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Where to start this week!
Following last week’s popular report (thanks for those that commented) on Outsourcing Internal audit from Prof. Sheedy, front office outsourcing has spiked in the fund industry since COVID19 according to Soc Gen’s Head of BD Leonard Ollier [link below]. Whilst the pessimist in me has to take this with a pinch of salt (SG are pushing outsourcing as a service), nevertheless, I have to heed where this is going…; Manish Chopra Leader of Risk and Analytics at global consultancy Genpact wrote a good piece on how banks should ‘reimagine’ [you can tell it’s consultancy!] COVID19 Credit, Liquidity, Operational & Cyber Risk (https://www.globalbankingandfinance.com/covid-19-is-prompting-banks-to-re-imagine-risk-management-with-data-and-analytics/) , which is worth reading.
BofE deputy governor sent a letter to Banks (https://www.reuters.com/article/health-coronavirus-boe-banks/bank-of-england-asks-banks-to-estimate-pandemic-loan-losses-idUSL8N2DH0U6) this week asking for pandemic loss estimates ahead of Q2 earnings. I for one feel COVID19’s real economic impact is yet to happen and I will be keenly looking at earnings reports. Staying with the BofE, comments in a paper (https://www.reuters.com/article/britain-libor-markets/banks-request-legislative-fix-to-libor-linked-financial-contracts-idUSL8N2DE3O3) sponsored by BofE and FCA released last week show COVID19 potential impact on Libor legislation changes: “While the deadline for the market to be ready for the cessation of Libor by the end of 2021 remains the same, there is less time available in practice to meet it,”
Also in the news this week: Westpac AML compliance review is published, EU is looking for feedback on new anti-trust powers, France Central Bank asks for capital regs adjustments, and ESMA issues half a million fine to ratings agency. All links below…
Lastly… Spying, controls, and an affair – the toppling of a CEO….
Fascinating case on the subject of management controls reported by Reuters on FINMA’s investigation into Credit Suisse (https://www.reuters.com/article/credit-suisse-gp-shadow/credit-suisse-appeals-against-ruling-in-spying-auditor-case-idUSL8N2DB202) . CS sought to scuttle FINMA’s appointment of lawyer Thomas Werlen in the investigation against them… “on grounds, the firm and Werlen lacked sufficient independence” Ouch!! The investigation relates to FINMA’s questioning whether failures in management control led to snooping on two former executives, in an affair which led to CEO Tidjane Thiam leaving the bank.
Paul & Craig
In the News this week….
EU – ESMA FINES SCOPE RATINGS 640,000 EUROS
EU Watchdog imposes fine for infringements to meet the special care expected from a credit rating agency… (https://www.reuters.com/article/eu-regulator-scoperatings-fine/update-1-eu-watchdog-fines-scope-ratings-640000-euros-idUSL8N2DH1OE) read more (https://www.reuters.com/article/eu-regulator-scoperatings-fine/update-1-eu-watchdog-fines-scope-ratings-640000-euros-idUSL8N2DH1OE)
ANZ – WESTPAC UNVEILS FINDINGS FROM COMPLIANCE REVIEW
Breaches of AML and counter-terrorism accidental not intentional wrong-doing …read more (https://www.reuters.com/article/westpac-regulator/australias-westpac-unveils-findings-from-compliance-review-idUSL4N2DG42T)
EU SEEKS FEEDBACK ON NEW ANTI-TRUST POWER TO INVESTIGATE COMPANIES
EU regulators looking for feedback on preventative legislation to curb power abuse by multi-nationals … (https://www.reuters.com/article/us-eu-antitrust-tool/eu-seeks-feedback-on-new-antitrust-power-to-investigate-companies-idUSKBN2391Z0) read more (https://www.reuters.com/article/us-eu-antitrust-tool/eu-seeks-feedback-on-new-antitrust-power-to-investigate-companies-idUSKBN2391Z0)
CAPTIAL REGULATIONS NEED ADJUSTING IN FACE OF CRISIS SAYS FRENCH CENTRAL BANK
Bank capital rules need to be further adjusted to limit the impact of coronavirus crisis… read more (https://www.reuters.com/article/france-banks-regulations/bank-capital-rules-need-adjusting-in-face-of-crisis-french-central-banker-idUSL8N2DA27F)
BOE – BRITISH INVESTMENT FUND INQUIRY TO INTERVIEW ANDREW BAILEY IN JUNE
Bank of England Governor to be interviewed as part of the investigation into collapsed IF …read more (https://www.reuters.com/article/britain-lcf-inquiry/update-2-british-investment-fund-inquiry-to-interview-boes-bailey-in-june-idUSL8N2DF2C4)
FRONT OFFICE OUTSOURCING TO SPIKE POST COVID-19
Funds industry recognises outsourcing front-to-back office operations incredibly resilient amid Covid-19 crisis … (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19)
** This news service is brought to you by Fleet Search and Selection – international specialists in Financial Services Internal Audit Recruitment.
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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.
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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.
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