The financial sector has just been through some turbulent years. A large number of new laws and regulations, increased attention from regulators, stricter capital requirements, extensive portfolios with problem credits, technological developments and a damaged reputation are but a few of the challenges faced by the sector.
As a result of various incidents, the public confidence in banks, pension funds and insurance companies has reached rock bottom. Public debate on the level of bonuses, nationalisation and state support, profiteering insurance policies and reductions to pensions due to an excessively low funding ratio have resulted in regulators acting more strictly. The financial sector will need to take action to recover broad-based confidence.
New legislation and regulations
In practice, some financial institutions have had difficulty translating legislation and regulations into applied and controlled business operations in the area of integrity and financial-economic crime. The list of relevant new Dutch and foreign laws is a long one: The Financial Supervision Act, the Money Laundering and Terrorist Financing (Prevention) Act, Alternative Investment Fund Managers Directive, Bribery Act, Foreign Account Tax Compliance Act, Arms Export Control Act, Foreign Asset Control Regulations, Foreign Corruption Practices Act and the Patriot Act. In close cooperation with internal specialists, HIG is able to translate relevant laws and regulations for all the key areas of an organisation.
Private equity funds are expected to translate the Alternative Investment Fund Managers Directive into adequate policy and procedures. In this context, a key focus of attention for private equity funds is identifying and controlling potential risks in their own organisation and with regard to their the services, clients, business relations, employees and transactions.