bdo’s banking team · bdo’s banking team bdo is the world’s fifth largest accounting network,...
TRANSCRIPT
BDO’S FINANCIAL SERVICES TEAM
2
BDO’S BANKING TEAM
BDO is the world’s fifth largest accounting network, offering a consistent
global service through strong, local relationships. Our market position
means we are often conflict free, offering independent robust opinions that
stand up to regulatory scrutiny.
In the UK, BDO plays an active role in representing and advising the banking industry, and often acts as
a Skilled Person on regulatory, risk and governance matters. We are a full service firm providing
accounting and assurance, tax, regulatory advisory and investigations, valuations, technology risk and
outsourcing services.
We advise a growing number of new market entrants within the retail and wholesale banking sectors,
including foreign banks, challenger banks and consumer credit companies and specialise in product
areas such as retail and alternative finance, credit cards, payment services, e-money and lending.
We provide proportionate and pragmatic solutions to the regulatory challenges that banks face and
focus on the following:
• External audits of international and
domestic banks and branches of foreign
owned banks, challengers and new entrants
• Regulator commissioned reports on UK
banks and s166 Skilled Person reports
• Regulatory, risk and compliance advisory
services
• Remediation assurance projects for banks,
consumer credit firms and other financial
institutions
• Advice on obtaining regulatory approval for
changes of control of UK banks
• Fully outsourced and co-sourced internal
audit services
• Systems and control manuals
• Post implementation systems reviews
• Banking licence applications
• Due diligence on foreign-owned banks
• Valuations of financial investments
• Tax structuring advice
• Audit and tax assurance.
3
A VOICE IN THE INDUSTRY
As an associate member of
the British Bankers’
Association and a supporter
of the Association of
Foreign Banks, we play an
active role in representing
and advising the UK banking
industry.
We are well represented at
Board and Committee level
of the ICAEW Financial
Services Faculty and GPPC.
We have a strong
relationship with the FCA
and PRA, as well as being
an active stakeholder and
influencer in European
financial services.
4
KEY SPECIALISMS
Meeting the challenge of Conduct Risk
management is not to be underestimated.
There are key actions that banks need to
undertake. Banks should define conduct risk in
the context of their own products and services,
set a vision of how things ought to be and
formulate a conduct risk appetite that is both
easily communicable and tough enough to drive
out intolerant behaviour.
BDO has extensive experience in establishing
and implementing fit-for-purpose risk
frameworks that integrate Conduct Risk. We
can help clients throughout the whole process
or at defined touchpoints:
• Interview senior executives responsible for
Conduct Risk
• Use BDO’s Conduct Risk Diagnostic Tool to
assess your progress on Conduct Risk
• Desk-based review of current risk framework,
risk profile and products/service
lines/distribution channels
• Facilitate workshops with frontline,
compliance, risk, internal audit and senior
executives to articulate the causes and
consequences of poor customer outcomes
• Undertake gap analysis between poor
customer outcomes and current risk profile
• Undertake a Board Effectiveness Review
– Review gap analysis with reference to
emerging risks and regulators’ focus areas
– Review current MI to identify gaps.
CONDUCT RISK REGULATORY, RISK AND
COMPLIANCE ADVISORY 01 02
We have a dedicated regulatory team of
specialists. The team includes former PRA and
FCA supervisors who have an in-depth
knowledge of the foreign banking market. Our
expertise includes:
• Corporate Governance
• Credit Risk Management frameworks
• Liquidity Risk
• Credit Risk
• CRD IV
• Capital adequacy
• Preparation for regulatory visits and training
Our work with foreign banks includes:
• ICAAP, ILAA and ILAAP preparation and advice
• Skilled Person’s reports for the PRA and FCA
• Prudential Risk reviews
• Controls assurance
• Compliance frameworks
• Compliance monitoring
• Board effectiveness reviews
5
TECHNOLOGY RISK
AND CYBER SECURITY
Our team of technology assurance professionals
includes penetration testers, cyber security
specialists, skilled data analysts, qualified
project managers and members of the Business
Continuity Institute. Our expertise includes:
• Cyber security reviews and assessments
• IT governance reviews
• IT strategic planning assurance
• Security – identity and access management
• PCI DSS
• Business continuity and disaster recovery
services
• Information security testing and assurance,
(including ISO 270001 Reviews Audits)
• Spreadsheet risk analysis
• Data analytics
• Data and model validation
• Project assurance
• Vendor selection and implementation
• Complex transaction reporting.
KEY SPECIALISMS
In March 2015 the PRA and FCA published their
proposed approach for extending the regimes to
UK branches of EEA and non-EEA firms.
BDO has extensive experience in establishing
and implementing fit for purpose governance
and regulatory frameworks.
We can help you with ongoing review and
compliance in this area through:
• Designing and implementing appropriate
systems and controls throughout your
organisation to ensure compliance with the
regimes
• Performing independent assurance reviews of
SMRs
• Preparing and delivering on-going SMR,
Conduct Risk and regulatory training
programmes to senior management and staff.
SENIOR MANAGER’S REGIME 03 04
6
KEY SPECIALISMS
BDO’s Financial Services group has specialist
knowledge and experience of the CASS rules
and their impact on firms.
Our team can assist with all aspects of CASS
compliance including:
• Impact assessments
• Gap analysis
• Implementation guidance
• Post implementation reviews
• Board training programmes
• Internal audit support.
We can carry out a CASS ‘health check’ for our
clients, providing our analysis of their level of
compliance, with recommendations for any
necessary changes or improvements.
BDO has an experienced multi-disciplinary
Financial Services and Forensic team of
experts assisting with all aspects of financial
crime, including bribery and corruption, fraud
and financial black holes and anti-money
laundering (AML).
We support legal advisers in the UK, US and
elsewhere, to assist in developing policies and
procedures, we investigate bribery risk and
exposure and advise on remedies.
Our AML team advises on best practice in AML
and Counter Terrorist Financing (CTF), helps
identify organisation specific risk and develops
best practice procedures and solutions. Our
services include:
• UK Bribery Act and FCPA advice
• Review of anti-bribery systems and risks
• Development of anti-bribery controls
• AML and CTF advice
• Development of; Know Your Customer; and;
Politically Exposed Person; procedures
• Pre-transaction due diligence
• Integrity due diligence of agents,
intermediaries and joint venture partners
• Investigation of alleged bribery
• Quantification of loss/gain from bribery.
CASS 05 FINANCIAL CRIME 06
7
WORKING WITH THE BANKING COMMUNITY
CURRENT AND PREVIOUS BANKING AUDIT CLIENTS INCLUDE:
CO-SOURCED OR FULLY OUTSOURCED INTERNAL AUDIT CLIENTS INCLUDE:
CURRENT AND PREVIOUS FINANCIAL SERVICES ADVISORY CLIENTS INCLUDE:
Ahli United Bank Allied Bank of
Philippines Bank Hapoalim Bank of India Canara Bank
Consolidated Credits Bank
Nacional Financiera
State Bank of India
Union Bank (UK) plc
Syndicate Bank
United National
Bank
Bank of Baroda C Hoare & Co Caixa General de Depositas
OakNorth Bank Paragon Bank
Punjab International
Bank Zenith Bank Raphaels Bank
Secure Trust Bank
ABC International
Bank
Bank Leumi (UK) plc
Barclays Buckinghamshire Building Society
ICICI Bank
Kleinwort Benson
Lloyds Banking Group
Metro Bank Morgan Stanley
Nomura Bank Royal Bank of
Scotland State Bank of
India Tandem Bank
Starling FS Limited
Monzo
Turkish Bank
8
9
KEY CONTACTS
Leigh leads the Banking and Financial Services
Advisory group at BDO. She has over 19 years’
experience of providing audit, assurance and
advisory services to banks, retail financial
services firms and other financial institutions.
Leigh has led a number of S166 reviews dealing
with governance, credit and operational risks,
capital, stress testing and financial crime. She
has also led a number of external and internal
audit, risk management, corporate governance,
regulatory remediation and thematic reviews
for a number of high profile banks and financial
institutions in the UK and Europe.
Dan has been advising financial services
businesses for 19 years and has considerable
experience of the regulatory and financial
reporting environment in the UK. Dan leads
BDO’s Banking audit practice and, as well as
statutory audit services, advises his clients on
regulatory matters such as ICAAPs and ILAAs.
He has acted as a Skilled Person under s166 of
the FSMA in relation to prudential matters. He
is a board member of the ICAEW’s Financial
Services Faculty and has advised companies on
IFRS adoption and financial instruments
accounting standards.
Fiona has been advising financial institutions for
over 15 years, supporting firms across the sector
on regulatory, governance, risk management and
financial matters. Returning to BDO after three
years at the FCA, Fiona led teams responsible for
supervising both prudential and conduct risks
within a wide variety of firms. Fiona designed
and implemented the FCA’s Skilled Person Panel
and acted as the regulator’s central Skilled
Person expert, assisting with the scoping, design
and commencement of over 150 Skilled Person
Reports.
Angela is Head of Financial Crime at BDO and is
also the Nominated Officer for the firm. She
has over 20 years experience in the financial
services sector working for both accounting and
legal firms. She is a member of the Institute of
Chartered Accountants in England and Wales
and chairs the Institute’s money laundering sub
committee. She also represents the
accountancy profession at the Home
Office/Treasury Money Laundering Advisory
Committee and the National Crime Agency SARS
committee.
+44 (0)20 3219 4063
LEIGH TREACY
Head of Banking and Financial
Services Advisory +44 (0)20 7893 2746
DAN TAYLOR
Head of Banking
Assurance
+44 (0)20 7893 2912
FIONA RAISTRICK
Regulatory Governance
& Risk management +44 (0)20 7893 2475
ANGELA FOYLE
Financial Crime
10
KEY SPECIALISTS
Kian specialises in managing large scale risk
and regulatory engagements specifically s166
Skilled Person reviews, corporate governance
reviews and PRA/FCA authorisation
engagements. He has experience in working
with foreign banks and delivering and co-
ordinating regulatory assignments throughout
the UK and Ireland.
Oivind has over 12 years' experience working
with financial services institutions. He has
worked within the regulatory capital team in a
global corporate and investment bank. Oivind
specialises in prudential regulation including
capital adequacy calculations, reporting and
policy considerations for all risk types including
credit risk, market risk, operational risk and
large exposures.
MATT HOPKINS
Assurance
Matt is a Director in our banking team with many years of experience in auditing banks and related
institutions. He has a particular specialism in Fintech lending. He has had significant exposure
advising clients of the regulatory and financial reporting environment in both the UK and the US.
Over the last 12 years he has had a large client portfolio of Foreign Banks. Matt trained within the
Banking & Capital Markets team at PwC in London and has also worked in the Financial Services
team at EY.
+44 (0)20 7893 2633
+44 (0)20 7893 3636
ROB DI SANTO
Technology Risk +44 (0)20 7893 3642
MICHAEL HADDON
Governance and
Internal Audit
Michael has over 25 years’ experience providing
assurance and advisory services to clients in the
UK and overseas. Michael’s industry focus is
financial services and he has specialised in
delivering internal audit, risk management and
compliance services to clients in this sector.
Michael is currently acting as a Head of Internal
Audit for a foreign bank, on a part time basis.
Prior to joining BDO, Michael worked in the UK
and South East Asia with KPMG and PwC.
Rob leads BDO’s Controls Assurance and
Financial Services Technology Risk practice,
with 15 years’ experience in internal risk and
control reviews of business processes, IT
general controls and external audits. Rob is a
Certified Information Systems Auditor (CISA)
and a Certified Project Manager (PRINCE 2). He
has extensive experience in a number of
frameworks including ISAE 3402 & 3000, SOX
404, AAF 01/06, SAS 70/SSAE 16. He is
recognised as a FCA s166 Skilled Person under
Lot 6: Data and IT Infrastructure.
+44 (0)20 3219 4046
KIAN CAULWELL
Regulatory Advisory +44 (0)20 3219 4014
OIVIND ANDRESEN
Prudential Regulation
11
FOR MORE INFORMATION:
HB008693
This publication has been carefully prepared, but it has been written in general terms and should be seen
as broad guidance only. The publication cannot be relied upon to cover specific situations and you should
not act, or refrain from acting, upon the information contained therein without obtaining specific
professional advice. Please contact BDO LLP to discuss these matters in the context of your particular
circumstances. BDO LLP, its partners, employees and agents do not accept or assume any liability or duty
of care for any loss arising from any action taken or not taken by anyone in reliance on the information in
this publication or for any decision based on it.
BDO LLP, a UK limited liability partnership registered in England and Wales under number OC305127, is a
member of BDO International Limited, a UK company limited by guarantee, and forms part of the
international BDO network of independent member firms. A list of members' names is open to inspection
at our registered office, 55 Baker Street, London W1U 7EU. BDO LLP is authorised and regulated by the
Financial Conduct Authority to conduct investment business.
BDO is the brand name of the BDO network and for each of the BDO Member Firms.
BDO Northern Ireland, a partnership formed in and under the laws of Northern Ireland, is licensed to
operate within the international BDO network of independent member firms.
© September 2016 BDO LLP. All rights reserved.
www.bdo.co.uk
LEIGH TREACY
+44 (0)20 3219 4063
DAN TAYLOR
+44 (0)20 7893 2746