U.K. Brokers, Banks Lack Training on Market Rules, Survey Shows
2002-03-18 02:30 (New York)
U.K. Brokers, Banks Lack Training on Market Rules, Survey Shows
London, March 18 (Bloomberg) -- British regulators in the
past year have slapped fines totaling 2.4 million pounds ($3.4
million) on companies ranging from Credit Suisse First Boston to
Gartmore Fund Managers Ltd. for sloppy record-keeping or failing
to control their businesses.
A new survey helps explain why.
One-third of the managers, bookkeepers and other workers
surveyed in London's financial district said they haven't received
training on market regulations and how to comply with them,
according to a study by Wide Learning, an online education company
that offers compliance courses.
Just 20 percent knew all financial-service workers -- not
just compliance officers -- are responsible for ensuring their
company is obeying U.K. market regulations. And one-third weren't
able to name the person at their company who is responsible for
tracking and reporting suspected money laundering.
``The results mirror feedback we've been getting from the
coalface for some time,'' Wide Learning Chief Executive Officer
Alan Calder said in a statement. ``Even cynics must acknowledge
that the survey reflects a general perception that the market is
still not taking this risk seriously enough.''
The Financial Services Authority, Britain's mark et watchdog,
says sloppy record-keeping -- such as miscalculations of dividends
and delays in reconciling bank accounts -- damages consumer
confidence in banks, brokerages and money managers.
Record Fines
The lapses became serious enough in December to prompt
regulators to impose record fines of 700,000 pounds on Gerrard
Group Plc and 540,000 pounds on Credit Suisse First Boston for
breaching rules on how they control their businesses.
Yet more than half of the 130 workers from banks such as
Tokyo Mitsubishi interviewed by Wide Learning in London's
Broadgate complex said they didn't expect to receive compliance
training in the next six months. And one-third didn't know that
they were regulated by the FSA.
The survey confirmed the suspicions of specialists.
``On reading the findings, I found the content very revealing
but not, in my view, unexpected,'' said Brian Hewitt, the chief
executive of Britain's Compliance Institute.
London-based Wide Learning specializes in courses conducted
over the Internet, including training on regulatory compliance.
The company is backed by such investors as the GE Capital unit of
General Electric Co., J.P. Morgan Chase & Co. and Reuters Group
Plc.
--James Pressley in the Brussels newsroom on (322) 285 4300 or
jpressley@bloomberg.net. Editor: Quinson.
Story illustration: To see the full results of the survey, click
on http://www.compliancesupersite.co.uk
Copyright 2002 Bloomberg L.P. All rights reserved. Reprinted with permission. Visit www.Bloomberg.com
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