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.
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.
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.
One of the main preoccupations for banks and financial institutions in 2018 is getting regulation ready. With so many different regulatory protocols to comply with, and tight deadlines within which to prepare, it is a considerable challenge for organisations of all sizes and resources.
With numerous regulations to manage, notably Markets in Financial Instruments Directive II (MiFiD II), Market Abuse Regulation, and others such as the Dodd-Frank Act, financial institutions have had to devote huge amounts of resources to meet these obligations.
Considering this investment as well as the intricate, lengthy work processes involved, it is only natural to simply want to reach a stage where your organisation is regulation ready.
In this brief article, we look at how proactive trade reconstruction not only helps your organisation to be regulation ready, but also the numerous value-added benefits that go much further than mere compliance.
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.