On Aug. 31, HK SFC issued circular on AML inspections findings. Found AML deficiencies in inspections of licensed corporations (LCs) in last year. In meeting the expected regulatory standards, for AML/CFT measures, controls. Scope of Reviews This followed thematic inspection focusing on 13 LCs’ measures and controls for identifying and mitigating money laundering and terrorist…
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UK FCA Complaints Handling, RCA
On Aug. 15, FCA issued complaints handling review, RCA case study. FCA published findings of its review of how non-deposit taking mortgage lenders (NDTMLs), and mortgage third-party administrators (MTPAs) handle complaints. Examined how firms treat customers; if complaint handling arrangements pose potential consumer harm; what, if anything, can do to handle complaints better. Published understanding…
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SEC Best Interest v. Fiduciary
On Jul. 30, SEC's Hester Peirce spoke about best interest v. fiduciary. At 2018 NAPA DC Fly-In Forum, Peirce spoke of best interest v. fiduciary duty. Standards debated on intent of words and interpretation applied by BD and IA. Definitions Proposed regulation best interestrequires BDs to act in the best interest of the retail customer…
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SEC Fund Disclosure Website
On Jul. 24, SEC added a fund disclosure website for compliance. New site adds pages explains DRAO’s responsibilities and core disclosure principles. A tab aids practitioners, others interested in law, interpretations of fund disclosures. Gather in a single place, various fund disclosure resources, and reference materials.
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ESMA Suitability Requirements
On Jul. 24, ESMA issued report on MiFID suitability requirements. Follows ESMA Apr. 2016 peer review of MiFID suitability requirements. Follows ESMA's May 2018 final guidelines on MIFID II suitability rules. Follow-Up Report Review found improvements with NCA supervision of these suitability requirements. Issued follow-up report regarding oversight by national competent authorities (NCA). Report assesses…
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FATF Issues Beneficial Ownership Report
On Jul. 18, FATF issued report on concealing beneficial ownership. FATF and Egmont Group issued report on the concealment of beneficial ownership. Beneficial Ownership Corporate vehicles can be misused to conceal ownership of illegally gained assets. New report assesses vulnerabilities linked to concealment of beneficial ownership, in order to support further risk analysis by governments and…
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