Our FinTech roundup also covers TCW’s new COO, NICE Actimize’s Watchlist screener, and HKEX’s news chief executive.
Risk-Based Approach Urged for LIBOR Replacements
As banks and other financial services organizations move away from the London InterBank Offered Rate (LIBOR), the Office of the Comptroller of the Currency (OCC) has issued a bulletin that includes a self-assessment guide to help firms evaluate their preparedness for the end of LIBOR.
In the “LIBOR Transition: Self-Assessment Tool for Banks” attachment to OCC Bulletin 2021-7, OCC officials say that the document “can be used to assess the appropriateness of a bank’s LIBOR transition plan, bank management’s execution of the bank’s transition plan, and related oversight and reporting.”
A firm’s LIBOR preparedness assessment “should be risk based and might not need to include all points in this bulletin. Similarly, a bank’s transition plans, oversight, and reporting might not need to include all points in the self-assessment,” according to the OCC.
“For example, large or complex banks and those with material LIBOR exposures should have a robust, well-developed transition process in place. … Bank management should consider all applicable risks (e.g., operational, compliance, strategic, and reputation) when scoping and completing LIBOR cessation preparedness assessments,” according to the OCC.
Firms will not be using LIBOR for new contracts as of Dec. 31, 2021. As such, “bank management should assess whether the bank’s progress with preparedness is sufficient,” according to the OCC. “For example, in 2021, Libor exposure and risk assessments and cessation preparedness plans should be at least near completion with appropriate management oversight and reporting in place. Most banks should be working toward resolving replacement rate issues while communicating with affected customers and third parties, as applicable.”
More information about the assessment document can be found here: http://bit.ly/3av2vpJ
TCW Group Taps Pimco for New COO
The TCW Group, an asset management firm, reports the appointment of Liz Kraninger as chief operating officer (COO).
New COO Kraninger will oversee TCW’s information technology, investment operations, and various corporate functions, the firm says in a prepared statement.
She joins after 14 years at Pimco, at which she “held senior roles in operations across the firm, having led teams in a number of key areas including data management, client servicing technology, and firm-wide strategic alignment,” according to the TCW statement. “Most recently executive vice president and head of client operations, Ms. Kraninger also previously held senior roles in business strategy and information technology.”
Before Pimco, she was a partner and owner of Kraninger Consulting as well as at Techmoney LLC, “where she specialized in the implementation of a highly customized global platform for clients,” per the statement.
NICE Actimize Applies A.I. to Watch List Screening
NICE Actimize reports the launch of WL-X, its watch-list screener with “artificial intelligence for superior data management, advanced screening capabilities and frictionless customer onboarding.”
The WL-X system provides “real-time and on-demand screening for parties and payments that leverages A.I. and biometrics to match and screen against global sanctions, politically-exposed persons (PEPs), adverse media and other lists,” per NICE Actimize.
WL-X also “orchestrates and aggregates list data from premium and public sources with internal lists providing full auditability to ensure accurate screening,” the firm adds.
NICE Actimize characterizes itself as “the largest and broadest provider of financial crime, risk and compliance solutions for regional and global financial institutions, as well as government regulators.”
Parent company NICE notes that more than 25,000 organizations in more than 150 countries, including over 85 of the Fortune 100 companies, are using NICE solutions.
JPMorgan Exec To Become HKEX Chief Executive
Hong Kong Exchanges and Clearing Ltd. (HKEX) reports the appointment of Alejandro Nicolas Aguzin as chief executive, effective May 24, 2021, for a term of three years until May 23, 2024.
The appointment is subject to the approval of Hong Kong Securities and Futures Commission.
While Aguzin awaits approval, Calvin Tai will continue as the interim chief executive of HKEX and ex-officio member of the board until May 23. Afterward, Tai will continue as co-president and chief operating officer (COO) of HKEX, officials say.
Following approval, Aguzin also will become an ex-officio member of the HKEX board of directors. He will join HKEX from JPMorgan, where he is currently CEO of JPMorgan’s international private bank and a member of the operating committee for the firm’s asset and wealth management business, per the HKEX statement.
Aguzin joined JPMorgan in 1990 and has been based in Hong Kong for the last nine years.