United States

Mitigating the unintended consequences of the FATF Standards

On 18 March 2021, the Financial Action Task Force (FATF) announced that in February it had launched a new project to study and mitigate the unintended consequences resulting from the incorrect implementation of the FATF Standards. The project will look at four areas: De-risking. Financial exclusion. Suppression of non-profit organisations (NPOs) or the NPO sector … Continue Reading

SEC taking steps to develop and implement mandatory ESG disclosures

By Kathleen Scott (US) on March 17, 2021 Posted in ESG, General, Regulation and compliance, Securities, United States

On March 15, 2020, Allison Lee, Acting Chair of the Securities and Exchange Commission (SEC), delivered comments at the Center for American Progress via webcast, announcing the opening of a comment period regarding climate change disclosures. The submissions are to be used in developing future guidance and proposals on ESG (Environmental, Social and Governance) issues. … Continue Reading

New York State imposes a $1.5 million penalty in cybersecurity breach case

By Susan Ross (US) and Kathleen Scott (US) on March 16, 2021 Posted in cybersecurity, data protection, Enforcement, Fintech, General, Regulation and compliance, United States

On March 3, 2021, the New York Department of Financial Services (NYDFS) announced a Consent Order with a NYDFS-licensed Maine-based mortgage banker and loan servicer settling alleged violations of the NYDFS cybersecurity regulations. (In the matter of Residential Mortgage Services, Inc., March 3, 2021). As a result of the regular safety and soundness examination of … Continue Reading

Risk assessments and the expectations of global authorities – what this means for businesses

On 18 March 2021, we will be holding the first of our global webinars on putting into practice authorities’ expectations in relation to each of the components of an ABC programme. In this first session we will examine global expectations in relation to risk assessments – the starting point of an effective ABC programme. We … Continue Reading

The FATF and Egmont Group publishes updated trade-based money laundering risk indicators

On 11 March 2021 the Financial Action Task Force (FATF) and Egmont Group published a joint report on trade-based money laundering (TBML) risk indicators. This follows on from a report published in December last year by the same bodies highlighting pertinent trends and developments with respect to TBML for market participants to be aware of. … Continue Reading

Conducting an ABC risk assessment: 4 key steps

By Andrew Reeves (UK), Claudia Culley and Stuart Neely (UK) on March 11, 2021 Posted in France, Germany, Investigations and enforcement, Italy, Regulation and compliance, Regulation and Compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom, United States

Anti-bribery and corruption (ABC) risk assessments are the cornerstone of an effective compliance programme, ensuring that compliance resources are focused on the most significant ABC risks faced by the business. A genuinely risk-based compliance programme helps to achieve both the primary objective of a compliance programme (preventing ABC issues occurring), the secondary objective (providing a … Continue Reading

Regulation Tomorrow Podcast Episode 5 – out now

By Etelka Bogardi (HK), Hannah Meakin (UK), Albert Weatherill (UK), Mayling Blanco, Arup Sen and Simon Lovegrove (UK) on March 11, 2021 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Seminars, webinars and podcasts, The Netherlands, United Arab Emirates, United Kingdom, United States

Episode 5 of the Regulation Podcast is out now. In our latest monthly offering, we look at ESG initiatives in Hong Kong with Etelka Bogardi, Albert Weatherill and Hannah Meakin provide an extended fintech update, including a look at the Khalifa Review in the UK; and Mayling Blanco from our New York office discusses recent … Continue Reading

Commissioner Peirce Highlights Need for Regulators to Embrace Technology

By Andrew Lom (US) and Rachael Browndorf (US) on March 10, 2021 Posted in Fintech, General, Regulation and compliance, United States

In recent weeks, Commissioner Hester Peirce of the Securities and Exchange Commission (“SEC”) gave two speeches highlighting the need for legal clarity in the FinTech space and for legacy financial firms to embrace innovation. Speaking at a George Washington University Law School event – Regulating the Digital Economy Conference – Commissioner Peirce discussed the recent … Continue Reading

SEC’s Division of Examinations Releases Risk Alert for Digital Asset Securities

By Andrew Lom (US) and Rachael Browndorf (US) on March 10, 2021 Posted in Asset management, Brokers and Intermediaries, Enforcement, Fintech, General, Regulation and compliance, United States

On February 26, 2021, the Securities and Exchange Commission’s (“SEC”) Division of Examinations (the “Division” and formerly known as “OCIE”) released a Risk Alert (the “Risk Alert”) reminding market participants – investment advisers, broker-dealers, exchanges, and transfer agents – of the framework surrounding digital assets that are securities (“Digital Asset Securities”). The Division also set … Continue Reading

Regulation Tomorrow Plus – The Conduct Healthcheck

By Iain Hawthorn, John Coley (UK), Arup Sen and Simon Lovegrove (UK) on March 10, 2021 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Seminars, webinars and podcasts, The Netherlands, United Arab Emirates, United Kingdom, United States

The first episode of our new spin-off podcast – Regulation Tomorrow Plus – is out now. Regulation Tomorrow Plus will be released outside of the usual monthly schedule for the Regulation Tomorrow Podcast, and will be reacting to a single issue, piece of news or publication in as timely a manner as possible. These episodes … Continue Reading

Part 5: The increasing emphasis of RegTech and FinTech in combating financial crime

By Clarinda Grundy, Lisa Lee Lewis (UK), Weronika Sowa, Jeremy Moller, Kathleen Scott (US), Tim Stewart, Rajaee Rouhani and Nathan Condoleon on March 9, 2021 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, The Netherlands, United Arab Emirates, United Kingdom, United States

2021 Financial crime Outlook series Senior management and boards are increasingly acknowledging the threat of financial crime as a critical risk to their business that must be addressed. This has been exacerbated in the last 12 months through the impact of the pandemic as well as rising domestic and international tensions. Our financial crime compliance … Continue Reading

IOSCO reviews implementation of liquidity risk management recommendations and market participants´ responses to COVID-19 induced market stresses

On 5 March 2021, the International Organization of Securities Commissions (IOSCO) launched a thematic review of the 2018 Recommendations for Liquidity Risk Management for Collective Investment Schemes. The thematic review aims to assess the extent to which the Recommendations have been implemented through IOSCO member regulatory frameworks. It also aims to gather information about how … Continue Reading

The LIBOR Transition – ARRC commends FCA and IBA on confirmation of LIBOR endgame

By Patrick Dolan (US) and Kathleen Scott (US) on March 8, 2021 Posted in General, LIBOR, Regulation and compliance, United States

On Friday, March 5, 2021, the US Alternative Reference Rates Committee (ARRC), the group of private sector and government agencies working on alternatives to the end of the use of LIBOR, issued a press release commending the issuances by ICE Benchmark Administration (IBA), the LIBOR administrator, and the UK Financial Conduct Authority (FCA), confirming that … Continue Reading

Regulation Tomorrow Episode 5 and Regulation Tomorrow Plus – out next week

By Hannah Meakin (UK), Etelka Bogardi (HK), Mayling Blanco, Albert Weatherill (UK), Arup Sen and Simon Lovegrove (UK) on March 5, 2021 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Seminars, webinars and podcasts, The Netherlands, United Arab Emirates, United Kingdom, United States

Next week sees a double dose of podcast releases: Episode 5 of the Regulation Tomorrow podcast will be released early next week, closely followed by the first episode of our new spin-off podcast, Regulation Tomorrow Plus. Regulation Tomorrow Plus is designed to be a shorter, sharper and more reactive podcast, released as and when news … Continue Reading

FATF publish guidance to support global supervisors in implementing a risk-based approach to AML/CTF supervision

On 4 March 2021 the Financial Action Task Force (FATF) released new guidance aimed at supporting the application of a risk-based approach to anti-money laundering (AML) and counter terrorist financing (CTF) supervision. This builds on previous guidance released in 2015, but widens the scope of the guidance to enhance applicability to more recently AML regulated … Continue Reading

FINRA (and selected SEC) regulatory matters at a glance: What compliance officers need to know

By Glen Barrentine (US) on March 3, 2021 Posted in Brokers and Intermediaries, Regulation and compliance, United States

Access the February issue for an overview of FINRA and SEC regulatory developments of interest to broker-dealers. Glen Barrentine is Of Counsel in the Denver office of Norton Rose Fulbright. His practice focuses broadly on SEC regulated financial service clients, including broker-dealers, securities exchanges, municipal advisors and investment advisers. Glen frequency represents clients in connection with SEC … Continue Reading

FATF consults on guidance relating to Proliferation Financing Risk Assessment and Mitigation

FATF consults on guidance relating to Proliferation Financing Risk Assessment and Mitigation On 2 March 2021, the Financial Action Task Force (FATF) launched a consultation aimed at private sector stakeholders in relation to guidance which the FATF is developing regarding risks associated with the financing of proliferation of weapons of mass destruction (proliferation financing). This … Continue Reading

IOSCO work programme 2021/22

On 26 February 2021, the International Organisation of Securities Commissions (IOSCO) published its work programme for 2021/2022. Ashley Alder, Chair of the IOSCO Board, said: “In 2020, our agenda was dominated by the response to COVID-19 induced market stresses. IOSCO has actively taken steps to address potential financial stability risks including a particular focus on … Continue Reading

IOSCO sees an urgent need for globally consistent sustainability disclosure standards and announces its priorities and vision for a Sustainability Standards Board

By Simon Lovegrove (UK) on February 26, 2021 Posted in Africa, Asia, Australia, Canada, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 24 February 2021, the International Organization of Securities Commissions (IOSCO) issued a press release following a board meeting in which it discussed the progress made over the past year by its Sustainable Finance Task Force (STF). In the statement the ISOCO board identifies three priority areas for improvement in sustainability-related disclosures by companies and … Continue Reading

FSB Chair’s letter to G20 Finance Ministers and Central Bank Governors: February 2021

On 25 February 2021, the Financial Stability Board (FSB) published a letter from its chair to G20 Finance Ministers and Central Bank Governors. The letter notes the unprecedented challenges faced by the FSB due to the COVID-19 pandemic and the imposition of containment measures across the globe. The letter also discusses the key priorities in … Continue Reading

Part 4: The Growing Importance of the Money Laundering Reporting Officer

By Lisa Lee Lewis (UK), Clarinda Grundy, Jeremy Moller, Kathleen Scott (US), Tim Stewart, Rajaee Rouhani and Nathan Condoleon on February 26, 2021 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, The Netherlands, United Arab Emirates, United Kingdom, United States

SEC Settles with BlueCrest: Algorithmic Trading and AI-Based Strategies Must be Disclosed to Investors

By Andrew Lom (US) and Rachael Browndorf (US) on February 24, 2021 Posted in Asset management, Enforcement, General, Regulation and compliance, United States

On December 8, 2020, BlueCrest Capital Management Limited (“BlueCrest”), a UK-based investment adviser, agreed to a $170 million settlement with the Securities and Exchange Commission (“SEC”) to settle charges involving insufficient and misleading disclosures to investors that BlueCrest was also operating a proprietary, internal fund, moving its best traders to such fund and replacing the … Continue Reading

OCC Conditionally Approves Bank Charter for Second Crypto Firm

By Andrew Lom (US), Richard Potomac (US), Rachael Browndorf (US) and James Larkin Smith (US) on February 24, 2021 Posted in Banking, Fintech, General, Regulation and compliance, United States

The Office of the Comptroller of the Currency (OCC) granted crypto-focused Protego Trust Company, a Washington state trust company, conditional approval to convert to a national trust bank earlier this month, marking only the second time that a federal bank charter has been approved for a crypto firm – and the first since the January … Continue Reading

Raising capital in Europe: Key regulatory issues for US asset managers

By Martin Krause (DE), Imogen Garner (UK), Manfred Dietrich (LU), Floortje Nagelkerke (NL) and Simon Lovegrove (UK) on February 18, 2021 Posted in Germany, Italy, Seminars, webinars and podcasts, The Netherlands, United Kingdom, United States

When looking for new sources of investors and capital US fund managers often look towards Europe, but the European market is more tightly regulated when compared to the US market. In our forthcoming webinar taking place on February 25, 2021, Raising capital in Europe: Key regulatory issues for US asset managers, a team of partners … Continue Reading