MAGAZINE
April 2017 Issue
Financier Worldwide Magazine
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COVER STORY
Automation across financial services: hype or reality?
Whether the displacement of human labour by automation is, as is often depicted, another nail in the manual coffin seems a moot assertion. But what cannot be denied is its increasing role across the financial services (FS) sector...
FEATURES
M&A in 2017: challenges in getting the deal done
Mergers & acquisitions (M&A) are often susceptible to an uncertain landscape. With 2017 likely to see continuing economic and geopolitical upheaval across the globe, companies are well-advised to adopt a more cautious approach to dealmaking...
Though the last remnants of the financial crisis are dissipating in most countries, in Italy the banking crisis arguably never went away. In mid January, DBRS, a Canadian rating agency, downgraded Italy’s sovereign debt, stripping...
Islamic finance is one of the fastest growing areas of international finance. Finding its basis in the ethical teachings of Islam, it is steadily growing in appeal, thanks in no small part to the scale of the available market. Indeed, there are 1.6 billion...
Artificial intelligence (AI) presents one of the most exciting and potentially transformative opportunities that mankind has faced in its recent history. In some quarters, it has been heralded as the next industrial revolution...
The role of the board in crisis scenarios
In a corporate context, the moment when a dramatic event becomes a crisis is when it poses a significant threat to a company’s financial performance, reputation or its relations with key stakeholders. Research tells us that, on average...
ROUNDTABLE
Sanctions compliance & enforcement
THE PANELLISTS: Roger Matthews, Dechert LLP; Geoffrey M. Goodale, FisherBroyles, LLP; Judith Alison Lee, Gibson, Dunn & Crutcher LLP; Kimberly N. Brown, IBM; Margaret M. Gatti, Morgan, Lewis & Bockius LLP; and Bryce Bittner, Textron.
The sanctions arena is complex and challenging, with a host of nuanced statutes, executive orders and country-specific regulations being implemented and modified across the globe. Among the most visible are the Ukraine-related sanctions that...
SPECIAL REPORT
In today’s business environment, risk is a constant companion for every company – a reality which requires entities to identify the basic elements of risk and to explore how these elements can affect the potential for mission success. Risk management policies...
FORUM: Ransomware risk management
FW moderates a discussion on ransomware risk management between Paul van Kessel at EY, Raj Samani at Intel Security, Jonathan C. Trull at Microsoft, and Simon Edwards at Trend Micro.
Leading cyber security from the boardroom
Advent IM Ltd. According to Elizabeth Denham, the UK Information Commissioner, “Cyber security is not an IT issue, it is a boardroom issue. Companies must be diligent and vigilant. They must do this not only because it is their duty under law, but because...
Shook, Hardy & Bacon L.L.P. Every chief information security officer (CISO) and in-house lawyer responsible for data security legal issues should take an hour and read the New York State Department of Financial Services Cybersecurity Requirements for Financial Services...
Cyber security is creating significant cyber insecurity: new EU regulation only adds to the anxiety
Edelman In a survey just released by the Economist Intelligence Unit, 53 percent of the executives that were asked what type of crisis had the greatest impact on their firm’s reputation cited cyber attacks. And when asked which crisis threatened financial value...
The changing landscape of corporate risks
Allianz AG Which global risks are most feared by businesses? It turns out there are plenty but the upshot of any risk is that which is most worrisome: business interruption (BI). As they face increasing uncertainties, businesses are more sensitive to distractors that...
What companies can learn from the DOJ’s approach to evaluating corporate compliance programmes
Miller & Chevalier Chartered In late 2015, the US Department of Justice (DOJ) Criminal Division Fraud Section kicked off a compliance initiative with the hiring of a full time compliance expert whose role is to “help prosecutors develop appropriate benchmarks...
Risk management trends and developments: what are leading asset managers and investors now doing?
Global Risk Management Advisors, Inc. In the proverbial ‘beginning’, formal risk management – which entails not only measurement and reporting of risks, but, also, prudent management and governance of risks – was primarily only practiced by a select number of large global...
Brexit: the legal contract review and repapering dilemma
D2 Legal Technology With considerable uncertainty over the future of the UK’s relationship with the European Union (EU) after the conclusion of the exit negotiations, financial institutions are in the midst of a complex risk assessment exercise. From the risk of lost...
Supply chain risks under US and EU sanctions and export controls
Reed Smith Firms with international supply chains confront a complex web of sanctions and export controls imposed by the US and the European Union (EU), among others. To avoid getting caught in this web, it is essential that companies...
Litigation risk for companies which historically used fluorinated chemicals in manufacturing
Clark Hill PLC For several decades, manufacturing companies have used perfluorooctanoic acid (PFOA) and other long-chained perfluorinated compounds – compounds with extended perfluorinated alkyl chains greater than or equal to eight carbons...
Get ahead of the curve with IFRS 15 & 16 compliance
Tagetik UK With the introduction of new International Financial Reporting Standards (IFRS) just over a year or two away, companies should be gearing up for changes that may cause some upheaval. Largely principles-based, IFRS...
The ‘nuts and bolts’ of D&O insurance in Germany
Berner Fleck Wettich Most multinational corporations have placed directors and officers (D&Os) liability insurance policies with worldwide cover in their home country. This can leave D&Os serving on supervisory and executive boards of subsidiary companies in Germany...
DEALfront
mergers & acquisitions
Reckitt Benckiser agrees $16.6bn deal for Mead Johnson
British consumer health and hygiene powerhouse Reckitt Benckiser announced that it is to acquire US baby formula manufacturer Mead Johnson in a deal worth $16.6bn. According to a joint statement, Reckitt will pay $90 per share...
Anthem/Cigna deal in the balance following judgement
The proposed merger of health insurers Anthem, Inc. and Cigna Corporation is in the balance after Anthem won a court ruling which temporarily blocks Cigna’s attempt to pull out of the $48bn deal. Originally proposed in July 2015, the deal was...
private equity & venture capital
Blackstone to buy Aon’s outsourcing platform for $4.8bn
Leading investment firm Blackstone has announced that private equity (PE) funds with which it is affiliated have entered into a definitive agreement to acquire Aon plc’s technology-enabled benefits and human resources (HR) platform for $4.8bn...
Sovereign funds completing more PE deals
The private equity (PE) industry has performed well in recent years, and 2016 was no exception. Though last year was not as prolific as 2015, it remained strong. There are a record number of PE funds currently active in the market: 1865 seeking...
bankruptcy & corporate restructuring
Nigeria’s biggest airline, Arik Air, entered receivership in February due to its inability to pay workers and creditors. As a result of this failure, the Nigerian government has taken control of the company via the state-owned ‘bad bank’ Asset Management...
Ultrapetrol files for Chapter 11 protection
Ultrapetrol (Bahamas) Limited, owner of one of the largest shipping businesses in South America, announced that it, and a number of its subsidiaries, have commenced voluntary cases under Chapter 11 of the US Bankruptcy Code. To implement a...
LEGAL®ulatory
Fraud & Corruption
Navigating privilege issues across multijurisdictional investigations
Steptoe & Johnson LLP Over the past two decades, the US has traditionally been at the forefront of investigating and prosecuting corporate misconduct, even when that misconduct occurs abroad and only its effects are felt domestically. The US Department...
Financial institution liability for white-collar crimes
Bennett Jones LLP Banks and financial services businesses are under increasing pressure following claims regarding their role in fraud: Western Union is on the hook for an exorbitant forfeiture, an individual has claimed that the Royal Bank of Canada contributed...
The recent JP Morgan FCPA settlement – can a job offer be a bribe?
Peters & Peters The US Foreign Corrupt Practices Act (FCPA) and the UK Bribery Act 2010 operate to prohibit the use of illicit payments – i.e., bribes – to foreign public officials by corporations seeking to obtain preferment in their business dealings. But what...
SPOTlight
Pillsbury Verizon Communications entered into a definitive agreement to acquire the online information platform Yahoo on 25 July 2016 for $4.8bn. The transaction, which has not been completed, excluded cash, shares in Yahoo Japan and Alibaba...
Five predictions for financial crime
FICO TONBELLER Politically and economically, 2017 has had an altogether unpredictable start. The inauguration of Donald Trump, the beginning of the Brexit process, wider strain on the eurozone and several high-profile terrorist attacks have set businesses and...
Estoppel limits of inter partes review
Holland & Knight When the America Invents Act (AIA) was enacted to include the new inter partes review (IPR) proceeding, stakeholders were focused on the estoppel provision and what that meant for future challenges to a patent by the petitioner. The estoppel...
Gibson, Dunn & Crutcher LLP 2016 was a pivotal year in global sanctions implementation, relaxation and enforcement, culminating in the unexpected election of Donald J. Trump, a vehement critic of president Barack Obama’s foreign policy. During the presidential campaign...
CONTRIBUTORS
Advent IM Ltd.
Allianz AG
Bennett Jones LLP
Berner Fleck Wettich
Clark Hill PLC
D2 Legal Technology
Dechert LLP
Edelman
EY
FICO TONBELLER
FisherBroyles, LLP
Gibson, Dunn & Crutcher LLP
Global Risk Management Advisors, Inc.
Holland & Knight
IBM
Intel Security
Microsoft
Miller & Chevalier Chartered
Morgan, Lewis & Bockius LLP
Peters & Peters
Pillsbury
Reed Smith
Shook, Hardy & Bacon L.L.P.
Steptoe & Johnson LLP
Tagetik UK
Textron
Trend Micro