Following a legal tussle with the Securities and Exchange Commission (SEC) settled last month, Islamic robo-advisor Wahed Invest has established a risk and audit department in a bid to enhance its risk management operations.
The firm’s general manager for its UK operations, Umer Suleman, will be leading the new team. Umer will manage Wahed’s risks, deploying appropriate risk-transfer strategist and work with the compliance department on international regulations and financial policies.
“I look forward to leading this new team and implementing a ‘three lines of defense’ risk management model that provides structure around internal controls and compliance. It’s important that this structure reflects the global nature of our business today but can also be adapted as we continue to scale. We need to have flexibility in the way we manage our risks to reflect the changing nature of the organizational environment and diversity of users, without compromising on our key risks.” said Umer.
Last month, US-based SEC charged Wahed for “making misleading statements and breaching its fiduciary duty, and for compliance failures related to its Shariah advisory business”, resulting in a US$300,000 fine.
Wahed responded to the charges, assuring investors that it has invested heavily in growing our risk, legal and compliance teams.