U.K. companies will soon be required to create a register of owners who hold “significant control” over a company and its assets. Under the Small Business, Enterprise and Employment Act 2015, companies will have to create and maintain a database of information about their decision makers that can be accessed by the public, says the Department for Business Innovation and Skills. If a company or beneficial owners provide incorrect or outdated information, they may be fined or imprisoned. More inside.
Aarti Maharaj
Posted inRegulatory Enforcement
Bankers Need to Clean Up Their Act, Allianz Exec Says
Image: Elizabeth Corley, global chief of Allianz Global Investors, warns that there can be serious consequences to the economy if bankers continue to engage in reckless misconduct. Corley says rogue bankers often see wrongdoing as a minor rather than a serious offence, which can lead to bigger problems for financial institutions. Her research of legal, compliance, audit, and management shows that too many employees can’t tell if they are going down the wrong path. Details inside.
Posted inRegulatory Enforcement
SEC to Finalize Clawback Requirements
The SEC will meet on Wednesday to consider the long-awaited clawback requirements under the Dodd-Frank Act. The SEC has postponed addressing the incentive compensation clawback provision for years. If the amendments are made, this will usher in a new wave of compliance requirements for many companies. More inside.
Posted inEurope
U.K. Watchdogs Issue New Rules on Clawbacks for Bankers
The Financial Conduct Authority and the Bank of England have finished banker rules that could have bonuses clawed back even after a decade of being awarded, if the firm comes under regulatory scrutiny for “potential material failures,” the FCA said. Senior managers aren’t off the hook either: They face a seven-year clawback period, while other staff members who fill supervisory roles will have to return up to five years of bonuses. Read more.
Posted inRegulatory Enforcement
Anti-Corruption Groups Challenge the SFO on DPAs
Image: Title: GreenA number of well-known anti-corruption activists, such as Transparency International and Corruption Watch, are urging David Green, director of Britain’s Serious Fraud Office, to rethink replacing criminal charges with deferred prosecution agreements. The group warns that if DPAs are offered, that will allow banks and other companies to engage in misconduct and risky behavior without facing criminal charges. Details inside.
Posted inRegulatory Enforcement
India Attempts to Tackle the Supply Side of Bribery
India’s Union Cabinet recently approved amendments to the Prevention of Corruption Act (PoCA) that will expand the scope of the law to corporate executives. Currently the law prohibits corrupt acts by public servants and government officials, who have been at the center of enforcement actions. Over the years, government corruption has not only stifled the country’s economic growth but also threatened the fiscal health of many companies. More inside.
Posted inEurope
Google and Amazon’s Antitrust Woes Continue
Image: This week, Europe’s Antitrust Chief Margrethe Vestager escalated a running regulatory battle with American tech giant Google—and Amazon is not too far behind. While the European Union launched an investigation into Amazon’s business practices last week, Vestager recently warned the online retailer about abusing its dominance in the marketplace by prohibiting publishers from offering better prices to competitors. As for Google, critics are expected to receive the EU’s full antitrust charge sheet against the search engine in the coming days. Details inside.
Posted inEurope
Britain to be Exempted From EU’s Structural Reforms
Britain will be cleared of EU reforms that drop the axe on risky trading activities among big banks. The draft law was presented Wednesday to the EU’s state ambassadors for review. If it receives their support, the proposed law will be passed on to Parliament on Friday for approval. Under the draft law from Lativa, which holds EU presidency, bank supervisors will scrutinize lenders over the 100 billion-euro limit to determine if their investment-banking activities are “excessively risky.” Read more.
Posted inEurope
Rebuilding FIFA Starts With Good Governance
Transparency International is calling for governance reform at the scandal-ridden football organization, Fédération Internationale de Football Association. TI says that restoring public trust won’t be an easy win for FIFA, but the global football association can set an example by rebuilding its governance structure and instituting independent non-executive directors and outside oversight. More inside.
Posted inRegulatory Enforcement
Prosecutors Search Deutsche Bank Head Offices in Tax Fraud Probe
Deutsche Bank took another blow this week after law enforcement officials searched the bank’s headquarters amid suspicions of tax fraud relating to client securities transactions. The practice, known as “dividend stripping,” has once again placed the largest German lender under the regulatory spotlight. Details inside.
