Financial institutions required to report under International Financial Reporting Standards will have to meet new criteria under the latest iteration of improvements introduced by IFRS 9. These include a logical model for classification and measurement, a single, forward-looking “expected loss” impairment model and a new approach to hedge accounting (www.ifrs.org). FRG provides consultative and modeling expertise to ensure your team meets these new regulatory standards when they become effective in January 2018.
The need for surveillance in all types of trading environments has been illustrated through a number of cases that have resulted in significant regulatory changes and business reputation issues globally. These issues require dynamic solutions tailored to specific environments. FRG’s skill in these areas stems from individuals with extensive industry experience in trading and risk management.
- Functional experience with a variety of asset classes in commercial and proprietary trade management systems
- Development of systems to address buy and sell side environments
- Proprietary methodology that employs a notion of dynamic rules to address false postiives
- Experience with trade desks in multiple locations (foreign and domestic)
- Detailed understanding of regulatory regimes that may influence rules engines
The Office of the Comptroller of the Currency has identified Sales Practices as a “Key Risk” issue, leading financial institutions to consider their ability to monitor and detect issues arising from faulty sales practices as a core competency. FRG has leveraged its deep practical experience, advisory work, and academic relationships to develop a quantitative solution for clients that need to improve their sales practices risk management program.
- Developed a methodology that uses quantitative measures for timely monitoring and detection
- Provides a solution that accounts for the positive and negative incentives that affect behavior
- Leverages the latest computing technology to adapt the methodology to unique client environments
- Facilitates reporting that provides granularity on multiple levels, from top of house down to individuals