Thomson Reuters Personal Liability Report Shows Increased Pressure on Companies' Compliance Officers
(Thomson Reuters ONE) -
Increased focus on personal liability places more emphasis on senior
individuals' ability to manage and mitigate their own regulatory risk, leaving
compliance officers feeling particularly vulnerable
Report shares industry best practices, practical steps to best manage personal
regulatory risk
NEW YORK/LONDON, November 10, 2015 - Compliance officers are feeling
particularly vulnerable according to a study from Thomson Reuters which finds
the near-universal view that personal liability in financial services is
increasing.
The Thomson Reuters Personal Liability report finds regulators are increasingly
targeting individuals rather than firms, and compliance officers foresee
themselves as the focus of accountability rather than CEOs. The findings also
highlighted an expectation that regulatory focus towards senior managers will be
extended internationally.
Thomson Reuters surveyed more than 2,000 risk and compliance practitioners
through Q3 2015, many of whom were asked their views at customer summits in New
York, London and Sydney. Comments were also received from Africa, the Americas,
Asia, Australasia, Europe and the Middle East. Respondents and participants
represented banks, brokers, insurers and asset managers ranging in size from
small to international conglomerates including the majority of global
systemically important financial institutions (G-SIFIs).
"These findings fall in line with the trends we've witnessed for the past
several years," said co-author, Stacey English, head of Regulatory Intelligence,
Thomson Reuters. "Our annual Cost of Compliance surveys continually show more
compliance professionals are worried their personal liability will increase with
each coming year, and this report further reinforces how rapidly the trend is
moving."
Key findings from the report include:
* Emphasis on personal liability increasing: The results of voting at the
Thomson Reuters New York customer summit found 93 percent of practitioners
expected the personal liability of compliance officers to increase in the
next year. Meanwhile, 64 percent expect a significant increase.
* The focus on accountability in new regimes is exacerbated by lack of
oversight from senior managers: Almost half (49 percent) of participants to
the personal liability survey reported senior managers 'do not really know
what is going on in their business'.
* An expectation that the regulatory focus on holding senior managers
accountable will be extended internationally: 64 percent of respondents to
the personal liability survey expect that regulatory regimes introducing
individual accountability will be replicated around the world.
* Wariness towards new regulation: The potential effectiveness of any new
regulatory legislation on increasing senior manager accountability (such as
the UK Senior Managers Regime (UK SMR)) is in question. Only 53 percent of
respondents to the personal liability survey anticipate new legislation
will change behavior for the better.
* Compliance officers are feeling particularly vulnerable: When asked which
role now carries the most personal liability, 67 percent of practitioners at
the New York summit and 59 percent of customers at the London summit
responded with the compliance officer. In contrast, the chief executive came
in second place with 22 percent of participants in New York, and 30 percent
in London.
* Greater personal liability is expected to impact resources: Two-thirds (67
percent) of respondents to the personal liability survey reported that the
focus on accountability will have an impact on the ability to recruit and
retain skilled senior staff.
"The regulatory tide continues to rise and both firms and individuals need to be
aware of the changes," said Phil Cotter, managing director, Risk, Thomson
Reuters. "The successful companies and individuals will be the ones who are
proactive to the new regulations rather than reactive."
"With this increasingly harsh spotlight focusing on senior individuals, there
needs to be a greater awareness to the changes in regulatory expectations," said
co-author, Susannah Hammond, senior regulatory intelligence expert, Thomson
Reuters. "That includes awareness of the external regulatory environment,
understanding and learning lessons from regulatory announcements, maintaining
communication with regulators and a culture of compliance and accountability is
established from the top down."
This five minute video, by co-author Stacey English, explains further how the
results of the Personal Liability Report 2015 are impacting the everyday lives
of compliance professionals of regulated financial services firms worldwide:
A detailed report on the survey's findings can be found at:
https://risk.thomsonreuters.com/special-report/rising-personal-liability-
perception-and-reality-how-best-manage-personal-regulatory
Thomson Reuters
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Stock Exchanges. For more information, go to http://thomsonreuters.com/.
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Datum: 09.11.2015 - 18:15 Uhr
Sprache: Deutsch
News-ID 433095
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