Regulators at the Financial Conduct Authority (FCA) in the UK and the Board of Governors of the Federal Reserve System (Federal Reserve Board) in the US have raised alarm over the use of artificial intelligence (AI) in the financial services sector. This shared concern comes amid an increasingly collaborative global effort to address consumer protection risks in the adoption of AI technology.
Albemarle Corporation, a global leader in lithium production and chemicals manufacturing, has reached a significant agreement in principle with U.S. authorities to pay a substantial fine of $218.5 million. The settlement aims to resolve an investigation into potential foreign bribery conducted through third-party sales representatives, according to a statement released by the company.
Chinese-owned social media giant TikTok has introduced a series of novel features for its European users as part of a concerted effort to ensure compliance with the European Union's forthcoming Digital Services Act (DSA).
Private equity and hedge funds, cornerstones of the investment world, are bracing themselves for a potentially transformative regulatory shift as the U.S. Securities and Exchange Commission (SEC) gears up to unveil a rule package aimed at enhancing transparency, competition, and investor protection in the private-funds industry. With hundreds of billions of dollars in fees and expenses at stake, this regulatory overhaul could reshape the landscape for managing funds on behalf of high-net-worth individuals and institutional investors.
The UK government has released its latest edition of the National Risk Register (NRR), shedding light on the nation's most serious risks and potential threats. The NRR, an external version of the National Security Risk Assessment (NSRA), encompasses a wide array of challenges, ranging from health and societal risks to cyber threats and state-level dangers. As the UK navigates a complex risk landscape, the NRR offers insights into the country's preparedness and resilience strategies.
In response to the events of the first half of 2023, a group of federal agencies, including the Federal Reserve, has issued joint guidance on risk management and contingency funding for depository institutions. The guidance emphasizes the importance of liquidity risk management and preparedness in the face of evolving depositor behavior and market conditions.
The U.S. Securities and Exchange Commission (SEC) has raised concerns about weak anti-money laundering (AML) policies and staffing issues within broker-dealers, highlighting the critical importance of AML compliance for investor asset safety and financial market integrity. The Division of Examinations conducted examinations of broker-dealers in 2021, focusing on AML and countering the financing of terrorism (CFT) requirements. A Risk Alert was issued by the Division, addressing compliance issues related to suspicious activity monitoring and reporting components of AML programs, as well as other key AML requirements.