Clara Durodié

The #UK #unions publish #AI #bill to protect workers from #risks … #fintech #regulation #ArtificialIntelligence #MachineLearning #GenerativeAI #GenAI @datadictum @TheRegister

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"Ethics training prevents normal people veering off course" Joachim Klement who is an investment strategist at Liberum and author of the excellent 'Klement on Investing' blog recently published a piece titled "Normalisation of deviance" highlighting some interesting research from University College London. It concluded that if people keep on telling lies, people become desensitised as their amygdala, the part of the brain responsible for activating emotions of fear and shame, becomes less active. In a separate study conducted by researchers from the Universities of Hamburg, Kiel and Amsterdam that looked at the correlation between lying on a coin toss experiment (participants were asked how may tails that had come up when they tossed a coin) and scientific misconduct by scientists. Seems to suggest that lying has become normalised in those countries (at least amongst the scientists involved in the study). See chart below (Source: Drupp et al. 2024)👇🏾 An important aspect of the experiment was that some of the participants were polled about their roles and about the 'search for truth' - once this was revealed the overreporting of tails pretty much disappeared. As Joachim points out this highlights why ethics and code of conduct training is so important: "it prevents otherwise honest ‘normal’ people from sliding down the slippery slope towards normalised deviance." A strong culture of governance throughout an organisation is important to enable the underlying strategy to be delivered in a sustainable way. Governance starts from the top - at the board level - in setting the culture of the company, but execution throughout the organisation is key. Mimi Ajibadé PhD FCG and I recently discussed how a failure of both board and operational governance was pivotal in the Post Office Scandal. Steven Bowen Marc Lawn Ffiona Rowland Devasabai Brian Posner Nicky Stewart

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📣 📈 Maximise the UK’s investment potential! The BVCA is in parliament today to launch our #Manifesto for #Growth with new findings from our latest Research Data from our Report on #Investment Activity. The #privateequity and #venturecapital industry is a partner for growth and we will work with all parties to share what it will take to maximise investment in UK businesses. Today's data reveals that the industry invested £20.1bn in 2023 directly into UK businesses This investment is supporting companies in every region, most (58%) of which were based outside London I wanted to thank colleagues across the BVCA team and our membership for their support in helping to develop our Manifesto. They’ve helped to make it an essential read for anyone looking to identify new opportunities to unlock growth in the UK. It outlines how the next government can work with private capital to: Invest in the UK’s #SME population Progress the #Netzero transition Help bridge the #scaleup gap Back UK #pension savers Boost #innovation Ensure SMEs can access the talent they need And more… As Michael Moore puts it, “private capital is a key partner for driving growth in every nation and region of the UK, but investment by the industry could be even greater with the right policy environment in place”. Sarah Adams, Isobel Clarke, Juliette Gerstein, Suzi Gillespie, James Gribben Patricia Sebastian Hind Jbala Adèle YanLun Martin Senk Ewa Skornas Tom Taylor Chris Elphick Olivia Green Catherine Fredette Nicky Bason Will Todd William Crisp Mia Forti Read more here: Press release - https://lnkd.in/eaE2UdXW Manifesto – https://lnkd.in/e4v8vMZ8 RIA – https://lnkd.in/eR_p7sdf

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🎫 Join Aidan McPhelim & Matthew Bain of Morgan Stanley for Keep CALM and Carry on Approving Change at our Open Source in Finance Forum on 26th June in #London 🔗 https://bit.ly/3yjY7bb Talk Abstract Automating Architecture Approval Processes with the Common Architecture Language Model The balance between rapid software development and maintaining high security and compliance standards is a critical challenge for financial institutions. The Common Architecture Language Model (CALM) offers a novel solution, embodying the principles of Architecture as Code (AasC) to automate architecture approvals. This presentation will delve into how CALM can drastically reduce approval times while ensuring strict adherence to security policies and risk management protocols. Attendees will explore the functionalities of CALM, its application in automating API approvals, and the significant benefits for system architecture design and maintenance. Presentation Highlights * CALM and the Shift to Architecture as Code * Automating API Gateway Approvals with CALM * A closer look at CALM's JSON Meta Schema and associated vocabulary. * The Advantages of Automation * How the architecture and developer community can contribute to and leverage CALM for future projects. 📆 OSFF Schedule: https://bit.ly/3UKejdp Event presented by FINOS & The Linux Foundation #OSFF2024 #OSinFinance #opensource #fintech #financialservices #techevent #conference #opensourcecommunity

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🌟 BCG Global Wealth Report 2024: Key Takeaways for UK Financial Advisers 🌟 BCG has just released their 2024 Global Wealth Report, and here are some of the key takeaways: 📈 Growth in Global Wealth Global wealth grew by 6.2% in 2023, driven by strong market performance and the rapid adoption of digital assets. As financial advisers, it's important to understand how these trends impact our clients' portfolios and future investment strategies. 🤖 The Gen AI Era Unfolds We are entering the Gen AI era, where AI technologies are transforming wealth management. From personalised investment advice to automated portfolio management, AI is set to enhance the efficiency and effectiveness of financial advice. Staying ahead in AI adoption will be key to providing top-tier services. 🔍 Key GenAI Insights Pages 8 to 13 of the report delve deep into how Generative AI (GenAI) is reshaping financial advice. One standout finding is the potential for GenAI to significantly reduce the time spent on routine tasks. For instance, by automating portfolio rebalancing and client reporting, advisers can focus more on strategic decision-making and client engagement. 💡 Enhanced Client Personalisation Another crucial insight is the role of GenAI in enhancing client personalization. By analysing vast amounts of data, GenAI can provide highly tailored investment recommendations that align with individual client goals and risk profiles. This level of personalization is expected to become a differentiator for advisers who adopt these advanced technologies. 📊 Digital Transformation in Wealth Management Digital tools and platforms are no longer optional; they are essential. The report highlights how digital transformation is not only enhancing client experiences but also streamlining operations for advisers. Embracing these technologies will be crucial for staying competitive. 📌 Other Takeaways 🌍 Regional Wealth Shifts Asia-Pacific remains the fastest-growing region in terms of wealth, with Europe and North America following closely. 🔍 Focus on Sustainability Sustainable investing continues to gain traction, with more clients interested in ESG (Environmental, Social, Governance) criteria. Advisers need to be well-versed in sustainable investment options and ready to guide clients in making ethical investment choices. You can dive deeper into these insights by checking out the full report in the link attached. https://lnkd.in/e55aeArW P.S. If you found this post interesting, follow me for more insights on AI in financial planning. For additional updates, visit plannerpal.co.uk. #FinancialPlanning #ProductivityBoost #AIinFinance #FutureOfFinancialPlanning #FinancialAdvice #PlannerPal

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The World Bank technical perspective on cbdc & payment system interoperability. The World Bank World Economic Forum Atlantic Association of CBDCs CBDC Digital Currency Group MIT Digital Currency Initiative (DCI) #cbdc #digitalpayment #interoperability #digitalcurrency

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June 24 2024 – 10 Notable Articles To Read Article: Investment data platform FINBOURNE Technology raises £55M Series B Takeaway: A platform to monitor investment performance and manage compliance duties; the investment round was led by Highland Europe and AVP (AXA Venture Partners). Source: UKTN Link: https://lnkd.in/dhZFwYKJ Article: Fengate Asset Management invests $1.8B to Canadian data platform eStruxture Data Centers Takeaway: A premier data center platform that rents space for storing company servers and equipment. Source: BNN Bloomberg Link: https://lnkd.in/dCbwR8MG Article: Singapore as ‘centre of gravity for M&A in SEA’ sees surge in deals from global investors Takeaway: According to Bloomberg Data Management Services, the value of deals involving Singaporean firms since April has surged by 102% compared to the Q2 2023, reaching S$23.8B. Source: The Independent News & Media Pte Ltd Link: https://lnkd.in/dKdE72aJ Article: Middle East investors back Southeast Asia-focused PE funds in diversification move Takeaway: The TVM Healthcare Afiyah Fund LP attracted participation from investors in Gulf countries and Europe, with Jada Fund of Funds leading the round. Source: South China Morning Post SCMP Link: https://lnkd.in/dbxkmyG5 Article: Türkiye as a premier destination for renewable energy investments Takeaway: Bolstered by its diverse and industrialized economy, limited energy resources, and strategic location between Europe and the energy-rich Middle East and Caspian regions. Source: DAILY SABAH Link: https://lnkd.in/dqMtHJ8V Article: Younger Investors Prefer Crypto, Private Equity, and Hard Assets to U.S. Stocks, Study Finds Takeaway: Wealthy younger investors have a markedly different investment perspective than their older counterparts, according to a new study from Bank of America. Source: Barron's Link: https://lnkd.in/diVbqMj8 Article: Prudential Financial to launch $2B share buyback Takeaway: Growth in its core Asian markets, along with its smaller operations in Africa, has become vital for the group following a significant restructuring. Source: Financial Times Link: https://lnkd.in/dW5ruB5X Article: HPS Investment Partners, LLC amasses $21B private credit fund as it plots expansion Takeaway: The firm manages $114B, more than double its size since the start of 2020, and is now considering an IPO or merger. Source: Financial Times Link: https://lnkd.in/daCAiXpJ Article: German bank Baader Bank AG to launch ‘AI-enhanced’ active ETF Takeaway: An analyst states that the fund will be the first in Europe to heavily rely on AI for stock selection. Source: Financial Times Link: https://lnkd.in/dEr8PV9t Article: EV charging startup char.gy raises €118.2M to support the charging infrastructure across the UK Takeaway: This initiative aims to meet the needs of more than 11M UK households. Source: Silicon Canals - European Technology News Link: https://lnkd.in/di5ek_-y #news #business #research

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We are delighted to announce the release of the UKSIF and PwC report on implementing the FCA’s Sustainability Disclosure Requirements (#SDR) and investment labels rules (the ‘SDR package’). The #report identifies implementation challenges that firms are facing, provides recommendations on how to address those challenges, and sets out an #implementation #roadmap to support asset managers and other firms in implementing the new rules. https://lnkd.in/gE77G_Xi

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The last week's update on Virtualnonexecs and DealDirect... DealDirect saw 50+ deals (some yet to be verified and released)... Some, however, are already in discussions with funders and potential acquirers. Key Insights: ✅ Technology is the most dominant sector, involved in nearly every deal type. ✅ Digital is another frequently appearing sector, often linked with Technology and Marketing. ✅ Environmental and ESG sectors are significant, reflecting a growing focus on sustainability and governance. ✅ Capital raises and business exits are almost ranking pari-passu ✅ There is a robust interest in funding new or growing ventures If we take the deal flow and annualise it, (before we start to market the service widely), here are a few numbers that blow my mind: Summary Insights: ✅ Total Estimated Deals: Approximately 2300 deals annually. ✅ Capital Raises Would Dominate: Approximately 1300 capital raises vs. 1000 business exits. ✅ Technology and Digital Sectors Lead: The most frequent sectors, indicating strong activity and growth potential. ✅ Significant Focus on Environmental and ESG: Reflecting ongoing trends towards sustainability. If the average raise stays in line with week 1 over the 12 months re Capital Raises: ✅ Average Raise is c.£300k ✅ Number of Raises Over £1 Million: 130+ deals (10% of total capital raises). ✅ Total Annual Capital Raise Sum: £676,200,000 Taking the average EBITDA data from the initial Business Exit cases: ✅ Average Profit: £1.71 million per year (Some are break-even or no data is held). To say it's been a huge week is an understatement. 🔥 And we haven't even started! See: https://lnkd.in/eha-9Zxq Steve Benson Mike Critchley Sarah Mann Michele Jackson Michael Selander #DealDirect #OffMarket #DealFlow #SellSide

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Exciting insights from the Bank of England! This article underscores the importance of FMIs adopting a high level of discipline to navigate disruptions effectively, considering their pivotal role as the backbone of the financial industry. I see this expectations as a significant stride toward enhancing operational resilience across the entire ecosystem beyond the banks themselves. #OperationalResilience #FinancialIndustry #FMIs #thoughtleadership #operationalriskmanagement

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TradFi giants are working to together to form digital asset ecosystems centred on Digital Asset Securities Control Principles (DASCP) 📌 Who? The Depository Trust & Clearing Corporation (DTCC), Clearstream, Deutsche Börse, Euroclear and Boston Consulting Group (BCG) have published this, their second whitepapaper 📌 What? - The beginning of their collaboration was marked by their first white paper, “Advancing the Digital Asset Era, Together.” - This is their second whitepaper focused on “Digital Asset Securities Control Principles” (DASCP) 📌 Key Takeaways 1️⃣ Comprehensive Framework Development  2️⃣ Foundational Principles for Industry Standardization 3️⃣ Identifying Risks and Establishing Controls 4️⃣ Encouraging Active Industry Participation  5️⃣ Future-Proofing Financial Markets  6️⃣ Transition to Industry-Wide Engagement Regulation bring standards, standards bring adoption #ecosystems

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Is the most recent move towards AI Regulation casting a wide enough net? The EU Artificial Intelligence Act applies to several aspects of Artificial Intelligence, but focuses on 'High-Risk AI Systems' that include: 1. Biometrics 2. Critical Infrastructure 3. Education & Training 4. Employment and employee management 5. 'Essential' Private and Public Services 6. Law Enforcement 7. Border Control & Migration 8. Administration of Justice While these areas of application may not specifically include the AI systems currently used to augment the provision of legal services or automate legal process, my sense is that the requirements of transparency and accountability will be wide enough to nudge legaltech providers into adopting the frameworks set out in the act. More to follow. I would be interested to hear from those actively delivering AI services into the EU as to what your approach to this potential scenario would be, or if you have adopted an approach based on your own (albeit voluntary) codes relating to AI in places like Canada and Australia? #AI #EU #Transparency #EthicsOfAI ....and thanks to the 10 people that have already responded to my poll :)

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FBC Corporate Member digital meeting today, 16 April 2023, 2-3pm UK time: Fund Board Oversight of Liquidity Risk Management FBC members can still register for this afternoon's meeting with the first look at new proprietary research findings: https://lnkd.in/eQthvHvY. FBC Senior Advisers, Brandon Horwitz and Peter Christmas will discuss the findings including addressing questions such as: - Where and when is liquidity risk discussed as part of fund board oversight activities? - How is the fund board involved in setting policy, risk appetite and dealing with significant liquidity events? - What assurance do fund boards receive on the effectiveness of liquidity risk management controls? - What type of Management Information do fund boards receive on liquidity risk? - How have firms responded to the FCA’s 2023 Dear CEO letter and thematic review? Shiv Taneja, Catherine Battershill, Simon Hynes

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The McKinsey analysis is good but misses two major blockers yet standing in the way of wide spread tokenization adoption, the dearth of tokenized capital and lack of marketplaces with sufficient liquidity to support real market activity beyond the trickles of early adopters. The tokenized capital issue is potentially being solved by the rise of tokenized deposit networks but still requires a solution to the last mile problem of connecting that tokenized capital on private networks to marketplaces on public networks. (The Accumulate team has an answer ) Existing public markets do not have the liquidity to handle real world tokenization. Inherent in the design of smart contracts putting the data and code together in a single package are limitations on the ability to list the same token on multiple marketplace which is required to provide the needed liquidity. (Fortunately the Accumulate team, by creating a blockchain based data layer under smart contract platforms, allows for the constructions of token which can exist in many marketplaces simultaneously) https://lnkd.in/gj_PV5nW #defi #blockchain #tokenization

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FBC digital meeting today, 23 April 2023, 2-3pm UK time: Evaluating Fund Board Effectiveness. As the regulatory demands on fund board directors continue to grow, how can fund boards reassure themselves that they are operating as effectively as possible? The meeting will explore how firms evaluate the performance of their boards, including in key areas such as; - the value of board reviews as a means of assessing board operations - nature and scope of these reviews - who’s involved - how the outputs are used. We also will share initial insights from FBC’s detailed research in this area and speak to two senior governance professionals who will provide their perspectives and examples of good practice when it comes to evaluating board effectiveness in the UK, Ireland and Luxembourg; Daniel Rotherford, Global Head of Product Management and Governance at HSBC Global Asset Management, and Frank Johnson, iNED Chair at First Sentier Investors (UK) Funds Ltd. FBC Corporate Members can still register here: https://lnkd.in/eYt7d6nN Shiv Taneja, Catherine Battershill, Brandon Horwitz, Simon Hynes, Peter Christmas, Fiona Evans

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