Return to site

Technology and Regulation, is technology an issue when existing rules are amended?

· Question of the Day

TECHNOLOGY AND REGULATION – In many instances, the question for buy-side executives is not whether new technology like AI will be directly regulated. Instead, regulators are beginning to ask how technology is affecting long standing market activities. The issue then becomes whether existing rules need to be amended.

A case in point is the 3/6 proposal of the Financial Stability Oversight Council to aim to review risky activities across financial markets rather than focus on individual nonbank firms, such as asset managers. The Council suggests that we should look to its own Annual Report for examples of risky activities. And a top risky item in the Council’s 2018 Report includes cybersecurity events associated with the increased use of technology.

While there will always be underlying nuances with respect to Federal regulatory policy matters, it may also be the case that in these times investment managers will increasingly need to factor in the new technologies when they are providing input to regulatory decision-makers.

The Q and A Task Force of ASSET MANAGERS TECH provides a forum for senior executives with leading buy-side firms to discuss how Artificial Intelligence, Cloud Technology, Big Data and other new technologies are affecting the asset management industry. We welcome new members to the Task Force, which is chaired by George Marootian, Head of IT at Natixis Investment Managers.



Joe Sack, President, Asset Managers Tech

Mobile: 1-914-648-0088