Unlocking the Value of Regulatory Compliance to Advance Financial Planning & Analysis
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The document outlines the significance of regulatory compliance for corporate finance professionals and introduces the Proformative Academy, featuring educational resources on finance and accounting. It discusses major regulatory legislation affecting banking and financial services, as well as key regulatory bodies in the U.S. and internationally. Additionally, it highlights the impact of the Dodd-Frank Act and establishes the role of various regulatory authorities in ensuring financial stability and compliance.
Unlocking the Value of Regulatory Compliance to Advance Financial Planning & Analysis
- 1. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals Unlocking the Value of Regulatory Compliance to Advance Financial Planning & Analysis
- 2. Learning Objectives After attending this event you will be able to: • Identify opportunities for your company to more effectively comply with banking regulations • Discover the current landscape for technology solutions being leveraged by banks to ease the burden of compliance • Leverage the data your company uses to create compliance reports to improve financial planning and analysis
- 3. Welcome to Proformative Proformative is the leading educational resource for corporate finance professionals. Announcing the new Proformative Academy: • On demand video courses taught by peers and SMEs • Over 150 finance and accounting courses and growing rapidly • CPE for CPAs, CMAs, CTPs, and CIAs Check it out at www.ProformativeAcademy.com
- 4. Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals Unlocking the Value of Regulatory Compliance to Advance Financial Planning & Analysis Irene Hendrick, CFSA, Regional Managing Director - Financial Services, RGP
- 5. The Vast Regulatory Environment
- 6. Major Banking Legislation Over The Years (how we got here) •Federal Reserve Act of 1913 - established the Federal Reserve System •Securities Act of 1933 - requires that investors receive financial and other significant information concerning securities being offered for public sale •Banking Act of 1933 (Glass Steagall) - separated commercial and investment banking •Securities Exchange Act of 1934 - created the Securities and Exchange Commission and requires the filing of annual financial reports •Investment Company Act of 1940 - regulates the organization of companies, including mutual funds, that engage primarily in investing, reinvesting, and trading in securities, and whose own securities are offered to the investing public. •Investment Advisers Act of 1940 - regulates investment advisers. With certain exceptions, this Act requires that firms or sole practitioners that are compensated for advising others about securities investments register with the SEC and conform to regulations designed to protect investors. •Gramm-Leach-Bliley Act of 1999 - created a new “financial holding company” entity that can underwrite and sell securities and insurance, conduct both commercial and merchant banking, and invest in real estate …………. and last but certainly not least……..
- 7. Dodd-Frank Wall Street Reform & Consumer Protection Act
- 8. Regulatory Bodies (U.S.) • Federal Reserve (Fed or FRB) – Serves as the US central bank and has responsibility for supervising and regulating various segments of the banking industry to ensure safe and sound banking practices and compliance with banking laws, including: bank holding companies,/financial holding companies state-chartered banks that are members of the Federal Reserve System (state member banks) and their foreign branched U.S. state-licensed branches, agencies, and representative offices of foreign banks •Federal Deposit Insurance Corporation (FDIC) – The FDIC provides deposit insurance and also serves as the primary federal regulator of banks that are chartered by the states that do not join the Federal Reserve System. •Securities and Exchange Commission (SEC) - The SEC oversees the key participants in the securities world, including securities exchanges, securities brokers and dealers, investment advisors, and mutual funds. •Office of the Comptroller of the Currency (OCC) - The OCC regulates and supervises all national banks and federal savings associations. We also supervise the federal branches and agencies of foreign banks.
- 9. Regulatory Bodies (U.S.) (con’t) •Financial Industry Regulatory Authority (FINRA) – FINRA (formerly known as the NASD) is a self-regulatory organization that regulates trading in equities, corporate bonds, securities futures, and options, with authority over the activities of more than 5,100 brokerage firms, approximately 173,000 branch offices, and more than 676,000 registered securities representatives. All firms dealing in securities that are not regulated by another SRO, such as by the Municipal Securities Rulemaking Board (MSRB), are required to be member firms of the FINRA. •Commodity Futures Trading Commission (CFTC) – CFTC regulates trading in futures, options, and swaps. CFTC is now the main regulator for all centrally cleared derivatives (Title 7 of Dodd Frank). •The Dodd-Frank Act established the following new regulatory bodies : •Financial Stability Oversight Council (FSOC) – FSOC is responsible for impose regulations on SIFIs and recommending other steps to avert financial disruptions. •Office of Financial Research (OFR) – OFR is responsible for gathering market data that can reveal a firm’s fiscal health as well as overall banking industry’s risk exposure. •Consumer Financial Protection Bureau (CFPB) - CFPB regulates consumer financial products and services and enforces the federal consumer finance regulations.
- 10. Regulatory Bodies (International) •G-20 - The G-20 is a group of finance ministers and central bank governors from 20 major economies: 19 countries plus the European Union (which is represented by the President of the European Council and by the European Central Bank). The objective of the G-20 is: Policy coordination between its members in order to achieve global economic stability, sustainable growth; To promote financial regulations that reduce risks and prevent future financial crises; and To create a new international financial architecture. • Financial Stability Board - The FSB was established by the G-20 to coordinate at the international level the work of national financial authorities and international standard setting bodies and to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies. • Basel Committee on Banking Supervision (BCBS) - The Committee provides an international forum for cooperation on banking supervisory matters, and has become a standard-setting body on all aspects of banking supervision.
- 11. Regulatory Bodies established by Dodd Frank •Title I of the Act establishes two new bodies under the supervision of the U.S. Treasury Department to share insight and information across the disparate arms of the US financial services industry. •Financial Stability Oversight Council (FSOC) Headed by the Secretary of the Treasury. Other members of the Council include: the chairman of the Federal Reserve, the Comptroller of the Currency, the director of the Bureau of Consumer Financial Protection, the chairman of the SEC, FDIC, and CFTC, the director of the Federal Housing Finance Agency, and the chairman of the National Credit Union Administration Board. The final member is an appointee of the President of the United States (with the advice and consent of the U.S. Senate). Vested with power to impose regulations on SIFIs and recommend other steps to avert financial disruptions. •Office of Financial Research (OFR) •Mandate is to oversee and create standards for data that can reveal a firm’s fiscal health and the entire industry’s risk exposure. •(As well, Title X of the Act establishes the Bureau of Consumer Financial Protection (BCFP) within the Federal Reserve System to regulate consumer financial products and services and to enforce the federal consumer finance regulations.)
- 12. Unlocking the Value of Regulatory Compliance to Advance Financial Planning & Analysis Thank you for your interest in this presentation. View the on-demand webinar or download the full presentation at: www.Proformative.com