Compliance & Risk Management

Latest Headlines

Latest Headlines

OTC Markets sees Reg A+ opening the door to 'mini IPOs' from small companies

When Regulation A+ went into effect earlier this month it lowered certain legal hurdles that made it difficult for small firms to tap public markets with an initial public offering. OTC Markets Group, an operator of three organized over the counter marketplaces, sees the new rule as creating a potential opportunity for smaller firms to come to its markets with "mini IPOs" that would have been too costly and logistically difficult to execute under the old rules.  

Should financial firms manage their own AML/KYC?

It is estimated that global systemically important banks spend hundreds of millions of dollars on anti-money laundering compliance. As is often the case with large financial institutions, the challenge of managing data in one of the most arduous and costliest parts of the process.  

Prosecutors find Citi's Banamex USA ignored emails of AML problems

U.S. Justice Department prosecutors investigating potential lapses in the anti-money laundering controls at Citigroup's Banamex USA have uncovered emailed warnings about AML problems that went...

Pimco tells regulators Gross departure was real-life risk scenario

One of the risks that regulators are reviewing in making determinations on whether large asset managers pose systemic risks is the possibility that a fund manager's distress might result in a run or "forced asset sales if redemptions cannot be met in a timely manner." But Pacific Investment Management Co. (PIMCO) says its own experiences after the abrupt departure of co-founder and chief investment officer Bill Gross last fall are a real-life case study in how large asset managers are prepared to weather stress.

ISDA enlists SIFMA and 10 other global trade groups to push for improved derivatives data

In a letter sent to 18 regulatory bodies around the world, including the Securities and Exchange Commission, 11 financial industry trade groups voiced support for standardizing the way derivatives...

As Barclays pares down, Stifel grows

Stifel Financial Corp. announced earlier this week that it is acquiring Barclays' U.S. wealth management unit, which is made up largely of former Lehman Brothers employees. Terms of the deal were not disclosed, but Barclays said it would have minimal financial impact, according to Reuters.

ICAP weighs circuit breakers for Treasury trading

Bond market volatility has prompted inter-dealer broker ICAP to consider implementing circuit breakers to temporarily halt trading during periods of large price movement. If implemented, it would be the first use of circuit breakers in the $12.5 trillion U.S. Treasury market.

Sifma and FSR propose alternative fiduciary rules with commission protections for advisors

Two industry groups are proposing alternatives to the Department of Labor's proposal to require brokers to adhere to fiduciary standards. A main point of contention the groups have with the DoL proposal is that they appear to desire protections for the commission-based broker compensation model.

Citigroup to close Banamex USA over lax AML oversight

A history of poor anti-money laundering controls is reportedly causing Citigroup to close its Banamex USA subsidiary, the Wall Street Journal first reported on Sunday. Regulators aren't demanding...

Proposed rules for asset management reporting a mixed bag for industry

Different elements of the Securities and Exchange Commission's proposed rules for overhauling asset management reporting will likely both add and reduce costs and effort for the industry. Industry experts say it is still too early to tell how much new costs of systemic risk reporting and benefits of standardized electronic report distribution will offset each other.