Whether more regulatory action against individuals is a sign of success or of failure of an individual accountability regime depends on who you ask
10. More regulatory enforcement
Individuals (and firms) can face action for the same conduct by different authorities in the same jurisdiction
9. Covering multiple fronts concurrently
A proliferation of new requirements has resulted in a proliferation of investigations
8. A rise in whistleblowing
One size does not fit all – local advice is recommended
7. The international dimension
Regulators are putting greater emphasis on self-reporting
6. Obligations to report breaches and other issues
Regulators are enhancing their technology and harnessing big data to identify misconduct
5. Using technology and Big Data
Some regulators view organisational culture as central to either driving or discouraging misconduct
4. Importance of culture
A relatively new phrase in the regulatory lexicon, this includes behaviour such as bullying, harassment and discrimination
3. Concept of non-financial misconduct
Measures taken to prevent those who have committed misconduct from moving to a new organisation easily
2. Stopping the rolling of ‘bad apples’
Greater focus and tougher stance on individuals in many jurisdictions
1. Increased individual accountability
TOP 10 GLOBAL TRENDS REGARDING INVESTIGATIONS INVOLVING INDIVIDUALS
TOP 10 GLOBAL TRENDS
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Firms are expected to extrapolate
10. Learning the lessons
9. Failure to report
Regulators are also concerned to ensure good governance and processes
8. Getting the basics right
Tackling insider dealing and market manipulation remains a high priority globally
7. Market misconduct
Be aware of regulators sharing information
6. International co-operation
In many jurisdictions, the regulatory expectation is not just to ask if you can take a particular course of action, but whether you should
5. Public scrutiny and expectation
4. A rise in whistleblowing
3. Increased individual accountability
Internal investigations can prevent the need for a regulatory investigation, but may be a precursor
2. More internal investigations
Increasingly regulators expect proactive investigation into alleged misconduct
1. Taking a proactive approach
TOP 10 REASONS FOR AN INVESTIGATION INVOLVING INDIVIDUALS
TOP 10 REASONS
Be alive to the risk of litigation by employees and third parties
10. Mitigate litigation risk
The need for clarity on the standard to which an individual is being held
9. Identify the standard expected
Carefully consider confidentiality and privilege issues
8. Protect work product
Be mindful of the agreed scope
7. Avoid scope creep
The need for proportionality when evidence gathering
6. Avoid data overload
Follow internal policies and procedures
5. Treat individuals fairly
Be aware of regulators’ preferences and sensibilities
4. Meet regulatory expectations
Keep regulators informed as required and as appropriate
3. Manage regulatory relations
Clear lines of communication should be determined, including with those under investigation
2. Manage lines of communication
Ensuring good governance will enhance the quality of the investigation
1. Establish appropriate governance
TOP 10 TIPS FOR FIRMS CONDUCTING AN INVESTIGATION INVOLVING INDIVIDUAL MISCONDUCT
TOP 10 TIPS FOR FIRMS
Reflect on past experiences and implement changes accordingly
10. Learn the lessons
Consult experts where appropriate
9. Take advice
Escalate concerns in the appropriate forums
8. Report your concerns
If delegating, delegation to appropriate individuals is key
7. Delegate effectively
Importance of being able to evidence steps taken
6. Record your steps
In some jurisdictions steps for individuals to take are outlined
5. Take ‘reasonable steps’
Important this occurs at the commencement of a new role
4. Assess and address the risks
Financial services firms are often held to a higher standard in the eyes of the public
3. Be aware of public expectations
Ensure that knowledge of regulations that apply to the relevant area of business is up to date
2. Know the rules
Have a clear understanding of role and responsibilities
1. Know your role
TOP 10 TIPS FOR INDIVIDUALS
TOP 10 TIPS FOR INDIVIDUALS ON HOW TO AVOID AN INVESTIGATION
