A Boston Consulting Group report finds that banks worldwide have paid $321 billion in fines since regulations tightened after the financial crisis, while the number of regulation changes that banks must track has than tripled since 2011. Banks "will have to create a strong non-financial risk framework around the first, second, and third lines of defense -- business units, independent risk function, and internal audit -- to avoid continued fallout from past behavior," the report says.
Webinar: Best Practices for Managing Government Audits Join us for tomorrow's live webinar where two government audit leaders will discuss how they implemented a modern audit management solution (with ease) that supports their initiatives around advanced testing, risk heat maps, Financial Integrity Act requirements, and issue management—with long-term sustainability for their audit team. Register now >
Average hedge fund management fees dropped to 1.33% last year from 1.6% in 2015, as the 1,057 fund closures in 2016 were the most since the financial crisis, according to Hedge Fund Research. "Continuation of the process of macroeconomic normalization is likely to drive strong performance across a wide range of strategies in 2017," said HFR President Kenneth Heinz.
3PRM: Stepping Up the Maturity Model Compliance Week and Crowe Horwath conducted a survey to help gain insights on 3PRM practices. This webinar explores opportunities to drive maturity through 3PRM program management enhancements, third-party assessments, tools and technology enablement, and independent third party program reviews.
Though the Trump administration has been adamant about deregulation, experts expect a requirement for a formal anti-money-laundering program to extend to investment advisers registered with the Securities and Exchange Commission. The requirement would force advisers to establish a procedure to identify suspicious activity, hire a compliance officer, train employees and undergo an independent audit.
Funds sponsored by asset managers are going to come under close scrutiny from the Financial Stability Board, said Chairman Mark Carney. The FSB is looking at what funds can do to manage the risk of being hit by runs in times of market stress.
President Donald Trump's nominee to be chairman of the Commodity Futures Trading Commission, J. Christopher Giancarlo, said that he hopes to be able to put forward balanced regulations that sustain a vibrant market. Giancarlo also discussed the budget, the current state of the clearing ecosystem, and how the CFTC plans to go about re-evaluating current regulations.
eWorkshop: Fraud Auditing for Internal Auditors. With an ever-changing regulatory and economic landscape, financial services auditors must be resilient in understanding, auditing, and uncovering fraud. In this course, attendees will focus on the basics of fraud auditing, including monitoring activities, and internal audit's role in detecting fraud. Apr. 26 & 28. Earn 6 CPE credits. Register now!
Social media can help regulators carry out their duty to protect investors, according to a study presented at a Securities and Exchange Commission conference. An analysis of crowdfunding fraud found that companies with a strong presence on social media were less likely to engage in fraud than others.
Emerging Risks in the Financial Services Industry Stakeholders are challenging internal auditors and risk managers to manage the unknown in today's risk environment. Protiviti experts show how to identify, assess, and mitigate emerging risks in close collaboration with Risk/ERM and Lines of Business. Apr. 6. Earn 1 CPE credit. Register now!
The Office of the Comptroller of the Currency has released draft rules for a new kind of bank charter for financial-technology companies. The draft supplement to the regulator's licensing manual states that firms granted the fintech charters must comply with all the requirements that apply to conventional banks.
Cybersecurity: An Ounce of Prevention Researchers from Crowe Horwath partnered with the Internal Audit Foundation to change the question of cybersecurity from “How do I defend?” to “How do I prevent?” The result is a 16-page report that examines the current state of best practices to the formation of a new concept: a Security Intelligence Center (SOC). Download your free copy today.
Knowledge Brief: Solutions for Risk Management Challenges
Find out what thought leaders are saying about enterprise risk management in financial services. This brief is based on a panel discussion from the 2016 Financial Services Exchange with U.S. Bank, Capital One and Sallie Mae. Read more.
Bookstore super sale -- while supplies last
The IIA Bookstore's Super Sale began Monday, March 20. For one week only, you can save up to 75% off several popular products, including Quality Assessment Manual for the Internal Audit Activity. The IIA Bookstore is the most comprehensive and credible source of independent research reports and publications addressing critical internal audit issues. Act now -- the sale ends at 11:59 p.m. Eastern time on Sunday, March 26, 2017.
I have accepted fear as a part of life, specifically the fear of change, the fear of the unknown. I have gone ahead despite the pounding in the heart that says: Turn back.
Erica Jong, writer
About the IIA Financial Services Audit Center (FSAC)
FSAC is an IIA specialty center for audit professionals in the banking, asset management, and insurance sectors. FSAC advances the
professional practice of auditing in the financial services industry through
education and training events,
professional guidance, and advocacy. Learn more about
FSAC and how you can
add the center to your IIA membership.