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.
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.
Many banks feel that voice surveillance is still something reserved for the movies. Having been in production in trading rooms for 10 years now, we can safely say that it is a reality for those who have invested in it. In fact, we would go further to say that effective voice surveillance is not only possible, it's also accurate and in Fonetic's case, it's the most accurate on the market today.
Do you want to know how we did it?
Ten years ago, a global bank asked Fonetic to extend their capabilities in voice analysis to the trading floor. Their aim was to automatically analyse every voice communication to check for misconduct or market abuse. They succeeded and 6 months later left behind voice sampling. We spent the following 9 years and 6 months running into stumbling blocks and overcoming them, developing a solution which is without doubt the most accurate voice surveillance software around for trading floor environments.
This article will show you why you should do the same with your voice surveillance.
Last week we attended the Risk & Compliance Leaders Summit 2018 in Berlin, where we met some amazing people and listened to fantastic speakers. It was very interesting to be a part of the audience polls and to be able to conclude that as vendors we are aligned with the demand for communications monitoring and surveillance, be it ecomms or voice comms.
Not long ago, I shared my thoughts on the #MeToo movement in Finance News. Since then, we have seen the hashtag campaign extend to Bollywood in India and tech giants such as Google, exposing a culture that spread far beyond what one could have imagined. Below you can read the full article or see the press release here.
Fonetic was at the American Banker’s RegTech event in New York recently where we had the pleasure to listen to regulation and compliance practitioners talking about their experiences streamlining and automating compliance chores and turning that investment into a competitive advantage in the process.
In linguistics, combining words from different languages within the same phrase is called language switching or code switching. When talking about language switching outside of academia, many may think of James Bond movies, double-agents and spies; in other words, risky behaviour. That’s not necessarily off the mark when it comes to trading and the financial industry. For instance, if a trader or another employee at a financial institution uses more than one language in a sentence or a conversation, it may show an intent for committing fraud – something that regulators have been trying to watch out for lately. Here’s a look at the recent past to figure out some of the reasons for this monitoring.
Discussion of artificial intelligence (AI) , NLP and machine learning, in general, but also specifically in compliance, often revolves around how either or both technological developments will take over jobs carried out by humans. But it doesn’t have to be this way. In fact, AI and machine learning in compliance could actually go the other way by enabling compliance personnel to become even more important in combating fraud on the trading floor.
In this article we discuss how technology can give compliance professionals superpowers and look at the enormous benefits for financial organisations.
Regulatory interest in using AI and machine learning in compliance
The Financial Conduct Authority (FCA) has said that implementation of AI and machine learning technology will lead to “far more efficient regulatory compliance”. The UK regulatory body want to see a widespread implementation of machine learning and AI in compliance and are leading the way in their implementation.
In this article we discuss the common, pressing concerns for all financial trading floor surveillance teams. We then look at integrated communications surveillance and how it solves these problems for financial organisations, leading to lower fraud instances and greater process efficiency.
Financial organisations face increasing trading floor surveillance challenges. One, the responsibility of complying with regulatory demands and petitions obligates financial organisations to invest considerable resources in surveillance. Two, they must meet the needs of analysing and holding massive amounts of data, to minimize fraudulent activity and to optimise the process of escalating potential fraud cases. Three, they must suffer the consequences of failing to successfully stop instances of fraud, usually involving fines and/or possible damage to their own assets.
Additionally, organisations must comply with two flagship regulations: Market Abuse Regulation (MAR) and Markets in Financial Instruments Directive II (MiFID II). MAR came into effect in 2016 and the MiFID II deadline is January 2018. Both regulatory protocols require extensive resources on the part of financial organisations. Regulators can inflict punitive measures on banks and financial institutions that fail to comply
Choose your preferred analogy - whether it’s fighting fires, or shutting the stable door after the horse has bolted, Compliance functions are becoming increasingly effective at reacting to and remedying known issues.
But what about the effectiveness of Compliance in identifying new risks, questioning longstanding assumptions and ‘accepted practices’, and driving improvements in the management of known risks?
Have the underlying lessons of recent conduct scandals such as LIBOR, FX, and PPI been learned, and are Compliance functions becoming more proactive and better placed to prevent conduct issues on the same scale from reoccurring?
As the Compliance curve continues to steepen, both for the business and for Compliance officers, what are some of the key factors impacting the ability of the Compliance function to sustain a sufficiently proactive approach?