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Analysis

Federal Reserve Board risk management guidance

The impact of sanctions on financial services compliance

The Weinberg Center for Corporate Governance at the University of Delaware presents a video discussion on the impact of Federal Reserve Board sanctions on the financial services industry. Discover what boards at all public and financial services companies need to know about the new financial services compliance changes.

What’s the impact of the sanctions on the financial services industry?

The evolving regulatory landscape of financial services compliance

In the first part of this video, you’ll receive valuable insights into the changing regulatory landscape in the financial services industry. Guidance from the Federal Reserve Board is not new, and waiting around until changes are finalized may take too long. You can do your own self-assessment and see where your firm needs to improve.

The second part of the discussion moves onto expectations for, and the lessons learned from, the evolving federal regulatory landscape, for all public company boards. As a director, never hesitate to be engaged and assure that records show you have been. All board members understand tensions around timing, but the priority is the financial health of the institution and its progress on behalf of the stockholder and investor. Do the right thing for the right reasons.

The final part of the discussion focuses on the Delaware courts and where they are with respect to some of these issues.

Learn how to embrace complexity and accelerate performance
Navigate risk and financial advisory

Federal Reserve Board sanctions: The key takeaways for financial services compliance

  • Set strategic direction of the firm and appetite for risk and risk tolerance
  • Hold management accountable, setting a framework for accountability
  • Be an active consumer of management information (MIS)
  • Promote the stature and independence of the risk management and audit executives
  • Think about board succession planning and have a board composition that is commensurate with the risk profile and complexity of the firm

About the speakers

David Wright is managing director, Governance, Regulatory & Risk Strategies at Deloitte & Touche LLP. In this role, he advises financial institutions on regulatory matters, with a particular focus on the implementation of Dodd-Frank enhanced prudential standards as well as supervisory expectations for risk management. Prior to joining Deloitte, he served in numerous roles within the Federal Reserve in Washington D.C. and San Francisco over the span of 23 years. Prior to joining the Federal Reserve, he was vice president at First Boston Inc.

Kim Hains is an independent senior advisor to Deloitte & Touche LLP. Kim most recently had a dual role at Bank of America, as both the global technology and operations, business controls executive and the enterprise non-financial regulatory reporting executive. In these roles, Kim was responsible for defining and deploying common risk management processes, tools, metrics, and learning curriculums, risk governance and reporting, and establishing enterprise-wide oversight of all non-financial regulatory reporting obligations. Kim helped redefine Bank of America’s Global Compliance function as a second line defense to ensure compliance across all lines of business.

Myron Steele is a partner at Potter, Anderson & Corroon and is the former chief justice of the Delaware Supreme Court. Previously, he served as a judge of the Superior Court and a vice chancellor of the Delaware Court of Chancery after eighteen years in private litigation practice. He has presided over major corporate litigation and LLC and limited partner governance disputes and writes frequently on issues of corporate document interpretation and corporate governance.

Charles Elson, director of the Weinberg Center, Edgar S. Woolard, Jr., chair in Corporate Governance and professor of Finance at the University of Delaware.

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