Operational resilience is the ability to “prevent, adapt, respond to, recover and learn from operational disruptions”.
On 24 February, our cross-practice panel of experts from Hong Kong, Singapore and London will discuss:
- the regulatory expectations, as regulators take steps to bolster operational resilience in financial services;
- the types of severe but plausible disruptive digital events that firms should prepare for, from systems outages to cyber attacks;
- crisis management, including how to deal with ransom demands;
- data implications arising from an operational incident; and
- how to mitigate the impact of disruption, focusing on outsourcing.
On 5 February 2021, the Financial Conduct Authority (FCA) published a report titled ‘Implementing Technology Change’, which sets out findings from its review into how financial services firms manage technology change, the impact of change failures, and industry practices to help reduce the impact of incidents resulting from change management. Continue reading
Regulation and supervision of outsourcing arrangements and third-party relationships entered into by financial institutions continues to be an area of great focus for regulators. The FSB notes that many of the issues it highlighted in its December 2019 report (which focussed on cloud services) are relevant more generally.
The FSB’s latest discussion paper sets out an overview of the regulatory and supervisory landscape on outsourcing and third-party risk management across a number of jurisdictions based on a survey carried out in Q1 2020. The deadline for providing feedback is 8 January 2021.
In this article, which first appeared in the September issue of Butterworths Journal of International Banking and Financial Law, Jon Ford considers how industry codes present risks to firms and how these risks can be mitigated.
On 6 March 2020, the HKMA issued a circular setting out its expectations on risk management for algorithmic (algo) trading, as well as sound practices observed from thematic on-site examinations of seven authorised institutions (AIs) in 2019.
The on-site examinations of the seven AIs, mainly international banks using algorithms for making investment decisions, were conducted following a survey by the HKMA which found (among other things) that around 40% of the AIs surveyed were engaging in algo trading and that a majority of such AIs were intending to expand the scale of their algo trading.
First published on Thomson Reuters Regulatory Intelligence on 15 July 2019.
This third article of a series on cryptoassets focuses on personal account dealing (PAD) policies and procedures. This topic is important not only for firms themselves but also for individual staff who have entered into or are considering entering into cryptoasset transactions on their own behalf.
First published on Thomson Reuters Regulatory Intelligence on 12 June 2019 (this version includes updates as at 28 June 2019).
In our first article on cryptoassets we discussed considerations for boards and senior management. This second article considers regulatory risks specific to cryptoassets which the second line of defence (i.e. compliance and risk functions) within the three lines of defence (TLOD) model of compliance should consider.
First published on Thomson Reuters Regulatory Intelligence on 10 May 2019.
Authors: Clive Cunningham and Wendy Saunders
This is the first in a series of articles looking at crypto-assets (encompassing exchange tokens, security tokens, and utility tokens) through the lens of prevailing regulatory expectations of governance and risk management in the UK. In the absence of a specific regime for crypto assets, the legal and regulatory environment remains uncertain. Some crypto assets fall within the current regulatory regime; others do not. UK policymakers are in the process of clarifying the current perimeter and may expand it in the future.
Last Friday, the SFC announced (via a circular) that it had commenced a thematic review of selected licensed corporations (LCs) to assess their risk governance and oversight frameworks as well as risk management practices. Continue reading
The head of Hong Kong’s Independent Commission Against Corruption (ICAC) has warned local investors to beware of rampant corruption in some Belt and Road countries.
ICAC commissioner Simon Peh Yun-Lu pledged the support of the agency, one of the world’s most respected and effective anti-corruption agencies, in helping investors and Belt and Road countries themselves with graft training.
Concern at corruption is far from new; President Xi Jinping highlighted the need for international counter-corruption cooperation at China’s Belt and Road Forum in May 2017. Continue reading