Regulatory

ESMA has issued guidance for investment firms using AI, emphasising client best interests, to ensure compliance with MiFID II and safeguard investors. Below is a summary of that guidance.

The advancement of Artificial Intelligence (AI) offers transformative opportunities in retail investment services, enhancing efficiency, innovation, and decision-making. However, AI also presents risks such as algorithmic biases, data quality issues, and transparency challenges. Despite the initial phase of AI diffusion, its impact on firms’ behaviours and retail investor protection is expected to be significant. Management bodies retain responsibility for decisions, whether made by humans or AI.

UK asset managers will be busy during 2024 with SDR coming into force. The timeframes are relatively tight, and firms have a lot to consider for the three critical milestones occurring this year.

There has been much talk about the Overseas Fund Regime set to be implemented here in the UK. HMT and the FCA have now published a draft roadmap setting out the likely steps and draft dates. Here we summarise

Every Asset Manager needs to know what regulation is coming along, and how their organisation will be affected. Horizon Scanning is the recommended technique for assessing upcoming regulatory requirements. But with so much regulation out there, wouldn’t it make sense to have a tailored horizon scan that only tells you what regulation specific to your firm (and explains why other regulation doesn’t impact you)? Click on the link in comments to find out why a tailored horizon scan could be just what your organisation needs..