The Shield FC Blog

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Forex Trade Rigging Scam Resurfaces at Standard Chartered

Forex Trade Rigging Scam Resurfaces at Standard Chartered

Earlier this month, the New York Department of Financial Services (DFS) assessed a $40 million fine against Standard Chartered. The DFS hit the financial firm with the multi-million-dollar penalty after discovering that its traders had attempted to rig transactions in foreign exchange markets. While the amount of the fine was appropriate given the degree of collusion and fraud involved, the timing of the enforcement action took the financial industry by surprise. This is because all of the illegal activities […]

Data Governance Trends: Don’t forget PECR/ ePrivacy!

Previous blogs from Shield have addressed how important it is in the age of data regulations to take demonstrable control over enterprise data. New requirements are still emerging, so those who thought that MiFID II, GDPR and PECR were items to be checked off a list and then forgotten about are misguided.
With the impending arrival of new and more stringent rules around Electronic Communications in the shape of the Privacy in Electronic Communications Regulation (PECR, or ‘ePrivacy’), let’s take […]

Blockchain and Regulatory Compliance: A Match Made in Heaven…Or is the Honeymoon Over?

Whereas cryptocurrency may have created the environment under which Blockchain technology was introduced, by no means are these two technologies codependent. Rather, Blockchain is a byproduct of people’s inherent interest in streamlining transactions and not strictly limited to cryptocurrency. And while the Blockchain is shifting the transactional landscape, it’s also poised to disrupt the financial services industry.
Blockchain – More Than Just Bitcoin
As soon as data is saved into a Blockchain, it can’t be changed or deleted except as allowed […]

Electronic communications surveillance raises regulatory and technological challenges

Electronic communications surveillance raises regulatory and technological challenges

Anti-fraud, anti-money laundering and other financial regulations require financial services companies to track electronic communications in various forms. However, this often requires these firms to collect substantial volumes of different types of communications data. Standard lexicon-based search software commonly used in financial services is effective up to a certain level of scale and complexity, but the demands of today’s financial regulators are outpacing traditional enterprise software solutions.
Legacy software solutions come up short
Data management has become a critical component of […]

financial compliance

[Report] Capture, Correlate, Analyze

Deriving value from electronic communications data
In this report, we explore the value that can be realized through the integration of electronic communications (eComms) data into the wider trading ecosystem.
By moving from tactical compliance to strategic investment, firms can not only satisfy the regulators but also boost the analytical capabilities of the front office; delivering better execution, greater trading signal analysis, and more efficient business intelligence.
Simon Hornibrook of Nomura; Paul Burleton of Lysis Financial; Paul North at BNY Mellon; Rachel […]

Lee Werrell Chartered FCSI.

Has Regulation arrived for Cryptocurrencies through the back door?

Over the last couple of years, the crowdfunding market started to build rapidly. ICO or Initial Coin Offering is not only a very advantageous way of raising capital for additional project’s progression but also a remarkably profitable investment tool.
But there are many troubles on this market, which need an answer.
According to data from DeadCoins and Coinopsy, around 1000 cryptocurrency-related projects floundered in 2018 and are now dead. Although this may seem like bathing, the reverse couldn’t be truer.
Dishonest and Poor Crypto Projects
The hyperbolic bull run […]

ePrivacy regulations

Financial firms adapt to changing EU ePrivacy regulations

Regulators in the European Union have developed extensive rules requiring financial firms to monitor and manage transaction-related communications. But the digital age has changed the way people communicate. As a result, complying with the EU’s increasingly complex data monitoring and management rules often requires financial firms to monitor voice, video, in-person, and text communications. The technical challenges associated with managing this data aside, performing such extensive monitoring of customer and transaction-related data raises meaningful concerns regarding personal and financial […]

RegTech: From the Ground Up

During 2018 I was fortunate enough to have been working with financial institutes from all across the globe, and it would be “old news” if I said that RegTech solutions are in higher and higher demand. Regulatory constraints, on the one hand, client expectation for frictionless experiences on the other, and tangible, ever-growing cybersecurity threats that target financial institutes primarily (for a variety of reasons), together make a powerful combination that cannot be ignored.
Obviously, different institutions have different needs, […]

Data silos_ the real compliance killer

Data Silos: the real compliance killer

Modern financial regulations require firms to monitor, track and report data on innumerable transactions, customers, and business activities. The potential burdens of these requirements are massive, and many financial institutions are still working out how to achieve full compliance without disrupting operational efficiency.
This is particularly true given the fact that many banks and financial firms place the responsibility for monitoring email communications, calls, transactions, e-commerce activities, and trade data, squarely within the scope of the IT department. More often […]

Data management struggles in financial firms

Effective compliance requires a 360 approach

Businesses in regulated industries expend vast amounts of time and company resources on ensuring company-wide compliance. Regulated companies invested over $1.3 million in compliance technology on average during last year alone, and the cost of compliance is only continuing to increase. Much of this is due to the increasingly complex regulations that agencies are enacting to combat sophisticated cybercrimes. However, fortunately for today’s financial services company, enterprises are developing software solutions designed to increase efficiency in this complex field.
Financial […]

eComms mobile recodings

Striking a balance between data recording and data privacy

Bad actors in financial institutions are nothing new, banks have been accruing fines for poor conduct that run to the billions of dollars. Regulators are working hard to bring in new legislation to curb such behaviour and it is getting personal.
In March 2017 former investment banker, Christopher Niehaus was fined £37,198 by the Financial Conduct Authority (FCA) for using WhatsApp to share confidential client information. That was before the weighty MiFID II directive came into force at the beginning […]

Data management struggles in financial firms

Data can be an excellent resource for firms that are concerned with operational performance and consumer engagement. After all, this type of information provides critical feedback about how companies engage with their customers and employees. Yet like most other resources, data must be managed effectively in order to make sure it delivers its maximum value.
Today’s financial companies track millions of pieces of trade-related data. This information is often highly relevant to the customer experience, and it may provide insight […]

Paul Burleton, Rachel Przybylski, Tom Kennedy, Shiran Weitzman

Post event Post: The Right Use of eComms Data Guards Compliance and Provides Value

In early November myself and the team took part in the ‘Capture, Correlate, Analyse: Deriving value from electronic communications data’ event, which was held at Thompson Reuters in the heart of London’s trading center, Canary Wharf.
The theme we presented is that that well-integrated technology is the key to not only maintaining strict compliance but also for deriving better insights from eComms and realizing greater ROI – a view which undoubtedly rang true with my fellow speakers and the audience […]

76 reasons why firms still need to be scared of MiFID II

Well ok, maybe not 76.
MiFID II (article 76) is approaching its one-year anniversary, and many companies are just now starting to understand its ongoing impacts on the way financial firms do business in Europe. Implementation of the new directive has ramped up over time, and Europe’s Financial Conduct Authority (FCA) has recently announced that it is ready to levy penalties against non-compliant firms. And, with industry research suggesting that 40% of firms remain out of compliance with MiFID II […]

Senior Managers Regime (SMR

Your company may be regulation-ready, but are you? Navigating the Senior Managers Regime (SMR)

Today’s managers in regulated industries always have to stay one step ahead. They know about upcoming regulations before they become mandatory and prepare their teams for the operational changes necessary for compliance. But while a particular company may have an effective corporate compliance policy, individual managers in the finance and insurance industries may find themselves caught off guard by specific requirements of new agency rules that apply to them directly. This is particularly true in the United Kingdom under […]

Empathic Fintech Robo-Advisors

Industry 4.0 (including Artificial Intelligence, or “AI”) started to replace a certain type and number of human employees. Algorithms are superior for repetitive tasks, where decisions are based on a high amount of data. Thus, AI can be particularly helpful for the complex, data-driven tasks of the typical compliance officer. This definition is also applicable for finance-advisors.
Machine learning and human error
Based on the company’s own statement, the algorithm of the fintech robo-advisor EquoBot (using IBM’s super-computer Watson) is capable […]

Building accountability under the Senior Managers Regime

Between complying with complex regulations, managing diverse teams, and running day-to-day operations, managers in the banking and insurance industries are held to high standards of performance and accountability. These standards are created and enforced at both the company-level and among national regulatory agencies. However, while private management practices are primarily aimed at improving effectiveness and efficiency, legal regulations addressing financial managers tend to focus on overall economic stability and consumer protection.
The Senior Managers Regime (SMR) is an increasingly important […]

Post Event Post: Adopt a Tactical, Strategic and Proactive Approach to Compliance

On Thursday 4th October, CEO, Shiran Weitzman was in London to showcase Shield FC’s Financial Compliance Hub at the A-Team Group’s RegTech Summit 2018.  The message that compliance requires a tactical, strategic and proactive approach clearly resonated with the audience of more than 100 senior representatives from major financial institutions, involved in regulatory change management, regulatory reporting, compliance, and investigations.
Shiran addressed current and future challenges surrounding proactive compliance including issues of measurement, control and oversight, end-to-end visibility of the […]

Filling in the Blanks: Supporting RegTech Innovation with Data

Since the launch of the UK Financial Conduct Authority’s regulatory sandbox in 2016, several other global regulators have followed suit in a bid to address some of the key issues around regulatory technology. And with the influx of new regulations continuing unabated, the need for innovative solutions to the challenges facing financial institutions has also never been more pressing. Yet while this need is widely recognised by not just the rising ‘RegTech’ sector but also by regulators and the […]

GDPR and MiFID II – clash or opportunity?

By Shiran Weitzman, CEO, Shield Financial Compliance
Building a data management blueprint
Compliance teams who are able to bring the upcoming General Data Protection Regulation (GDPR) together with the revised Markets in Financial Instruments Directive (MiFID II) will provide a sturdy yet flexible framework for data management within their firm.
MiFID II’s reporting requirements are notorious, for the breadth and depth of data they require firms to collect. The scale of the problem is characterised by the range of data types that […]

MiFID II is here but the regulators have only just got started

By Shiran Weitzman, CEO, Shield Financial Compliance
MiFID II may have come a little too quickly for some companies. Its scope, the slow pace of its formulation and the myriad interpretations of its applications and implications meant much of the EU’s financial services industry had to rush through changes to comply with it.
Many firms struggled to meet the January 3 deadline despite hundreds of City workers spending the Christmas break – their holiday leave cancelled – rushing to put processes […]