Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

In the tenth and final episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Helen Chan and Lindsey Rogerson to take another look at personal liability and accountability in financial services. Many jurisdictions have introduced personal accountability regimes in order to drive better risk aware behaviours by senior managers. The practical impact of which was highlighted in our recently published cost of compliance report for 2022 in which nearly half (45%) expected the personal liability of compliance professionals would increase in the coming year. In another stat 56% of respondents thought that the regulatory focus on culture and conduct risk would increase the personal liability of senior managers. Links to content referenced in the discussion: Cost of Compliance 2022 report can be downloaded from https://legal.thomsonreuters.com/en/insights/reports/cost-of-compliance-2022-competing-priorities Governance scrutiny, pandemic risks heighten personal liability stakes for senior managers in Hong Kong https://www.linkedin.com/posts/helenhchan_senior-liability-enforcement-in-hong-kong-activity-6953537396344860673-jl_i?utm_source=linkedin_share&utm_medium=member_desktop_webReport on introduction of Irish Individual Accountability Framework by Joint Committee on Finance, Public Expenditure and Reform and Taoiseach, April 2022 https://data.oireachtas.ie/ie/oireachtas/committee/dail/33/joint_committee_on_finance_public_expenditure_and_reform_and_taoiseach/reports/2022/2022-04-05_report-on-pre-legislative-scrutiny-of-the-general-scheme-of-the-central-bank-individual-accountability-framework-bill-2021_en.pdf European Central Bank report on climate stress test results July 2022 https://www.bankingsupervision.europa.eu/ecb/pub/pdf/ssm.climate_stress_test_report.20220708~2e3cc0999f.en.pdf Article on UK SMCR's lack of enforcement https://www.jdsupra.com/legalnews/senior-managers-regime-sets-6886025/ The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the ninth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by her co-author of the Cost of Compliance report Mike Cowan to take a look at the key findings from the 2022 report. The 2022 cost of compliance report is 13th annual survey report focusing on the challenges expected to be faced by risk and compliance functions at financial services firms around the world. This year’s survey had almost 500 responses from practitioners from banks, insurers, asset and wealth managers, regulators, broker dealers and payment services providers. Links to content referenced in the discussion: Cost of Compliance 2022 report can be downloaded from https://legal.thomsonreuters.com/en/insights/reports/cost-of-compliance-2022-competing-priorities Link to TV slot with Susannah Hammond discussing the Cost of Compliance report A look at the findings of the 2022 cost of compliance report (kaltura.com)https://cdnapisec.kaltura.com/html5/html5lib/v2.96/mwEmbedFrame.php/p/2363721/uiconf_id/46526623/entry_id/1_83kge8uc?wid=_2363721&iframeembed=true&playerId=kaltura_player_1598883065&entry_id=1_83kge8uc&flashvars%5bstreamerType%5d=autoThe survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the eighth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson, Todd Ehret and David Bickley (from Thomson Reuters Practical Law) to take a look at the future of financial services and the sheer breadth of the regulatory change agenda. Compliance officers will be all too familiar with regulatory change – it is the gift that keeps on giving and regulatory change management is a core competency for all risk and compliance functions. So what are the hotspot areas likely to need compliance attention in the coming months and years? Well as a short but dense list there is ESG, sanctions, the shift of the regulatory perimeter to capture more crypto marketplace activity, the focus on increasingly vulnerable customers as the cost of living crisis bites as well as shifting regulatory expectations when it comes to all aspects of operational resilience. And that is before considering the how of financial services regulation and the spectre of personal liability. Links to content referenced in the discussion: UK Treasury: Financial Services Future Regulatory Framework Review: Proposals for Reform https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1032075/FRF_Review_Consultation_2021_-_Final_.pdf Queen's Speech 2022: background briefing notes https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1074113/Lobby_Pack_10_May_2022.pdf European Parliament's economic and Monetary Affairs Committee's work in progress list https://www.europarl.europa.eu/cmsdata/250180/ITER0002_EN_20220623.pdf Brexit Opportunities Catalogue https://public.tableau.com/app/profile/governmentreporting/viz/UKGovernment-RetainedEULawDashboard/Guidance Regulatory Initiatives Grid https://www.fca.org.uk/publication/corporate/regulatory-intitiatives-grid-may-2022.pdf Dear CEO letter to 3,500 lenders on improving customer outcomes https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-rising-cost-of-living-acting-now-support-consumers.pdf PRA Consultation Paper The Strong and Simple Framework: a definition of a Simpler-regime Firm (CP5/22) https://www.bankofengland.co.uk/-/media/boe/files/prudential-regulation/publication/2022/cp522.pdf Bufferati - speech by Sam Woods https://www.bankofengland.co.uk/speech/2022/april/sam-woods-speaking-at-city-week-2022-developments-in-prudential-regulation-in-the-uk SEC Spring 2022 Regulatory Agenda https://www.reginfo.gov/public/do/eAgendaMain?operation=OPERATION_GET_AGENCY_RULE_LIST&currentPub=true&agencyCode=&showStage=active&agencyCd=3235&csrf_token=ABBAA84824C29E01B566B0472A6E99E59C730916821A14613C79DE7F48AC8EAEF4CA3A7C929E9B10E667F119BAA4958D5293The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the seventh episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Mike Cowan to look at the compliance challenges posed by data governance. In a digital age more than ever, firms need to embrace the fact that data is a vital strategic asset and from there build a business-wide approach to data aggregation, management, storage, security, retrieval, and destruction — in other words, build a business-specific approach to data governance. The successful governance of data will have multiple benefits one of which will be a direct improvement in the compliance function’s capacity to have line of sight to the regulatory risks being run by the business. Links to content referenced in the discussion: UK FCA portfolio letter warning on reporting https://www.fca.org.uk/publication/correspondence/portfolio-letter-data-reporting-services-providers.pdf BIS Paper No 124 - The design of a data governance system https://www.bis.org/publ/bppdf/bispap124.pdf UK Department of Culture Media & Sport - Data: a new direction - government response to consultation https://www.gov.uk/government/consultations/data-a-new-direction/outcome/data-a-new-direction-government-response-to-consultation#ch1 The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fifth episode of season 6 of the Compliance Clarified podcast, Susannah Hammond is joined by Rachel Wolcott and Brett Wolf to look at the compliance challenges posed by financial crime in general and sanctions in particular. Links to content referenced in the discussion: European Banking Authority new guidelines for MLROs which come into effect on December 1 2022 https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Guidelines/2022/EBA-GL-2022-05%20GLs%20on%20AML%20compliance%20officers/1035126/Guidelines%20on%20AMLCFT%20compliance%20officers.pdf MEPs present plans to crack down on financial crime with new Anti-Money Laundering Authority https://www.europarl.europa.eu/news/en/press-room/20220613IPR32836/meps-present-plans-for-new-anti-money-laundering-authorityACAMS Ukraine crisis hub https://www.acams.org/en/ukraine-crisis-rapid-response-resources#rapid-response-briefs-6c1b6814 https://www.moneylaundering.com/news/hunt-for-russian-wealth-exposes-eus-sanctions-shortcomings/ 'Reputation launderers,' disinformation campaigns hinder sanctions and financial crime compliance efforts https://www.jdsupra.com/legalnews/reputation-launderers-disinformation-8673225/ Amendments to the Money Laundering, Terrorist Financing and Transfer of funds (information on the payer) regulations 2018 statutory instrument 2022, response to the consultation https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1082704/MLRs_SI_2022_-_Consultation_Response.pdf New Office of Financial Sanctions Implementation (OFSI) penalty guidance https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1081195/OFSI_Enforcement_guidance_June_2022.pdf Putin's People by Catherine Belton https://www.theatlantic.com/magazine/archive/2020/09/catherine-belton-putins-people/614212/ Lazarus Heist: North Korean hacks https://www.bbc.co.uk/programmes/w13xtvg9/episodes/downloads Superyachts: https://news.sky.com/story/pr-stunt-captain-of-38m-superyacht-seized-in-london-says-govt-has-got-the-wrong-guy-12634728 U.S. Treasury defines ‘new investments’ https://www.linkedin.com/posts/amlwolf_treasury-defines-new-investment-activity-6942883691002019840-Alqm?utm_source=linkedin_share&utm_medium=ios_app The survey for the TRRI annual fintech, regtech and the role of compliance report – if you would like to take part in that please click the below link https://reuters.az1.qualtrics.com/jfe/form/SV_9HckOjpJJTOp3EO Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fifth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Lindsey Rogerson and Rachel Wolcott Engler to look at the compliance challenges posed by increasingly vulnerable customers. Compliance officers are used to the concept of vulnerable customers and the need to take additional care to ensure consistently good customer outcomes but with a cost-of-living crisis, digital transformation and a new UK consumer duty the challenges are growing. Links to content referenced in the discussion: UK Finance vulnerability academy https://www.ukfinance.org.uk/events-training/vulnerability-academy-october-2021 Article on giving FCA a "have regard to" financial inclusion https://www.jdsupra.com/legalnews/call-for-fca-to-be-required-to-have-6787510/ Firms & individuals getting it wrong in past: Lloyds mortgage customers 2017 https://www.fca.org.uk/news/press-releases/lloyds-banking-group-redress-scheme-mortgage-arrears-customers Moneybarn fine https://www.fca.org.uk/news/press-releases/fca-fines-moneybarn-277m-unfair-treatment-customers-arrears Steven Martin of Quick Purchase https://www.fca.org.uk/publication/final-notices/final-notice-steve-martin-quick-purchase.pdf Wonga redress notice https://www.fca.org.uk/news/press-releases/wonga-pay-redress-unfair-debt-collection-practices#:~:text=Wonga%2C%20the%20UK's%20biggest%20payday,and%20misleading%20debt%20collection%20practices. Useful FCA guidance: Guidance on fair treatment of vulnerable customers https://www.fca.org.uk/publications/finalised-guidance/guidance-firms-fair-treatment-vulnerable-customers Persistent credit card debt https://www.fca.org.uk/news/press-releases/fca-tells-credit-card-firms-review-their-approach-persistent-debt-customers Arrears, payment shortfalls and repossession chapter of Handbook https://www.handbook.fca.org.uk/handbook/MCOB/13.pdf FCA speeches https://www.fca.org.uk/news/speeches/keeping-pace-rising-costs-improving-financial-inclusion-consumers https://www.fca.org.uk/news/speeches/supporting-consumers-challenging-times Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the fourth episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joinedby Lindsey Rogerson and Henry Engler to look again at ESG – that is environmental, social andcorporate governance and the strain the good intentions are coming under from an uneven globalapproach, the war in Ukraine and increasing economic challenges.Links to content referenced in the discussion:Article on ISSB standards and how they link to EU and US proposals http://go-ri.tr.com/SZiOMZLink to ISSB consultation IFRS - Open for commentLink to EU sustainability reporting standards consultationPublic consultation on the first set of Draft ESRS - EFRAGLink to EU Commission Q&A on SFDRhttps://www.esma.europa.eu/sites/default/files/library/c_2022_3051_f1_annex_en_v3_p1_1930070.pdfLink to SEC enforcement action against BNY Mellon Investment Adviser on ESG considerationshttps://www.sec.gov/news/press-release/2022-86Link to SEC proposed rule on company climate disclosureshttps://www.sec.gov/rules/proposed/2022/33-11061.pdfGary Gensler, chair of SEC, video explainer on climate-related disclosure proposalhttps://www.youtube.com/watch?v=MacoRZSLzTc Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

Susannah Hammond, Host of the Compliance Clarified podcast, discusses the evolving supervisory approach to conduct risk with guests Helen Chan and Mike Cowan. They explore the concept of conduct risk, the different regulatory approaches in Hong Kong, Singapore, and the UK, and the importance of good customer outcomes. The podcast also highlights the need for regulating the regulatory perimeter and improving customer treatment, addressing vulnerable customers, and promoting competition.

In the second episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Rachel Wolcott and Mike Cowan looking again at operational risk with, in particular, a focus on the impact of cyber on operational risk and resilience. Links to content referenced in the discussion: Operational resilience: next steps on the PRA’s supervisory roadmap − speech by David Bailey, UK Prudential Regulation Authority https://www.bankofengland.co.uk/speech/2022/april/david-bailey-speaker-at-uk-finance-event-operational-resilience-beyond-2022 SS2/21 Outsourcing and third party risk management: https://www.bankofengland.co.uk/prudential-regulation/publication/2021/march/outsourcing-and-third-party-risk-management-ss SEC Charges Five Russians in $80 Million Hacking and Trading Scheme https://www.sec.gov/news/press-release/2021-265 SEC Announces Three Actions Charging Deficient Cybersecurity Procedures https://www.sec.gov/news/press-release/2021-169 EU NIS 2 Directive https://ec.europa.eu/commission/presscorner/detail/en/ip_22_2985 The European Banking Authority's (EBA) Report on Convergence of Supervisory Practices in 2021 https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Reports/2022/1032485/Report%20on%20convergence%20of%20supervisory%20practices%20in%202021.pdf Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2

In the first episode of season 5 of the Compliance Clarified podcast, Susannah Hammond is joined by Todd Ehret and Joe Raczynski to discuss the latest Thomson Reuters special report on all things crypto and the complex regulatory future which is beginning to emerge. Links to content referenced in the discussion: A digital version of the special report ‘Cryptos on Rise 2022’ can be found here https://www.thomsonreuters.com/en/reports/cryptos-on-the-rise-2022.html The takedown of Hydra https://www.linkedin.com/posts/todd-ehret-91827264_takedown-of-darknet-market-hydra-rise-of-activity-6930176733211979776-mfyq?utm_source=linkedin_share&utm_medium=member_desktop_web The increasing U.S. political awareness around cryptos https://www.linkedin.com/posts/todd-ehret-91827264_cryptos-enter-politics-the-emergence-of-activity-6930181643701764096-ucCE?utm_source=linkedin_share&utm_medium=member_desktop_web Further background and articles by Joe Raczynski can be found below https://www.thomsonreuters.com/en/profiles/joseph-raczynski.html https://joetechnologist.com/ https://www.josephraczynski.com/ Mind-shifting into blockchain, cryptocurrency, and the future of asset ownership in the metaverse https://www.thomsonreuters.com/en/careers/careers-blog/mind-shifting-into-blockchain-cryptocurrency-and-future-of-asset-ownership-in-metaverse.html Bye-bye, banks! Hello DeFi… Our bankless society has officially begun https://www.thomsonreuters.com/en-us/posts/legal/defi-bankless-society/ Non-fungible Tokens: Asset ownership via blockchain rockets into legalhttps://www.thomsonreuters.com/en-us/posts/legal/non-fungible-tokens-legal/ TV interview with Susannah chatting about the cryptos special report: https://cdnapisec.kaltura.com/p/2363721/embedPlaykitJs/uiconf_id/49993563?iframeembed=true&entry_id=1_vy1ibvbm Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence?elqTrackId=73370082102a4669b4d34524158b501c&elqaid=3945&elqat=2