Blockchain technology: part of your regulatory reform picture?

Darragh O’Grady and JWG. There has been much written lately on the potentially disruptive impact that digital currencies may have.  However, the blockchain architecture that underlies them has also been a recent subject of a CFTC meeting to discuss the potentially disruptive impact of this new technology.  We asked an architecture expert with a background

The KYC Goldilocks paradox – can we please have a standard?

Huge fines and complex KYC rules are causing banks to ‘de-risk’ their client portfolios leading to many without access to banking.  Now both consumers and politicians are unhappy.  For years, the industry has struggled without real standards in the AML arena.  So what happens next? SIBOS news was full of more KYC claims again this

New regulatory consequences could be personal nightmares

JWG analysis. Following our review of the $260,000,000,000 total cost of regulatory transgressions, we now take a look at what the actual fines are and what the future holds? Firstly, according to the LSE’s review of 2009-2013 fines, is that 38% of fines are related to control failures like governance, internal controls, market abuse and

How much? The cost of regulation

JWG analysis. It seems you can’t open a paper these days without reading that a financial institution is being fined for some discretion, controls failure or mismanagement. This stark reality that all firms face in the post-crisis financial services landscape. Mounting pressure to get on top of regulatory reform has been matched by a frightening escalation

Questions from ESMA’s Consultation Paper on MiFID/MiFIR Technical Advice

JWG has extracted the following questions from ESMA‘s Consultation Paper on MiFID/MiFIR Technical Advice.  ESMA needs to deliver this advice to the European Commission by December 2014 and is therefore subject to a condensed consultation process for this paper. For more on MiFID/MiFIR see here. Q1.      Do you agree with the proposed cumulative conditions to be

Getting the ‘tech’ into MiFID II standards

JWG analysis. Our jaws hit the floor when it was revealed at our CDMG meeting last week that ESMA’s MiFID II technical standards are expected to be in excess of 800 pages with more than 800 questions to be answered by August 2014. And this is just the start.  ESMA’s 2014 work plan has over

Too many cooks? Regulatory competition emerging between competition regulators

How will the PRA, FCA, and CMA manage conflicting competition mandates? On 24 July, during the second reading of the UK’s Banking Reform Bill, it was stated that a new competition objective will be given to the PRA.  UK banks now find themselves with three national competition regulators jostling for position, not to mention those