The Financial Industry Regulatory Authority is seeking approval from the Securities and Exchange Commission to consolidate registration rules and revise the exam for representative-level qualification. The proposal aims to streamline National Association of Securities Dealers rules regarding "permissive" registration of internal audit employees and others not involved actively in a firm's securities or investment banking business.
EU finance ministers vetoed the idea of creating a unified EU "bad bank" to help lenders get rid of nonperforming loans, saying the distressed assets should be dealt with on a country-specific basis. The ministers instead backed the idea of creating a national asset management company that would help countries set up secondary markets for nonperforming loans.
Nasdaq has extended a technology partnership with Hong Kong Exchanges and Clearing for five years and has agreed to upgrade HKEx's technology for derivatives trading and clearing next year. The upgrade includes central-counterparty clearing enhancements and addresses requirements for risk management and stress testing.
A number of asset managers and analysts say the broker-dealer sector has yet to make firm plans for pricing and reporting research fees, which they will be required to do when the revised Markets in Financial Instruments Directive takes effect in January. "This is truly a shift from an old paradigm to a new paradigm," said Julian Allen-Ellis, head of the MiFID steering committee at AFME.
European Parliament lawmakers have written to European Commission Vice President Valdis Dombrovskis, calling for a deeper probe into whether high-frequency-trading firms and banks could create unregulated trading venues under the revised Markets in Financial Instruments Directive.
Prepare for Heightened Standards in Internal Audit The 2017 Financial Services Exchange, Sept. 18-19 in DC, will bring together industry leaders, practitioners, and senior regulators across the financial services industry for a unique blend of interactive facilitated and informative educational sessions, stimulating dialogue, and valuable practice sharing. Register early and save.
The Financial Industry Regulatory Authority has revised guidelines for sanctioning advisers, giving more attention to possible exploitation of clients through undue influence. Future FINRA disciplinary proceedings will be required to establish whether "vulnerable individuals or individuals with diminished capacity" were financially exploited.
Banks including USAA, Wells Fargo and JPMorgan Chase are experimenting with biometrics, including thumb, voice, iris and facial scans, for customer verification at a branch or an ATM. "In the next few years, biometrics will become mainstream for authentication and fraud detection in terms of servicing our customers," said Ryan Crowley, JPMorgan's head of branch innovation.
The Society for Worldwide Interbank Financial Telecommunication is working to develop a payment screening service for deployment in 2018 after the $81 million Bangladesh heist. The service will increase cybersecurity by allowing banks to indicate suspicious payments, identify anomalies and provide real-time alerts.
Audits of culture are rare in banking and insurance. When asked in a Financial Services Audit Center quick poll whether their stakeholders encourage culture audits, more than half said yes. Less than half, however, said they audit culture in their organizations. Download the poll results.
Centralized testing functions
Brian Portman, EY principal, discusses the trend around centralized testing groups emerging among financial institutions and their relationship with internal audit. Hear about potential efficiencies, benefits and challenges. Watch the video.
I do not live for what the world thinks of me, but for what I think of myself.
Jack London, 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
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add the center to your IIA membership.