Audit & Governance Weekly Financial News 21st August 2020

Company News

Published on: Thursday, August 20, 2020 by Paul Stanbridge

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EXCLUSIVE: UK HEAD OF AUDIT VACANCIES LOWEST IN 6 YEARS.

Senior roles (Heads of Audit / Senior Audit Director / Internal Audit Partner) in the UK significantly decreased this year compared to the same period over the previous 5 years: Fig 1

Fig 1
The total number of new UK Internal Audit vacancies YTD decreased compared to the average of 2018 & 2019. May and June had the lowest volumes seen in 7 years. July showed a quick rebound. Fig 2.

Fig 2
There is a small but not insignificant shift of vacancies in the large G10 Broker / Dealers and smaller Securities firms, Corporate and Retail Banks. Geographical changes can also be seen compared to 2018 & 2019.
[Thank you to our friends at Vacancysoft for help with data.]

** Competitor analysis can be hard
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If you are planning your headcount for 2021 competitor analysis can give you an advantage. If you would like market and competitor intelligence across sector, region, and corporate levels email: [email protected] (mailto:[email protected]?subject=Market%20Intelligence%20request&body=Hi%20Paul%2C%20%0A%0AI%20would%20like%20more%20information%20on%3B%20%0A%0AYou%20can%20contact%20me%20at%3A%0A%0AThanks)
In the press this week…

Continuing my obsession with Wirecard, Reuters reports that German officials traded Wirecard shares as it was close to collapse (https://uk.reuters.com/article/uk-wirecard-germany-bafin/german-officials-traded-wirecard-shares-as-it-edged-towards-collapse-idUKKCN25A20G) . German regulatory officials bought and sold Wirecard shares in increasing volumes as Wirecard edged towards collapse, prompting fresh criticism of Bafin. Bafin declined to comment.

Internal audit leaders should develop new skills to stay relevant says Protiviti. It notes “Audit priorities could all benefit from next-gen internal auditing techniques”. I found helpnetsecurity’s summary of the survey to be interesting (https://www.helpnetsecurity.com/2020/08/17/internal-audit-leaders-should-develop-new-skills-to-stay-relevant/)

Lastly… the ICO (The UK’s independent regulatory office in charge of upholding information rights) received a mere ‘adequate’ rating in an internal audit report (https://tech.newstatesman.com/gdpr/ico-annual-report) this week. ‘Significant issues of compliance or efficiency… were found although they were transitory and largely due to the COVID-19 crisis. IOC has been criticised of losing its teeth and blaming COVID for a decrease in its recent activity.

I hope you enjoy this week’s offering.

Many thanks

Paul
In other news this week….
CITI’S $900 MILLION ‘CLERICAL ERROR’ WORST WALL STREET BUNGLE IN A LONG TIME

US banking giant files lawsuit seeking return of funds that were transferred in an “operational mistake”… (https://www.reuters.com/article/us-credit-suisse-results/credit-suisse-to-merge-investment-banking-units-second-quarter-profit-beats-idUSKCN24V0OQ) read more (https://economictimes.indiatimes.com/markets/stocks/news/citis-900-million-clerical-error-is-worst-wall-street-bungle-in-a-long-time/articleshow/77569873.cms)

AML, KYC AND SANCTIONS FINES FOR GLOBAL FINANCIAL INSTITUTIONS REACH $5.6 BILLION MID-YEAR

Repercussions from high profile scandals and compliance failings hit US, Israeli, Nordic and German banks hardest… (https://www.theguardian.com/world/2020/aug/03/340m-in-london-law-firms-account-suspected-of-1mdb-connection) (https://www.reuters.com/article/us-health-coronavirus-markets/as-bankers-return-to-the-office-industry-body-warns-of-new-risks-of-bad-conduct-idUSKCN24S0GP) read more (https://www.thestreet.com/press-releases/aml-kyc-and-sanctions-fines-for-global-financial-institutions-reach-5-6-billion-mid-year-15400121)
SCHRODERS BECOMES FIRST MAJOR CITY FIRM TO MAKE HOME WORKING PERMANENT

Fund manager Schroders will allow thousands of its employees to continue working from home even after the pandemic…. (https://www.reuters.com/article/us-usa-banks-capital-one-fin/capital-one-to-pay-80-million-fine-after-data-breach-idUSKCN2522DA) read more (https://www.cityam.com/schroders-becomes-first-major-city-firm-to-make-home-working-permanent/)

INTERNAL AUDITORS LOSING GROUND ON DIGITAL TRANSFORMATION

Internal audit departments are slowing down the adoption of next-generation technologies, such as artificial intelligence and machine learning, according to a new survey… (https://www.reuters.com/article/us-india-cybersecurity-payments-exclusiv/exclusive-india-found-cybersecurity-lapses-at-national-payments-corp-in-2019-government-document-idUSKCN24V0HB) read more (https://www.accountingtoday.com/news/internal-auditors-losing-ground-on-digital-transformation)
GERMAN GREENSILL BANK DRAWS REGULATORY SCRUTINY

93 year old firm (previously NordFinanz Bank AG) investigated after 7 fold balance sheet increase….read more (https://www.bloomberg.com/news/articles/2020-08-19/billionaire-greensill-s-german-bank-draws-regulatory-scrutiny#:~:text=The%20growth%20of%20the%20Bremen,British%2DIndian%20entrepreneur%20Sanjeev%20Gupta.)

SCOTIABANK TO PAY OVER $127M FOR PRECIOUS METALS PRICE MANIPULATION

Bank of Nova Scotia has agreed to pay more than $127 million to resolve a series of U.S. regulatory charges .. (https://www.aicpa.org/content/dam/aicpa/interestareas/informationtechnology/downloadabledocuments/accounting-for-and-auditing-of-digital-assets.pdf) . (https://www.funds-europe.com/digital-advertorials/front-office-outsourcing-to-spike-post-covid-19) read more (https://www.wsj.com/articles/scotiabank-fined-127-million-for-price-manipulation-false-statements-11597877100)
KPMG OUSTS HEAD OF FINANCIAL SERVICES UNIT

One of the UK’s biggest consultancies has ousted the head of its financial services consulting division, following a probe into alleged misconduct…. (https://www.centralbanking.com/central-banks/governance/financial-reporting/7658186/lebanese-central-bank-faces-audit-as-crisis-deepens) (https://in.reuters.com/article/us-malta-bank-idINKBN2426I0) read more (https://www.bbc.co.uk/news/business-49323555#:~:text=One%20of%20the%20UK’s%20biggest,Howarth%20had%20left%20the%20company.)
JP MORGAN HIRES EX-UK FINANCE MINISTER JAVID
Former finance minister resumes his career in investment banking with US bank… read more (https://www.malaymail.com/news/money/2020/08/18/jpmorgan-hires-ex-uk-finance-minister-javid/1894972)

** Hiring for your Internal Audit team?
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We have an extensive network of immediately available Internal Audit candidates. Call Paul on 0203 397 1774
Paul Stanbridge
Before establishing Fleet Search and Selection with Craig Phipps, Paul worked as an Equity Research Analyst in London. Now, a recruitment consultant for almost two decades, he has recruited many senior roles, including Global Heads of Audit and C-Suite executives. His wide network spans Insurance, Asset Management and Banking, with expertise including Audit, Compliance and Advisory.
As with his day job, Paul likes getting people excited about things. He is a passionate competitive foil fencer with 5 caps for Scotland and now enjoys coaching others to enjoy fencing too.
Contact:
[email protected] (mailto:[email protected])
Craig Phipps

Craig has spent over 20 years recruiting for the Financial Services Industry, predominately in Business and Technology Audit for Investment Banks and Asset Managers. He has also recruited extensively in Market Risk and Quantitative finance. Prior to establishing Fleet Search and Selection, he headed up the Investment Banking Audit and IT Audit Divisions at two prominent recruitment companies.
Craig has helped 100’s of candidates make difficult career choices. When not at work, his strategic mindset turns to his passions for skiing and rugby and is a huge supporter of Australia’s national rugby team.
Contact:
[email protected] (mailto:[email protected])

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