Mind The Compliance Gap Guide

With more financial decisions now in consumers’ hands, the FCA has decided that now is the time for an even higher standard of consumer protection. We take a look at the FCA Consultation on Consumer Duty.

The Financial Services Act 2021 is noteworthy as it will change the underlying structure of regulation and the control of financial services in the UK. This is quite a statement, but this is going to be the foundation for considerable change across the industry for years to come.

Everyone in financial services knows the impact of COVID-19 on their business. Lost income, changes in investment patterns, lower footfall. Sometimes, however, we need to take a bit of a step back and stop looking at the bottom line. It’s time to start thinking about the stuff that’s a lot harder than balance sheets, prudential requirements and market abuse regulations.

It looks as though some at the FCA have discovered that they have some time on their hands and have started to indicate a return to ‘normality’. Although there is no doubt that there are real strains in certain aspects of interaction with the regulator, they have, just like in the olden days, started to flag the areas where they will be focusing attention.

The regulator is actively using its powers to hold to account those who carry out activities that result in the requirements, values and expectations of regulatory regimes being compromised.

The FCA is preparing us for a return to the ‘Old Normal’, one where firms are expected to fully meet the requirements of the FCA sourcebook and the ‘Covid-19’ excuse just won’t cut it when a firm is found to be in breach of regulation.

In this short article, we would like to give you a short horizon-scanning piece for what will be expected of you and your firm in the international world of financial crime and punishment through 2021. (And what we haven’t yet done from 5 MLD).

In a speech given by Mark Steward, Executive Director of Enforcement and Market Oversight, the FCA gave an overview of the market abuse scrutiny that has taken place in the past turbulent year. With this speech, the FCA have drawn attention to where they might see industry falling behind their own initiatives.

We take a look at just four influences likely to have an impact on the financial services sector that are expected to feature in our newsfeeds – and compliance considerations - over the coming year.

With the regulatory challenges for firms already becoming apparent in a post-Brexit UK, we’re taking a look at the imminent changes to investment regulation for both EU and UK companies, and the difficulties arising from variable timelines.

Ensuring staff have the right skills to deliver positive outcomes for vulnerable consumers has always been critical, but Covid-19 brings with it new challenges.

If you’re not familiar with the term ‘green finance’, it’s the use of financial products - for example loans, insurance, investments - in eco-friendly projects. So ultimately it’s about stopping climate change….and saving the planet. Pretty ambitious stuff.

We look at how eLearning can deliver rapid and targeted training as post-Brexit regulatory requirements change.

Recently, we caught up with Nick West, Head of Learning, Innovation and Delivery, to find out what’s in store for 2021.

It’s clear that some financial institutions deem it acceptable to allow money laundering as a normal part of their operations. Questions need to be asked, but when the rewards far exceed the sanctions that regulators would ever levy on them, is it any wonder that such behaviour is seen as just a cost of doing business?

First, it was the Panama Papers in 2016, which involved the leak of 11.5 million financial and legal records exposing a system that enabled crime and corruption through hidden offshore companies. Today, it is the FinCEN files that reveal the role of global banks in money laundering on a massive scale.

In the UK, the government defines whistleblowing as reporting certain types of wrongdoing, with whistleblowers being protected by law. We look at whether the whistleblowing regime is working within the financial sector and if it has any credibility amongst those who would be most likely to use it.

We explore some of the fines imposed on financial institutions for active involvement in money laundering and whether such fines act as an effective deterrent to those thinking of engaging in money laundering activity. We also discuss the fines levied for not employing effective anti-money laundering systems and processes.

Find out what is required of your firm by attending our latest webinar with Simon Hills, Director, Prudential Policy at UK Finance.

In the UK, the government defines whistleblowing as reporting certain types of wrongdoing, with whistleblowers being protected by law. We look at whether the whistleblowing regime is working within the financial sector and if it has any credibility amongst those who would be most likely to use it.

As custodians of sensitive personal and financial data, financial services firms have always been an obvious target for cyber-attackers, but the pandemic has brought fresh security challenges.