July 20, 2021
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Internal Audit Watch
Robinhood Markets will pay a record $70 million to settle charges by the Financial Industry Regulatory Authority that it deceived and harmed its investors. FINRA said Robinhood allowed customers to trade options that were not suitable for them, maintained inadequate oversight of its technology, and misled clients on a variety of issues.
Full Story: Bloomberg (6/30),  Reuters (6/30),  CNBC (6/30),  Financial Times (subscription required) (6/30) 
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Seven new charges were filed against Paige Thompson, the former Amazon Web Services engineer accused of executing the 2019 Capital One breach that affected more than 100 million Americans, according to court records. The Department of Justice added six counts of computer fraud and abuse and one count of access device fraud, raising the potential sentence Thompson could receive if convicted to 20 years in prison.
Full Story: TechCrunch (tiered subscription model) (6/30) 
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Join Us In-person or Online!
The financial services industry is evolving more quickly than ever before, bringing regulatory reforms and new challenges almost daily. To help internal auditors everywhere keep up with the pace of change, the 2021 Financial Services Exchange is offering attendees the option to participate either in-person or online. Register now.
Risk Management
Treasury Secretary Janet Yellen plans to head a regulatory review of risk that climate change presents to financial stability. The Financial Stability Oversight Council, which Yellen chairs, will analyze the issue, implementing an executive order from President Joe Biden, Yellen says.
Full Story: The Hill (7/11) 
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A poll from EY and the Institute of International Finance found that bank risk managers view climate risk as the biggest threat to their business over the next five years. EY financial services managing director Mark Watson says that banks were also looking at climate risk as an opportunity, noting that "people finally realize in financial services, we do not get to a zero-carbon economy without finance."
Full Story: Financial Times (subscription required) (6/25) 
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IIA Membership Means More
Membership in The IIA means premier access to the standards-setting and guidance-producing body of the profession. Plus, exclusive industry-specific content, networking opportunities, and savings on world-class training are even more ways you connect with over 200,000 members worldwide. Learn more.
Regulation & Compliance
The US Securities and Exchange Commission says UBS Group has agreed to settle charges of compliance failures concerning its volatility-linked exchange-traded product by paying a penalty of $8.1 million. UBS says it "proactively reviewed and removed the product from its program before being contacted by the SEC."
Full Story: Reuters (7/19),  Bloomberg Law (7/19) 
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The Securities and Exchange Commission might oblige fund managers to disclose underlying information on environmental, social and governance products, in addition to a requirement for public companies to disclose exposure to climate risk, Chair Gary Gensler says. The SEC has stated the importance for investors to be aware of the precise composition of funds branded as sustainable.
Full Story: Reuters (7/7) 
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US financial regulators are working on proposed rules for stablecoins and plan to have recommendations ready in the next few months, the Treasury Department said. Treasury Secretary Janet Yellen held a meeting with regulators on Monday to discuss the potential risks of stablecoins, which are digital coins pegged to conventional currencies.
Full Story: Reuters (7/19) 
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Broaden Your View & Save
Earning the CRMA after your CIA broadens your holistic view of the organization's strategies and business objectives. It also proves you are an experienced, credible professional and showcases your ability to enhance governance, risk management, and control processes. Save up to $210 through Dec. 31, 2021.
Fraud & Ethics
Greek national Apostolos Trovias, known online as "The Bull," has been charged by the Department of Justice and the Securities and Exchange Commission for allegedly hawking insider trading information on the dark web. Trovias allegedly completed transactions on criminal marketplaces, including AlphaBay and Dream Market, and had worked to build his own website to sell stock tips.
Full Story: The Verge (7/10),  Ars Technica (7/9) 
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The Financial Crimes Enforcement Network has said financial institutions should prepare for changes to the Bank Secrecy Act and has outlined eight priorities for combating money laundering and countering the financing of terrorism. The priorities include proliferation financing, cybercrime and fraud.
Full Story: Compliance Week (tiered subscription model) (6/30) 
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The IIA's Financial Services Audit Certificate
Enhance your specialized knowledge and showcase your expertise in 11 key areas by completing The IIA's Financial Services Audit Certificate. Passing the program exam demonstrates your competency and distinguishes you from your peers. Learn more about this OnDemand program.
Bank robbers have evolved into hackers with substantial resources, supported by rogue states or operating from countries with lax law enforcement, The Economist writes. The robbers profit by stealing money from banks or by accessing data usable for insider trading, and they are known to bait bank insiders with massive rewards for collusion.
Full Story: The Economist (tiered subscription model) (6/16) 
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Choose Your Path to the GRC Conference 2021!
We're excited to offer individuals the option to join us virtually or in-person in Denver, CO for this year's conference. Discover the latest insights, participate in workshops, network with fellow professionals, and find inspiration no matter where you are! Register today.
IIA News
Sept. Financial Services Webinar: Culture and Conduct Risk -- Internal Audit's Response
Successful management of culture and conduct risk is critical for organizations to achieve their objectives. How do you differentiate these risks? Additionally, what is the best way for internal audit to assess an organization's management of culture and conduct risk? Are there any additional considerations, given the prolonged pandemic environment? Find out the answers to these and more questions. Space is limited, so register now.
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Reputation is everything
As Warren Buffet says: "It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently." With increasing connectedness via social media and news cycles, issues that can affect brands can be highly visible and quickly make an impact. How can you ensure your organization is appropriately managing reputational risk? Read now.
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COVID-19 Resource Exchange
The free, exploring mind of the individual human is the most valuable thing in the world.
John Steinbeck,
writer, winner of the Nobel Prize in Literature
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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 thought leadership, education and training events, professional guidance, and advocacy. Learn more about FSAC and how you can add the center to your IIA membership.
IIA Resources
IIA Contact Information
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E-mail: CustomerRelations@theiia.org
Phone: +1-407-937-1111
Fax: +1-407-937-1101

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