Using technology to support financial services regulatory compliance: current applications and future prospects of regtech

2020 ◽  
Vol 21 (2/3) ◽  
pp. 181-190
Author(s):  
Ake Freij
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Regulatory Compliance ◽  
Business Managers ◽  
Future Prospects ◽  
Content Type ◽  
Strategic Vision ◽  
Use Of Technology ◽  
Practical Implications ◽  
Regulatory Management

Purpose The conflict between the burden from regulations and the desire to introduce new offerings to the market is a concern for both researchers and business managers alike. Over the last 10 years significant increases in resources required to comply with regulations have been observed. The use of technology solutions to manage complex regulations (a.k.a. “Regtech”) is emerging as a potential solution to the compliance demand. This paper poses the question, “Which support do current Regtech solutions offer?”. Design/methodology/approach This study analyzed a global set of 550 providers to understand what support Regtech solutions provide. Findings The analysis shows how regulatory compliance work is supported as well as specific examples of firms providing support and which regulations are covered. Results highlight that the main focus in the current Regtech industry is on supporting internal and operations tasks rather than external and analytical activities. Practical implications Recommendations to business managers are to combine regulatory support with a clear strategic vision, carefully plan integration scenarios, and to look for the support of broader regulatory management rather than individual functions or specific regulations. Social implications If RegTech providers, financial services firms, regulators, and researchers look towards a future where the balance of proactive regulatory management and efficient compliance is achieved, there are substantial benefits for customers of the industry. The result will be increased transparency and quality in all industries. Originality/value The result from this study is one of the first specific illustrations of the nature of “RegTech,” which can serve as a basis for further research into aspects of technology and capabilities.

Beyond placement, layering and integration – the perception of trade-based money laundering risk in UK financial services

2019 ◽  
Vol 22 (4) ◽  
pp. 614-625 ◽  
Author(s):  
Mario Menz
Keyword(s):  
Money Laundering ◽  
Financial Services ◽  
Design Methodology ◽  
Banking Sector ◽  
Trade Finance ◽  
Content Type ◽  
Proceeds Of Crime ◽  
The Uk ◽  
Practical Implications ◽  
Insight Into

Purpose The purpose of this study was to investigate the perception of trade-based money laundering in Letters of Credit (“L/C”) transactions among trade finance practitioners in the UK banking sector and to compare it to the perception of the same risk by the Financial Conduct Authority (“FCA”), the regulator of the UK’s banking sector. Design/methodology A survey was used to carry out research among financial services professionals engaged in trade finance in the UK. Findings This paper contributes to the existing literature in a number of ways. First, it investigates the perception of trade-based money laundering risk from the perspective of financial services professionals, which has not previously been done. Second, it argues that the perception of trade-based money laundering in financial services is overly focussed on placement, layering and integration, and that the full extent of the offence under the Proceeds of Crime Act 2002 is less well known. It further found that financial services firms need to improve their understanding of the nature of trade-based money laundering under UK law. Practical implications This study argues that the financial services sector’s perception of trade-based money laundering risk in trade finance is underdeveloped and makes suggestions on how to improve it. Originality/value It provided unique insight into the perception of trade-based money laundering risk among financial services professionals.

Approaches to supervising work-based learning students’ workplace research

2014 ◽  
Vol 4 (1) ◽  
pp. 44-65 ◽  
Author(s):  
Jon Talbot ◽  
Andy Lilley
Keyword(s):  
Higher Education ◽  
Design Methodology ◽  
Quantitative Methods ◽  
Research Projects ◽  
Content Type ◽  
Use Of Technology ◽  
Contextual Framework ◽  
E Learning ◽  
The Uk ◽  
Practical Implications

Purpose – The purpose of this paper is to outline a small research project designed to explore the practices of the UK work-based learning (WBL) tutors in facilitating formal research projects in the workplace. Design/methodology/approach – Data were collected using a short questionnaire to practitioners administered electronically and a daylong workshop where issues were discussed in greater depth by participating tutors. Findings – The main findings are that there is a degree of agreement by WBL tutors about the distinctiveness of WBL research projects; that although there is increasing use of technology to support delivery only one institution is using e-learning as the principal means of delivery; emphasis is upon a relatively small number of techniques and there is a strong preference for qualitative over quantitative methods. Research limitations/implications – The main limitation of the study is the relatively small number of active participants. However, this is the only study of its kind and the results offer insights into an important element of pedagogic practice in WBL. Practical implications – The project enabled the identification of common approaches and facilitated discussion of problems shared by WBL tutors across the field. There appears to be a consensus that situated investigation exists within a different contextual framework to traditional academic dissertation projects and that the focus is therefore necessarily on generating data as the basis for active problem solving. Originality/value – This is the only empirical study of practice in respect of facilitating research projects on WBL programmes in higher education.

Employee champions an inside job

2015 ◽  
Vol 31 (6) ◽  
pp. 33-35
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Brand Management ◽  
Brand Identity ◽  
Brand Communication ◽  
Content Type ◽  
Internal Brand Management ◽  
Service Staff ◽  
Pertinent Information ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings – Internal brand management was a major contributor to job satisfaction, brand commitment and intention to stay for service staff at a Southern African financial services company. While brand identity and external brand communication play important roles in creating sound internal brand management, internal brand communication is the most important contributor. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

ESMA issues Brexit opinions to EU regulators: a warning shot not only to the UK but also to the EU27

2017 ◽  
Vol 18 (4) ◽  
pp. 50-52
Author(s):  
William Yonge ◽  
Simon Currie
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Regulatory Response ◽  
Market Participants ◽  
Financial Firms ◽  
Practical Guidance ◽  
The Uk ◽  
Practical Implications ◽  
The Eu

Purpose To summarize and analyse four opinions issued in May and July 2017 by the European Securities and Markets Authority (“ESMA”) concerning regulatory and supervisory arbitrage risks that arise as a result of increased requests from financial market participants to relocate activities and functions in the EU27 following the UK’s decision to withdraw from the EU, and the expected regulatory response to those risks. Design/methodology/approach Discusses the possible relocation of financial firms, activities and functions following the UK’s decision to withdraw from EU; the resulting cross-sectoral regulatory and supervisory arbitrage risks that ESMA foresees; nine principles that ESMA enumerates to guide its regulatory response to those risks; some common themes that emerge from ESMA’s July Opinions; and the implications for UK firms and trading venues seeking to establish a presence in the EU 27. Findings ESMA foresees regulatory and arbitrage risks in Brexit and a potential “race to the bottom” as certain national regulators jostle for and grab UK market share. Practical implications UK firms and trading venues seeking to establish a presence in the EU27 from which to operate will need to give detailed consideration and focus to the resources and operational substance which will need to be located in the jurisdiction in which that presence is established. Originality/value Practical guidance from experienced financial services, securities and fund management lawyers.

What is new after Liu: unsettled questions surrounding SEC disgorgement

2020 ◽  
Vol 21 (2/3) ◽  
pp. 127-135
Author(s):  
M. Alexander Koch ◽  
Carmen J. Lawrence ◽  
Aaron Lipson ◽  
Russ Ryan ◽  
Richard H. Walker ◽  
...  
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Federal District ◽  
District Court ◽  
Content Type ◽  
Equitable Relief ◽  
Practical Guidance ◽  
Court Proceedings ◽  
The Impact ◽  
Practical Implications

Purpose To analyze the impact of the U.S. Supreme Court’s decision in Liu v. SEC, where the Court confronted the issue of whether the SEC can obtain disgorgement in federal district court proceedings. Design/methodology/approach This paper provides an overview of the authors’ prior work analyzing courts’ treatment of SEC disgorgement and a summary of the background and opinion in Liu v. SEC. This article then focuses on the practical implications of Liu on SEC disgorgement by considering questions left open by the decision. Findings The Court in Liu held that the SEC is authorized to seek disgorgement as “equitable relief” as long as it “does not exceed a wrongdoer’s net profits and is awarded for victims.” But the Court left many unanswered questions, such as whether disgorged funds must always be returned to investors for disgorgement to be a permissible equitable remedy, whether the SEC can obtain joint-and-several disgorgement liability from unrelated co-defendants, what “legitimate expenses” should be deducted in disgorgement calculations, and to what extent the SEC can seek disgorgement in cases when victims are difficult to identify. Originality/value Original, practical guidance from experienced lawyers in financial services regulatory and enforcement practices, many of whom have previously worked in the SEC’s Division of Enforcement.

MSRB publishes its first compliance advisory for broker-dealers

2016 ◽  
Vol 17 (3) ◽  
pp. 49-51
Author(s):  
Scott R. Anderson ◽  
Kate S. Poorbaugh
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Content Type ◽  
Compliance Programs ◽  
Policies And Procedures ◽  
Practical Guidance ◽  
Effective Compliance ◽  
Practical Implications

Purpose To summarize the Municipal Securities Rulemaking Board’s 2016 Compliance Advisory for brokers, dealers and municipal securities dealers. Design/methodology/approach Summarizes several Municipal Securities Rulemaking Board (MSRB) rules that the Compliance Advisory highlights as presenting key compliance risks for brokers, dealers and municipal securities dealers. Discusses the factors included in the Compliance Advisory that dealers should consider when evaluating compliance procedures and controls. Findings By highlighting some key compliance risks and providing considerations tailored to those risks, the Compliance Advisory can be used as a tool to aid dealers in developing and assessing effective compliance programs. Practical implications Dealers should consider reviewing their firms’ existing compliance policies and procedures in light of the considerations discussed in the Compliance Advisory. Originality/value Practical guidance from experienced securities and financial services regulatory lawyers.

The strategic advantages of business war gaming

2019 ◽  
Vol 35 (3) ◽  
pp. 1-3
Keyword(s):  
Case Studies ◽  
Financial Services ◽  
Design Methodology ◽  
Reading Time ◽  
Learning Experience ◽  
Cutting Edge ◽  
Content Type ◽  
War Games ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings This paper demonstrates how strategic business war games provide a learning experience by revealing realistic opportunities and risks while at the same time sharpening the players’ commercial instincts. Bundled services that offered sizeable discounts were the most predictable way of enticing customers to switch to another financial services provider. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Blockchain for business

2019 ◽  
Vol 20 (1) ◽  
pp. 17-21 ◽  
Author(s):  
Rohith P. George ◽  
Brad L. Peterson ◽  
Oliver Yaros ◽  
David L. Beam ◽  
Julian M. Dibbell ◽  
...  
Keyword(s):  
Financial Services ◽  
Design Methodology ◽  
Legal Issues ◽  
Use Cases ◽  
Proof Of Concept ◽  
Content Type ◽  
Wide Range ◽  
Practical Guidance ◽  
The Right ◽  
Practical Implications

Purpose To introduce blockchain in simple terms for business lawyers to be able to spot the right issues and ask the right questions. Design/methodology/approach This article provides an overview of blockchain, identifies two example use cases, and highlights some of the most pressing legal issues, including issues to address in on-chain programming, off-chain agreements and other issues when determining whether to implement a blockchain solution. Findings This article concludes that there has been a significant growth in investment and interest in blockchain. Numerous companies across different sectors have developed blockchain proof-of-concepts, with some heading towards production deployments. At this point, commercial blockchain is largely in the pilot or proof-of-concept stage across a wide range of use cases, with payments and supply chain being two of the most promising use cases. This article also identifies possible legal issues associated with blockchain. Practical implications Despite the growing interest in blockchain, it is still a novel topic to many business lawyers. It is very important that lawyers are able to identify the right issues and ask the right questions. Originality/value Practical guidance from experienced lawyers in the Technology Transactions and Financial Services Regulatory & Enforcement practices.

Generational perceptions at work: in-group favoritism and out-group stereotypes

2017 ◽  
Vol 36 (1) ◽  
pp. 33-53 ◽  
Author(s):  
Kelly Pledger Weeks ◽  
Matthew Weeks ◽  
Nicolas Long
Keyword(s):  
Baby Boomers ◽  
Generation X ◽  
Design Methodology ◽  
Life Balance ◽  
Content Type ◽  
Use Of Technology ◽  
Generational Perceptions ◽  
The Relationship ◽  
Practical Implications ◽  
Practical Recommendations

Purpose The purpose of this paper is to examine the relationship between stereotypes, in-group favoritism, and in-group bolstering effects across generations. Design/methodology/approach Based on the trends found in a qualitative study on generational stereotypes, questions on work ethic, work-life balance, and use of technology were administered to 255 participants identified as Millennials, Generation X, and Baby Boomers. Hypotheses predicted that with a strong stereotype, traditional in-group favoritism will not be found; however, an in-group bolstering effect will emerge. In the absence of a strong stereotype, traditional in-group favoritism is expected. Findings Generally, there was a strong stereotype that Baby Boomers are worse at technology than Generation X and Generation X is worse than Millennials. There was also a strong stereotype that Millennials do not do what it takes to get the job done as much as other generations. In the presence of these stereotypes, traditional in-group favoritism was not found, but in-groups bolstered themselves by rating themselves more favorably than other groups rated them. Although these findings did not hold for every item studied, there was moderate support for all three hypotheses. Practical implications As employees become aware of their biases, they can collaborate better with employees who are different than they are. Practical recommendations are suggested. Originality/value The paper applies theory of in-group favoritism to the perceptions of generational cohorts.

Principles of management efficiency and organizational inefficiency

Kybernetes ◽  
2016 ◽  
Vol 45 (8) ◽  
pp. 1308-1322 ◽  
Author(s):  
Yi Lin (Jeffrey Forrest) ◽  
Bruce Orvis
Keyword(s):  
Design Methodology ◽  
Management Styles ◽  
Business Managers ◽  
Traditional Methods ◽  
Content Type ◽  
Management Efficiency ◽  
Big Picture ◽  
Set Up ◽  
Practical Implications

Purpose The purpose of this paper is to introduce two important principles of efficiency, one on the management of a business entity and the other on the structure of employees’ efforts and devotion toward realizing the mission of their organization. Design/methodology/approach All discussion and reasoning are established on some of the traditional methods of microeconomics and on the basis of the systemic yoyo model. Here, the yoyo model plays the role of intuition, while the traditional methods are utilized to present the exact details underneath the systemic thinking. Findings What is discovered include how management efficiency can be achieved by being flexible in terms of allowing individual employees to have conflicting personal values and how organizational inefficiency always exists no matter how the business entity is set up. Research limitations/implications The established results are applicable in all business scenarios without foreseeable limitations. Practical implications By understanding these results, business managers could simply devote more of their time and effort on being flexible in terms of management styles and focusing on the “big” picture of the corporation instead of dwelling on how to improve employees’ efficiencies. Originality/value This paper establishes two very important, very useful results for managers. These results are expected to enrich the managerial understanding on what can be improved and what cannot.

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