|
The Morning Risk Report: CFTC Simplifies Rules on Chief Compliance Officers |
|
| |
|
|
J. Christopher Giancarlo, chairman of the Commodity Futures Trading Commission, speaks during a Senate committee hearing in Washington, D.C., on Feb. 6, 2018. PHOTO: ANDREW HARRER/BLOOMBERG
NEWS
|
|
|
Good morning. The Commodity Futures Trading Commission has approved rules that simplify regulations governing chief compliance officers of swap dealers, major swap participants and futures commission merchants, Risk & Compliance Journal's Samuel Rubenfeld reports.
The CFTC is further synchronizing its regulations on chief compliance officers with requirements adopted by the Securities and Exchange Commission for security-based swap dealers, the commission said.
[Continues below ...]
|
|
|
|
Clarifying duties: “Clarifying the role and responsibilities of the [chief compliance officer] should enable greater accountability and improve overall compliance, as well as reduce burdens on [chief compliance officers] and uncertainty for registrants,” CFTC Chairman Christopher Giancarlo said in a statement.
The rule requires the chief compliance officer to be actively engaged in administering a firm’s policies and procedures, which “goes beyond the customary and traditional advisory role” of a chief compliance officer, the rule says.
Level of involvement: Active engagement would likely include a reasonable level of involvement in compliance monitoring, identifying non-compliance or potential violations, advising on the mitigation or correction of incidents, and, when necessary, escalating a matter to senior management, the rule said.
|
|
|
| From Risk & Compliance Journal |
|
|
A former Julius Baer Group Ltd. executive pleaded guilty in federal court to his role in a sophisticated scheme to launder $1.2 billion from Petroleos de Venezuela SA.
|
|
|
The former head of Brazilian soccer was sentenced Wednesday to four years in prison after being convicted of racketeering and money laundering in the global soccer corruption probe.
|
|
|
|
-
The Trump administration is looking to ratchet up pressure on Iran to abandon its nuclear program, going beyond previous international sanctions, the WSJ reports. “We’re not just going to stop at where the sanctions were in 2015, our goal, our objective really is essentially we’d like to say no waivers to the sanctions,” U.S. National Security Adviser John Bolton said Wednesday.
-
To comply with U.S. sanctions, Credit Suisse Group has frozen about $5 billion linked to Russia, according to Reuters. The bank had owned assets surrendered by, and had lent money to, Russian oligarchs. The move signals financial institutions' fear of reprisals from the U.S. for working with certain Russian individuals and entities.
|
|
|
-
Facebook Inc. plans to pull its data-security app from Apple Inc.’s app store after the iPhone maker ruled that the service violated its data-collection policies. Apple’s decision widens the schism between the two tech giants over privacy and is a blow to Facebook, which has used data gathered through the app to track rivals and scope out new product categories. The app, called Onavo Protect, has been available free download through Apple’s app store for years, with updates regularly approved by Apple’s app-review board.
-
The Democratic National Committee, which was hacked by Russian intelligence officers during the 2016 presidential campaign, contacted the FBI after an unsuccessful attempt to access a voter database maintained by the organization. The DNC was alerted on Tuesday by the computer security firm Lookout Inc., which uncovered a replica of the login page to the DNC’s Votebuilder database during an online scan. VoteBuilder is a system used by the Democratic Party and associated campaigns to collect voter data and track other campaign activities.
|
|
-
Australia banned Chinese telecom firms Huawei Technologies Co. and ZTE Corp. from its next-generation 5G mobile network, bringing it in alignment with U.S. policy on the matter, the WSJ reported. Australia's intelligence agencies had been pushing for Huawei to be blocked from the network, though the company has operated there for years. The decision underscored concerns from the U.S. about the possibility of spying by Beijing, something Huawei has long denied. China's foreign ministry is concerned about the decision, Reuters reported.
|
|
|
|
|
|
Lowe’s said second-quarter sales rose 7.1% in the latest quarter. However, the sales growth lagged behind Home Depot’s. PHOTO: STEVEN SENNE/ASSOCIATED PRESS
|
|
|
Lowe’s Cos. is stepping up efforts to close its performance gap with its larger rival Home Depot Inc. Lowe’s plans to shut down Orchard Supply Hardware stores, a small regional hardware chain it acquired five years ago, said Marvin Ellison, chief executive of the world’s second-largest home-improvement retailer, on Wednesday. Mr. Ellison also said a portfolio review is under way to determine the future of other non-retail investments.
Lowe’s also said that David Denton, the current finance chief of CVS Health, would become its new finance chief.
|
|
|
-
Four industry sources told Reuters that Saudi Arabia called off plans for the domestic and international listing of state oil giant Aramco, which was billed as the biggest stock flotation in history. Financial advisers working on the planned listing were disbanded. The Saudi energy minister had earlier denied that the IPO was being called off. There's speculation that China could buy a stake.
|
|
|
Readers can subscribe to The Morning Risk Report here: http://on.wsj.com/MorningRiskReportSignup. Follow us on Twitter at @WSJRisk.
Follow the WSJ Risk & Compliance Team on Twitter: @WSJRisk, @srubenfeld and @LikelyMara.
Send complaints, comments and kudos to Samuel Rubenfeld at samuel.rubenfeld@wsj.com.
|
|
|