Conduct Risk Report 2014/15

REUTERS/Lucas Jackson

Yesterday we announced the findings of our Conduct Risk Report 2014/15 which revealed that managing and mitigating conduct risk continues to be one of the highest regulatory priorities, yet financial services firms remain unclear about what conduct risk is and how to address it. This lack of clarity, coupled with recent regulatory actions, appear to be driving concern about personal liability consequences.

In 2013, we undertook the first industry-wide survey into conduct risk to understand how financial services firms worldwide were implementing and managing this relatively new regulatory concept. This report seeks to understand in more depth the practical actions that firms have taken and to determine what changes and progress firms have made during the 12 months since the previous survey. More than 200 compliance and risk practitioners from financial services firms were surveyed between September and October 2014. Responses were received from across Africa, the Americas, Asia, Australasia, Europe and the Middle East. They represented banks, brokers, insurers and asset managers. Firms were not only geographically widely spread but also represented a wide range of sizes, from the small to global conglomerates, and included the majority of global systemically important financial institutions (G-SIFIs).

The results from the survey will enable firms to benchmark their views, preparations and expectations against those of their peers. As well as providing deep insight into current industry thinking and practices, this report also seeks to demystify the uncertainty surrounding conduct risk and provide insight into developing regulatory expectations. The results continue to reflect the uncertain approach to managing conduct risk. It is clear, however, that there has been a convergence and sharpening of focus in terms of the main elements that consistently underpin conduct risk across all types of firms and regions. Critically, and in line with the heightened regulatory focus, there has been a marked increase in board and senior manager-level interest and involvement in conduct risk management. Despite the ever-increasing volume of regulatory change and other competing demands which firms continue to face, the fact that conduct risk is now receiving this heightened level of scrutiny from the most senior managers emphasizes that conduct has become one of the highest priorities for financial services firms.

Some highlights from the report: (more…)

Euro zone’s long journey to QE – Graphic of the day

Last week, the Central European Bank launched a landmark bond buying program that runs from March this year until September next year. Today’s graphic looks at market reactions when the U.S. implemented its quantitative easing policies.

Euro zone's long journey to QE - Graphic of the day

Would you like infographics like this on your website, blog or other social media? Contact us and visit our Reuters Agency blog for insights and discussions on the changing media industry.

The tremendous impact of mobile

2015 Gates Annual Letter

One of the things I love reading is the annual letter from the Bill & Melinda Gates Foundation. It coincides nicely with what seems to be lots of stories on where our planet will be in 2030 (ed note: Like our series on the World in 2025!). This one does exactly the same, placing a huge emphasis on the impact of mobile technology over the next 15 years.

The report looks at four core areas: health, farming, banking, and education. Every one of these areas will be touched by mobile technology, and the Gates report specifically highlights the impact on the latter three. Simply take a look at the pictures the report uses for farming and banking: (more…)

The most tax-friendly states for New Year’s resolutions

tax map

We recently released a list of popular New Year’s resolutions and their associated sales tax across the countryThe list shows that more states are now taxing previously exempt services. Michigan, Maryland, Massachusetts, California, Nevada, Rhode Island and South Carolina top the list of the most tax-friendly states for New Year’s resolutions, as they don’t levy any sales tax on groceries, e-books or gym memberships.

The above map further outlines the breakdown for taxes on these popular resolutions in each state. You can see the full list here and some highlights below:  (more…)

Expenditure in R&D – Graphic of the day

Israel’s high tech industry is a major growth engine and investment magnet. High-tech goods and services account for 12.5% of Israel’s GDP and half of its industrial exports. Israel leads the OECD when it comes to R&D, spending 4.3% of GDP on it, nearly twice the OECD average. The last available full data set (from 2012) is reflected in the graphic below, showing Israel’s high (and later rising) rank in R&D expenditure.

R&D

Would you like infographics like this on your website, blog or other social media? Contact us and visit our Reuters Agency blog for insights and discussions on the changing media industry.

Davos Diary – Friday

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Perhaps one of the best parts about being involved in the Thomson Reuters operation here in the heart of Davos at the local library-turned TV studio and news bureau is having the chance to witness great television news being made, practically round the clock.

Every morning during the week of the World Economic Forum annual meeting at 7:30 a.m. CET on the dot, Reuters-run and produced Davos Today promptly begins as watchers online and on TV wake up with the headlines out of Davos and beyond.

What’s been so incredible to witness while here in Davos is the collaboration, professionalism and intensity with which the crew works to make it all happen. Not to mention how genuine, patient and calm and focused the people running the show are. Nothing seems to phase or disturb what they’re doing, which is making live TV happen. (more…)

Heard around Davos – Friday

Bill Gates, Co-Chair of the Bill & Melinda Gates Foundation gestures next to his wife Melinda French Gates during the session 'Sustainable Development: A Vision for the Future' in the Swiss mountain resort of Davos

Here are some of the most interesting, provocative and salient quotes we heard today around the 2015 World Economic Forum:

“You don’t have to choose between doing well and doing good.” – Jim Smith, President and CEO, Thomson Reuters

“It is clear that if the capital markets and the established players don’t innovate, new entrants, including Silicon Valley technology firms, will.” – David Craig, President, Financial & Risk at Thomson Reuters

“We need huge investments of capital in the green economy.” – François Hollande, President of France

“The best answer to the extremists is to build a better world.” – Klaus Schwab, Founder and Executive Chairman, World Economic Forum

“One of the secrets for why Alibaba is successful is because we have a lot [47%] of women.” – Jack Ma, Founder and Executive Chairman, Alibaba Group

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How technology is disrupting the markets

A trader watches his monitor at Egyptian stock exchange in Cairo

It’s only one year since the World Economic Forum launched its Disruptive Innovation in Financial Services work group, but the atmosphere is decidedly different. Last year the collective mood of this cross-industry group was one of denial, largely due to the regulated nature of the financial services industry. This year, a well-known Silicon Valley entrepreneur challenged us to think differently, suggesting we take a clean sheet approach. And the mood couldn’t be more different, as this group embraces the fact that disruptive innovation has arrived.

Many of us in the financial industry developed professionally in a world that was about technology. However, today the curve is absolutely steeper – just think about how Uber and PayPal have changed the nature of their fields. There is also a realization now that technology is but one part: it is really about data and technology. The emerging trend among corporations and banks alike has been to hire chief data officers. We have the term and industry issue “big data” partly to thank for this. However, many of these same firms have still kept their chief information officers; I’m often left wondering about the difference between data and information and how these roles work together.

The emergence of big data as a business issue has changed the industry’s conversations with clients, particularly around opportunities like powerful analytics used to discover trading and investment opportunities or manage risk. But these terms can also be alienating. (more…)

Davos debrief from the Global Markets Forum

Global Markets Forum

It’s been another successful year for our online communities at the World Economic Forum in Davos – our third in a row – with the Global Markets Forum (GMF), Trading Africa, Trading China and the Japanese-language DealWatch all represented through our series of “LiveChat” real time interviews with key delegates.

From our base in the town’s library, we mulled this year’s big conference themes – crisis and cooperation; growth and stability; innovation and industry and society and security – with the likes of the International Monetary Fund, the United Nations and the World Bank. We talked politics with Serbia’s Prime Minister and the special advisor to the Japanese government, and dissected the European Central Bank’s bumper quantitative easing package with the vice-president of the European Parliament.

In figures: 3 days, 4 forums, 12 guests and 19 chat sessions

Some highlights: (more…)

Meet the team behind Davos Today

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Take a look behind the scenes of Davos Today, the official, must-watch TV show of the World Economic Forum. Produced and run exclusively by Reuters, you’ll find a hard working production crew that works tirelessly to put out a great show every morning, as well as produce video clips for Reuters.com and the Reuters Davos Live Blog. Reuters TV anchor Axel Threlfall caught up with the crew to get a sense of what they do and to find out how they’re getting on in the cozy Swiss town.

Check out all of our coverage of the World Economic Forum in Davos.

We’re always looking for people like those featured in the video below to join our global team that embraces diverse perspectives and big thinking. See all of our open news & editorial jobs.
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