Compliance Clarified – a podcast by Thomson Reuters Regulatory Intelligence

In the tenth, and last, episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Mike Cowan her co-author on the report Fintech, regtech and the role of compliance in 2022. The subtitle of the report is “challenges arising from technological opportunities” which gives a sense of the findings. It is clear that digital transformation has been a fundamental enabler for financial services firms particularly in navigating the pandemic. Indeed, it is hard to underestimate the opportunities firms can derive from the robust implementation of technological solutions but maximising their potential can present challenges. And the most significant challenges highlighted by respondents to this year's survey concerned four key areas - data, operational resilience, the management of third parties and skill sets. The Fintech, regtech and role of compliance report 2022 can be downloaded from: https://legal.thomsonreuters.com/en/insights/reports/fintech-regtech-and-the-role-of-compliance-in-2022 Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

In the ninth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Lindsey Rogerson and Henry Engler to revisit ESG – that is environmental, social and corporate governance with a particular focus on the ‘G’ – governance together with the ramifications for financial services firms coming out of COP26. For the last couple of weeks practically every headline has been about COP26 and the agreements reached or indeed not reached. Those agreements and the governance element of ESG are inextricably linked – without robust corporate governance financial service firms (among others) will simply not be able to deliver on the environmental and social challenges. As mentioned in the podcast some additional resources: Formation of International Sustainability Standards Board "pivotal moment" https://www.linkedin.com/feed/update/urn:li:activity:6869302667005571072/ COP26 Deforestation & methane pledges will help banks, asset managers get to net zerohttps://www.thomsonreuters.com/en-us/posts/news-and-media/cop26-deforestation-methane-pledges/?utm_source=TRI&utm_medium=Social&utm_campaign=Govt_COP26_Deforestation_Methane_Pledges_Social Link to prototype ISSB climate standardhttps://www.ifrs.org/content/dam/ifrs/groups/trwg/trwg-climate-related-disclosures-prototype.pdf Link to prototype ISSB general standardhttps://www.ifrs.org/content/dam/ifrs/groups/trwg/trwg-general-requirements-prototype.pdf Oliver Wyman - Climate And Compliance The Time To Engage Is Now!https://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2021/oct/Climate_and_compliance_.pdf Special report: ESG report highlights new challenges for financial institutionshttps://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/ 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 3 of the Compliance Clarified podcast Susannah Hammond is joined by Todd Ehret to take another look at cryptos. In a wide-ranging discussion, we update on both developments in the U.S. and the evolving picture for Central Bank Digital Currencies together with a debate as to whether or not all things crypto are actually regulatable. Or is that mission impossible? As mentioned in the podcast, here are some additional resources: INSIGHT: Coinbase proposal for U.S. crypto regulatory framework may kickstart processhttps://www.linkedin.com/posts/todd-ehret-91827264_coinbase-proposal-for-a-regulatory-framework-activity-6867108724322918400-N-sl G7 public policy principles for retail CBDCshttps://www.linkedin.com/posts/susannahhammond_g7-public-policy-principles-for-retail-cbdcs-activity-6867035415677816832-whqM Blog U.S. crypto framework begins to evolvehttps://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/us-crypto-framework-evolves/ Special report: Cryptos on the rise https://www.thomsonreuters.com.sg/en/resources/cryptos-on-the-rise.html Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

n the seventh episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott and Mike Cowan to consider operational resilience with a particular focus on the supply chain, outsourcing and third parties. The discussion will cover the latest regulatory developments, the timeline to a raft of new reporting obligations and the need for compliance functions to be, and stay, involved in all things operational resilience. As discussed in the podcast here are some additional resources: Outages focus UK regulators on market infrastructure operational resiliencehttps://www.linkedin.com/feed/update/urn:li:activity:6864862477658669056/ Operational resilience risk posed by third parties, cloud will be a post-pandemic focus, central bankers sayhttps://www.linkedin.com/feed/update/urn:li:activity:6864863665368129536/ IOSCO updates outsourcing principles to ensure operational resilience https://www.linkedin.com/posts/michael-cowan-00768049_iosco-principles-on-outsourcing-activity-6864602910722936832-nwS8 FSB calls for standardisation of cyber incident reporting https://www.linkedin.com/posts/michael-cowan-00768049_fsb-cyber-incident-reporting-activity-6864602291320721408-4SEj Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

Rachel Wolcott, a market abuse expert and compliance officer, joins Susannah Hammond to discuss the persistence of market abuse and the challenges faced by compliance officers. They explore topics such as the role of social media in market abuse, challenges with side hustles on neo broker platforms, gray areas in a changing regulatory landscape, and the importance of handling dawn raids properly to avoid disastrous situations.

In the fifth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott and Todd Ehret to discuss the continuing regulatory dilemma surrounding all things cryptos, crypto firms themselves and the potential direction of regulatory travel. Special report: Cryptos on the rise https://www.thomsonreuters.com.sg/en/resources/cryptos-on-the-rise.htmlUS crypto framework starts to take shape https://www.thomsonreuters.com/en-us/posts/investigation-fraud-and-risk/us-crypto-framework-evolves/?utm_source=TRI&utm_medium=Social&utm_campaign=Fraud_and_Risk_US_Crypto_Framework_Evolves_Social Perimeter Report 2020/21 https://www.fca.org.uk/publication/annual-reports/perimeter-report-2020-21.pdfhttps://tabbforum.com/opinions/inexperienced-mlros-poor-applications-fca-vetting-create-barriers-for-crypto-firms-regulatory-approval/ Binance continues FCA engagement, opaque corporate structure an issue https://www.linkedin.com/feed/update/urn:li:activity:6859513325148004353/Textbook market abuse observed in Bitcoin Futures https://www.linkedin.com/feed/update/urn:li:activity:6859514841615405056/ Further information on Thomson Reuters Regulatory Intelligence can be found at: https://legal.thomsonreuters.com/en/products/regulatory-intelligence

In the fourth episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Rachel Wolcott and Todd Ehret to take a look at the developing issues and what good is beginning to look like for the evolving management of personal accountability. Not only are accountability regimes proliferating around the world but also firms and their compliance officers need to also consider an increasingly wide range of non-financial misconduct when assessing whether or not individuals are, and remain, fit and proper. And individuals need to be considered ‘fit and proper’ in order to be a licensed or registered employee and thus authorised to undertake financial services. As discussed in the podcast here are some additional resources: New York City Bar Association proposals for compliance officer liability https://www.nycbar.org/member-and-career-services/committees/reports-listing/reports/detail/framework-for-chief-compliance-officer-liability Survey of graduates around the world https://www.cfainstitute.org/-/media/documents/survey/Graduate-Outlook-Survey-2021.ashx UK senior managers and certification regime stocktake https://www.fca.org.uk/publications/multi-firm-reviews/senior-managers-and-certification-regime-banking-stocktake-report Firms' recruitment procedures require change to meet regulators' diversity and suitability requirements https://www.jdsupra.com/legalnews/firms-recruitment-procedures-require-8560749/ 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 third episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Lindsey Rogerson, Helen Chan and Henry Engler to take a global look at the developing issues and what good is beginning to look like for managing ESG as a strategic priority. Virtually every industry is affected by the collective efforts of governments to tackle climate change, the effects of which have become all too stark in 2021 – those efforts have been collectively badged as ESG. In last week’s episode we spoke about diversity which has also fallen under the umbrella of ESG and is another challenge for risk and compliance functions. This episode is going to consider ESG in a much wider sense - financial services firms are, for instance, heavily involved managing the transition from a fossil fuel-dominated economy to one supported by renewable energy. As discussed in the podcast here are some additional resources: TRRI’s new ESG report https://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/ New York Fed paper that looks into stress testing banks for climate risk. https://www.newyorkfed.org/research/staff_reports/sr977 Bank of Japan statement that they will begin providing zero-interest funds to financial institutions for loans and investments that contribute to addressing climate change. https://www.boj.or.jp/en/announcements/press/koen_2021/ko211005a.htm/ ESG questions in palm oil production post compliance, reputational risk for financial firms https://www.linkedin.com/posts/helenhchan_esg-questions-in-palm-oil-production-considerations-activity-6854614204649996288-I6Rw Banks need COP26 to deliver key milestones for the transition https://www.linkedin.com/feed/update/urn:li:activity:6854715735319674881/ 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 second episode of season 3 of the Compliance Clarified podcast Susannah Hammond is joined by Lindsey Rogerson and Henry Engler to discuss the increasing importance of diversity issues for financial services firms. Diversity, in and of itself, is an important issue but it has risen up regulatory agenda as it come under the umbrella of ESG issues which are fast becoming a strategic priority for firms and regulators alike. Alongside the headline grabbing need to tackle climate change, questions around human rights, social justice, and human diversity now also need to be managed alongside firms’ more traditional values and concerns. As discussed in the podcast here are some additional resources: TRRI’s new ESG report https://www.thomsonreuters.com/en-us/posts/legal/esg-report-2021/ Article summarising a New York Fed webinar on diversity: https://www.reuters.com/article/bc-finreg-corporate-diversity/corporate-diversity-inclusion-needs-focus-on-middle-management-influential-employees-ny-fed-webinar-idUSKBN2B11I4 Stanford University study of how U.S. companies have responded to a 2020 SEC human disclosure rule that required them to share more information about their workforce. https://www.gsb.stanford.edu/faculty-research/publications/human-capital-disclosure-what-do-companies-say-about-their-most Overview of U.S. SEC proposals on diversity disclosures https://www.reuters.com/world/us/us-sec-prepares-take-corporate-america-over-workforce-disclosures-2021-08-16/ Harvard Business Review article that argues: “Increasing diversity does not, by itself, increase effectiveness; what matters is how an organization harnesses diversity, and whether it’s willing to reshape its power structure.” https://hbr.org/2020/11/getting-serious-about-diversity-enough-already-with-the-business-case Link to Regulatory Intelligence article UK regulators plan pilot diversity data collection, regular reporting to follow https://www.linkedin.com/feed/update/urn:li:activity:6851538365377069056/ Link to Regulatory Intelligence article Collecting and protecting diversity data in the finance sector: critical considerations https://www.linkedin.com/feed/update/urn:li:activity:6851540501397667840/ The UK’s Social Mobility Commission’s socio-economic questions https://socialmobilityworks.org/toolkit/financial-and-professional-measurement/ Link to the McKinsey research on diverse company outperformance https://www.mckinsey.com/featured-insights/coronavirus-leading-through-the-crisis/charting-the-path-to-the-next-normal/most-diverse-companies-now-more-likely-than-ever-to-outperform-financiallyLink to academic paper which questions McKinsey's research https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3849562 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 3 of the Compliance Clarified podcast Susannah Hammond is joined by Helen Chan and Brett Wolf to discuss the shifting sands around sanctions. Sanctions screening, sanctions compliance and evidencing compliance with the patchwork quilt of under and overlapping requirements has never been easy, but it has got a whole lot more challenging in the wake of the Taliban take-over of Afghanistan and the emerging use of sanctions against a crypto exchange deemed to be a conduit for illicit funds. If that wasn’t challenging enough there are also the implications of the Chinese counter foreign sanctions law and where that leaves international firms in terms of compliance. As discussed in the podcast here are some additional resources: UAE central bank guidance on sanctions screening and transaction reporting: https://www.linkedin.com/posts/susannahhammond_uae-central-bank-guidance-on-sanctions-screening-activity-6848249167937077248-BfUi U.S. Treasury Department issues two general licenses aimed at ensuring a continued flow of humanitarian aid to Afghanistan https://www.linkedin.com/posts/amlwolf_ofac-licenses-afghanistan-activity-6848247094038319104-C49D The need for "high-alert" due diligence with regard to Afghanistan https://www.linkedin.com/feed/update/urn:li:activity:6834530562347200512/ Implications of transactions with the Afghan government vs humanitarian aid https://www.linkedin.com/feed/update/urn:li:activity:6838915397341777920/ Firms likely to ‘wholesale de-risk’ from Afghanistan https://www.linkedin.com/feed/update/urn:li:activity:6837037096738320384/ China’s countermeasures sanctions regime and the implications for compliance functions. https://www.linkedin.com/posts/helenhchan_china-countermeasures-sanctions-regime-activity-6848540647100706816-QIuj 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