Powered by MOMENTUM MEDIA
subscribe to our newsletter

Global regulators to adopt AI functionality

Artificial intelligence and biometric functionality will soon be part of the toolkits of global regulators, predicts law firm Herbert Smith Freehills.

In a report released this week, Herbert Smith Freehills (HSF) suggested that corporations and financial institutions will face an increased compliance burden as regulators upgrade the technology at their disposal.

HSF Australian head of disputes Luke Hastings said regulators have lagged on the adoption of new technologies into their investigation and enforcement procedures in recent years but that the status quo is likely to change.

“Global regulators will increasingly use artificial intelligence and biometric tools to collect, analyse and respond to data, as well as to predict and detect financial services wrongdoing. As a result, regulators will demand more information and move closer to real time surveillance,” Mr Hastings said.

“This will mean an increased burden for companies and they will need to ensure they are meeting regulatory requirements, not just in the jurisdiction they are headquartered, but in all the countries they do business.”

Advertisement
Advertisement

The firm also anticipated that 2017 will see ASIC seek greater enforcement and penalty powers for itself, alongside an ongoing focus on competition issues and consumer credit crackdown.

“Both ASIC and the Australian Competition and Consumer Commission want to strike a balance between protecting consumers and promoting competition and innovation,” said HSF partner Fiona Smedley.

“We expect that 2017 will see continued co-operation between both regulators.”

[Related: How AI is changing unsecured business lending]

Global regulators to adopt AI functionality

PROMOTED CONTENT


>In a report released this week, Herbert Smith Freehills (HSF) suggested that corporations and financial institutions will face an increased compliance burden as regulators upgrade the technology at their disposal.

HSF Australian head of disputes Luke Hastings said regulators have lagged on the adoption of new technologies into their investigation and enforcement procedures in recent years but that the status quo is likely to change.

“Global regulators will increasingly use artificial intelligence and biometric tools to collect, analyse and respond to data, as well as to predict and detect financial services wrongdoing. As a result, regulators will demand more information and move closer to real time surveillance,” Mr Hastings said.

“This will mean an increased burden for companies and they will need to ensure they are meeting regulatory requirements, not just in the jurisdiction they are headquartered, but in all the countries they do business.”

The firm also anticipated that 2017 will see ASIC seek greater enforcement and penalty powers for itself, alongside an ongoing focus on competition issues and consumer credit crackdown.

“Both ASIC and the Australian Competition and Consumer Commission want to strike a balance between protecting consumers and promoting competition and innovation,” said HSF partner Fiona Smedley.

“We expect that 2017 will see continued co-operation between both regulators.”

[Related: How AI is changing unsecured business lending]

Global regulators to adopt AI functionality
mortgagebusiness

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.