Blockchain: A Force for Good in Compliance Management?
7th March 2018 - Blog Posts - White Papers
Blockchain: the ‘not so new anymore’ buzz word on the street and featuring prominently in the press and as a topic for discussion at industry events. Although developed initially in the context of creating a new digital currency, we would argue that blockchain can revolutionise compliance. (more…)
Luxembourg as a financial hub
2nd February 2018 - Firm News - Regulatory Updates - White Papers
Luxembourg AIFM strategies are becoming more frequently discussed based on a number of good reasons. Luxembourg has become the largest investment fund centre in Europe, and it is set to have a greater pull for UK fund managers and investors post-Brexit, as uncertainty mounts about whether the UK will retain access to the single market and access to ECB liquidity swap lines.
Luxembourg AIFM solutions
In our latest industry report on Luxembourg as a financial hub of growing importance, we cover:
• EUVECA and MiFID
• Other key regulatory changes for Luxembourg
• The Brexit effect on Luxembourg
• Luxembourg ManCo
The state of the Hedge Fund market
6th January 2018 - Knowledge Library - White Papers
Who is affected?
Alternative Investment Fund Managers, Portfolio Managers, Traders
2017 has seen greater potential for profitability for emerging investment firms, and general investor negativity towards hedge fund fees has declined. This update will look at some of the key reports that have been released over the course of the last couple of months, and focus on assessing the state of the hedge fund market as well as discussing the trends that we could see in 2018. (more…)
Robo Advice and Artificial Intelligence – What is it and what does it mean for your firm?
6th September 2017 - Knowledge Library - White Papers
Robo advice has the potential to affect all financial services firms as it seeks to provide traditional investment and financial services, both regulated (such as advice) and unregulated (such as guidance), cheaper and quicker than traditional firms. It essentially replaces human interaction and decision-making processes with algorithms.
With improvements to technology and in particular artificial intelligence, the FCA has had to consider ways in which to regulate these activities – the so called ‘robo advice’. (more…)
The General Data Protection Regulation (GDPR) – What is it and what does it mean for your firm?
14th August 2017 - Blog Posts - Regulatory Updates - White Papers
The General Data Protection Regulation (GDPR) will be directly applicable in the UK and create additional obligations to firms alongside the Data Protection Act 1998 (DPA). It is important that firms understand their new obligations under GDPR, which will take effect on 25 May 2018. Although the UK is leaving the European Union, the government has confirmed that Brexit will not affect its implementation.
Implications for Fund Managers and Private Equity Firms
The revised regulations place a key focus on Territorial Scope, Penalties, Data Protection Officers, Breach Reporting and more:
- Greater focus on Territorial Scope, GDPR expands the reach of the European Data Protection Legislation to data controllers and processors who offer services inside the EU (even if based outside of it).
- Organisations do not have to notify authorities of data processing but are required to retain records of data processing activities (subject to limited exceptions for SMEs).
- Organisations will be regulated by a single regulator in the place of their main establishment. This means that if a firm operates across multiple member states, they will be supervised by and report to, one ‘lead’ regulator.
- The GDPR significantly raises the stakes with regard to compliance, with maximum penalties of 4% annual global turnover or up to €20m (whichever is higher).
- Organisations, without undue delay, are expected to contact their Data Protection Authorities (in the UK the Information Commissioners Office) within 72 hours (where feasible) of becoming aware of any data protection breaches.
- Private Equity Firms should be aware that Data Protection Impact Assessments (DPIAs) will now be required to assess the risk levels for the rights and freedom of individuals. If the DPIA reveals a significant risk, organisations must consult with their regulator before beginning the process.
- Fund Managers should understand the updates to Data Subject Rights as the GDPR contains new rights around data portability, the right to be forgotten and to prevent profiling.
Read our Regulatory Update in full: The General Data Protection Regulation (GDPR) – Regulatory Update (PDF)
Lawson Conner has worked extensively with our clients to assess the impact of regulatory change. We would be delighted to discuss how we can help Fund Managers and Private Equity Firms meet these new challenges.
Lawson Conner’s team of compliance professionals can assist you at every stage as you seek to comply with the new regulatory obligations. Contact us today for more information.
CyberSecurity – threats from high and low
6th April 2017 - Knowledge Library - White Papers
Cybersecurity is the practice of protecting systems, networks, and programs from digital attacks. It is the state of being protected against the criminal or unauthorized use of electronic data, or the measures taken to achieve this. Regulatory Compliance is a critical component of any cybersecurity program.
Andrew Frost, Director, Investment Management Solutions of Lawson Conner, looks at the cyber intrusion challenges facing the industry in the near future.
Extract: Criminals are investing much more time researching target organisations and their staff so that they can craft more realistic emails in order to trick the employees into complying with their orders. As employees are spending more and more time outside of work hours responding to emails on their personal devices, users are more likely to fall for well-crafted email scams. (more…)