After an ex-UBS employee was sentenced to 3 years in jail for insider trading, the FCA has decided to focus its August newsletter on market conduct and controlling access to inside information. The regulator has reported an “inability to respond to a regulatory request with accurate records of who had access to inside information.”
The new disclosure rules released by the SEC in June create additional requirements for broker dealers and investment advisers to record and retain trading related communications with clients. Financial services firms must be able to easily demonstrate to the US Regulator that they made the proper disclosures to customers regarding advice on trading strategies and recommendations.
To quote the SEC Chairman Jay Clayton, he stated his intention is that "regardless of whether the retail customer chooses a broker-dealer or an investment adviser, the retail customer will receive recommendations (from a broker-dealer) or advice (from an investment adviser) that are in the best interest of the retail customer, and that do not place the financial professional's interests ahead of the interests of the retail customer."
There’s a need to protect firms from the reputational risk this may cause and the regulatory sanction by alerting when best practice isn’t being observed.
MiFID II was launched in January 2018 to ensure fairer, safer and more efficient markets. It’s goal, to increase transparency for all its participants. That’s Mifid II in a nutshell. But, as the regulation continues through its second year, and with the additional pressure of SMR compliance and GDPR leaving the sector in a whirlwind of reform, are firms keeping pace?
It seems that brokers have recently come under the firing line, both in the UK and US. In their recent CEO letter, the FCA has highlighted some key concerns which still haven’t been dealt with, particularly the current renumeration model being described as “poor and outdated” and a “root cause of misconduct risk in this sector”.
In this blog we will review some of the MiFID requirements and how effective communications monitoring can drive compliance within Financial Institutions and large to medium IDBs or smaller broker firms.
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Fonetic, leading provider of communications surveillance and voice technology software is now part of a new global network of FinTech providers.
BBVA launched the new service with the aim of connecting the bank’s business units to solve challenges facing the sector by working with technology providers across the BBVA network.
MiFID II communications complianceWith the new SM&CR extending to all FCA regulated firms this December, all financial institutions are bracing themselves and taking action (or at least, they should be). In the words of our Product Advisory Board Chairman Nick Child, “Senior Managers must demonstrate how they monitor and control those actions or inactions and ensure personnel act with integrity, skill and due care. Failure to take those steps would be foolish and dangerous.
The latest changes in the regulatory landscape will see the Senior Managers & Certification Regime come into effect for all 47,000 FCA regulated firms. This includes many buy-side firms, hedge funds and brokerage businesses. Another point causing nervous ripples in the sector is the first enforcements of the New Regime. No one likes to be the first the Regulator makes an example of, as they tend to be the strictest and hence the repercussions more severe.
Last night saw the 10th annual celebration of the Platinum Contact Centre Awards, one of the most acknowledged and prestigious awards in the Customer Experience sector.
Marking another successful partnership yet again with the 1LoD organisers, Fonetic was in London this week for the 1LoD Buy-Side Summit. The event drew in over 150 risk & control practitioners, regulators, consultants and RegTech leaders for a day of keynote sessions, interactive debates and roundtables.
The biggest changes in the financial sector have all come in the last 11 years and have been accelerated by the changes in worldwide regulation that resulted after the financial crisis in 2008. Fast-forward to 2019 and a lot has changed. Sandy Broderick, Product Advisory Board member reflects on his experiences in the industry.
In this post, you'll learn how to find the right software platform for your compliance and surveillance staff to help you become and remain compliant with SMR requirements.
Given the events of the financial industry over the past 10 years, it's no wonder that both regulators and financial organisations are trying to do their best to uncover, prevent and stop misconduct and fraud from taking place.
When it comes to institutions, they have invested money and effort in Regtech software to meet increased regulatory demand and oversight. For their part, governments have created new entities and regulators have issued a heap of new legal measures to address the issues.
The calendar is filling up for this June with another date to add to the diary. Following the announcement Fonetic will be sponsoring the FIA Commodities Symposium in Houston, TX, we will also be hosting a roundtable for the Energy sector.
We welcome you to join us for a roundtable discussion on challenges of voice and electronic communications monitoring in Energy trading.
Machine Learning (ML) has been the industry buzzword for a few years now. But, is this ‘fashionable’ AI technology really ‘flawed’ in its approach to regulatory compliance? Not to mention when covering best execution for MiFID II, MAR and Dodd Frank.
The RegTech landscape is changing, and fast. Are you ahead of the curve?
AI superpowers outside of Silicon Valley
We are very excited to announce that Fonetic has won Best Vendor Solution for Financial Crime in the RegTech Insight Awards 2019.
The awards are hosted by the A-Team Group, a renowned publication for knowledge and insights into the RegTech and Financial Markets sectors.
For more information on our award-winning technology, why not read our latest whitepaper on Voice Surveillance: The proven approach to effective control, which you can download here.
Buy-side trading has become increasingly sophisticated over recent years. More complex asset classes are being included in portfolios which has called for Asset Managers, Wealth Managers as well as smaller hedge funds and broker firms to consider implementing automated surveillance tools and technology.
Arguably the greatest challenge for market advisors is the number of global regulations and the increasing pressure from regulators to ensure their investment and trading divisions follow the rules. The UK’s Financial Conduct Authority (FCA) announced their intentions to put buy side firms under the spotlight in 2019 and ramp up enforcement around market abuse and insider dealing.