The Case for Behaviorial Science
The Case for Behaviorial Science
City AM makes the case for the use of behaviorial science this morning. A frequent focus of my conversations leads to an oversimplification of this subject. I am frequently lectured on this subject by well-meaning colleagues who assure me that managing culture is about setting the right tone or properly incentivizing people or conducting an engagement survey. They are correct yet with all due respect they are also wrong. Managing culture, like any important subject, is about some of these simple themes but it also about much much more. It is a non-linear subject that merits study and proper application. I would urge my readers to study the City AM article and maybe visit auditculture.com.
Klarna Fined for AML Deficiencies
Klarna has been fined $45 million by the Swedish regulator for failing to assess how its business model could be impacted by money laundering and terrorist financing. It is worth noting that the issue was not poor controls but the failure to conduct a design assessment in the first place.
Nasdaq Diversity Rules Struck Down
A US appeals court has ruled that Nasdaq’s diversity rules are illegal. Nasdaq introduced these rules following the George Floyd murder. The regulations require all Nasdaq listed companies to meet minimum criteria concerning racial and gender diversity or explain why they cannot. The rules were approved by the Securities and Exchange Commission. Following a suit brough by a right-leaning set of litigators, the court ruled that the 1934 and 1975 acts that govern the SEC do not give any power to the agency to regulate on these matters. Is decency and morality in society unravelling?
New Insurance Liquidity Rules Large UK insurers will be required to report more frequently on their liquidity positions. The Prudential Regulation Authority will require insurers with more than £20 billion in assets and £ 10 billion in derivative contracts to provide regular reports. These new measures are designed to allow the regulator to spot market stress caused by margin calls on these companies.