compliance
Navigation

Welcome to complianceconsultant.org — your comprehensive compliance resource. Our mission is to give you the facts you need about compliance — fast — so you can get on the road to taking action right away`.

The website provides a ton of information about compliance. In addition, you will find extensive information on leading compliance to help you on your way to success.

Please have a look at our compliance articles, products, resources, and additional information located throughout .

We strive to provide only quality articles, so if there is a specific topic related to compliance that you would like us to cover, please contact us at any time.

And again, thank you to those contributing to our compliance website.

U.S. arm of UK medical-device company settles foreign corruption allegations over doctor payments
Tennessee-based medical device company Smith & Nephew Inc. has agreed to pay more than $22 million to settle allegations it violated the Foreign Corrupt Practices Act (FCPA) by making improper payments to publicly-employed Greek physicians and falsely recording the payments in its books and records. Smith & Nephew Inc., the US subsidiary of the UK's Smith & Nephew PLC, entered into a deferred prosecution agreement with the Justice Department and reached a settlement with the Securities and Exchange Commission (SEC). According to court documents filed in U.S. District Court in the District of Columbia, Smith & Nephew executives, employees and affiliates agreed to sell products at full price to a Greek distributor and then pay a certain "discount" percentage to shell companies in the UK and the Isle of Man that were controlled by the distributor. These off-the-books funds were reportedly used by the distributor to pay "cash incentives" to publicly employed Greek physicians to
EU bank watchdog says most banks' capital plans comply
MILAN/LONDON, Feb 6 (Reuters) - Most plans put forward by European banks to improve the industry's resilience are in line with what was asked of them, their regulator said on Monday, as some banks made last-ditch efforts to meet the demand to lift capital. Italy's Banco Popolare unveiled a plan to raise hundreds of millions of euros by buying back hybrid bonds, as one of 31 banks told to fill a 115 billion euro hole in their balance sheets by the end of June. Intesa Sanpaolo also said it will boost capital by buying back debt, even though it has not been ordered to do so. The aim is to ensure the industry is strong enough to withstand an economic slowdown and the euro zone's sovereign debt crisis. The European Banking Authority (EBA) meets on Wednesday and Thursday to assess each bank's plan, and will reject any that are unrealistic. "The overwhelming majority of measures outlined in the plans appear to be, in aggregate, in line with the spirit and the letter of the
Deutsche Boerse tightens rules to fend off manipulation
FRANKFURT, Feb 6 (Reuters) - Deutsche Boerse is seeking to curb market manipulation by tightening up the rules on its open market platform, it said on Monday. The German exchange said it would close its First Quotation board, a segment of its open market platform, which is a cheap and fast way for companies to offer their shares and bonds, after a stricter regime introduced in 2011 failed to have the desired effect. "Despite criminal law and supervisory measures and the close involvement of the applicant and the tightening of admission requirements, there have nevertheless continued to be massive and frequent suspected cases of market manipulation," Deutsche Boerse said in a statement. A spokeswoman for Deutsche Boerse declined to name specific cases of market manipulation or give numbers of incidents. Deutsche Boerse said current First Quotation Board members meeting the entry criteria will be able to move to the more regulated Prime Standard and General Standard segments
Sants sets firm date for when FSA starts to mirror pending twin peaks regime
Hector Sants, chief executive of the Financial Services Authority (FSA), has put a firm date for the first time on when the regulator will start mirroring the new twin peaks regime. In a speech today to the British Bankers' Association (BBA), Sants said that the twin peaks model would start operating within the FSA from April 2, 2011 and emphasised the intention of judgmental supervision and the need for firms to buy into the regime, and not drag their feet. The implications for large financial services firms, including insurers, are that that from this date, ahead of formal implementation of the regime, they will have to be dealing with two sets of supervisors, one on the prudential side and the other on the conduct side. Jonathan Davies, partner at Reynolds Porter Chamberlain, said that the FSA's announcement, just ahead of today's second reading of the Financial Services Bill in the House of Commons, where the debate, although unofficially a foregone conclusion, was still technically
Julius Baer ready to pay fine to avert U.S. probe
ZURICH - Julius Baer is prepared to pay a fine to escape an escalating U.S. crackdown on offshore bank accounts after last week's indictment of smaller rival Wegelin raised tension among Swiss private bankers. "We expect we will probably have to pay a fine, but have the resources to satisfy a solution," Baer Chief Executive Boris Collardi told a news conference as the bank announced 2011 results and a share buyback on Monday. "We've taken an early, proactive approach with the U.S., taken measures including the U.S. exit in 2009 at our own decision, and have an ongoing constructive dialogue," Collardi said, adding he did not expect the bank to be indicted. He did not say when a resolution was expected, nor how much Baer might have to pay. Collardi said the bank expects to have to hand over client data as part of a U.S. tax investigation into wealthy Americans who stashed their money in Swiss banks to avoid paying taxes. "We expect to have to deliver client information
Virgin eyes current accounts and SME lending for Northern Rock
Virgin Money has revealed plans to offer loans to small and medium enterprises (SMEs) and personal current accounts through its Northern Rock banks. Virgin is less than one month into its ownership of Northern Rock but the firm has told Thomson Reuters of its ambitious plans for the bank, and said it applauds the regulator for levelling the playing field for new entrants. Virgin had been eyeing Northern Rock since 2007, when the latter hit the rails at the start of the credit crunch. Many commentators have talked about the need for new entrants to the banking sector to increase competition in what had become predominately a four-horse race, but barriers to entry are high and even established players such as Virgin have found it difficult to break into the market. Scott Mowbray, a spokesman for Virgin Money, told Thomson Reuters: "We wanted to grow our business and our brand with a new approach. Northern Rock, which was in government hands, was a great opportunity." Virgin had also
ET, the new alien scaring global markets
Feb 5 (Reuters) - The United States is coming to be seen as a global threat, acting unilaterally with aggressive new market rules that critics say will hurt U.S. firms, foreign banks, and international markets in one swoop. The new buzzword in the financial world is "extraterritoriality", or ET. The idea that a government can exercise its authority beyond its borders. The fear is that after the 2007-2009 financial crisis that roiled global markets, some countries will engage in an arms race of tough financial reforms in order to be seen as the safest capital markets, and will haphazardly foist their own rules on other nations. Despite its talk of a global level playing field, the United States is being portrayed as a rogue country, with its unmatched Volcker rule to curtail banks' risky trades and its accelerated timetable to put in place new derivatives reforms. The backlash has gained force in recent weeks. International finance ministers are taking up their
Some insurers must plan for extra capital based on new Solvency II equivalence list, says PwC
The European Commission's publication of which countries are to be equivalent under Solvency II is more interesting for its omissions than its inclusions, according to PwC. The major jurisdictions, included in a letter from Jonathan Faull, of the European Commission, to Gabriel Bernadino, chairman of the European Insurance and Occupational Pensions Authority (EIOPA), come as no surprise, but the omission of Canada, a significant insurance jurisdiction, hits European insurance groups with Canadian subsidiaries. The omission of the U.S. has adverse implications for capital requirements to cover the groups' U.S. subsidiaries. Paul Clarke, global Solvency II leader at PwC, said: "European groups with Canadian subsidiaries know now that they will not be equivalent and should plan on this basis. For those interested in the U.S. debate, there is no early answer and so contingency plans are advisable." He noted that the remoteness of U.S. equivalence, brought into sharp relief by the letter,
UBS trader refused bail as bank probe deepens
LONDON, Feb 3 (Reuters) - Former UBS AG trader Kweku Adoboli, who is accused of unauthorised deals that cost the Swiss bank $2.3 billion, was refused bail by a London court on Friday less than an hour after regulators stepped up their probe into the scandal. The Financial Services Authority (FSA) and the Swiss Financial Market Supervisory Authority (FINMA) said they were launching enforcement investigations, which depending on their findings can be a prelude to actions such as fines or court proceedings. The Swiss bank is conducting its own probe and has blamed the losses on an unauthorised trading incident. Adoboli, 31, the British-educated son of a retired United Nations official from Ghana, was arrested straight after the losses were unveiled last September. He pleaded not guilty earlier this week to charges related to the scandal. He will remain in custody in Wandsworth prison in south London until his trial, which is set for Sept. 3. It was the first time
Swiss question 12 banks in U.S., Europe, Asia as LIBOR probe widens
ZURICH - Switzerland is investigating 12 U.S., European and Japanese banks suspected of conspiring to manipulate interbank lending rates used to set interest rates on hundreds of trillions of dollars of securities. The Swiss Competition Commission (COMCO) said on Friday it had received information of possible collusion between derivatives traders concerning London Interbank Offered Rate (LIBOR) and Tokyo Interbank Offered Rate (TIBOR). "Derivative traders working for a number of financial institutions might have manipulated these submissions by coordinating their behaviour, thereby influencing these reference rates in their favour," COMCO said in a statement. Libor is derived from the rates that banks say they charge each other and is used worldwide as a benchmark for setting rates on about $350 trillion of derivatives and other financial products. Small changes in the rate can have large impacts on the amounts of interest that can be charged. It is also
FSA says it still expects no delay to Solvency II
The Financial Services Authority (FSA) does not at this stage anticipate delay to Solvency II, despite the hold up on Omnibus II. David Johnston, senior implementation manager at the FSA, said that the Solvency II timetable was at risk only if the plenary vote on Omnibus II were moved to September instead of, as expected, to June or July. Johnston told a presentation at the International Underwriting Association (IUA)'s Solvency II seminar: "The Econ committee was due to vote at the end of June, which would show us parliament's views, but this has been delayed. We expect the Econ committee vote at the end of March, and there to be a plenary vote in June or July. If the plenary vote is delayed, due to the recess, it would get moved to September and this would put the Solvency II timetable at risk, but at this stage we're not expecting this." Johnston noted recent press reports which had suggested that Solvency II might be delayed until 2015/16. "We've no indications that it might
U.S. Justice Department indicts Swiss bank Wegelin
(Reuters) - The United States indicted Wegelin, the oldest Swiss private bank, on charges that it enabled wealthy Americans to evade taxes on at least $1.2 billion hidden in offshore bank accounts, the U.S. Justice Department said on Thursday. The announcement, by federal prosecutors in Manhattan, represents the first time an overseas bank has been indicted by the United States for enabling tax fraud by U.S. taxpayers. The indictment said the U.S. government had seized more than $16 million from Wegelin's correspondent bank, the Swiss giant UBS AG, in Stamford, Connecticut, via a separate civil forfeiture complaint. Because Wegelin has no branches outside Switzerland, it used correspondent banking services, a standard industry practice, to handle money for U.S.-based clients. UBS could not be reached for immediate comment. The charges against Wegelin, of fraud and conspiracy, provide a rare glimpse into the world of Swiss private banking in the wake of a crackdown on UBS AG.
ESCA signs info-sharing MOUs with Belgian, Luxembourg counterparts
The Emirates Securities and Commodities Authority (ESCA) has signed memoranda of understanding with Belgium's Financial Services and Markets Authority (FSMA) and Luxembourg's Commission de Surveillance du Secteur Financier (CSSF). The agreements established legal and technical frameworks to boost supervisory information-sharing between ESCA and its two European counterparts, covering securities companies, futures contracts, options and dual listing of public joint stock companies. In a public statement, Abdullah Al-Turifi, ESCA's chief executive, said that the mutual cooperation arrangements would ultimately result in the joint listing of securities on the respective countries' markets. The statement added that the agreements would also promote technical assistance and training to boost the competence of licensed market participants. Al-Turifi emphasised the need for mutual technical support which would target investment management, listing procedures, futures regulation and the
UK's FSA wants 16 percent funding rise for final year
LONDON, Feb 2 (Reuters) - Britain's Financial Services Authority, due to be replaced in 2013 after heavy criticism during the credit crisis, said the firms it regulates will have to pay for a 16 percent increase in its running costs in its final year. The financial watchdog said it would need 578.4 million pounds ($917 million) in 2012-13, up from 500 million the previous year, as it invested in technology to prepare for its replacement by two new regulatory bodies under Britain's so-called twin peaks regime. Big firms will bear the brunt of the increase, reflecting their greater use of FSA resources, with 42 percent of regulated companies paying only the minimum fee, which remains unchanged at 1,000 pounds for the third year running, the regulator said. "We are mindful of any increase in costs to industry and have continued to maintain headcount and keep core operating costs in line with inflation," FSA Chief Executive Hector Sants said in a statement on Thursday. The
EU insurance watchdog warns on capital rule delay
LONDON, Feb 2 (Reuters) - The European Union's insurance watchdog has urged the bloc's executive to make sure new capital rules for insurers are introduced on time, amid fears their implementation could be put back because of delays in the EU legislative process. Any delay beyond the current 2014 deadline for the so-called Solvency II regime will hinder insurers' efforts to adapt to the economic downturn, and could prompt national governments to introduce their own rules, EIOPA warned. "It is difficult in the light of the global crisis to defend any further delay in its implementation," EIOPA Chairman Gabriel Bernardino wrote in a letter dated Jan. 31 to Michel Barnier, the European Commissioner in charge of regulation. The European Commission, which drafts EU legislation, said last week it was committed to a "timely" introduction of Solvency II after a three-month delay in the European Parliament's voting procedures stirred fears the timetable could slip. The EU authorities
Ex-Credit Suisse traders admit cooking subprime books
NEW YORK (Reuters) - In a rare criminal prosecution to emerge from the financial crisis, two former Credit Suisse traders admitted on Wednesday to conspiring to manipulate the value of about $3 billion in subprime mortgage-backed securities in order to hide losses as the U.S. real estate market began to collapse in 2007. The men, London-based David Higgs, 42, and Salmaan Siddiqui, 36, of McLean, Virginia, pleaded guilty in U.S. district court in New York to a criminal charge of conspiracy to falsify books and records and commit wire fraud. Their one-time boss, Kareem Serageldin, 38, a U.S. citizen who lives in Britain, faces the same conspiracy charge and additional charges of falsifying books and records and wire fraud. Federal prosecutors said they do not consider Serageldin a fugitive even though he has yet to appear in the United States to answer to the charges. There have been few prosecutions of individuals at high-profile banks for conduct that contributed to the
Pensions industry needs to act on huge accumulation/decumulation disconnect, conference hears
The disconnect between accumulation and decumulation in the retirement market is so great it is like having two separate airplanes for ascent and descent, and the industry needs to fix this. A conference, organised by the Tax Incentivised Savings Association (TISA), heard the status quo might well be about to change also, with new, non-pension retirement vehicles coming in to challenge the existing thinking. Professor David Blake, director of the Pensions Institute, told delegates: "The industry is not doing its job to join up accumulation and decumulation." He said asset managers were involved with the accumulation phase and insurance companies in the decumulation phase and the two were not talking to each other. People's needs in retirement, he said, followed a U-shape, where they needed more money in the early stages of active retirement, less in the middle when they were less active and more toward the end for residential care. Although there has been much bad press about annuities,
Tougher bank rules to have an impact on insurers, says Bank of England's Tucker
The push by global regulators to protect taxpayers from the risk of future bank bailouts will have far-reaching consequences for other financial institutions such as insurers, Bank of England deputy governor Paul Tucker said on Wednesday. Higher capital and liquidity requirements for banks and a commitment to create resolution regimes, to allow lenders that are vital for the whole financial system to fail, will have an impact that went well beyond banks, Tucker said. "The upshot is that withdrawing the safety net from banks will require the other parts of the financial system to be sound, because they will have to stand on their own feet," Tucker said, according to the text of his remarks at a book launch. Tucker is also a member of the Financial Policy Committee, the Bank of England's new body in charge of "macro-prudential" regulation of the financial system. He singled out insurers, saying they too were beneficiaries of the government's support for the banking system.
New U.S. rules will hurt gilts market, says UK chancellor Osborne
LONDON, Feb 1 (Reuters) - New U.S. rules on banks' proprietary trading activities will make it harder for Britain to issue government bonds, finance minister George Osborne has told the U.S. Federal Reserve. In a Jan. 23 letter to Fed Chairman Ben Bernanke, Osborne said he was worried that the exemption for primary dealers of sovereign debt was too narrow. Japan and Canada have already complained about the effect the proposed "Volcker rule" might have on their government bond markets, while the European Commission is also set to do so, according to reports. The rule, named after former Federal Reserve Chairman Paul Volcker, aims to prevent banks from carrying out speculative trades for their own profit and is designed to stop banks taking risks with customer deposits. "Although we understand that the primary legislation makes an exemption for market-making activities, in practice the regulations would appear to make it more difficult and costlier to provide market-making services
Regulatory roundup: February 1, 2012
Today?s round-up includes an FSA speech entitled MiFID II: A Regulator?s viewpoint. Norton Rose Group EU/UK regulatory roundup: February 1, 2012 Date Source Document number Title of document Cross references Comment 30.01.12 Financial Services Authority MiFID II: A Regulator?s viewpoint European Commission - Markets in Financial Instruments Directive The FSA has published a speech by David Lawton (Acting Director, FSA) entitled MiFID II: A Regulator?s viewpoint.At the start of his speech Lawton states that generally the Markets in Financial Instruments Directive (MiFID) has been a success for the trading environment, increasing competition and reducing trading costs and therefore there is no need for a radical re-think. However, some important changes are needed to address certain areas so that the framework continues to foster market integrity, enhance market transparency while promoting market liquidity and deliver market stability.In relation to fostering market integrity Lawton
JC Flowers chief personally made good the losses from false invoices
Chris Flowers, the founder and executive chairman of private equity group JC Flowers, personally reimbursed the losses from the invoicing fraud perpetrated by the former chief executive of its UK arm, Thomson Reuters has learned. The fact that Flowers has ensured that there are no losses outstanding from the fraud, which took place in 2009, appears to be one of the reasons it has been possible to confine the case to a regulatory enforcement action by the Financial Services Authority (FSA), rather than a criminal prosecution. The FSA fined Ravi Sinha £2.867 million for fraudulently obtaining £1.367 million from a financial services company wholly-owned by a private equity fund advised by JC Flowers, by means of a fictitious invoicing scheme. The financial penalty consists of £1.367 million disgorgement and a fine of £1.5 million. "Neither the company that paid the invoices nor investors in the funds advised by JC Flowers have suffered any loss as a result of Mr Sinha's actions,"
Movers & Shakers: January 2012
Below is a list of key personnel moves in the securities, banking and commodities sector for January. It is edited by Martin Coyle. Please contact Martin with any relevant details of appointments, promotions and related industry news. Stuart Levey is set to take up the position of chief legal officer at HSBC Holdings following the retirement of Richard Bennett. Levey, a former US Treasury undersecretary responsible for fighting terrorist financing, will report to Stuart Gulliver, HSBC chief executive. The Financial Services Authority (FSA) has appointed Will Samuel as an investment banking senior adviser. Samuel has more than 35 years' experience in investment banking, most recently as vice chairman of Lazard & Co. Tim Herrington has been named as a judge in the Upper Tribunal, tax and chancery, effective today. Herrington is a former chairman of the Regulatory Decisions Committee and also worked at Clifford Chance for 30 years. The FSA has named Lawrence Churchill as chairman
Costs of Solvency II outweigh benefits, says Lloyd's CEO Ward
Richard Ward, chief executive of Lloyd's, has said that Solvency II does not entirely justify the estimated £2 billion that it has cost the UK insurance industry. In an Insurance Institute of London presentation at Lloyd's Old Library, he said that the directive had benefits for risk management, but not enough to justify the price tag. Ward told those at the presentation: "The UK has spent over £2 billion on implementing Solvency II, and that is based on FSA estimates, so it must be higher. It's an extraordinary amount of money, time and value. I'm not sure we get £2 billion worth of value but we've got to get maximum value from Solvency II." Lloyd's is to apply in April to the Financial Services Authority (FSA) for the Lloyd's internal model, with the objective of using it from 2013, before full implementation of Solvency II. "The FSA presents challenges to us, but we have to work with them, and we will be able to use the SCR as a proxy for the ICA [individual capital assessment]
Regulatory roundup: January 31, 2012
Today?s round-up includes the FSA publishing finalised guidance concerning reviews of counterparty credit risk management by central counterparties. Norton Rose Group EU/UK regulatory roundup: January 31, 2012 Date Source Document number Title of document Cross references Comment 31.01.12 Financial Services Authority FG12/03Finalised guidance - FSA reviews of counterparty credit risk management by central counterpartiesPresidency Compromise Proposal - EMIR (23 September 2011)European Commission - DerivativesFollow-on analysis to the report on trading of OTC derivativesCPSS-IOSCO Principles for Financial Market InfrastructuresEuropean Commission - Derivatives The FSA has published finalised guidance concerning reviews of counterparty credit risk management by central counterparties. The finalised guidance looks at specific aspects of counterparty credit risk management, namely risk models and associated governance, processes and procedures. It is aimed at providing additional
FSA official warns hedge fund managers to expect more regular contact from FCA
Ed Harley, head of department, asset management, at the Financial Services Authority (FSA) offered some insight into the future of supervision at a recent hedge funds conference in London. Warning of intrusive, conduct-focussed thematic reviews and prudential focus, Harley told hedge fund managers to "expect us to come and see you". Harley referred to the Financial Conduct Authority (FCA) approach document published last year and spoke of a step change in the intensity of supervision and outcomes delivered from the regulator. He said that the FCA would be moving away from relationship management to a more thematic approach which would see them analyse issues in the industry so that they understood business models more accurately. Blurred boundaries Harley said his department had seen the boundary between the hedge fund industry and the mainstream asset management industry blurring. Hedge fund specialists were managing UCIT funds, mainstream asset managers with hedge fund characteristics

 

Additional Resources

Additional Resources

 © Copyright 2010  -   -  All rights reserved compliance