Compliance Resources to Help you Stay Current

ISO 22301 is an international ISO standard that specifies requirements for the setting up of and management of an effective Business Continuity Management System (BCMS).

This article discusses the applicability of the standard, the model its based on and summarizes its key requirements.

OCEG (www.oceg.org) is now partnering with the training branch of QCC Information Security to bring GRC training to the United Kingdom. Beginning in October, QCC will present the OCEG GRC Fundamentals curriculum in a three day small group seminar format, which provides attendees with the knowledge necessary to efficiently design and enhance GRC activities across an organization based on established GRC standards. Through lectures and practical group interaction, discussions, and exercises, attendees learn about defining a GRC strategy, building and enhancing corporate ethics and compliance programs, strengthening core business processes, and improving use of technology to support the integrated governance, management and assurance of performance, risk and compliance. This seminar will prepare you to obtain the GRC Professional (GRCP) certification offered by OCEG's afflilate organization, GRC Certify. To see the training schedule, please click on this link: http://grc-training.com/courses/certified-grc-professional/

The European Banking Authority (EBA) has published its new Guidelines on Internal Governance. These aim at enhancing and consolidating supervisory expectations and improving the implementation of internal governance arrangements for individual institutions and the banking system as a whole.

This article gives a brief summary of the EBA Guidelines.

Yes. While the Federal Reserve will conduct annual stress tests on all companies covered by the newly proposed rules, companies will also have to conduct their own semi-annual stress tests.

Any state member bank, bank holding company or savings and loan holding company with more than $10 billion in total consolidated assets (that is not a covered company) has to conduct its own annual stress tests, i.e. company-run stress tests.

The results of these stress tests should be summarized and made public.

Read a full summary of the requirements of the new proposed Federal Reserve Prudential Standards and Early Remediation for Covered Companies.
 

No – the proposed Federal Reserve rules issued in December 2011 would only apply to US bank holding companies with consolidated assets of $50 billion.

The new rules would also apply to any nonbank financial firms that may be designated by the Financial Stability Oversight Council as systemically important companies.

The early remediation requirements included in the proposed rules would be triggered by specific issues such as capital levels, stress test results and risk management weaknesses. These would be calibrated to forward-looking in some cases.

If triggered, early remediation actions would include:

• Restrictions on growth
• Capital distributions
• Executive compensation
• Capital raising
• Asset sales

Read a full summary of the requirements of the new proposed Federal Reserve Prudential Standards and Early Remediation for Covered Companies.

On December 20, 2011, the Federal Reserve proposed new rules that would strengthen regulation and supervision of large US bank holding companies and systemically important nonbank financial firms.

This article gives a brief overview and summary of requirements of these new rules.
 

The Australian Prudential Standard 112 – Capital Adequacy: Standardized Approach to Credit Risk aims at ensuring that “ensure that an authorized deposit-taking institution holds sufficient regulatory capital against credit risk exposures.”

This article gives a brief overview of the standard and its requirements.
 

The Australian Prudential Standard 110 – Capital Adequacy aims at ensuring that “authorized deposit-taking institutions maintain adequate capital, on both an individual and group basis, to act as a buffer against the risks associated with their activities.”

This article gives a brief overview of the standard and its requirements.
 

Yes – the CFTC’s newly approved Client Funds rule or “MF Global” rule allows futures brokers and brokerage firms to invest client funds in US Treasuries. They are, however, banned from investing client money in in-house transactions or repurchase agreements (repos) and foreign sovereign debt.

The spectacular collapse of brokerage firm MF Global in November 2011 and subsequent revelations that millions of dollars of its customers’ money was misused and is missing, spurred the Commodity Futures Trading Commission (CFTC) to finally approve its year old “Client Funds” rule.

This article gives a brief overview of the new rule and how it will affect brokerage firms.
 

Yes – issuers of money orders and travelers’ checks are specifically required to report transactions that are suspicious and involve or aggregate funds or assets of at least $5000.

A Suspicious Activity Report or SAR is a compliance requirement for financial institutions covered by anti-money laundering laws such as the Bank Secrecy Act. These reports have to be filed with the Financial Crimes Enforcement Network or FinCEN, a bureau under the US Treasury department that enforces anti-money laundering regulations

How do you write an effective Suspicious Activity Report? Read this article to find out.

In November 2007, Australia instituted the Australian Prudential Standard, APS 115 Capital Adequacy: Advanced Measurement Approaches to Operational Risk, under the Banking Act. This standard sets out the requirements that an authorized deposit-taking institution (that has approval to use an advanced measurement approach to operational risk) must meet both at the time of initial implementation and on an ongoing basis for regulatory capital purposes.

This article gives a brief overview and summary of requirements of APS 115.
 

In April 2010, the Public Company Accounting Oversight Board (PCAOB) issued a guidance or Staff Practice Audit Alert, Auditor Considerations Regarding Significant Unusual Transactions, aimed at advising auditors on how they should handle significant unusual transactions while auditing a company.

This article gives an overview and summary of recommendations of this guidance.
 

In October 2011, the Federal Reserve Board approved a final rule that will implement the resolution plan requirement, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. This important financial regulation requires bank holding companies with assets of $50 billion or more and nonbank financial firms designated by the Financial Stability Oversight Council for supervision by the Board to annually submit resolution plans to the Board and the Federal Deposit Insurance Corporation (FDIC). This rule will come into effect from November 30, 2011.

This article gives an overview and summary of requirements of this final rule.
 

The US Federal Reserve Board’s Regulation P or Privacy of Consumer Financial Information (12 CFR 216) regulates the use of nonpublic personal information about consumers by financial institutions.

This article gives a brief overview and summary of Regulation P requirements.
 

In 1994 the European Commission issued a Directive on Deposit Guarantee Schemes that aimed at protecting bank account holders in case of banks failing. After the 2008 financial crisis, the EU member states decided to increase the level of deposit protection and new Deposit Guarantee Scheme requirements were implemented and became effective in 2010.

This article gives an overview and summary of requirements of the Commission’s Directive on Deposit Guarantee Schemes.
 

In July 2011, the European Commission modified its Capital Requirements Directive to strengthen the stability of European banks. Rules under this proposed directive, known as CRD IV, is expected to be in place by the end of 2012 and banks across the EU are expected to comply by 2019.

This article gives a brief overview and summary of requirements of the Commission’s proposed Capital Requirements Directive.
 

The European Union’s Transparency Directive or TD was implemented to harmonize the transparency requirements for information about issuers whose securities are admitted to trading on a regulated market.

This article gives a brief overview and summary of requirements of the EU’s Transparency Directive.
 

The European Commission announced on October 20, 2011 that it has proposed modifications to its Markets in Financial Instruments Directive or Mifid to clamp down on high frequency trading and uncontrolled and non-transparent commodity speculation that is blamed for recent stock market volatility.

This article gives a brief overview of the proposed changes to Mifid and what the Commission hopes to achieve.
 

The Electronic Funds Transfer Act, enacted into law in 1978, was implemented as Regulation E by the Federal Reserve Board and aimed to protect consumers using electronic funds transfer services. The Act established the basic rights, responsibilities and responsibilities of consumers using electronic services to transfer funds and those of financial institutions providing these services.