FCA: Transforming Culture Conference report

The FCA has today published a report of its March 2018 Transforming Culture Conference. The short report (7 pages) summarises the event and sets out next steps.

The conference was held in the week following the FCA’s publication of a collection of 28 essays (DP18/2) prepared by a range of contributors including banks, academics, trade associations, individuals, etc. The essays are intended to stimulate debate. The conference commenced with a speech from Andrew Bailey, FCA’s CEO, and was then followed by four sessions:

  • What constitutes a good, healthy culture for financial services?
  • What role should regulators and regulation play in managing culture?
  • Remuneration and beyond – what are the most powerful motivators of behaviour?
  • How can we deliver real cultural change in financial services.

The report summarises the themes which emerged from each of the sessions. From those discussions, FCA identified 4 key thematic lines of enquiry; over the next 12 months, the FCA intends to continue to engage with stakeholders and will focus on these themes and the questions.

  • Psychological safety over fear:
    • What role does psychological safety play in promoting healthy and inclusive cultures?
    • How can this be promoted most effectively?
  • Remuneration and incentives:
    • What implicit behaviours are being driven by bonus cultures?
    • Are there better approaches to compensation?
    • What non-financial incentives can be used to motivate performance?
  • Leadership and management capabilities:
    • What is needed to support leaders, including middle management, to cultivate healthy cultures?
    • How can these skills be better recognised as a management discipline?
  • Assessing culture:
    • What does effective assessment or measurement of cultural indicators look like within firms?
    • How should measurement be used?

The paper invites those interested in pursuing the discussion to contact the FCA.

 

Cat Dankos
Cat Dankos
Regulatory Consultant
Email
+44 20 7466 7494

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Filed under Announcements, FCA, Regulatory Reform, Sector Updates by Herbert Smith Freehills

FEMR Progress Report / Speech by the Mark Carney, Governor of the BoE

FEMR Progress Report:

The HM Treasury, the Bank of England (BoE) and FCA have today published the 2018 Progress Report on the Fair and Effective Markets Review (FEMR)Continue reading

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Filed under Bank of England, FCA, Sector Updates by Herbert Smith Freehills, UK, UK Regulations

STANDARDISED RULES FOR PRESCRIBING PROFESSIONAL INVESTORS TARGETED FOR IMPLEMENTATION IN HONG KONG ON 13 JULY 2018

Last Friday, the SFC published the conclusions to its consultation on amendments to the Securities and Futures (Professional Investor) Rules (PI Rules), to standardise the rules for prescribing individual and corporate professional investors (PIs).

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Filed under Announcements, Hong Kong, Investment Funds

House of Lords Select Committee appointed to review Bribery Act 2010

House of Lords Select Committee appointed to review Bribery Act 2010

The House of Lords has established an ad hoc Select Committee (the “Committee“) to consider and report on the Bribery Act 2010 (the “Act“). The Committee, which was formally appointed on 17 May, is due to release a report by the end of March 2019 which will focus on:

  • the extent to which the Bribery Act 2010 has led to stricter prosecutions of corrupt conduct, a higher conviction rate and/or a reduction in such conduct; and
  • the impact that the Act has upon businesses and in particular small and medium enterprises (“SMEs“).

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Filed under Announcements, Bribery and Corruption, Corporate Crime, Investigations, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills

Middle East Anti-Bribery and Corruption Regulations Legal Guide 2018

Welcome to the first edition of our Anti-Corruption Regulation Legal Guide for the Middle East.

We are delighted to launch this publication, which presents the legislative framework regulating bribery and corruption across arrange of Middle East jurisdictions, drawing upon the combined knowledge and experience of our lawyers, as well as qualified and experienced counsel in each of the jurisdictions covered. We understand this guide to be unique in terms of scope and content. Continue reading

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Filed under Bribery and Corruption, Client Money, Corporate Crime, Herbert Smith Freehills, Investigations, Middle East, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills

Foreign & Commonwealth Office publishes guidance on sanctions licensing policy after Brexit

The Foreign & Commonwealth Office has published guidance detailing the UK Government’s intended approach to sanctions exceptions and licences after Brexit. Sanctions exceptions and licences are mechanisms through which restrictive measures imposed by sanctions may be relaxed in specific circumstances. The guidance comes as the Sanctions and Anti-Money Laundering Bill (the “Bill“) reaches the final stages of the legislative process. The Bill has passed through both the House of Lords and the House of Commons, and is currently in the “ping pong” stage. Continue reading

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Filed under Announcements, Bribery and Corruption, Corporate Crime, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills

HONG KONG SFC PROVIDES UPDATE ON MIC REGIME AND ANNOUNCES THEMATIC REVIEW OF LICENSED CORPORATIONS’ GOVERNANCE

In the latest issue of its SFC Compliance Bulletin: Intermediaries published on 16 May 2018, the Securities and Futures Commission (SFC) provides an update on the implementation of the Manager-in-Charge (MIC) regime and announces that it will conduct a thematic review of licensed corporations’ (LC) management structure and effectiveness. Continue reading

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Filed under Asia, Hong Kong, Sector Updates by Herbert Smith Freehills

HONG KONG INSURANCE AUTHORITY PUBLISHES DRAFT ENTERPRISE RISK MANAGEMENT GUIDELINE FOR CONSULTATION

The Hong Kong Insurance Authority (IA) has launched a consultation on a draft Guideline on Enterprise Risk Management (ERM), as part of the qualitative (ie, Pillar 2) requirements under the proposed risk-based capital (RBC) regime. Continue reading

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Filed under Hong Kong, Insurance, Regulatory Reform

MONEY LAUNDERING AND TERRORIST FINANCING RISKS FACING HONG KONG’S FINANCIAL INSTITUTIONS AND PAYMENT SYSTEMS

The Hong Kong government has published a report detailing the money laundering (ML) and terrorist financing (TF) risk assessment of Hong Kong. This follows the recommendations of the Financial Action Task Force (FATF) that jurisdictions identify and assess their ML/TF risks and apply mitigating measures, and is a pre-cursor to the FATF’s onsite evaluation of Hong Kong’s ML/TF safeguards, scheduled to take place this autumn.

The report examines the ML/TF threats and vulnerabilities facing Hong Kong as a whole as well as specific sectors. The key aspects of the report are highlighted in our e-bulletin of 4 May 2018. In a follow-up e-bulletin (please click here to access), we provide an overview of the report’s findings in relation to financial institutions and payment systems.

Among others, the Securities and Futures Commission, the Hong Kong Monetary Authority and the Insurance Authority have issued circulars to alert the entities under their purview of the report and provide guidance.

 

William Hallatt
William Hallatt
Head of Financial Services Regulatory, Hong Kong
Email | Profile
+852 2101 4036
Vicky Man
Vicky Man
Senior Associate, Hong Kong
Email | Profile
+852 2101 4243
Jackie Lam
Jackie Lam
Associate, Hong Kong
Email
+852 2101 4194

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Filed under Asia, Bribery and Corruption, Corporate Crime, Hong Kong, Investigations, Sanctions and Money Laundering, Sector Updates by Herbert Smith Freehills

ASIC updates its ICO guidance

What this means for you

Initial Coin Offering (ICO) issuers have been placed on notice that from 19 April 2018, the Australian Competition and Consumer Commission (ACCC) has delegated powers to the Australian Securities and Investments Commission (ASIC) to enable ASIC to take action under the Australian Consumer Law (ACL) relating to crypto-assets. See ASIC’s Media Release 18-122MR.

This new power enables ASIC to take action against entities using ICOs to raise funds, for conduct that is misleading and deceptive, including making false or inaccurate statements in white papers.  The new delegated powers are applicable to both crypto ‘currency’ and to crypto ‘tokens’. Continue reading

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Filed under ASIC, Australia