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Audit & Governance Weekly Financial News 21st August 2020

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EXCLUSIVE: UK HEAD OF AUDIT VACANCIES LOWEST IN 6 YEARS.

Senior roles (Heads of Audit / Senior Audit Director / Internal Audit Partner) in the UK significantly decreased this year compared to the same period over the previous 5 years: Fig 1

Fig 1
The total number of new UK Internal Audit vacancies YTD decreased compared to the average of 2018 & 2019. May and June had the lowest volumes seen in 7 years. July showed a quick rebound. Fig 2.

Fig 2
There is a small but not insignificant shift of vacancies in the large G10 Broker / Dealers and smaller Securities firms, Corporate and Retail Banks. Geographical changes can also be seen compared to 2018 & 2019.
[Thank you to our friends at Vacancysoft for help with data.]

** Competitor analysis can be hard
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If you are planning your headcount for 2021 competitor analysis can give you an advantage. If you would like market and competitor intelligence across sector, region, and corporate levels email: [email protected] (mailto:[email protected]?subject=Market%20Intelligence%20request&body=Hi%20Paul%2C%20%0A%0AI%20would%20like%20more%20information%20on%3B%20%0A%0AYou%20can%20contact%20me%20at%3A%0A%0AThanks)
In the press this week…

Continuing my obsession with Wirecard, Reuters reports that German officials traded Wirecard shares as it was close to collapse (https://uk.reuters.com/article/uk-wirecard-germany-bafin/german-officials-traded-wirecard-shares-as-it-edged-towards-collapse-idUKKCN25A20G) . German regulatory officials bought and sold Wirecard shares in increasing volumes as Wirecard edged towards collapse, prompting fresh criticism of Bafin. Bafin declined to comment.

Internal audit leaders should develop new skills to stay relevant says Protiviti. It notes “Audit priorities could all benefit from next-gen internal auditing techniques”. I found helpnetsecurity’s summary of the survey to be interesting (https://www.helpnetsecurity.com/2020/08/17/internal-audit-leaders-should-develop-new-skills-to-stay-relevant/)

Lastly… the ICO (The UK’s independent regulatory office in charge of upholding information rights) received a mere ‘adequate’ rating in an internal audit report (https://tech.newstatesman.com/gdpr/ico-annual-report) this week. ‘Significant issues of compliance or efficiency… were found although they were transitory and largely due to the COVID-19 crisis. IOC has been criticised of losing its teeth and blaming COVID for a decrease in its recent activity.

I hope you enjoy this week’s offering.

Many thanks

Paul
In other news this week….
CITI’S $900 MILLION ‘CLERICAL ERROR’ WORST WALL STREET BUNGLE IN A LONG TIME

US banking giant files lawsuit seeking return of funds that were transferred in an “operational mistake”… (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://economictimes.indiatimes.com/markets/stocks/news/citis-900-million-clerical-error-is-worst-wall-street-bungle-in-a-long-time/articleshow/77569873.cms)

AML, KYC AND SANCTIONS FINES FOR GLOBAL FINANCIAL INSTITUTIONS REACH $5.6 BILLION MID-YEAR

Repercussions from high profile scandals and compliance failings hit US, Israeli, Nordic and German banks hardest… (https://www.theguardian.com/world/2020/aug/03/340m-in-london-law-firms-account-suspected-of-1mdb-connection) (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://www.thestreet.com/press-releases/aml-kyc-and-sanctions-fines-for-global-financial-institutions-reach-5-6-billion-mid-year-15400121)
SCHRODERS BECOMES FIRST MAJOR CITY FIRM TO MAKE HOME WORKING PERMANENT

Fund manager Schroders will allow thousands of its employees to continue working from home even after the pandemic…. (https://www.reuters.com/article/us-usa-banks-capital-one-fin/capital-one-to-pay-80-million-fine-after-data-breach-idUSKCN2522DA) read more (https://www.cityam.com/schroders-becomes-first-major-city-firm-to-make-home-working-permanent/)

INTERNAL AUDITORS LOSING GROUND ON DIGITAL TRANSFORMATION

Internal audit departments are slowing down the adoption of next-generation technologies, such as artificial intelligence and machine learning, according to a new survey… (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://www.accountingtoday.com/news/internal-auditors-losing-ground-on-digital-transformation)
GERMAN GREENSILL BANK DRAWS REGULATORY SCRUTINY

93 year old firm (previously NordFinanz Bank AG) investigated after 7 fold balance sheet increase….read more (https://www.bloomberg.com/news/articles/2020-08-19/billionaire-greensill-s-german-bank-draws-regulatory-scrutiny#:~:text=The%20growth%20of%20the%20Bremen,British%2DIndian%20entrepreneur%20Sanjeev%20Gupta.)

SCOTIABANK TO PAY OVER $127M FOR PRECIOUS METALS PRICE MANIPULATION

Bank of Nova Scotia has agreed to pay more than $127 million to resolve a series of U.S. regulatory charges .. (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.wsj.com/articles/scotiabank-fined-127-million-for-price-manipulation-false-statements-11597877100)
KPMG OUSTS HEAD OF FINANCIAL SERVICES UNIT

One of the UK’s biggest consultancies has ousted the head of its financial services consulting division, following a probe into alleged misconduct…. (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.bbc.co.uk/news/business-49323555#:~:text=One%20of%20the%20UK’s%20biggest,Howarth%20had%20left%20the%20company.)
JP MORGAN HIRES EX-UK FINANCE MINISTER JAVID
Former finance minister resumes his career in investment banking with US bank… read more (https://www.malaymail.com/news/money/2020/08/18/jpmorgan-hires-ex-uk-finance-minister-javid/1894972)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

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Audit & Governance Weekly Financial News 14th August 2020

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As the weeks go by it seems more and more drama is uncovered behind Wirecard… This week Reuters reported that Philippines officials confirmed the death of ex-Wirecard executive Christopher Bauer, who was one of several people being investigated at the German payments firm. The article (https://uk.reuters.com/article/uk-wirecard-account-philippines/philippines-confirms-death-of-ex-wirecard-executive-bauer-idUKKCN2591RE) cites he died of ‘natural causes’… Jan Marsalek, Wirecard’s former COO, has still not been seen since his employment was terminated.

Meanwhile, Singapore charged a Director of Citadelle Corporate Services Pte Ltd with falsifying letters related to Wirecard. Read the Reuters article here (https://uk.reuters.com/article/us-singapore-wirecard/singapore-charges-citadelle-director-with-falsifying-letters-related-to-wirecard-idUKKCN25307I) .

To add insult to injury for investors, apparently, investigators think Wirecard was plundered before its collapse (story below).

ABN Amro is to end all trade and commodity financing after a series of losses and will be letting go of 800 jobs as it joins a list of banks restructuring or reducing their commodities business. Reuters discuss this and the wider industry shakeup here (https://uk.reuters.com/article/uk-abn-amro-results/abn-amro-exits-trade-commodity-finance-in-wider-industry-shake-up-idUKKCN2580KS) .

Whilst it won’t come as a surprise to many seasoned professionals in 1st, 2nd, 3rd LOD that powerful CEO’s increase risk. The University of East Anglia have produced a study on the causal link and included AML. The article’s below, and worth a read.

Lastly, I would like your help in increasing the reach of the audit and governance weekly mailer! If you know of anyone who would also enjoy these posts, do pass on a copy and ask them to subscribe.

I hope you enjoy this week’s offering.

Many thanks

Paul
In other news this week….
WIRECARD WAS PLUNDERED BEFORE ITS COLLAPSE

Wirecard made unsecured loans. Embezzlement investigation focuses on companies in Dubai, Philippines, and Singapore, according to the FT… (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://www.sharecast.com/news/international-companies/prosecutors-suspect-wirecard-was-looted—report–7601952.html#:~:text=German%20prosecutors%20suspect%20Wirecard%20was,fraud%2C%20according%20to%20a%20report.)
US BROKER PAYS $38M FOR AML FLAG FAILURES

Interactive Brokers agreed to pay $15 million to FINRA for widespread anti-money laundering failures… (https://www.theguardian.com/world/2020/aug/03/340m-in-london-law-firms-account-suspected-of-1mdb-connection) (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://uk.reuters.com/article/us-usa-sec-interactivebrokers/interactive-brokers-to-pay-38-million-in-penalties-to-u-s-regulators-idUKKCN2561T2)
POWERFULL CEOS = MONEY LAUNDERING AND POOR PERFORMANCE?

Study reveals Banks with powerful CEO’s and smaller, less independent boards are more likely to take risks and be susceptible to money laundering…. (https://www.reuters.com/article/us-usa-banks-capital-one-fin/capital-one-to-pay-80-million-fine-after-data-breach-idUSKCN2522DA) read more (https://phys.org/news/2020-08-reveals-impact-powerful-ceos-money.html)
WILL FCA INCREASE LENDING REGS AS CONCERNS ON CONSUMER CREDIT ARE FLAGGED

UK’s financial watchdog steps up its scrutiny of credit providers who encourage customers to take on more loans.. (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://uk.reuters.com/article/uk-britain-fca-credit-idUKKCN2520OO)
GLOBAL AML FINES RISE AMID REPEATED SHORTCOMINGS IN 2020

AML fines in the initial six months of 2020 reached a total of $706m, compared with last year’s aggregate of $444m“….read more (https://www.ft.com/content/a547e6ed-5a2e-48c4-bbee-febbf975e4af)
GERMAN POLICE LAUNCH RAIDS IN RUSSIA MONEY LAUNDERING PROBE

Investigators raid home of businessman and search import-export premises of a firm on Tuesday .. (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.dw.com/en/german-police-launch-raids-in-russia-money-laundering-probe/a-54532566)
BELGIUM DELAYS IMPLEMENTATION OF 5TH ANTI-MONEY LAUNDERING DIRECTIVE (AMLD5)

Delay of approximately seven months in the implementation of AMLD5 in Belgium… (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.lexology.com/library/detail.aspx?g=ba99d475-9d42-492a-b503-60bfde986cd7)
USING ART TO EVADE SANCTIONS AND LAUNDER MONEY

Report recommends BSA be amended to include art dealers as “financial institutions” subject to AML obligations…. read more (https://www.moneylaunderingnews.com/2020/08/using-art-to-evade-sanctions-and-launder-money-the-senate-report/)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

============================================================
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Audit & Governance Weekly Financial News 7th August 2020

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* BREAKING * – HUGE CYBERSECURITY RISK IN SMARTPHONES.

Research group Checkpoint has found 400 vulnerabilities in code of Qualcomm Snapdragon digital processor chip. Read the Forbes article here (https://www.forbes.com/sites/daveywinder/2020/08/06/hundreds-of-millions-of-android-phones-can-spy-on-users-as-400-snapdragon-security-flaws-confirmed-qualcomm-google-lg-samsung-oneplus/#68162c2e60b2) . Checkpoint have chosen not to published the full list, but will be discussing it further in their webcast: follow this link for details (https://www.brighttalk.com/webcast/16731/431231) . Time to check staff use of smartphones!

In other news this week, Capital One has been fined a whopping $80M (see below) for the well-publised data breach in 2019. Although Capital One have neither confirmed nor denied the OCC’s findings, for me the report does unduly make internal audit the focus for what perhaps is a bigger issue. So often a failing in one of three LOD’s cascades to other areas, with ultimate responsibility with the board and audit committee. As with Australia’s Westpac, these failings perhaps highlight bigger cultural risk issues.

EY asks How insurers can strengthen controls. (https://www.ey.com/en_gl/financial-services-emeia/how-insurers-can-strengthen-controls-in-a-remote-environment?utm_campaign=5c459da010812400010006d3&utm_content=5f2424c4c90a0800015392df&utm_medium=smarpshare&utm_source=linkedin) Having read a lot of ‘Are you ready COVID’ articles this one is one of the better ones as it goes beyond financial and reporting controls to highlight some thoughtful considerations for operational controls and risks, worth a look for anyone in insurance or Financial Services.

Are third-party Risk programs falling short of regulator expectations? (https://www.complianceweek.com/webcasts/aug-11-third-party-risk-management-are-programs-up-to-scratch/29073.article)
Compliance weekly discuss a few of these issues with a former assistant chief of the US Department of Justice and while collar criminal defense lawyer.

Well worth reading if you are using or are about to use 3rd party Risk services.
– Are programs adequately resourced and empowered?
– Do programs support the risk management of third parties throughout the lifespan of the relationship, or primarily during the onboarding process?
– Is oversight up to regulatory expectations?
– Key points for improvement
– Building a business case for the value of third-party risk management in your organization.

And lastly…

The FCA has compensated a member of the public who they filmed for a video about vulnerability because – wait for it – they included a family in the film without seeking consent.
In other news this week….
BASEL – CONSULTATION ON PRINCIPLES FOR OPERATIONAL RISK RESILIENCE

The BASEL committee consultation covers 7 Principles … (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://www.bis.org/press/p200806.htm)

$340M – LAW FIRM SUSPECTED OF LINK TO EMBEZZLED MONEY

Money in London firm Clyde & Co’s account linked to money allegedly embezzled from Malaysian fund.. (https://www.theguardian.com/world/2020/aug/03/340m-in-london-law-firms-account-suspected-of-1mdb-connection) (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://www.theguardian.com/world/2020/aug/03/340m-in-london-law-firms-account-suspected-of-1mdb-connection)

CAPITAL ONE TO PAY $80 MILLION FINE AFTER DATA BREACH

Board failed to act on issues identified by internal audit … (https://www.reuters.com/article/us-usa-banks-capital-one-fin/capital-one-to-pay-80-million-fine-after-data-breach-idUSKCN2522DA) read more (https://www.reuters.com/article/us-usa-banks-capital-one-fin/capital-one-to-pay-80-million-fine-after-data-breach-idUSKCN2522DA)

GERMAN PROSECUTORS SEARCH BANK LOBBY GROUP FOR TAX FRAUD SCANDAL

Public prosecutors raided Berlin and Frankfurt offices of BdB as part of crackdown on multi-billion-euro trade scam .. (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://yournews.com/2020/08/04/1762443/german-public-prosecutors-search-bank-lobby-group-for-evidence-in/)
EURONEXT – CUTTING TRADING DAY NOT STRONG ENOUGH TO REDRESS GENDER IMBALANCE

Euronext reticent to change despite broad backing for a 90-minute cut to the trading days…read more (https://uk.investing.com/news/stock-market-news/euronext-says-case-to-redress-gender-imbalance-by-cutting-trading-day-not-strong-enough-2180014)
FRC PUBLISHES SECOND ANNUAL REVIEW OF FINES AND PENALTIES FOR AUDIT FAILURES

Drastic drop in financial penalties to £11.3million from the £32m record high the year before . . (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.frc.org.uk/getattachment/d299042a-f14f-40eb-8889-7b44818cf53b/Annual-Enforcement-Review.pdf)
NEW SURVEY OF GLOBAL INTERNAL AUDITORS SHOWS CONCERN

34 percent of all organizations were very or extremely concerned about their long-term ability to survive coronavirus crisis… (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://na.theiia.org/periodicals/Public%20Documents/GKB-How-Organizations-Globally-Are-Responding-to-COVID-19.pdf)
REITS / UT’S – NEW FCA RULES ON OPEN-ENDED PROPERTY COULD BE “DEATH KNELL” FOR THE SECTOR

180 day notice period creates undue complications for retail intermediaries… read more (https://portfolio-adviser.com/fca-notice-period-proposals-could-be-the-death-knell-for-retail-property-funds/)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

============================================================
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United Kingdom
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Audit & Governance Weekly Financial News 31st July 2020

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** Hi *|FNAME|*

As you will know I’ve been following the Wirecard scandal with interest. It will be no surprise that the german finance minister Scholz doubles down on his push for increased regulation [story below] ahead of hearing. What I haven’t seen covered in the broadsheets is a New claim that a Mastercard Executive apparently connected to suspicious dealings at a Cyprus Bank has connections to Wirecard. [story below]

Bank of Ireland – The Governor and Company of the Bank of Ireland was fined (the expected amount of) €1,660,000 (https://theindustryspread.com/enforcement-action-notice-the-governor-and-company-of-the-bank-of-ireland-fined-e1660000-and-reprimanded-by-the-central-bank-of-ireland-for-regulatory-breaches/) . This related to MiFD breaches from a cyber-fraud incident 2014 whereby, BOIPB made two payments to a third-party fraudster’s account who was impersonating a client.

Goldman Sachs has been ordered to pay $2.5 billion in one of the largest financial scandals in years. The Malaysian government fined GS for its role in the alleged fraud involving former Malaysian Prime Minister who was sentenced to 12 years… more here (https://www.marketscreener.com/THE-GOLDMAN-SACHS-GROUP-12831/news/Goldman-Sachs-Ex-Malaysian-Leader-Gets-Prison-In-1MDB-Case-31009296/)

Sour reading for Credit Suisse LOD staff as functions will merge and redundancies are expected (https://www.businesslive.co.za/bd/companies/2020-07-27-nordic-bankers-face-the-axe-after-jobs-boom-runs-out-of-steam/) .

Nordic bank Compliance staff (https://www.businesslive.co.za/bd/companies/2020-07-27-nordic-bankers-face-the-axe-after-jobs-boom-runs-out-of-steam/) are also expecting redundancies: Danske Bank has warned of big cuts, with outside predictions saying at least 1,000 jobs will be axed, especially in compliance. Nordea Bank are also alleged to be looking at the 1,500 employee jobs it created to fight financial crime a few years ago. It seeks to automate to keep costs in check.

Lots going on this week again, main stories below…

Enjoy!

Rgds
Paul
————————————————————
In other news this week….
CREDIT SUISSE TO COMBINE COMPLIANCE AND RISK FUNCTIONS

CEO proposes merging of functions in order to make 400 million francs annual saving … (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ)
INDUSTRY BODY WARNS OF BAD CONDUCT RISKS AS BANKERS RETURN TO CITY

MFSB CEO warns of possible behavioral changes as a result of “A / B team” divison.. (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP)
FRC LEVIES FIRST FINE ON BDO FOR AMTRUST EUROPE AUDIT

£160k fine for ‘unintentional rule breaches’ in audit of international insurer AmTrust…read more (https://www.reuters.com/article/britain-accounts-regulator/update-1-uk-watchdog-levies-first-fine-on-bdo-for-amtrust-europe-audit-idUSL5N2F033K)
INDIA: CYBERSECURITY LAPSES AT NATIONAL PAYMENTS CORP

Audit of the flagship payments processor found more than 40 security vulnerabilities including “critical” and “high” risk .. (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB)
UK WATCHDOG AUDITORS TOLD ‘BE MORE SCEPTICAL’ OF CLIENTS

BIg 4 and smaller Accounting firms continue to show too little independence…read more (https://www.reuters.com/article/britain-accounts-regulator/uk-watchdog-tells-auditors-to-be-more-sceptical-of-clients-idUSL5N2F17U9)
GERMANY: SCHOLZ BACKS TOUGHER OVERSIGHT AHEAD OF WIRECARD HEARING

German Finance Minister seeks to toughen financial oversight of companies. . (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.reuters.com/article/us-wirecard-accounts/germanys-scholz-backs-tougher-oversight-ahead-of-wirecard-hearing-idUSKCN24P216)
FRC’S NEW SUPERVISION DIVISION – NEW DIRECTORS ANNOUNCED

The division will enhance forward-looking vision, build thematic work across firms and homogenise AQR and AFMAS… (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.frc.org.uk/news/july-2020/supervision-restructuring-and-appointments)
FCA RAPS BROKERS OVER ‘INAPPROPRIATE’ USE OF CLIENTS’ ASSETS

The market regulator makes latest in a series of complaints about brokerage industry… read more (https://www.fca.org.uk/publication/correspondence/dear-ceo-letter-inappropriate-use-title-transfer-collateral-arrangements.pdff)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

============================================================
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Audit & Governance Weekly Financial News 24th July 2020

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** Hi *|FNAME|*

Another leaked Doc [leaked is a bit far fetched as it was reported by the same author long ago this was expected, but it got my attention] EU bans initial margin haircuts, story below.

IIA updates it 3LOD model (see below) and the US IIA president Richard Chalmers steps down… Any US readers fancy taking on his mantle, the IIA are looking for the next CEO now! The UK chapter are also looking to elect councilors in the summer. Fancy giving something back? Apply here (https://www.iia.org.uk/media/1689045/candidate-statement.docx) .

Thinking about running your own risk management tech co.? Risk-management and safety startups are amongst the highest to attract NY VC money (https://www.worldnewj.com/enterprise-tech-startups-focused-on-risk-security-attract-venture-dollars/) since work at home and high-profile cyber attacks.

We know it’s been a hard time for the Big 4, but this is the first I’ve seen of publicised redundancies as KPMG prepare to axe 200 jobs (https://news.sky.com/story/coronavirus-kpmg-takes-axe-to-jobs-and-pensions-as-pandemic-bites-12033807) across it’s UK workforce and cut pension pots, Sky news reports.

Conduct Risk- New approaches
Operational Risk professionals… New approaches to Conduct Risk – A good deal was discussed in Risk.net webinar on the issue. Panelists included; Al Silipigni, Head of Conduct Risk Wells Fargo and Tanya Weisleder, Global head of Conduct Risk Credit Suiss. If you missed it, catch up here (https://www.risk.net/regulation/7658086/rethinking-compliance-new-approaches-to-conduct-risk-and-surveillance) and webinar here (https://www.risk.net/regulation/7536841/rethinking-compliance-new-approaches-to-conduct-risk-and-surveillance-in-2020) .

And lastly…..
The FCA was in the news this week as the CE designate Nikhil Rathi discusses it’s role in promoting diversity [story below] and also for a more unusual reason… the FT reported fraudsters cloned the FCA register website (https://www.ftadviser.com/regulation/2020/07/22/fraudsters-clone-fca-register-and-website/) [I’ve checked it’s now been taken down!].

Enjoy!

Rgds
Paul
————————————————————
In other news this week….
IIA’S THREE LINES MODEL UPDATED

IIA ditches focus on defense for more collaboration between key players within an organisation … read more (https://global.theiia.org/about/about-internal-auditing/Public%20Documents/Three-Lines-Model-Updated.pdf)
LEAKED DOC: EU BANS INITIAL MARGIN HAIRCUTS TO RESOLVE CCPS

Legislators will forbid resolution authorities from the ability to raid clearing members initial members accounts… read more (https://www.risk.net/regulation/7653806/leaked-doc-eu-bans-initial-margin-haircuts-to-resolve-ccps)
FCA MAY INTERVENE IN HIRING IF INDUSTRY’S ‘DEEP ISSUES’ ON DIVERSITY DON’T IMPROVE

Failure by firms to improve industry record on diversity could lead to FCA intervention in recruitment … read more (https://www.mortgagesolutions.co.uk/news/2020/07/23/fca-could-intervene-in-hiring-processes-if-industrys-deep-issues-on-diversity-do-not-improve/)
CLOUD MISCONFIGURATIONS ARE THE MAJOUR DATA SECURITY RISK SAY IT DECISION MAKERS

Most IT decision makers are extremely concerned about legal and regulatory implications of cloud threats .. read more (https://www.infosecurity-magazine.com/news/cloud-misconfigurations-compliance/)
GRANT THORNTON FACES LEGAL ACTION OVER PATISSERIE VALERIE AUDIT

Decision on whether GT to be taken to court expected to be made in the next few weeks..read more (https://www.cityam.com/grant-thornton-faces-legal-action-over-patisserie-valerie-audit/)
AUDITING DIGITAL ASSETS – SPECIFIC CHALLENGES

Useful guidance from the US as APAC releases document on Accounting and auditing of digital assets. … (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf)
HOW EUROPE CAN FIGHT MONEY LAUNDERING

Eero Heinäluoma advocates more uniform approach to EU’s AML, in order to fight terrorism and fraud. … (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.theparliamentmagazine.eu/news/article/how-europe-can-fight-money-laundering)
LEBANESE CENTRAL BANK FACES AUDIT AS CRISIS DEEPENS

The government appointed consultants Alvarez & Marsal to carry out audit, after a cabinet meeting on July 21.. read more (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens)

** Hiring for your Internal Audit team?
————————————————————
We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

============================================================
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