MANDATORY REFERENCE CHECKS TO STOP ROLLING BAD APPLES – MAS ISSUES CONSULTATION PAPER ON PROPOSED REQUIREMENTS

On 6 July 2018, the Monetary Authority of Singapore (MAS) issued a Consultation Paper which, among other things, proposes requirements for Financial Institutions (FIs) to conduct and respond to reference checks on representatives (Reference Check Consultation Paper). Submissions on the Reference Check Consultation Paper close on 6 August 2018.  Continue reading

A NEW GLOBAL TOOLKIT FOR FIGHTING MISCONDUCT RISK: WHAT DOES THIS MEAN FOR FIRMS AND REGULATORS?

On 20 April 2018, the Financial Stability Board (FSB) released its long awaited toolkit (Toolkit) for firms and regulators’ use in fighting misconduct risk. The Toolkit forms part of the FSB’s workplan to mitigate misconduct risk, and builds on existing measures such as the FSB’s guidance on sound compensation practicesContinue reading

Navigating the Regulators’ Increased Focus on Individual Liability – A Global Perspective

Regulators throughout the world are increasingly focused on holding individual corporate executives accountable for corporate wrongdoing. Recent pronouncements by the U.S. Department of Justice, legislation in the United Kingdom imposing liability on senior managers, and detentions of senior executives in Asia all forcefully demonstrate that regulators are in fact pursuing high-level corporate executives, in addition to their employers, whenever there are allegations of wrongdoing. Chaired by Scott Balber and John O'Donnell, Partners in Herbert Smith Freehills New York Financial Services Litigation and Investigations team, this conference will offer practical guidance on the steps companies can take to conduct internal investigations and respond to government inquiries so as to address the regulators' demand for individual culpability.

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US: Applicability of business judgment rule to bank officers to be considered by Supreme Court of Georgia

As the UK Government shapes, and reshapes, provisions in the Financial Services (Banking Reform) Bill to make individual accountability a reality for senior individuals within banks (and now also more widely within PRA-regulated investment firms with permissions to deal as principal), it is interesting to glimpse how such issues are being considered elsewhere.  In the US, Judge Thomas W Thrash Jr., of the District Court for the Northern District of Georgia (Atlanta Division), proposes to ask the Supreme Court of Georgia to consider whether the business judgment rule should supplant the standard of care required of bank officers and directors in a suit brought by the Federal Deposit Insurance Corporation (FDIC) as the bank’s receiver.  

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Joint Parliamentary Committee reports on pre-legislative scrutiny of draft Financial Services Bill 2011

Today, the Joint Committee appointed by both Houses of Parliament to conduct pre-legislative scrutiny of the draft Financial Services Bill 2011, reported on its examination of the Bill. The report is critical of many aspects of the Bill as not going far enough, and recommends a number of significant amendments to the objectives, powers and accountability of the new regulators. This briefing summarises the recommendations. Continue reading