1 / 5

Federal Reserve Fiduciary Risk FIRMA March 2010

Federal Reserve Fiduciary Risk FIRMA March 2010. J. Douglas Pollitt Trust Risk Specialist Team Leader Federal Reserve Bank of Chicago John.D.Pollitt@frb.chi.org. Federal Reserve Fiduciary Risk FIRMA March 2010. Disclaimer

badu
Download Presentation

Federal Reserve Fiduciary Risk FIRMA March 2010

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Federal Reserve Fiduciary Risk FIRMA March 2010 J. Douglas Pollitt Trust Risk Specialist Team Leader Federal Reserve Bank of Chicago John.D.Pollitt@frb.chi.org

  2. Federal Reserve Fiduciary Risk FIRMA March 2010 • Disclaimer • Views expressed are those of presenter and they are not necessarily those of the Federal Reserve and do not otherwise constitute policy and/or position statements of the Federal Reserve.

  3. Federal Reserve Fiduciary Risk FIRMA March 2010 • Federal Reserve System Structure • Process For Determining Trust Risk Supervisory Themes • Annual Spring System Determination/Vetting • How Trust Risk Themes Are Incorporated Into Supervisory Process • State Member banks Trust related examinations & targets • Annual CPC/Dedicated teams Risk Assessment/Sup Planning

  4. Federal Reserve Fiduciary Risk FIRMA March 2010 • Enterprise Wide Fiduciary Risk Assessment • Role of the Federal Reserve/Consolidated Regulation, post GLBA & functional regulated entities • CPC/Dedicated team responsibilities • Base & Updated Risk Profiles of Fiduciary Activities (RIAs, Brokerage, Service Providers, Family Offices, etc) reflected in legal/reputational and operational risk categories • Enterprise Wide Risk and Compliance Management assessing whether & how all fiduciary risk captured at holding company level, determining threat to BHC earnings, liquidity, & capital • Factor into BHC ratings of RFI with I component =Impact on BHC of stress within and risks posed by non-bank RIA affiliates and sponsored funds

  5. Federal Reserve Fiduciary Risk FIRMA March 2010 • Fiduciary Themes, Priorities • Firms support for stressed funds (not just 2a7 funds) • Meeting Client Objectives and Adhering to Fiduciary Standards • Strategic & Earnings Pressure E.g. rising interest rate impact on RIAs and 2a7 funds • Increased Litigation Risk • Regulation R & GLB Push Out Rules • Operational Risks – Staffing Turnover, Fraud & Outsourcing

More Related