HONG KONG, Nov. 24 /PRNewswire-Asia/ -- The Red Flag Group, Asia's leading
Compliance Advisory, Due Diligence & Technology firm, today launched its
financial services practice to help banks and other financial institutions
deal with the changing and increasingly complex regulatory landscape that has
formed in the wake of the global financial crisis.
(Logo: http://www.prnasia.com/sa/2009/08/06/200908061401.jpg )
Around the world, financial institutions are facing greater scrutiny and
regulation. In the UK, the government has proposed giving more power to the
Financial Services Authority to preserve stability in the banking sector.
Across the Atlantic, banks are also facing a shake-up to the banking system,
proposed by the Obama Administration, which has been described as the biggest
since the 1930s.
The race to regulate the financial services sector has been mirrored in
Asia. Earlier this year, Hong Kong has launched a consultative study into
proposed legislation that will tighten the customer due-diligence and record-
keeping requirements for banks and other financial services companies. It will
also empower regulators to supervise compliance, and set up criminal and
supervisory sanctions in case of breaches in compliance. Across the border in
China, there has also been increasing focus on financial irregularities.
Scott Lane, principal and chief executive officer at The Red Flag Group,
said that it has become more important for financial services companies to
understand and stay up-to-date with these regulatory changes that affect how
they operate. The alternative is they run the risk of falling afoul of new
laws. "We are seeing reforms in financial services sector across the globe
because regulators have been made aware that systematic risks in banks can
hurt economic sectors that they used to think were unrelated. In the US and
UK, what started as weaknesses in the sub-prime mortgage market, brought on by
imprudent lending practices, spread its contagion to other credit markets, and
led us to the economic conditions that we are seeing today.
"Banks and other financial services companies are becoming increasingly
concerned about this increasing regulation. They need to understand how it
will impact the way they do business, and what the changes they need to stay
compliant. This is something that we think our new financial services practice
will be able to help them address.
"Because of the changing regulatory environment, not only do firms in the
financial services sector run the risk of being liable to massive fines as
well as criminal prosecution, there is also the danger of damage to a firm's
reputation associated with a high profile investigation by a regulator.
Regardless of whether a violation has actually taken place, sometimes the mere
suggestion that a financial institution is being probed is all that is needed
for its clients to lose confidence," Mr. Lane said.
The Red Flag Group's new financial services practice will include Michael
Clement, a 17-year veteran of the financial services sector, with extensive
experience in building compliance programs, internal audit, compliance, and
risk management. Prior to his appointment, he was most recently an Associate
Director with a global consulting firm in Hong Kong. Previously, he was
Director of International Compliance for Charles Schwab, for whom he worked
for over 15 years, based in San Francisco.
In addition, Perminder Kaur has been appointed as a Due Diligence Manager,
Asia South. With a Bachelor of Law degree, Mrs Kaur has extensive experience
in the field of Anti-Money Laundering, particularly conducting Due Diligence
enquiries in Southern Asian countries. Prior to joining the firm, Mrs Kaur
worked as a Compliance professional in a Hong Kong- based firm, which provides
trust and company services. "Our Due Diligence practice continues to grow and
extend into new markets, with a growing focus on India and South East Asia, so
it is essential that we have professionals with backgrounds like Mrs Kaur's,
with rich experience in regional due diligence and law, to provide clients
with local intelligence," Mr Lane said.
Notes for editors:
About The Red Flag Group
The Red Flag Group is one of the world's leading independent compliance
advisory & technology firms. Its main goals include helping companies develop
and maintain efficient and effective compliance programs, and provide ethics
and compliance-related due diligence, investigations, and audits. It also
provides tailored technology solutions to help legal and compliance
professionals manage a range of ethics and compliance issues, from conflicts
of interest, to dealing with gifts and hospitality, and customized and
comprehensive online learning solutions for complex issues on global
compliance. Headquartered in Hong Kong, it also has offices in Singapore,
Sydney, Silicon Valley, London, and Dubai. For more information, go to
http://www.redflaggroup.com
For media enquiries, please contact:
Scott Lane
Tel: +852-8175-8932
Email: lane@redflaggroup.com
Raymond Ma
Tel: +852-2811-1976
Email: raymondslma@netvigator.com
SOURCE The Red Flag Group
