1 / 16

Recent Regulatory Developments in EU and the Roles and Responsibilities of Compliance Officers‘

TBB - TÜRKİYE BANKALAR BİRLİĞİ. Recent Regulatory Developments in EU and the Roles and Responsibilities of Compliance Officers‘. Presentation at the Banks Association of Turkey. Andrew Procter 13 June 2006. Hot Topics. Market Abuse Reputational Risk Conflicts of Interest MiFID

raanan
Download Presentation

Recent Regulatory Developments in EU and the Roles and Responsibilities of Compliance Officers‘

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TBB - TÜRKİYE BANKALAR BİRLİĞİ Recent Regulatory Developments in EU and the Roles and Responsibilities of Compliance Officers‘ Presentation at the Banks Association of Turkey Andrew Procter 13 June 2006

  2. Hot Topics • Market Abuse • Reputational Risk • Conflicts of Interest • MiFID • The role of Compliance • Conflicts • Best execution • The Role of Compliance Andrew Procter · 13 June 2006 · page 2

  3. The Market Abuse Directive • Single set of rules for market conduct but… • Some inconsistency in application eg block trades – 2006 program • New CESR Surveillance & Intelligence WG • CESR “Urgent Issues” Group to co-ordinate investigations • CESR “Urgent Issues” Group to co-ordinate investigations Andrew Procter · 13 June 2006 · page 3

  4. MiFID • Preparing for implementation on 1 Nov 2007 • Business led implementation • Many challenges but many opportunities • Likely to see some major changes in the market landscape • Major implications for relationships with clients and for trading Andrew Procter · 13 June 2006 · page 4

  5. MiFID – Clients Relations • Client classification & documentation • Suitability • Client money & custody • Conflicts Andrew Procter · 13 June 2006 · page 5

  6. MiFID – trading requirements • Pre-trade transparency • Post trade transparency • Transaction reporting • Order handling • Best execution Andrew Procter · 13 June 2006 · page 6

  7. MiFID – Operational Matters • Compliance function • Outsourcing • Record keeping Andrew Procter · 13 June 2006 · page 7

  8. Regulatory Preoccupations • Conflicts • Mapping of conflicts • Development of mitigation strategies • Non-standard transactions • Reputational Risk Andrew Procter · 13 June 2006 · page 8

  9. The Role of Compliance • Need to demonstrate that you are worth the money! • Need to meet MiFID requirements. • Need to ensure that there is adequate protection for the Bank/Firm • Three key roles: • Prevention • Detection • Advice Andrew Procter · 13 June 2006 · page 9

  10. Prevention – The Cost of Failure • Loss of clients/business – Reputational Risk • Financial penalties, prosecutions, litigation • Restrictions on business activity • Personal liability of executives Andrew Procter · 13 June 2006 · page 10

  11. A Culture of Compliance • Reputational risk and other key messages – from the top! • “Tone at the Top” and Reputational Risk training • Training for supervisors and managers • Taking action when things go wrong Andrew Procter · 13 June 2006 · page 11

  12. Preventative Measures:Knowledge, Processes & Systems • “Heat Maps” and business “self-assessments” drive priorities • Policies and procedures – reviewed every 2 years • NCA & NPA • Reputational Risk – secretariat • Comprehensive training program • The Control Room • PA dealing, wall crossing, conflict clearance and advice, research clearance, Restricted & Watch Lists Andrew Procter · 13 June 2006 · page 12

  13. Detection - Focus • Focus on risk areas identified by heat maps and self-assessments Andrew Procter · 13 June 2006 · page 13

  14. Detection – What do we do? • Electronic transaction & portfolio monitoring – market abuse, embargo breaches, restricted list breaches, money laundering, mandate breaches • Desk reviews (compare Internal Audit) • Monitoring – Restricted List, Watch List • Compliance “on the floor” – identifying problems in real time • Compliance led month end look back Andrew Procter · 13 June 2006 · page 14

  15. Excellence as Advisors • Practical application of law and regulation • On the floor, in the (NCA/NPA) process • Support for business initiatives – new products, new markets, growth – due diligence, advice on regulation, advice of necessary compliance support Andrew Procter · 13 June 2006 · page 15

  16. Advocate to Regulators & Industry • Compliance the relationship manager for principal regulators – more than 200 globally • Requires: • Pro-active engagement • Management of supervisory visits, ad hoc inquiries and investigations • Co-ordination of responses to consultations • Introduction of business to regulators • Membership of industry consultative groups Andrew Procter · 13 June 2006 · page 16

More Related