Unlocking the Value of Regulatory Compliance to Advance Financial Planning & Analysis

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Unlocking the Value of Regulatory

Compliance to Advance Financial

Planning & Analysis

• 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

After attending this event you will be able to:

Learning Objectives

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Welcome to Proformative

Ask, Share, Learn – Within the Largest Community of Corporate Finance Professionals

Unlocking the Value of Regulatory

Compliance to Advance Financial

Planning & AnalysisIrene Hendrick, CFSA, Regional Managing Director -

Financial Services, RGP

The Vast Regulatory Environment

•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……..

Major Banking Legislation Over The Years (how we

got here)

Dodd-Frank Wall Street Reform & Consumer

Protection Act

• 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.

Regulatory Bodies (U.S.)

•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.

Regulatory Bodies (U.S.) (con’t)

•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.

Regulatory Bodies (International)

•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.)

Regulatory Bodies established by Dodd Frank

Thank you for your interest in this presentation.

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presentation at:

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Unlocking the Value of Regulatory Compliance

to Advance Financial Planning & Analysis