Archive for: June, 2011

Probe Iris Robinson’s Lease Agreement, Councillors Urged

Probe Iris Robinson’s Lease Agreement, Councillors Urged

The ongoing investigation into the alleged impropriety of a lease agreement between Iris Robinson and former teenage lover has reached higher grounds as councillors from Castlereagh Borough were asked to help in the inquiry. Allegations of impropriety have been hurled against the £50,000 lease agreement after the Castlereagh borough council awarded the contract to 19-year [...]

‘Low Trust Level on Finance’ Prompts Regulatory Changes; FCA Gets Advice from FSA

‘Low Trust Level on Finance’ Prompts Regulatory Changes; FCA Gets Advice from FSA

The Financial Services Authority (FSA) has advised its successor, the Financial Conduct Authority (FCA), a body charged with conduct and markets regulation on how to be “tougher, bolder and more engaged with consumers.” Under the Government’s plans, the UK’s new model of regulation will see the responsibilities of the FSA split between two new bodies. [...]

Defrauded Hedge Fund Investors to Get Their Money Back

Defrauded Hedge Fund Investors to Get Their Money Back

Following a court order obtained by the Securities and Exchange Commission against a fund manager, investors who lost $230 million to a hedge fund that held their money offshore have finally been assured to get back what is due them. Although the sum remains frozen, awaiting completion of the SEC’s Ponzi scheme lawsuit against Francisco [...]

Gaps in Regulatory Landscape Filled’ As SEC Imposes Mandatory Registration for Investment Advisers

Gaps in Regulatory Landscape Filled’ As SEC Imposes Mandatory Registration for Investment Advisers

Investment advisers for hedge funds and other private funds are now required to register with the Securities and Exchange Commission (SEC) as the securities regulator adopted rules implementing the core provisions of the Dodd-Frank Act. “These rules will fill a key gap in the regulatory landscape. In particular, our proposal will give the Commission, and [...]

$2.7 Million Losses Hit Citigroup After Cyber Crime

$2.7 Million Losses Hit Citigroup After Cyber Crime

Approximately $2.7 Million has been funneled by hackers in a cyber crime that first compromised customers’ data of the company last month. In a press statement on Monday, Citi admitted to the said losses that allegedly accounted for 3,400 customers. Earlier this month, the banking group confirmed that a group of computer hackers have penetrated [...]

Removal of Certain ‘Family Offices’ From Investment Advisers Act Underway

Removal of Certain ‘Family Offices’ From Investment Advisers Act Underway

The Securities and Exchange Commission (SEC) has approved a new rule that will exclude certain “family offices” from the provisions of Investment Advisers Act of 1940, a ruling that is backed by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Under the Investment Advisers Act, family offices are considered to be investment advisers because [...]

New Life for Consulting Firm at PwC

New Life for Consulting Firm at PwC

Global accounting and consulting firm PricewaterhouseCoopers has acquired last week another consulting firm, a merger that is expected to boost PwC’s ” operational strategy, execution and business model innovation.” PRTM, a global management consulting firm, and PwC inked a definitive merger agreement that allows PwC to acquire the consulting firm. Since 1976, PRTM’s management consultants [...]

Legal Actions Against Insurance Company May Implicate Deloitte

Legal Actions Against Insurance Company May Implicate Deloitte

The New York Court of Appeals has ruled last week the fraud claims against an insurance company may snowball to include the firm’s auditors from Deloitte & Touche LLP. In 2000, stockholders and bondholders of Philadelphia-based Reliance Group Holdings Inc. filed a class action suit against the insurance company over allegations of misleading statements, during [...]

Temporary Rules to Inspect Audits of Brokers, Dealers Under Dodd-Frank Provision

Temporary Rules to Inspect Audits of Brokers, Dealers Under Dodd-Frank Provision

The Public Company Accounting Oversight Board (PCAOB) has adopted temporary rules to inspect the public accounting firms’ audits of brokers and dealers under the Dodd-Frank Act. The interim rules establishing inspection program for the audits of brokers and dealers came simultaneously with PCAOB’s adoption of rules for assessing and collecting a portion of its accounting [...]

2011 Projects of IASB, EFRAG Cap June 14 Meeting

2011 Projects of IASB, EFRAG Cap June 14 Meeting

The International Accounting Standards Board (IASB) and the European Financial Reporting Advisory Group (EFRAG) have reviewed during the June 14 meeting the IASB’s current work program. The meeting focused on the main projects that the IASB intends to finalize in 2011, as well as the time line for completion of those projects. Both entities discussed [...]

Criminal Charges Filed by SEC Against Memphis-based Firms Over Mortgage-backed Securities Fraud

Criminal Charges Filed by SEC Against Memphis-based Firms Over Mortgage-backed Securities Fraud

The Securities and Exchange Commission has filed fraud charges against Morgan Keegan & Company and Morgan Asset Management over subprime mortgage-backed securities. Last year, the SEC accused the Memphis-based firms, former portfolio manager James Kelsoe Jr., and comptroller Joseph Thompson of falsifying the valuation of subprime mortgage-backed securities in five funds managed by Morgan Asset [...]

Standard-setters Amend Presentation of Comprehensive Income in Financial Statements

Standard-setters Amend Presentation of Comprehensive Income in Financial Statements

The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) have moved to amend the presentation of items of other comprehensive income (OCI) in financial statements in line with International Financial Reporting Standards (IFRSs) and those prepared in accordance with US generally accepted accounting principles (GAAP). IAS 1 Presentation of Financial Statements [...]

Weak Anti-mortgage Fraud System Rampant Among Banks, FSA Says

Weak Anti-mortgage Fraud System Rampant Among Banks, FSA Says

The Financial Services Authority (FSA) has raised serious concerns as it found that three out of four banks it sampled showed lax anti-mortgage fraud systems. The firms failed to establish the legitimacy of the source of their customers’ wealth and the source of the funds to be used in transactions, the FSA claimed. The mortgage [...]

Venture Capital Ill Due to Low IPO Activity

Venture Capital Ill Due to Low IPO Activity

The current level of IPO activity around the world is too low to support the health of the venture capital industry according to respondents to Deloitte 2011 Global Venture Capital Survey. The survey, co-sponsored by the National Venture Capital Association, showed that more than 80 percent of venture capitalists from across USA, China, Brazil, India, [...]

Poor IT Security Highlighted in Recent Hack into CEO’s PowerPoint

Poor IT Security Highlighted in Recent Hack into CEO’s PowerPoint

An angry IT manager in Baltimore has penetrated his former boss’s computer to replace the PowerPoint with pornographic images of a woman, which highlighted the organization’s poor IT security system in place. Walter Powell, 52, used to be the director of management information systems at Baltimore Substance Abuse Systems (BSAS) Inc., but was fired days [...]

Compensation Package for Arch Cru Funds Investors Inked

Compensation Package for  Arch Cru Funds Investors Inked

Investors of Arch cru Funds can now receive a full compensation package following discussion between the Financial Services Authority (FSA) and other entities. The FSA, Capita Financial Managers Limited (CFM), BNY Mellon Trust & Depositary (UK) Limited (BNY) and HSBC Bank plc (HSBC) confirmed the voluntary establishment of a £54 million package, which will be [...]

Acquisitions, Hirings Expand Deloitte’s Sustainability Service Offerings

Acquisitions, Hirings Expand Deloitte’s Sustainability Service Offerings

Global consulting and accounting firm Deloitte has further expanded its sustainability service offerings and strengthened its leadership team following recent acquisitions of DOMANI Sustainability Consulting LLC, and ClearCarbon Consulting, Inc. Deloitte has announced last week about the key hiring of Daniel Aronson and Jacob Madsen, who will add to the firm’s talent in addition to [...]

‘Slow Global Economy Impacts Consumer Spending on Health Care’

‘Slow Global Economy Impacts Consumer Spending on Health Care’

The rise in health care costs and an uncertain global economy have posed challenges for consumers in their household spending and their ability to pay for future health care costs. According to the 4th annual Deloitte Center for Health Solutions “2011 Survey of Health Care Consumers”, consumers reported that the slow growth of global economy [...]

Investor’s Protection from Another Financial Crisis Pushed

Investor’s Protection from Another Financial Crisis Pushed

Auditors have been urged Tuesday to provide investors with more details regarding the financial position of firms, the first step taken by regulators in response to the 2008 financial crisis. A concept paper issued by the Public Company Accounting Oversight Board (PCAOB) sought to discuss alternatives for changing the auditor’s reporting model. PCAOB also announced [...]

Future of Insurance Regulation Up at FSA’s, BoE’s Paper

Future of Insurance Regulation Up at FSA’s, BoE’s Paper

The Bank of England and the Financial Services Authority have set out the current thinking on how the future Prudential Regulation Authority (PRA) will approach insurance regulation once it formally replaces the FSA. The Treasury previously proposed to institutionalize the PRA as an independent Financial Policy Committee (FPC) in the Bank of England, and another [...]