When proposing new rules, the US Securities and Exchange Commission often plays catch-up to the changing technological or market times. Not so when it comes to the practice of swing pricing, part of its new proposed rules for liquidity management.by US registered investment funds. Nothing short of a revolutionary change in operational capabilities would be needed […]
US Registered Funds: Say Hello to Derivatives Risk Managers
Must have knowledge of derivative products, risk management, compliance procedures, technology implementation and project management. An MBA or graduate degree in financial engineering is required. A certified financial analyst designation is preferred. Those are the likely employment requirements for the derivatives risk manager that many US registered investment funds will have to hire if the Securities and Exchange Commission […]
UK Watchdogs Put C-Level Execs on the Hotseat
When it comes to accepting liability for regulatory wrongdoing, the top UK bank executives will no longer be able to hide behind the Queen’s royal we. As of March 6, C-level officials at UK banks and other bank-like organizations will find themselves individually liable for not only their own wrongdoing, but also for the financial […]
US Anti-Bribery Corruption Laws: Guilty Until Proven Innocent?
Know-your-customer isn’t the only motto financial firms should live by. The US Securities and Exchange Commission has put human resource, compliance and risk departments of financial institutions on high alert that they have to know a lot more about candidates for internships and employment, as evidenced in a recent multimillion dollar penalty paid by BNY […]
US Swing Pricing: Getting the Process Right
The US mutual fund managers may soon be following in the footsteps of their European peers in adopting swing pricing, but how ready are they to overcome the operational and compliance challenges? If the tone of discussions at a recent standing-room-only event hosted in New York City by the Association of the Luxembourg Fund Industry (ALFI) is any indication, the answer is […]
Europe’s New AML Directive: Keep Digging for Customer Data
As if knowing the basics about your customer weren’t difficult enough, how about knowing a lot more, verifying what you think you know, and doing the same when it comes to the customer’s direct and indirect investors and controlling parties. That is what European regulators will eventually require from financial institutions doing business in the […]
Fund Managers: On Countdown for New Uncleared Swaps Margins
US banking regulators might not have directly overseen the activities of fund management shops in the past, but when it comes to uncleared bilateral swap contracts, that stance is changing fast. The new arrangement will come at a hefty cost for heavy users of the bespoke deals. Under final rules released October 22, a host of […]
KYC Onboarding: Taking a Global Centralized Approach
Name, rank and serial number. That’s what national military organizations across the globe use to identify their members. Too bad the same simplicity can’t be used by financial firms when it comes to identifying their customers and counterparties, bemoan operations and compliance specialists. Instead financial firms must deal with a hodgepodge of regulatory requirements across […]
SEC to Mutual Funds: Get Your Liquidity in Order
New proposed rules from the US Securities and Exchange Commission requiring mutual funds to ensure they have the necessary liquidity and correct pricing to accommodate a potential onslaught of redemptions could pose operational and IT challenges for fund management firms. That is the initial reaction from a group of ten fund management compliance, operations and […]
US T+2 Settlement: The Long Journey Officially Begins
What a difference a day makes. Until September 16, the US financial industry had only been talking about a two-day settlement cycle. Only a preliminary roadmap of the stepping stones to T+2 had been completed, indicating that at least 30 operational workflows will be affected, requiring rule, behavioral and technology changes. On that day Securities and Exchange Commission […]