Cathy Bessant, chief operations and technology officer at Bank of America, says that developments in financial technology and artificial intelligence -- which she describes as "responsible automated intelligence" -- have led her to change her opinions on how the industry should adopt them. In a wide-ranging interview, she stresses that automated solutions must be embraced because they are safer, cheaper and better.
Thomas Ferlazzo, senior vice president of the Federal Reserve Bank of New York, says a proposed two-hour deadline for banks to recover from a cyberattack is still under review but might come into force. He added banks should work toward the deadline rather than wait for the Fed to issue a regulation. Learn more at SIFMA's Cybersecurity Resource Center.
Morgan Stanley trading chief Ted Pick's success in turning around the bond business seems secure, based on four straight quarters of fixed-income revenue that exceeds $1 billion. The company remains cautiously optimistic, citing weaker market prospects compared with a year ago.
The role of investor relations has expanded to encompass a range of responsibilities from strategic planning to corporate responsibility. Building strong relationships with internal and external stakeholders will help IR professionals meet these new demands.
Advisors who optimize technology and integrate it into their business have 42% more assets under management, as well as more high-net-worth clients, than advisors who are not tech savvy, according to a survey by Fidelity Clearing & Custody Solutions. The survey identifies four areas of focus that could help advisors achieve the greatest impact from technology.
Nearly 10 years since the financial crisis, the US economy has recovered more quickly than other jurisdictions due in large part to our robust capital markets and diversified banking system, says SIFMA's President and CEO Kenneth E. Bentsen, Jr. While many reforms have increased transparency and stability, the multitude of them has led to much greater complexity, redundancy and conflicting goals, and in some cases unproductive curtailment of market activity. A cumulative review of the rule set is long overdue.
Federal Reserve Governor Jerome Powell and acting Comptroller of the Currency Keith Noreika have indicated a willingness to work toward simplifying and reducing the burdens posed by post-crisis regulations, in particular the Fed stress tests and the Volcker rule. "We should assess whether we can adjust regulation in common-sense ways that will simplify rules and reduce unnecessary regulatory burden without compromising safety and soundness," Powell said.
The Commodity Futures Trading Commission's inspector general has decided not to follow up on an audit that discovered the agency's chief economist was blocking research on politically sensitive issues, such as position limits, a policy the audit described as "institutional censorship." CFTC Deputy Inspector General Judith Ringle said the office doesn't have enough staff to pursue the matter.
The US Treasury Department has recommended that Congress convert the Office of Financial Research from an independent agency to an entity under direct control of the treasury secretary. Richard Berner, the office's director, called that a bad idea, saying Congress made the office independent to guarantee objective advice.
Join SIFMA on Sept. 13 for a half-day event as the industry prepares for the impending implementation of FINRA's new Senior Investor Protection Rules. Industry experts and regulators will gather to take a deep dive into rules 2165 and 4512, which will provide firms with a safe harbor for temporarily holding suspect disbursements and require firms to attempt to collect trusted contact information from all their clients. With the February implementation deadline fast approaching, participants will have the opportunity to analyze the new rules and discuss the various implementation strategies for firms of all sizes and business models.
Connect with fellow industry professionals on Oct. 5 at the 14th annual Global Corporate Actions Forum in Boston. Hosted by the Corporate Actions Section (CAS) of SIFMA's Operations & Technology Society, the 2017 program will provide valuable information on managing risk and improving processes, including: what you need to know about US and Global Tax Regulations -- with a focus on 305C, 871(m), and Reclaim Updates; Blockchain and its Impact on Corporate Actions; Regulatory Insights from FINRA, NYSE and NASDAQ; Proxy and Corporate Actions Shareholder Communications Update; and more.