Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

The triggering of a complete write-down of the nominal value of all Credit Suisse AT1 debt has come as a shock to some investors. Regulators took what some saw as an irregular move to write down 16 billion Swiss francs of Credit Suisse bonds, known as Additional Tier 1 or AT1 debt, to zero, during UBS's rescue of Credit Suisse on the weekend of March 18/19.In this episode of Compliance Clarified, Alexander Robson, managing editor of Regulatory Intelligence in London, is joined by Helen Parry, senior regulatory intelligence expert in London to discuss contingent convertibles, otherwise known as CoCo bonds, and the reasons why regulators acted the way that they did.Under the deal, holders of Credit Suisse AT1 bonds will get nothing, while shareholders, who usually rank below bondholders in terms of who gets paid when a bank or company collapses, will receive $3.23 billion. The news hurt AT1 bonds issued by other European banks and they came under fresh selling pressure.If AT1s are converted into equity, this supports a bank's balance sheet. They also pave the way for a "bail-in", or a way for banks to transfer risks to investors and away from taxpayers if they get into trouble, according to rules that policymakers passed after the 2008 financial crisis.In Switzerland, the terms of the bonds stipulate that in a restructuring, the regulator is not obliged to stick to the traditional capital structure, which has spelt bad news for Credit Suisse bondholders. It has also raised eyebrows among other regulators elsewhere. PROGRAMME NOTESFINMA approves merger of UBS and Credit Suisse: www.finma.ch/en/news/2023/03/20230319-mm-cs-ubs/Factbox: Credit Suisse's troubles - spies, money laundering and takeover: www.reuters.com/business/finance/credit-suisses-troubles-spies-money-laundering-central-bank-cash-2023-03-16/How Credit Suisse has evolved over 167 years: www.reuters.com/business/finance/how-credit-suisse-has-evolved-over-167-years-2023-03-18/ (From behind the Regulatory Intelligence paywall)UBS faces huge cultural challenge in integrating Credit Suisse, say consultants: http://go-ri.tr.com/YI8NM3OPINION: Scale of U.S. banks' unrealized losses, distressed borrowing and central bank actions point to wider problems: http://go-ri.tr.com/oyHrxD 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.

The collapse of Silicon Valley Bank sent shockwaves through the venture capital and technology industries. It has had uncomfortable echoes of the 2008 financial crisis with regulators and other policymakers working through the weekend to engineer solutions to avoid further contagion and possible systemic risk. And that was the weekend of 11/12 March; this weekend just gone, regulators and policymakers were busy with the shotgun wedding of UBS and Credit Suisse.In the UK, HSBC has bought SVB and its liabilities to the tech sector for £1, but the situation is different in the United States where the Federal Deposit Insurance Corporation has stepped in to protect all deposit holders, even though most of them (mainly venture capital firms and tech companies) have way more in their accounts than the insured amount of $250,000. The collapse of the specialist lender has raised plenty of questions about risk management and the role played by regulators.Most of SVB's balance sheet was in longer dated bonds and the value of these fell as rates rose, which caused the subsequent run on the bank. Few seem to have questioned why no one at the bank appeared to hedge their risk.Events are still unfolding but with different results on either side of the Atlantic. There are many unknowns directly related to possible compliance and risk management concerns. As more facts surface, regulators and lawmakers are sure to investigate any failures in these areas. Such inquiries often lead to new regulations or regulatory change in the future. In this episode of Compliance Clarified, Alexander Robson, managing editor of Regulatory Intelligence in London, talks to Henry Engler, senior editor in New York and Mike Cowan, senior Regulatory Intelligence expert in London.Program notes:Silicon Valley Bank collapse: What you need to know now: https://www.reuters.com/business/finance/silicon-valley-bank-collapse-what-you-need-know-2023-03-13/SVB Financial files for bankruptcy protection after swift implosion: https://www.reuters.com/business/finance/how-svb-financial-group-imploded-two-days-2023-03-14/SVB is largest bank failure since 2008 financial crisis: https://www.reuters.com/business/finance/global-markets-banks-wrapup-1-2023-03-10/Behind the Regulatory Intelligence paywallINSIGHT: Five important regulatory aspects of the Silicon Valley Bank collapse: http://go-ri.tr.com/S5LTLfOPINION: Scale of U.S. banks' unrealized losses, distressed borrowing and central bank actions point to wider problems: http://go-ri.tr.com/oyHrxDU.S. lawmakers to hold first hearing on SVB, Signature Bank collapse: http://go-ri.tr.com/7AcwNS 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.

The world's largest primary bullion producer, Australia's Perth Mint, has found itself at the centre of one of the country's biggest risk and compliance failures following a six-month investigation led by Thomson Reuters Regulatory Intelligence. The government-owned entity has found itself defending regulatory spot fires on a range of fronts. These include a major money laundering audit, answering parliamentary questions about sub-standard gold deliveries to Shanghai, defending a failure to register as a remitter in breach of criminal laws, and explaining a 25-year failure to comply with U.S. commodities laws.The internationally renowned mint has also come under scrutiny from the world's largest gold market, following allegations that the Perth Mint failed to prevent money laundering and terrorism financing through its precious metals supply chain. The London Bullion Market Association's review into Perth Mint will look at a range of "responsible sourcing" concerns, including compliance with international anti-money laundering, terrorism financing and sanctions laws. The state-owned Perth Mint has exposed taxpayers to a potential billion-dollar penalty for systemic anti-money laundering compliance breaches of federal law on thousands of occasions. This includes at least 5,000 strict liability cross-border funds transfer reporting offences. The penalty for the international funds transfer instruction (otherwise known as IFTI) reporting breaches carries a theoretical A$105 billion upper limit if AUSTRAC, the Australian Transaction Reports and Analysis Centre, chooses to litigate. AUSTRAC has ordered an independent expert to examine a raft of other breaches of the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. The case has now become a major political issue, with Opposition politicians and media commentators calling for an urgent royal commission into the mint's governance failures.From Regulatory Intelligence (behind paywall):Perth Mint in breach of U.S. commodities laws for 25 years, says internal report: http://go-ri.tr.com/kUtsCpPerth Mint's woes deepen as London Bullion Market Association investigates supply chains, laundering: http://go-ri.tr.com/BrpH9eOUTLOOK 2023-Australian regulators begin year with huge enforcement case load: http://go-ri.tr.com/sJ1aR3EXCLUSIVE: Perth Mint knew about AML problems in March 2021 -internal documents: http://go-ri.tr.com/gRjcODPerth Mint in AUSTRAC's crosshairs over suspected money laundering breaches: http://go-ri.tr.com/gqGstxANALYSIS: How a government became embroiled in a billion-dollar criminal gold laundromat: http://go-ri.tr.com/CPkOrZPerth Mint may have exploited registration loophole in AML/CTF Act, says WA government: http://go-ri.tr.com/W4Kw6JPremier speaks out on WA government's gold laundering scandal: http://go-ri.tr.com/sLwEEXGovernment taking gold laundromat allegations "very seriously", says WA Premier: http://go-ri.tr.com/sLwEEX 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.

This special episode of Compliance Clarified was recorded for International Women’s Day. Rachel Wolcott and Lindsey Rogerson, both senior editors at Regulatory Intelligence in London, are joined by Dr Louise Ashley of Queen Mary University’s London School of Business and Management and Centre for Research on Equality and Diversity. Louise has spent a decade researching social inclusion in the City of London. Her book Highly Discriminating: Why the City Isn't Fair and Diversity Doesn't Work is based on interviews with more than 400 city leaders and workers was published last year. She was a working group member of the City of London Corporation Taskforce on Socioeconomic Diversity andled research for the government's Social Mobility Commission.City firms have been trumpeting their diversity and inclusion programmes, but in this episode, we look at what is actually happening. What Dr Ashley illustrates in her work, is a complex situation where D&I programmes have achieved some incremental change, but at a cost to individuals. To "make it" women and individuals from ethnic minority and lower socio-economic backgrounds must assimilate to the prevailing financial services culture, which is white, middle-class, and male. D&I programmes have been sanitised politically and co-opted to serve City firms' reputational and marketing needs. Regulators should take another look at these programmes with a more critical eye, she argues. Programme notes: Louise Ashley's article for The Conversation can be found here: https://theconversation.com/class-and-the-city-of-london-my-decade-of-research-shows-why-elitism-is-endemic-and-top-firms-dont-really-care-199474 Link to Highly Discriminating: Why the City Isn't Fair and Diversity Doesn't Work, by Louise Ashley https://bristoluniversitypress.co.uk/highly-discriminating Lindsey’s article Employment tribunal orders BNP Paribas to carry out equal pay audit, after £2 million judgmenthttp://go-ri.tr.com/K30qUZ Rachel & Lindsey’s articleUK regulators plan pilot diversitydata collection, regular reporting to followhttp://go-ri.tr.com/sRJpVd 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.

"Do as I say, not as I do," is an adage that will echo through the ages. But rarely do we hear it uttered within the hallowed halls of financial regulators. In Australia, this month, the adage is ringing loudly and clearly at the financial conduct regulator. A misconduct investigation involving the most senior staff at the Australian Securities and Investments Commission (ASIC) has highlighted the challenges of building and maintaining a strong organisational culture — even for the regulator itself. A Senate hearing in Canberra has unearthed a complaint about allegations that a deputy commissioner behaved in a manner that was "disrespectful and contemptuous" towards other staff. The case has underscored the importance of culture, including at the nation's financial conduct regulator, said Deborah O'Neill, a Labor senator. "I think that this indicates some cultural challenges that are being faced by ASIC. We know that culture matters," she said. In this episode of Compliance Clarified, Nathan Lynch speaks with Niall Coburn, Thomson Reuters' senior regulatory expert for the Asia-Pacific region. Follow the links below for more coverage from Regulatory Intelligence on the importance of regulatory culture. Bad blood between ASIC commissioners highlights challenge of culture: http://go-ri.tr.com/abwqdn ASIC 'narrowly' avoided misleading parliament over Chester investigation, says Liberal senator : http://go-ri.tr.com/TQmSxc Opinion: ASIC in government's crosshairs as chair apologises for outburst, Senate wants change: http://go-ri.tr.com/sEqYZd Regulatory Insight: Top ten risks for the Asia-Pacific region in 2014: http://go-ri.tr.com/OLUaA3 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.

This episode of Compliance Clarified looks at the UK enforcement outlook for 2023 and, notably, the work of the Financial Conduct Authority (FCA). Change is in the air with the arrival of Ashley Alder as chairman from Hong Kong's Securities and Futures Commission and the upcoming departure this spring of Mark Steward, the FCA's long-serving enforcement director.In this episode, Alexander Robson, managing editor, is joined by Rachel Wolcott and Lindsey Rogerson, senior editors in London, to consider the likely impact of the FCA's work on compliance professionals this year.The regulator has had a busy start to 2023, completing historic enforcement actions and imposing big fines for infractions of anti-money laundering rules, as well as filing criminal charges in an alleged insider dealing and money laundering case. Steward would surely like to complete as many cases as possible before he goes, particularly the ones started under his watch.Programme notes:OUTLOOK 2023 - Financial Services and Markets Bill to set stage for post-Brexit financial regulation, new FCA chair and enforcement head arrive (paywall): https://regintel.thomsonreuters.com/#ri/resolve/shorturl/%7B%22shortUrl%22%3A%22Krs7La%22%7DFirst statutory notice Campbell and Associates Independent Financial Advice Limited: www.fca.org.uk/publication/supervisory-notices/first-supervisory-notice-campbell-associates-independent-financial-advice-limited-2023.pdfDetails of the ClientEarth judicial review of the Financial Conduct Authority: www.reuters.com/business/energy/uk-watchdog-faces-lawsuit-climate-group-over-energy-company-prospectus-2023-02-16/Saranac (Tom Kalaris) decision notice: www.fca.org.uk/publication/decision-notices/saranac-partners-limited-2022.pdfOPINION: Money laundering fines for Guaranty and Al Rayan: examples of warnings going unheeded (paywall): http://go-ri.tr.com/Jf43y4 The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and it aims to help compliance officers make sense of the often-challenging regulatory environment.Compliance Clarified covers the big challenges of the day and offers practical ideas for emerging good practice.

The U.S. SEC’s annual list of examination priorities is a key document setting the agenda for financial services compliance professionals on Wall Street and Main Street.This year the regulator signals it will be examining investment advisers and broker-dealers in light of the “tumult and change” caused by geopolitical and economic events, as well as by rule changes it has imposed in recent years.In this episode, Randall Mikkelsen, managing editor for North America for Regulatory Intelligence, is joined by Jason Wallace, senior editor, to review the latest priorities list issued in February, and talk about how compliance professionals can best prepare. The "Compliance Clarified" podcast series covers the wide range of topics which affect compliance at financial services firms, and aims to help make sense of the often-challenging regulatory environment. It considers the big challenges of the day and offers practical ideas for emerging good practice.Follow these links for more coverage by Thomson Reuters Regulatory Intelligence of the exam priorities and related compliance issues.Marketing, private-fund advisers lead list of SEC exam priorities for advisers: https://regintel-content.thomsonreuters.com/document/I89B0B8C0A80011EDB628EC1DFA8C5BEDSEC 2023 exam priorities shaped by 'tumult and change' of recent years: https://regintel-content.thomsonreuters.com/document/I58648520A74811EDB628EC1DFA8C5BEDTo learn more about Regulatory Intelligence: https://legal.thomsonreuters.com/en/forms/contact-sales-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.

If there is one certainty for compliance professionals in the year ahead, it's that they need to be ready for the unexpected. This episode looks at the top regulatory trends for financial services firms in the Asia-Pacific region in 2023. Discussion topics include cyber risk, the war in Ukraine, the post-pandemic economic recovery, and emerging market economic crises, which all set the stage for a volatile and challenging year ahead. Geopolitical tensions have risen to a level not seen since the Cold War. This is affecting the Asia-Pacific economy amid the escalation of sanctions and other tools of economic warfare. In this episode of Compliance Clarified, Nathan Lynch speaks with Niall Coburn, Thomson Reuters senior regulatory expert for the Asia-Pacific region. Follow the link below for more coverage by Niall Coburn Coburn, of Regulatory Intelligence, on the outlook for 2023: http://go-ri.tr.com/OLUaA3 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.

This episode looks at top concerns for U.S. financial services compliance professionals this year. Among the biggest emerging issues: Regulatory scrutiny over Wall Street’s involvement in the crypto sector, a proposed revamp of the securities market structure, increased scrutiny of private equity and accounting, and new regulatory exam priorities.In this episode of Compliance Clarified, Randall Mikkelsen, managing editor for North America, is joined by Todd Ehret, senior regulatory intelligence expert, to consider how these issues can impact the work of compliance professionals this year.Follow these links for more coverage by Regulatory Intelligence of the regulatory outlook for 2023:Cyber danger tops risk agenda, AI and cyber-enabled financial crime pose complex threat: https://tmsnrt.rs/3wGozbdBeneficial ownership registers; improvement is glacial despite sanctions spotlight, EU seeks privacy solution: https://trten-my.sharepoint.com/personal/randall_mikkelsen_thomsonreuters_com/Documents/bit.ly/3wJKgXMTop concerns for U.S. compliance professionals (paywall): http://go-ri.tr.com/VugNZKU.S enforcement targets fraud hidden in emerging, unregulated finance (paywall): http://go-ri.tr.com/1CTQU9For more information about Thomson Reuters Regulatory Intelligence, please visit https://legal.thomsonreuters.com/en/products/regulatory-intelligence  The Compliance Clarified podcast series covers the wide range of topics which affect compliance at financial services firms, and it aims to help compliance officers make sense of the often challenging regulatory environment.Compliance Clarified covers the big challenges of the day and offers practical ideas for emerging good practice.

In the first episode of the new series of Compliance Clarified we discuss 10 things UK and EU Compliance officers need to consider in 2023.In 2022, the financial services sector was influenced by many different factors. On a global level geopolitical, climate and economic risks dominated government’s agendas. Financial services firms were having to find new and innovative ways to address these challenges and the regulatory landscape flexed with more regulations in diversified areas to address the emerging risks.For compliance officers, the increase in regulatory activity, meant an increased workload to be dealt with, at times, by stagnant or reduced budgets.And 2023 show no sign of “let up” with some significant regulatory initiatives being developed to implementation.In this episode, Lindsey Rogerson, Senior Editor Regulatory Intelligence, is joined by Mike Cowan, senior regulatory intelligence expert in London, to discuss the challenges that face compliance officers in 2023. The Compliance Clarified podcast series covers the wide range of topics which affect compliance officers in financial services firms.The series has been designed to help compliance officers make sense of the often-challenging world of financial services regulation, which is now overlaid with expectations not found in the black and white of any rulebook. The role and remit of the compliance officer is ever-growing, and senior compliance officers have had to become polymaths, mastering not only detailed subject matter expertise but also the qualitative mysteries of culture and conduct risk.Compliance Clarified covers the hot topics of the day and the challenges they bring, and aims to offer up practical ideas for emerging good practice.