Date: 18/10/24
STOP PRESS is a daily newsletter provided by Risk Audit to the financial services corporate governance community designed to provoke thought concerning risk management and related control practices.
Meta Fires Allowance Abusers
Meta has fired about two dozen staff for abusing the use of a $25 lunch allowance. The company provides free food to staff on campus. It also offers an allowance to staff who work from home. It woud appear that some of these employees used the allowance to buy household items such as toothpaste and wine glasses. Employees who departed were those who habitually abused the perk. The terminations concided with a corporate retrsuturing. I will be engaging in a role play at the IIA Scottish conference exploring ethical dilemmas! Is there a dilemma to be discussed here?
Regulators Provide Growth Assurance
Two leading UK regulators provided assurance at a dinner last night that they have got the memo concerning the need to support goroth in the economy. FCA CEO, Nikhil Rathi, told the guests that his regulator was listening to feedback about the proposal to disclose the names of firms under investigation. He stated that such disclosure when only occur when it is in the public interest and in very few cases. Example of criteria to be applied would be shared next month. Sam Woods, PRA supremo, informed that dinner that the maximum deferall period for bankers’ bonuses would be reduced from eight to five years.
ESMA Calls for Stringent Crypto Rules
The Euripean Securities and Markets Authority has called for the EU’s new crypto regulations to be tightened. The Markets in Crypto Assets Regulation comes into force in December. It will require senior managers to be assessed against a fit and proper test and for registered firms to have strong money laundering controls. ESMA is calling for a requirement for an external audit review of cyber defences. Seems excessive compared to requirements in mainstream financial services and certainly contrary to the direction of travel in the UK. Maybe Apple Intelligence will have something to say on this matter. Sorry, I forgot. Apple Intelligence will not be available in the EU at launch!
EY Cuts Staff
EY announced its first net cut in staff since 2010. The firm has reduced headcount by 2,450 following weak consulting revenues. Total revenues grew by 3.9 per cent last year to $51.2 billion. This is the weakest number in 14 years.