TNP White Paper on IBOR transition dates and the impact of Covid-19

Executive Summary

The headwinds experienced as a result of the Coronavirus (Covid-19) have raised questions as to whether the LIBOR transition timelines may be extended.
▪ While a delay in the implementation of the interim regulatory milestones is likely, there is little regulatory appetite to discuss an extension of the December 2021 deadline, given the transition horizon.
▪ Even in a scenario where the deadline is extended, the transition objective will never be put into question. Therefore, financial institutions putting on hold their own transition effort will only defer (if not increase) implementation costs to the future.

For more information, please contact sonja.haug@tnp.eu

Sustainability factors in risk and bank management:

Banks are facing new regulatory and social challenges
Sustainability has rapidly and finally developed from a niche existence to one of the most important influencing factors of the financial system. Even before the “green deal” was announced, the topic had increasingly been fleshed out by the EU Commission, EBA, BaFin and other national regulatory authorities. Although the current regulation initially focuses on climate and environmental aspects, more extensive requirements will follow. Regulatory interventions in other sectors will indirectly gain an ever increasing influence on banks. Due to the high relevance, each institute should develop a holistic approach that is tailored to its own business model.

Written by Prof. Dr. Wolfgang Malzkorn and Constantin Ebert

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Risk South Africa in Cape Town - 13th of November (https://events.risk.net/risksouthafrica)

The reference rate reform and the associated transition are considered as some of the broadest-reaching changes in the financial system since the global financial crisis. Graham Bruce, Associate Partner at TNP, will be leading the discussion at the IBOR panel for the 2019 Risk South Africa conference.

TNP White Paper on IBORs, ARRs and transition considerations
by Dr. Periklis Thivaios, CFA, FRM - Partner at TNP and Co-authors: Graham Bruce (associate partner at TNP), Vijay Krishnaswamy (partner at TNP), Niru Govender (senior consultant at TNP)

In the aftermath of the last financial crisis, it came to light that many of the interbank offered rates (IBORs) used for pricing financial instruments, loans and transactions were no longer fit for purpose.
As a consequence, the UK’s FCA and the US’s CFTC have simultaneously announced the discontinuation of IBORs post 2021 prompting the industry, regulators and trade bodies to engage on proposed replacement rates.
In parallel, several other regulators (including South Africa’s Reserve Bank) have initiated consultative processes for the migration or reform of existing reference rates to ones that are consistent with the IOSCO principles and the EU’s Benchmark Regulation (BMR).
The path towards Alternative Reference Rates (ARRs) is fraught with uncertainties:
1. What Risk Free Rates (RFRs) will be used in countries such as South Africa?
2. How do we develop term RFRs that comply with the IOSCO principles?
3. What are the operational, legal, risk management and client management implications of the transition?

For more information please contact: sonja.haug@tnp.eu

Risk Minds Asia, Hong Kong, October 2019

Presentation by Dr. Periklis Thivaios
Digital currencies, cryptos and the future of money

12th Annual ACFE Africa Fraud Conference hosted by the ACFE SA 2019

It is recognised as the largest anti-fraud event in Africa, and second largest in the world.   We aim to bring together 1000 + anti-fraud professionals from more than 20 countries over three days, all with a shared desire to gain leading-edge knowledge,  explore the newest resources for fighting fraud to achieve their goals more effectively, and meet fellow professionals within Africa expanding their network. The Conference program is carefully structured every year to include presentations and workshops by leading experts on fraud and corruption, and related fields.  The content is topical, relevant and exciting.

Adding to the theme, panellist Andries Schutte, director Riskscape and partner at True North Partners, said, technology played a profound role in shaping the global risks landscape. “Concerns about data fraud and cyber-attacks remain  prominent, along with technological vulnerabilities.” Some of the concerns Schutte listed included, “increased risk of identity theft; massive data breaches and the potential criminal uses of artificial intelligence; and difficulties introduced by regulations  particularly those governing Financial Services.

Risk Minds Americas, Boston USA, September 2019

Presentation by Dr. Periklis Thivaios

CRYPTOS, AML AND FINANCING OF TERRORIST ACTIVITIES – PROACTIVE AND PREVENTION STRATEGIES FOR REGULATED FINANCIAL INSTITUTIONS
Crypto characteristics and their potential impact on AML / FTA
Towards a digital money future – privacy, monitoring and other regulatory considerations
What can financial institutions and regulators do to minimise the use of cryptos for AML?

Blockchain in Supply Chain, Athens Greece, June 2019

Blockchain and Trade Finance

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