On Dec. 21, HKMA warned misconduct risks in selling of funds. HKMA letter to draw attention to misconduct risk in selling of investment funds. Provide guidance on expected standard of prevention and management of risk. Reminded registered institutions (RIs) to ensure investment recommendations, or solicitation for customers were reasonable in all circumstances. Firms must act…
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UK FCA MAR Compliance
On Dec. 17, UK FCA issued Market Watch 58 on MAR compliance review. Reviewed industry implementation of MAR, outlined findings, offered clarification. Considered manufactured credit events in the credit default swap (CDS) market. MAR Compliance Expect firms to be fully compliant with obligation to undertake quote surveillance. FCA issued a reminder about suspicious transaction and…
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FR AMF Whistleblower Process
On Dec. 14, FR AMF issued procedures to protect whistleblowers. Procedures enabling those who report possible violations of EU reg 596/2014 on AMF financiers to do so in the most efficient and knowledgeable manner possible. Reporting Process Covers receipt of reports under article L. 634-1 of monetary and financial code. Explains different notification channels available…
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BaFin AML Guide Consultation
On Dec. 11, 2018 GE BaFin published the finalized version of the AML guidance. Interpretation and application instructions to the money laundering act (GwG). Implementing customer due diligence, internal safeguards, risk-based approach. Legal innovations, e.g. the concept of fictitious beneficial owner, are explained. Obligations in connection with identification of the person appearing are clarified. Interpretative…
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FINRA 2018 Report Exam Findings
On Dec. 7, FINRA issued second annual report on exam findings. Second annual report on examination findings, resource for firms from FINRA360. Follows 2017 report, highlighted cybersecurity, OBA, best execution. 2018 Report Observation from recent exams, selected for significance, frequency, and impact. Highlight exam findings on suitability for retail customers, fixed income mark-up disclosures, reasonable…
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BMA Suspicious Activities Reporting
On Dec. 6, BMA issued suspicious activities reporting requirement. Issued to confirm the reporting requirements for the Dec. 31, 2018 submission. All long-term insurers are required to complete the Schedule of Suspicious Activity Reporting and Sanctions (indicated in the BSCR model as SAR & Sanc.) Insurers that write in force direct long-term business are to…
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