Since our last update, there have been significant developments
in the FI and D&O landscape. November saw the first ever UK
deferred prosecution agreement (DPA) announced between the SFO and
Standard Bank. The DPA process has been available but unused since
2014 so the judgment and the SFO's comments thereafter provided
some much needed guidance on what the process involved.
Significantly, weight was placed on Standard Bank's early
self-reporting and cooperation. Interestingly, the Sweett Group
tried and failed to obtain a DPA, with one of the reasons cited for
the failure being their lack of early cooperation, and they found
themselves convicted under the Bribery Act and facing a substantial
fine. We await with interest whether more companies will try and
agree such an agreement with the SFO in the future and the
implications this will inevitably have for D&Os and their
Individual accountability and responsibility of directors and
senior managers has come into focus with the introduction of the
Senior Managers Regime (in force from 7 March 2016) and the new FCA
rules on whistleblowing (coming into force September 2016).
Regulators want financial institutions and directors and officers
to take responsibility for their actions in order to prevent a
reoccurrence of the global financial crisis. The coverage issues
that these regimes throw up, in relation to investigation costs and
admissions for example, deserve particular scrutiny and insurers
may need to consider how these are dealt with in their
Elsewhere in this Review, we provide a roundup of the FI and
D&O landscape in the United States, examine the importance of
corporate culture from an Australian point of view, look at
insolvency issues in Canada and provide an analysis on the key
issues in the UK, including the recent string of mis-selling claims
handed down and the threat posed by cyber attacks. To finish, we
give our usual case summary round up.
The Financial Conduct Authority FCA has published the interim feedback to the call for input to the post-implementation review of the FCA's crowdfunding rules (FS16/13) (the Interim Feedback Report)...
On 11 October 2016 the FRC published its advice to audit committee chairs and finance directors of listed companies, highlighting key issues and improvements it considers can be made to annual reports in the 2016 reporting season.
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