Fair Use of AI in Financial Services – A new White Paper with UK Finance

Recent years have seen growing scrutiny of the use of artificial intelligence (AI) in financial services and a greater awareness of the potential of these technologies. It is no surprise that questions of AI fairness and bias are increasingly front of mind. Existing law is not keeping up with the rise and speed of new technology. With UK Finance, we have published a white paper, as a contribution to the debate on how to apply ethical principles in practice to the benefit of firms and customers. Our use of practical scenarios has helped refine our understanding of the fair use of AI and the practical challenges of building a high-level ethical framework. Read more

Proposed amendments to MLRs – New change in control regime for cryptoasset businesses

At the moment, the FCA's only powers over crypto businesses which do not carry on investment, payment services, e-money or other UK regulated business come from its role as their anti-money laundering and counter-terrorist financing supervisor. This will change in due course in respect of stablecoin businesses (with HMT consulting on bringing these into scope) and in respect of financial promotions of certain cryptoassets (both HMT and FCA are consulting on this). Read more

Managing the risks of mobile messaging

This briefing looks at why the regulators care, and what firms can do to manage the risks and take all reasonable steps to preserve data where channels have been used outside policy. Read more

Hong Kong, can you handle this? The HKMA proposes new standards for operational resilience

Following the HKMA’s 21 April 2021 circular highlighting the additional guidance issued by the BCBS on 31 March 2021, namely the Principles for Operational Resilience and the Revised Principles for Sound Management of Operational Risk, the HKMA launched a consultation on 22 December 2021 on a new proposed Supervisory Policy Manual module OR-2 (Operational Resilience) and proposed amendments to existing SPM modules TM-G-2 (Business Continuity Planning) and OR-1 (Operational Risk Management) in order to align with the BCBS’s operational resilience guidance. Read more