Ernst & Young LLP -

In times of great disruption, clear leadership is imperative. GenAI is a classic people, process and technology triad that CIOs and IT operations have been balancing for decades. We commonly hear that business drives technology. GenAI has the potential to significantly accelerate that paradigm shift. By creating a vision, building a plan and asking the big questions, the CIO can drive the agenda as an advocate and a true business enabler for the opportunities presented by GenAI.

Capco, a Wipro company -

While formal policy decisions will only materialize over the course of this year, it is already clear that the strong likelihood is that the UK and EEA will transition to a T+1 settlement cycle for securities in October 2027. This will be preceded in the UK by a code of conduct setting out intermediate enabling goals for the market, requiring progress by market participants on automation and enhancement of trade processing. 

BetaNXT -

BetaNXT CEO Bob Santella speaks with Craig Iskowitz on the WealthTech Today podcast about the most impactful industry trends of 2024 and our new product, DataXChange.

Protiviti -

Ask financial crime professionals what the most challenging part of their job is, and most will likely say it is the timely identification of suspicious activity. As much as companies have worked to improve their detection capabilities given their compliance obligations, their desire to protect their reputations and their understanding, as corporate citizens, of the impact of financial crime on society — success has remained elusive.

Historically, financial crime detection has involved mostly after-the-fact (hindsight) identification of potentially illicit activity gleaned from reviewing massive amounts of alerts — most of which are non-productive. Enter artificial intelligence (AI), which offers the opportunity not only for better detection results (insight) but for predicting (foresight) when suspicious activity may occur. Add the potential process efficiencies that AI offers across many facets of financial crime compliance programs, and the large number of companies at risk of being used to facilitate financial crime — and it becomes clear why enterprises are increasingly eager to understand and explore the opportunities.

For purposes of this FAQ guide, we have chosen to focus on financial services and e-commerce, two of the higher at-risk industry sectors; however, much of what is covered will apply to other industries as well given the indiscriminate nature of financial crime and wide spanning regulatory/compliance mandates. The questions are illustrative and far from exhaustive, but they are the ones that have arisen most often during our discussions and work with clients and others in the marketplace. Some questions apply generally to the adoption of AI for any purpose, while others are very specific to the use of AI to support financial crime compliance. We intend our responses to be plain language, largely non-technical answers to the questions that may be on the mind of financial crime professionals, management, and board members when it comes to whether or how to adopt artificial intelligence.

This FAQ guide is provided for general information only and is not intended as legal analysis or advice. Companies should seek legal counsel on specific questions as they relate to their unique circumstances. Regulatory guidance and industry standards on the use of artificial intelligence continues to evolve and varies across jurisdictions and industries. Accordingly, some of the issues addressed in this booklet may be impacted by future guidance.

Broadridge Financial Solutions, Inc. -

NEXT by Broadridge curates actionable intelligence, expert analysis, and data-driven insights on the major trends shaping the future of the financial services industry. We give decision-makers an edge that can only be sourced from the deep domain knowledge and extensive data resources of Broadridge.

Broadridge Financial Solutions, Inc. -

Broadridge’s Data Center of Excellence presents the latest U.S. Investor Study, offering insights from share-ownership data derived from proprietary processes. Analyzing millions of anonymized retail investor households, the Study details holdings in broker-dealers, online platforms, RIAs, and wirehouses. It covers ETFs, mutual funds, and U.S. equities in taxable accounts and IRAs from 2019–June, 2024, providing a comprehensive view for professionals seeking to understand investor behavior and holding patterns.

Theta Lake, Inc. -

Theta Lake’s annual report offers unparalleled insights into the use of unified communication and collaboration (UCC) platforms, satisfaction with archiving tools and emerging compliance challenges. See how your Digital Communications Governance and Archiving (DCGA) measures up and discover strategies to close compliance gaps.

Key findings include:

• 97% identified significant risks associated with GenAI usage
• More than 1/3 are using 7 + UCC tools, rising from 17% in 2023
• 54% disable capabilities within approved communications
• 2/3 fear employees are using unmonitored communications

BetaNXT -

The corporate actions lifecycle is time-consuming, prone to errors, and costly. Despite the widespread adoption of digital technology throughout the wealth management industry, the processing of mandatory and voluntary corporate actions has remained stubbornly manual. This manual approach leads to inefficiencies, increased business risks, and poor user experiences.

The white paper examines the problems with today’s corporate actions lifecycle, who is most affected, and the challenges they experience. It explores the drivers for change and advancements in systems connectivity that herald genuine, end-to-end automation of corporate actions processing.

KPMG LLP -

KPMG Risk Factors: Actionable insights risk leaders need to deliver value and build stakeholder trust.

KPMG LLP -

KPMG Regulatory Insights View: Series covering regulatory trends and emerging topics.

KPMG LLP -

U.S. banks face a difficult growth environment due to compounding macro- and microeconomic headwinds, geopolitical instability, intensifying regulatory scrutiny, and other near-term challenges putting pressures on earnings. At this critical juncture, the KPMG national banking practice sees significant opportunity for banks to choose change—embark on an accelerated journey of enterprise-wide transformation.

The U.S. Banking Industry Outlook Survey captures the challenges and opportunities faced by the banking sector amidst economic, regulatory, and technological disruptions, from 200 banking executives surveyed on their views on current industry trends and topics in March 2024.

KPMG LLP -

In today's fast-paced banking industry, organic growth is essential for banks to survive and succeed. However, short-term market disruptions often hinder growth strategies. To overcome this challenge, banks need to embrace digital transformation. By leveraging modern digital technology, banks can create sustainable value, meet customer expectations, and set a strong course for future growth. This article explores the importance of digital transformation, offers advice for successful implementation, and provides a real-world case study from KPMG. Discover how your bank can break free from the cycle and thrive in the digital era.

Droit Financial Technologies LLC -

Pioneering ETD Reporting product to enhance regulatory transparency for listed derivatives

NEW YORK, November 18, 2024 – Droit, a leading technology firm in computational law and regulation, today announces the launch of its Exchange Traded Derivatives (ETD) Reporting product—designed to enhance regulatory transparency and ensure compliance with global reporting requirements for listed derivatives.

Recent scrutiny of position-based reporting obligations to clearing agencies and exchanges has increased pressure on clearing firms to upgrade their reporting infrastructure. Both internal and external audits are pushing clearing firms to adopt stricter controls, ensuring completeness and accuracy akin to OTC transaction reporting standards.

ETD Reporting from Droit provides precise identification and management of reporting obligations for seamless quality assurance of reports pre- or post-submission. Initially focusing on high-risk clearing, collateral, and margin reports, the ETD Reporting product is set to expand beyond futures and options to support a broader range of listed instruments.

With regulators stepping up enforcement and issuing fines for misreporting, clearing firms face the dual challenges of handling vast volumes of trade and position data daily while navigating complex, diverse global regulatory requirements. Senior executives are also pressured to ensure a cohesive quality assurance process exists across their enterprise. Yet, many clearing brokers still rely on outdated, opaque systems that lack transparency and auditability.

Droit’s ETD Reporting delivers a comprehensive quality assurance platform to provide a consistent approach to regulatory compliance. With complete insight into each decision made and the ability to trace the logic through to the underlying source text, the product ensures clarity and accuracy in complex regulatory interpretations.

“Our new ETD Reporting product establishes a unified quality assurance process across Exchange Traded Derivative reports,” said Blythe Barber, Head of Business Development, Americas of Droit. “By using Droit for completeness and accuracy checks, clearing firms can adopt a single global process, significantly reducing the operational burden of current manual methods. Front and middle office teams can fully focus on client opportunities, confident that reporting obligations have been fulfilled.”

“ETD Reporting marks a key step in our strategy to expand our regulatory reporting products to listed derivatives,” said Brock Arnason, Founder and Chief Executive Officer of Droit. “Our clients have many regulatory reporting obligations across departments within their firms. By adding ETD Reporting to our product suite, we aim to provide one platform to advance global compliance and real-time controls, helping our clients navigate these challenges with confidence.”

Moore & Van Allen, PLLC -

On December 3, the U.S. District Court for the Eastern District of Texas (“Court”) entered a sweeping order enjoining enforcement of the Corporate Transparency Act and the associated beneficial ownership information reporting rules (the “CTA”) nationwide. The immediate effect: notwithstanding the CTA’s stated reporting deadline of December 31, 2024, no entity is currently required to file with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (“FinCEN”) information about itself, its owners or the persons otherwise controlling the entity.

https://www.mvalaw.com/investigations-and-regulatory-advice/cta-nationwide-injunction-suspends-obligation-to-file-beneficial-ownership-information-reports 

Oyster Consulting LLC -

Digital Transformation can look very different depending on the firm and the circumstance. Many firms know they need to do something, but may not be sure exactly what the cost, considerations or impact may be.  Our experts have helped firms achieve success on their technology transformation journey.  Read some case studies to see how we have helped other firms like yours.

Download the Digital Transformation Case Studies eBook to learn about:

• Increasing your competitive edge
• Implementation strategies for success
• Improving conversions and implementations
• Impacting your technology ROI

Dow Jones -

Effectively navigating the intricacies of financial sanctions requires more than just good intentions. Expertise grounded in a comprehensive understanding of regulation and methodology is a must-have in an ever-more tumultuous sanctions landscape. Given an increase in reporting obligations and the need for more frequent guidance, BIGTXN collaborated with Dow Jones Risk & Compliance, Baker McKenzie, and Association of Certified Sanctions Specialists to create a first of its kind handbook on sanctioned securities. 

This handbook offers actionable insights, substantiated by case studies and data, to empower practitioners in ensuring compliance and proactively mitigating risks.

Matrix Applications, LLC -

New York, NY, Dec. 11, 2024 -- Matrix Applications, LLC ("Matrix") has successfully completed the 2024 System and Organization Control (SOC) 1 and SOC 2 Type 2 audits for its TradeBlazer Collateral Management System and Managed Services. The successful completion of these audits is a testament to Matrix’s ongoing commitment to the highest degree of cybersecurity and data protection. The audits were conducted by Schellman & Company, a trusted provider of attestation compliance services.

AutoRek -

The strength of any financial organisation hinges on its ability to manage data effectively. In the financial services sector, where data permeates every facet of business operations, efficient data management is crucial for maximising value and minimising operational costs. Reconciliations are a fundamental control mechanism for finance and accounting. Organisations that fail to modernise their reconciliation process risk overwhelming their finance and operations teams with cumbersome manual tasks and data overload. As UK regulators adopt a more data-centric approach, effective data management has become essential for compliance. For many firms, the internal client money reconciliation (ICMR) is one of the most complex elements of CASS 7.

NRI (Nomura Research Institute) -

Insurers are migrating away from legacy mainframe systems through rehosting or rewriting. However, such modernization projects tend to go awry when undertaken without sufficient preparation or with too much priority placed on minimizing project costs. Such pitfalls, which have in fact cropped up in some high-profile cases, can be avoided by thoroughly analyzing the legacy system before attempting to modernize it.

Pierson Ferdinand LLP -

FINRA has recently adopted significant changes to Rule 3240, tightening restrictions on borrowing and lending arrangements between registered persons and their customers. 

Effective April 28, 2025, these changes will require substantial updates to your policies and procedures. It's crucial to start preparing now to ensure compliance. Find out what these changes mean for your firm and how to stay ahead.

CapitalROCK, LLC -

The RightBRIDGE Annuity Wizard is the ultimate pre-sales annuity solution for broker-dealers, seamlessly combining compliance solutions with intuitive annuity research tools.

Latham & Watkins LLP -

About Latham's Financial Institutions Group (FIG)

FICO -

This independent research report shows why minimum scoring criteria adds reliability to a credit score and how removing it makes the credit score both less predictive and in the long run more costly for everyone. Kroll analyzed the credit failure rate over a two-year period across a data set of 40 million credit scores from individuals who had either a FICO Score or an alternative score in which FICO’s minimum scoring criteria are not used. 

Sia -

Sia Partners has partnered with the Capital Markets community to conduct a survey on the involvement, interest, and sentiment of Gen AI within Corporate and Investment Banking & Capital Markets. 

FICO -

FICO - FICO Scores are designed to rank-order the expected future payment performance of consumers’ credit obligations based on their observable credit bureau attributes, irrespective of the economic environment. Lenders may calibrate FICO Scores based on their own loan portfolios’ recent performance to predict the odds of satisfactory payment performance. However, disruptions to the economic environment can change these repayment odds in a way that differs from a lender’s calibrated estimates, leading to discrepancies between predicted and actual future default odds, and therefore to sub-optimal decisions and analysis results. Such disruptions reveal “latent risks” across portfolios that only manifest themselves during periods of economic stress. Read the white paper to learn more.

Authored by: FICO

Morrison & Foerster LLP -

The Department of Labor (DOL) on its own adopted a fiduciary standard in 2016 for retail clients. This has been met with much controversy and criticism. This Morrison & Foerster report explains how the rule works and its impact in practice, taking into account uncertainty as to its final version.

Authored by: Paul Borden, Hillel Cohn, Lloyd Harmetz and Dylan Naughton

Broadridge Financial Solutions, Inc. -

2024 study of C-suite executives from 500 financial firms on their digital transformation and use of next-gen technologies.

Authored by: Broadridge

Sia -

Sia Partners North America - The Sia Partners study, involving 75 global banks, investors, and third parties examines the effects of the COVID pandemic and accompanying market disruption on the progress of the LIBOR Transition: conclusion--firms are challenged but moving ahead to meet the cessation date of year end 2021.

Authored by: Bradley Ziff & Chris Zachodzki

Tata Consultancy Services -

Tata Consultancy Services - The impact of COVID-19 on financial services has been considerable, affecting different lines of business and functions. Likewise, the impact of COVID-19 on LIBOR has been significant, resulting in a great deal of volatility in the LIBOR market. However, regulators have reiterated the unavailability of LIBOR as a benchmark rate post 2021. This means that even as banks scramble to prevent service disruption, their LIBOR transition plans will need to continue on track. To minimize the COVID-19 impact on LIBOR transition, banks must review a few aspects that are intrinsically linked. These include: Analyzing changes to current LIBOR exposures per asset class Reassessing product inventory to understand the impact of COVID-19 volatility on performance Defining a systematic transition plan Establishing a robust rates strategy The COVID-19 impact on LIBOR transition is largely stemming from market volatility and changes in the regulatory landscape. However, a systematic transition is key to financial stability and banks must take appropriate steps to ensure the same.

Authored by: Navin Rauniar Lead, LIBOR Transition, TCS Zeeshan (Zee) Rashid Global Head - Risk and Compliance Advisory and LIBOR Transition, TCS

PricewaterhouseCoopers LLP -

PwC - Survey shows: Business leaders need to get the basics right if they want to avoid losing trust.  The cost of losing trust far outweighs the benefits of gaining it. Employees and consumers are nearly equal in demanding business leaders' prioritization. A trust perception gap remains among businesses, their employees, and consumers.

Authored by: Tim Ryan

Broadridge Financial Solutions, Inc. -

Broadridge’s 2023 Digital Transformation and Next-gen Tech study delivers unique insights from 500 C-suite executives to help senior leaders across business, technology, and strategy/innovation roles, on how digital transformation and next-generation technologies such as AI, blockchain, the metaverse, and quantum computing are reshaping the industry.

Authored by: Broadridge

KPMG LLP -

KPMG - The three-layer approach outlined in this PDF can help firms address the critical prerequisite for successful transformation of complex operations functions with speed, agility, and greater value.

Authored by: Binoy Palakkal; Neam Ahmed; Harvinder Bhatia; Bassam Khattab

Mayer Brown LLP -

Mayer Brown LLP - In the International Financial Law Review‘s publication, Structuring Liability Management Transactions, Mayer Brown lawyers provide a summary of the US legal framework, including guidance provided in numerous no-action letters issued over many years, applicable to debt repurchases, tender offers and exchange offers. They also present some of the main regulatory and tax considerations that should be taken into account when determining the best approach.

Authored by: Anna Pinedo, Thomas Humphreys, Remmelt Reigersman, Eddie Best and David Goett

FNZ -

Appway - As concerns around the COVID-19 pandemic continue to permeate every corner of society, wealth firms have found themselves faced with arguably the steepest tech-learning curve they’ll ever have to navigate.  

Authored by: Leo Almazora

Transcend Street Solutions -

Transcend Street Solutions - Leadership, especially in critical, but technologically-challenged functions like collateral management, is the key to seizing a competitive advantage.

Authored by: Bimal Kadikar, Transcend

RSM US LLP -

RSM US LLP- This is the fourth and final piece in our introductory series on decentralized finance, commonly known as DeFi. In our prior pieces we've introduced DeFi and explored its core building blocks -- the smart contract and token. In this installment we explore one of the first DeFi use cases, the decentralized exchange.

Authored by: Jamison Sites

Amazon Web Services -

Amazon Web Services (AWS) - Machine Learning (ML) is such a powerful new set of technologies, opening up so many business possibilities, that it’s sometimes difficult to imagine how best to put it to use. The possibilities are overwhelming, and there is little history to build on. In this post Baran Karlidag ties ML to the specific challenges that financial services companies are facing in today’s economy, and provides a number of concrete ideas that FinServ firms should be considering. He also addresses issues like governance and regulations that often constrain FinServ firms.

Authored by: Mark Schwartz

Patomak Global Partners, LLC -

Patomak Global Partners LLC - Banning bank mergers would act as a moat protecting large incumbent players from competition much the way JPMorgan Chase CEO Jamie Dimon described the Dodd-Frank Act ten years ago. Banning mergers and acquisitions is anti-competitive and does nothing to help bankers or consumers.

Authored by: Keith Noreika and Bryan Hubbard

Endava -

Endava, Inc. - Moving to the cloud helped an investment bank improve scalability, reduce process complexity, and define the gold standard for a new era of operations.

Authored by: Endava

Hogan Lovells US LLP -

Hogan Lovells US LLP - In an effort to provide more clarity and certainty with respect to the LIBOR transition – and in particular to reduce the significant litigation risk associated with the transition -- the Alternative Reference Rates Committee (ARRC), a group of private-market participants convened by the Federal Reserve Board and the New York Fed, recently announced that it was proposing New York State legislation.

Authored by: Marc Gottridge

Protiviti -

Protiviti - No one can predict when the next disaster or business disruption will strike; the only certainty is that something unplanned and disruptive will happen. To help financial services (FSI) organizations prepare and plan for disruptive events, Protiviti examines critical and pressing concepts about business continuity management and related practices in our Guide to Business Continuity & Resilience.

Authored by: Ron Lefferts, Kim Bozzella, Damon Owen, Matthew Watson, Ali Yasin, Dugan Krwawicz, Sam Basset, Enrico Ferretti, Kai-Uwe Ruhse, Sandeep Gupta, Thomas Lemon, Michael Pang, Ewen Ferguson, Masato Maki

Deloitte -

Deloitte – Banks’ strategic choices will be tested as they contend with multiple fundamental challenges to their business models. They must demonstrate conviction and agility to thrive.

Authored by: Mike Wade, Neil Tomlinson, Val Srinivas

Adenza -

AxiomSL - The Service Level Expectations (SLE) concept and the SLE data-river process discussed in this paper can enable organizations to establish and enrich correct TIC data, enable smooth automated processing, significantly improve the accuracy of their TIC filings and, ultimately, achieve a stronger stance with regulators.

Authored by: Alina Banerjee

Ernst & Young LLP -

EY - Transforming the Corporate Action lifecycle may require additional regulations governing the timing of notifications, submissions, disclosers and supporting activities. It is critical that the industry voices concerns and comments, and upholds and supports a defined timeline for notifications of these events. Mandating disclosure of Corporate Action data and event announcements will not be effective in supporting investors if issuers are not bound to clearly defined guidelines regarding disclosures in a uniform, standardized and centralized framework. We encourage industry participants, including regulators, to develop guidelines to modernize the Corporate Action lifecycle for the benefit of market participants and investor protection.

Authored by: John Boyle

Broadridge Financial Solutions, Inc. -

In partnership with Datos Insights, Broadridge surveyed senior technology executives and trading decision makers at sell side institutions with global footprints.

Authored by: Broadridge

KPMG LLP -

KPMG - Across industries, the initial COVID-19 response was a rapid reaction to continue delivering critical business services to clients and customers in the midst of urgent global healthcare and economic challenges. As a result of shifting health advisories and regulation, many organizations have had to swiftly move to a work from home model or implement social distancing measures when remote work wasn’t possible. Many businesses have also had to quickly re-think some of their typical operations and reallocate resources to complete newly critical work and meet typical productivity levels.

The same concerns and shift in process are likely to have occurred for your vast network of third parties. While third parties are vital for your organization to prosper, they can also expose you to immense risks. Third party risk management (TPRM) addresses the risks presented by third parties including supply chain disruption, reputational damages, corporate fines, and cyber breaches. A shift in how a third party operates given external COVID-19 pressures, can alter the risk profile of the third party. KPMG has prepared a thought leadership paper that offers near-term tactical considerations and a longer-term strategic vision for the Future of TPRM. The thought leadership paper includes recommendations on how to leverage the information you have learned over the past few months in your TPRM program to fundamentally overhaul your approach to risk identification and risk assessment in the future.

Authored by: Greg Matthews

Lowenstein Sandler LLP -

Lowenstein Sandler - This article discusses the recent warning issued by the Southern District of New York on maintaining attorney-client privilege logs in relation to Universal Standard, Inc.

Authored by: Rachel Maimin and H. Gregory Baker

Cleary Gottlieb Steen & Hamilton LLP -

Cleary Gottlieb Steen & Hamilton LLP - A critical analysis of the EDPB Recommendations 01/2020 on supplementary measures to transfer personal data outside the EU further to the CJEU's Schrems II judgment, and suggested changes to to attempt to reconcile the interests of data exporters, importers and data subjects while complying with the standards set out in Schrems II and the GDPR.

Authored by: Emmanuel Ronco, Natascha Gerlach, Natalie Farmer

FIS -

FIS - The financial world is being shaken to its core. From virtual and embedded experiences to digital assets and decentralized finance, innovations are appearing faster than ever. How do you find your feet on ground that’s constantly shifting? Based on a survey of 875 senior executives from banks, insurers, capital markets firms and fintechs, The Global Innovation Report pinpoints the innovations you need to watch – and the strategies to help you turn them to your advantage.

Tata Consultancy Services -

TCS - Capital market firms operate in a complex and ever-changing technology landscape. At the same time, they must contend with increased regulatory scrutiny, competition from fintech players and the crypto industry, soaring operational and service costs, increased customer expectations, black swan events and so on. Firms need to constantly adapt to stay ahead of the curve, and artificial intelligence (AI) technologies such as generative AI (GenAI) have become a key enabler in this strategic play. In recent months, GenAI has garnered interest from various financial services firms after the launch of ChatGPT, which is powered by large language models (LLMs). GenAI can combine with AI and human intelligence to create content such as text and images and solve complex analytical problems.

Authored by: Anand Chidambaram