Deaf Ears: UK Whistleblower Reports ‘Disappear into the Bureaucratic System’

17 November 2022
Knowledge Base

by Mark Worth

Revealing the inadequacy of the world’s second-oldest whistleblower system, a new report finds UK officials release “scant or no information at all” about what happens to disclosures after citizens submit them. Many UK public agencies that are legally required to investigate whistleblower reports provide “generic or vague” information about their responses to the disclosures, according to the London-based NGO Protect. In a “significant” number of cases, the agencies took “limited or no action” or did not provide enough information about what – if any – action they took when a citizen reported crime or corruption. Continue reading…

EBA publishes methodology and draft templates for the 2023 EU-wide stress test

16 November 2022

The European Banking Authority (EBA) has on 4 November published the final methodology, draft templates and template guidance for the 2023 EU-wide stress test along with the milestone dates for the exercise. The methodology and templates cover all relevant risk areas and have considered the feedback received from industry. The stress test exercise will be launched in January 2023 with the publication of the macroeconomic scenarios. The results will be published by the end of July 2023. Continue reading…

BIS and central banks of France, Singapore and Switzerland to explore cross-border CBDC trading and settlement using DeFi protocols

15 November 2022

The BIS Innovation Hub is launching a new project around central bank digital currencies (CBDCs) and Decentralised Finance (DeFi) protocols as part of its 2022 work programme. Project Mariana explores automated market makers (AMM) for the cross-border exchange of hypothetical Swiss franc, euro and Singapore dollar wholesale CBDCs. It will seek to examine the potential between financial institutions to settle foreign exchange trades in financial markets. Continue reading…

What types of whistleblower systems are there and how can they benefit your organisation?

14 November 2022
Knowledge Base

by Daniel Vaknine

When it comes to whistleblowing within an organisation, it is a good idea to use a whistleblower system. In short, this is a system that allows employees to report wrongdoings internally. In this article, I’ll go through the different types of whistleblower systems that are available so that you can gain an increased awareness of what methods are available. This in turn makes it easier to decide which methods your organisation can or should offer.

Continue reading…

Lieve Lowet

Lieve Lowet

EU Affairs consultant and lobbyist

Capital relief in times of exceptional market-wide shocks

11 November 2022
Knowledge Base

In the proposals the Commission tabled in September 2021 reviewing the current Solvency II directive, a series of new macro-prudential tools have been introduced. Among those, a new Article 144 c has been put forward. According to its title, the article concerns “Supervisory measures to preserve the financial position of undertakings during exceptional market-wide shocks”. The current Solvency II directive only has provisions regarding supervisory powers in deteriorating financial conditions of individual (re)insurance undertakings (article 141). To avoid a repetition of the regulatory bricolage witnessed during (the early days of) the COVID-19 pandemic, and the ink spilled on this topic, the Commission has now provided this solution. Continue reading…

£12 million compensation to be paid to thousands of struggling borrowers

09 November 2022

The FCA expects lenders to learn the lessons from good and poor practice during the coronavirus (Covid-19) pandemic to help borrowers during the cost-of-living squeeze. The FCA acted quickly during the pandemic to put in place guidance that led to more than five million payment deferrals for mortgage and credit customers. This was followed by guidance on tailored support. In a report published on 3 November, the FCA found examples of firms delivering good outcomes for customers – but others must do a lot better to support borrowers in financial difficulty. Just 30% of firms (15 out of 50) it reviewed sufficiently explored customer’s specific circumstances, which meant repayment agreements were often unaffordable and unsustainable. Continue reading…

Just thought about some risks the last month…

07 November 2022

by Michel Klompmaker

Sometimes I really can’t help myself. What then? I have a need to confine a few things to paper, when in a semi-philosophical mood. This way I can then rid the thought from my head. Why suddenly now, you ask? Well, it was quite the month in my opinion. An exceptionally special month is behind us, and I will try to explain what I have taken away from it, all from a risk perspective, as you can and should expect from this platform.
Continue reading…

Elena Pykhova

Elena Pykhova

Elena Pykhova is a thought leader, influencer and founder of a think tank, Best Practice Operational Risk Forum.

ESG or E, S and G: A note for risk practitioners

04 November 2022
Knowledge Base

Without doubt, environmental, social and governance (ESG) considerations are becoming increasingly important for organisations and their teams, with businesses being judged on their ESG performance. The catch-all acronym, however, which in reality combines three distinct and separate matters under one umbrella, tends to be misused and overused, creating a lexicon of ESG specialists, ESG departments and ESG risks. In fact, the Bank for International Settlement (BIS)’s paper on ‘Deconstructing ESG scores: how to invest with your own criteria’[1] highlights that it is nearly impossible to create a portfolio aligned with all three ESG values. Investors should separate and align their portfolios with either E, S or G factors. Continue reading…

FCA publishes Decision Notices for Barclays plc and Barclays Bank plc

03 November 2022
Knowledge Base

Barclays have referred their Decision Notices to the Upper Tribunal. Any findings in the Notices are therefore provisional and reflect the FCA’s belief as to what occurred and how it considers the firms’ behaviour should be characterised. The Financial Conduct Authority (FCA) has decided to fine Barclays a total of £50 million in relation to its failure to disclose certain arrangements agreed with Qatari entities as part of its capital raisings announced on 25 June 2008 and 31 October 2008. Barclays’ conduct in the October capital raising was reckless and lacked integrity. Continue reading…

European Commission Slaps EU Countries for Delaying Whistleblower Rights

02 November 2022
Knowledge Base

by Mark Worth

Ten years ago the European Commission tersely said the idea of EU-wide whistleblower rules was out of the question. Today, the Commission is helping to lead the charge for stronger rights for people who report corruption. For evidence of this sharp turnaround, one need look no further than the Commission’s decision to escalate its infringement action against four EU countries that are tardy in passing whistleblower protection laws. On 29 September the Commission warned Austria, Belgium, Romania and Slovenia that they are “failing to fulfil their obligations” to comply with new rules. Continue reading…