayer, Chief Ethics, Risk and Compliance Officer for Novartis, the Swiss pharmaceutical giant.Klaus has had a distinguished career. He joined Novartis in 2018 after serving 18 years at Siemens where he was Chief Compliance Officer. He began his career as a lawyer in Germany, specializing in white collar crime, business law and litigation.His views on compliance, ethics and risk are widely sought after and we first got to know him years ago when Klaus took part in a Regulatory Intelligence conference. The focus at the time was on how the financial industry might learn how other industries deal with issues of misconduct and culture.We're here today to discuss a new article by Klaus, entitled ETHICS AND INTEGRATED ASSURANCE: THE CHALLENGE OF BUILDING ‘TRUST’. The article argues for a new organizational model for compliance.Here is a link to the article: https://riskandcompliancemagazine.com/ethics-and-integrated-assurance-the-challenge-of-building-trust-apr24-open Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the second episode of Season 11 of Compliance Clarified, Todd Ehret, senior regulatory intelligence expert, is joined by Jacob Denman for a wide-ranging discussion on the growing trend of elder financial exploitation.Jacob Denman is with Thomson Reuters Risk and Fraud Solutions and Partnerships and Alliances. Prior to joining Thomson Reuters, Jacob worked in law enforcement and then for several large banks in their financial crimes and special investigations departments. Jacob is on the Board of Directors of the Minneapolis St. Paul chapter of the Association of Certified Fraud Examiners (ACFE). He is also a Certified Anti-Money Laundering Specialist with ACAMS. In the past few weeks, the Financial Industry Regulatory Authority (FINRA), the U.S. Treasury's Financial Crimes Enforcement Network (FinCEN), and the non-profit organization AARP (formerly known as the American Association of Retired Persons) have all issued crucial warnings and guidance on the pressing issue of elder financial crime.Denman sheds light on the alarming surge in scams and frauds targeting the elderly. He attributes this rise to two key factors: the rapid advancements in technology and the isolation experienced by the elderly during the Coronavirus pandemic, which led to a shift in their financial management from in-person to technology-based methods.For more information on the podcast and additional resources, see the links below.Links: FINRA Threat Guidance: www.finra.org/rules-guidance/key-topics/senior-investors/tip-protecting-vulnerable-adult-senior-investorsFinCEN Elder Financial Exploitation Alert: www.fincen.gov/news/news-releases/fincen-issues-analysis-elder-financial-exploitationThomson Reuters Special Report on the soaring number of SARs filings: www.thomsonreuters.com/en-us/posts/wp-content/uploads/sites/20/2023/06/Suspicious-Activity-Reports-2023.pdfAARP Report: https://press.aarp.org/2024-05-08-AARP-Report-Elevated-Risks-of-Fraud-Are-Pervasive-in-AmericaTodd Ehret LinkedIn: linkedin.com/in/todd-ehret-91827264/Jacob Denman LinkedIn: linkedin.com/in/jacob-denman/Thomson Reuters Regulatory Intelligence content: regintel-content.thomsonreuters.com/ Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.

In the first episode of Season 11, Lindsey Rogerson, senior editor, is joined by Rachel Wolcott, senior editor in London and Todd Ehret, senior regulatory expert in New York to discuss the growing impact of finfluencers – financial influencers – on the public’s investment decision-making. According to research from the CFA Institute, some found that 37% of Gen-Z investors in the United States and 38% in the United Kingdom cited social media influencers as a major factor in their decisions to invest. But who are these people? They are not just celebrities like Kim Kardashian or Tom Brady, but also bloggers sitting in their bedrooms. The discussion moves on to discuss how regulators are attempting to clamp down. And the limitations on what regulators can be expected to achieve. Links: FCA finfluencer infographic: https://www.fca.org.uk/multimedia/fca-and-asa-team-warn-finfluencers-risks-promoting-illegal-get-rich-quick-schemesEuropean Securities and Markets Authority finfluencer research: https://www.esma.europa.eu/sites/default/files/2024-02/ESMA74-1103241886-912_Warnings_on_Social_Media_and_Investment_Recommendations.pdfFINRA M1 Finance fine:https://www.finra.org/media-center/newsreleases/2024/finra-fines-m1-finance-850000-violations-regarding-use-social-mediaCFA Institute research:https://rpc.cfainstitute.org/en/research/reports/2024/finfluencer-appealOff message: EU and UK approaches to social media promotions and finfluencers Paywall: http://go-ri.tr.com/jSgT5bOpenweb: https://regintel-content.thomsonreuters.com/document/I12480010110211EF9891F1C9B4067FAC/Off-message:-EU-and-UK-approaches-to-social-media-promotions-and-finfluencers-15-05-2024UK-registered cryptos still advertise with non-compliant UK affiliate marketer; FCA has not issued new warnings: https://regintel-content.thomsonreuters.com/document/IBF8E49A00D5111EF8367C78DC6A8BA08/UK-registered-cryptos-still-advertise-with-non-compliant-UK-affiliate-marketer-FCA-has-not-issued-new-warnings-09-05-2024 Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer.  Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.