Regulating (from) the Inside : The Legal Framework for Internal Control in Banks and Financial Institutions.
- 1st ed.
- 1 online resource (358 pages)
Cover -- Half-title -- Title -- Copyright -- Acknowledgements -- Contents -- Table of Cases -- Table of Legislation -- Part I: The Elements of Internal Control in Banks and Financial Institutions -- 1. The Role of Internal Control in the Meta-Regulation of Financial Institutions -- A. Introduction to Internal Control -- Evolution of the Role of Internal Control Broadly Understood -- B. The Meta-Regulation of Internal Control and the Rise in Meta-Regulation in Financial Regulation Generally -- The Rise of Flexible and Alternative Models of Regulation -- Flexible and Alternative Regulatory Strategies in Financial Regulation -- The Importance of Meta-Regulation in Financial Regulation -- Meta-Regulation and its Limitations -- Excessive Proceduralisation -- C. Three Paradigms in the Regulatory Framework for Internal Control in Banks and Financial Institutions -- D. Structure of the Book -- 2. The Role of Compliance -- A. The Compliance Function: A Profile Sketch -- The Job Scope of the Compliance Function -- The Qualifications of Compliance Officers -- The Organisational Positioning of the Compliance Function -- Accountability Channels of the Compliance Function -- B. Disjunctions Between the Performance of the Compliance Function and Regulatory Expectations in Securing Firms' Compliance: Analysing the Organisational Dimension -- Distinct Department or Fused with General Counsel? -- Centralisation or Decentralisation? -- Risk-Based Approach to Compliance -- Reporting Channels and Accountability -- Power -- C. Disjunctions Between Regulatory Expectations and the Role of the Compliance Function: Analysing the Professional Dimension -- Lack of Convergence in the Job Scope of the Compliance Function -- Excessive Proceduralisation in the Job Scope of the Compliance Function -- Expanding Remit and Work Overload. Background Qualifications and Training of Compliance Officers -- The Role of Ethics in Enhancing the Professionalism of the Compliance Function -- Emerging Representative Professional Bodies -- D. Concluding Remarks -- 3. The Role of Risk Management -- A. The Development and Purposes of Risk Management -- B. Disjunctions Between Regulatory Expectations and the Role of the Risk Management Function: Analysing the Organisational Dimension -- The Constitution of the Specialist Risk Management Function -- The Independence of the Specialist Risk Management Function -- The Power and Responsibilities of the Specialist Risk Management Function -- Resources for the Risk Management Function -- Risk Culture -- C. Disjunctions Between Regulatory Expectations and the Role of the Risk Management Function: Analysing the Organisational Dimension -- The Job Scope of Risk Management Functions -- The Professional Competence of the Risk Management Function and its Limitations -- A Professional Body for Risk Management -- D. Conclusion -- 4. The Role of Internal Audit -- A. Sketching the Profile of Internal Audit -- B. Disjunctions Between Regulatory Expectations and the Role of the Internal Audit Function: Analysing the Organisational Dimension -- Independence of the Internal Audit Function -- Positioning and Power of the Internal Audit Function -- Wider Contextual Factors -- C. Disjunctions Between Regulatory Expectations and the Role of the Internal Audit Function: Analysing the Professional Dimension -- Development of Internal Audit in Financial Assurance -- The Role of Internal Audit in Relation to Micro-Prudential Regulation -- Expanding Remit of Internal Audit's Role and Implications -- Professional Competencies -- The Role of Internal Audit as Management Consultant -- Professional Ethics and Ethical Assurance? -- D. Conclusion. 5. The Contextual Frameworks of Corporate Governance and Organisational Culture -- A. Internal Control as Situated Within the Frameworks of Corporate Governance and Organisational Culture -- B. The Salience of Corporate Governance at Banks and Financial Institutions -- Aspects of Corporate Governance Relevant to Risk-Taking, Monitoring and Control -- Aspects of Conventional Best Practices in Corporate Governance that may be Unsuitable for Banks and Financial Institutions -- C. Organisational Culture as the Context for Risk and Control -- Modern Banking Culture as a Sectoral Phenomenon -- Organisational Cultures at Banks and Financial Institutions -- D. Conclusion -- Part II: Making Internal Control Effective in Banks and Financial Institutions -- 6. Regulating Aspects of Corporate Governance and Organisational Culture as a Broader Framework for Internal Control -- A. Regulating the Boards of Banks and Financial Institutions: Structural Aspects in Corporate Governance -- The Functions of the Board -- The Responsibilities of Executive Directors, in Particular the Chairman -- The Special Role of Non-Executive Directors -- Regulating Board Composition -- B. Shareholders' Role -- The UK Stewardship Code -- Practical Challenges and Ideological Weaknesses in the Notion of Stewardship -- C. The Regulation and Approval of Individuals in Banks and Financial Institutions: The UK Regime -- Personal Responsibility and Liability -- Liability Under APER -- Enhanced Senior Persons Liability Under Senior Persons Regime -- D. Reforming Banking Culture -- Remuneration Reforms -- Malus or Clawback -- Banking Ethics -- E. Structural Reforms and their Impact Upon Banking Culture -- F. Conclusion -- 7. Incentive-Based Approaches to Improve Internal Control Efficacy: Enforcement and Whistle-Blowing. A. Regulatory Regime for Internal Control Personnel: Code of Conduct Rules -- B. Key Enforcement Actions Against Internal Control Individuals in the UK -- Compliance Officer Liability in Breach of the Principle to Exercise Due Skill, Care and Diligence -- Final Notice Against Dr Sandradee Joseph (18 November 2011) -- Final Notice Against Alexander Edward Ten-Holter (26 January 2012) -- Final Notice Against John Douglas Leslie (26 July 2013) -- Censure of Stephen Morse, Barclays Plc (27 June 2012) -- Compliance Officer Liability Based on Other Grounds in APER -- Enforcement Against Robert Stephan Addison (14 September 2012) -- C. Imposing Personal Liability on Internal Control Personnel -- D. Secondary Liability Regimes for Internal Control Functions -- E. Internal Control Functions and the Whistle-Blowing Regime -- F. Conclusion -- 8. The Need for Enhanced Professionalism for Internal Control Functions -- A. Internal Control Functions as 'Gatekeepers' -- B. Enhancing Professionalism -- C. Liability Regimes -- D. Conclusion -- 9. Concluding Remarks -- Bibliography -- Index.
9781509901388
Bank examination. Auditing, Internal. Financial institutions -- Risk management. Banks and banking -- Risk management.