Managing the winds of change

In recent years Control Staff have found their workload dominated by rooting out bad behaviour resulting from poor culture. The beginning of 2017 heralds a decade since the onset of the Credit Crisis, which set the stage for a fundamental repositioning on how Financial Institutions and their staff conduct business. All the while however, the markets have been in a prolonged cycle of status quo. Households and businesses have enjoyed prolonged low interest rates, and Central Banks have been preoccupied for the most part by the threat of falling prices. This cycle looks set to change.

Skadi Limited Supports GB Athlete Tom Bosworth

Skadi Limited is pleased to announce support for GB Race Walk Champion Tom Bosworth. During his preparation for the Rio de Janeiro Olympics, Tom has laid down some important markers. Tom holds the British records for 3000m, 5000m, 10km and last month smashed the 28 year old British record for 20km. The distance he will represent Great Britain for in Rio de Janeiro.

Conduct Risk: Compensation

Nicolas Corry, Managing Director,

It’s the time of year when the compensation for Financial professionals is brought sharply into focus. Regulators are driving for compensation to be linked to long term profitability and conduct, recognising that hard pay out structures and incentive schemes may encourage short termism. However significant gap risk persists. Sell side staff increasingly find that their compensation is pushed further down the line, with lengthy vesting periods, and the threat of claw backs to pay should staff be found guilty of wrongdoing (malus).

Conduct Risk: Colloquial Trading Practices

Nicolas Corry, Managing Director,

Our customers constantly ask us where the next area of focus for Regulators will come from. Our predictions are that regardless of the product or market, poor conduct will be at its heart. The Fair and Effective Markets Review devotes a large part of its scope to the subject of Conduct Risk. Conduct Risk emerges from a number of powerful drivers which are challenging to define, recognise and control. A key challenge Control Functions face is how to manage Conduct Risk effectively without constraining Front Office innovation and creativity.

GB race walk champion @TomBosworth introduces young athletes to the sport with Skadi Limited’s help

Tom Bosworth has his sights set on a top 10 finish at the Rio de Janeiro Olympics. In order to achieve that Tom is looking for funding to allow him to train full time. Skadi Limited made a contribution last year through Talent Backer to help Tom focus full time on training. By way of thanks Tom kindly offered to give the young race walkers at Blackheath and Bromley Harriers AC some coaching.

Courtsiders at Tennis – why not the financial markets?

Nicolas Corry, Managing Director,

Hold the algorithms! Fraud risk is high!

Nicolas Corry, Managing Director,

It sounds somewhat cliched to say that banks are undergoing significant change, nevertheless we are told that HSBC is considering its UK position, Deutsche Bank is undergoing reorganisation, Mizuho has purchased a $3bn loan portfolio from RBS and taken on board 130 US staff. Standard Chartered is experiencing a significant number of managerial departures within its Middle East Franchise. Meanwhile JP Morgan has caught headlines by revealing it is introducing an algorithm which can anticipate rogue employees.

Equity research under pressure #research #bankculture

William Vincent, Senior Consultant,

UBS has been caught up in a political row in Australia after it produced a research report on the privatisation of a New South Wales electricity utility, a deal in which it is acting for the seller. What happened is that UBS put a report entitled “Bad for the budget, good for the State”, then changed the title to, simply, “Good for the State”. The opposition Labor (sic) party is claiming that this was the result of direct interference from the ruling Liberals.

Issuance Issues #bankculture #issuance

Nicolas Corry, Managing Director,

The Big Boy Defence #bankculture

Nicolas Corry

Nicolas Corry, Managing Director,

Press reports of the deal Standard and Poors have reached with Federal and State Agencies shines a light on the challenge faced within the Financial Industry to bring about cultural change. Paul Barrett writing for Bloomberg describes one of the defences S&P’s lawyers used early in the case, making the blunt observation: “The company said that its claims to objectivity and independence were “mere puffery,” the sort of marketing blarney that sophisticated investors don’t believe.”