Tag: Financial Services

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AI (Adverse Inferences): AI Lending Models may show unconscious bias, according to Report.
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Deloitte hack: Big four cyber-security advisor takes a hit
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ASIC Releases Updated Guidance on Electronic Disclosure
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Westpac Acquires Cyber Security Firm
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Cyber Resilience for Financial Services Entities
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Government Regulation, Legislation and Enforcement Updates
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Government Regulation, Legislation and Enforcement Updates

AI (Adverse Inferences): AI Lending Models may show unconscious bias, according to Report.

By Cameron Abbott and Max Evans

We live in an era where the adoption and use of Artificial Intelligence (AI) is at the forefront of business advancement and social progression. Facial recognition technology software is used or is being piloted to be used across a variety of government sectors, whilst voice recognition assistants are becoming the norm both in personal and business contexts. However, as we have blogged previously on, the AI ‘bandwagon’ inherently comes with legitimate concerns.

This is no different in the banking world. The use of AI-based phishing detection applications has strengthened cybersecurity safeguards for financial institutions, whilst the use of “Robo-Advisers” and voice and language processors has facilitated efficiency by increasing the pace of transactions and reducing service times. However, this appears to sound too good to be true, as according to a Report by CIO Drive, algorithmic lending models may show an unconscious bias.

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Deloitte hack: Big four cyber-security advisor takes a hit

By Cameron Abbott and Olivia Coburn

“Big four” accounting and consulting firm Deloitte revealed on Monday that it was targeted by a hack that exposed its email system and client records.

Although Deloitte has not yet provided details on the full extent of the breach, it confirmed that the information accessed includes confidential emails and plans of some of its blue-chip clients. It also said that “very few” clients were affected.

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ASIC Releases Updated Guidance on Electronic Disclosure

by Jim Bulling and Julia Baldi

ASIC has released updated guidance on electronic disclosure. RG 221:Facilitating online financial services disclosures. It outlines ASIC’s expectations for financial services providers that use (or plan to use) technology, including email and the internet, to deliver financial product and financial services disclosures to clients.

See RG 221 here.

Cyber Resilience for Financial Services Entities

by Jim Bulling and Julia Baldi

ASIC Report 429
In March this year, the Australian Securities and Investments Commission (ASIC), issued Report 429 Cyber resilience: Health check (REP 429). The report aims to highlight the importance of cyber resilience for entities regulated by ASIC, including Australian Financial Services Licence holders, Australian Credit Licence holders and listed entities. The Report indicates that ASIC is keen to ensure that Australia keeps pace with developments in Europe and the United States in combatting cybersecurity risks.

Click here to read the full article.

Government Regulation, Legislation and Enforcement Updates

by Jim Bulling and Julia Baldi

Australian Federal Government Cybersecurity Review
The Australian Federal Government holds a Cybersecurity Review.

See the Australian Government’s summary of the review here.

SEC Guidance Update
The SEC’s Investment Management Team published a Guidance Update which outlines measures managed funds and investment advisers may wish to consider in addressing cybersecurity risk. The guidance includes practical tips applicable to Australian entities.

See the Guidance Update here.

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Government Regulation, Legislation and Enforcement Updates

by Jim Bulling and Julia Baldi

China Introduces new Cybersecurity Laws
China introduced new cybersecurity laws, which require both local and foreign banks and financial institutions with Chinese clients (including Australian financial institutions) to use IT equipment deemed “secure and controllable” by Beijing. The breadth of the laws has upset foreign financial institutions given the potential cost of compliance if foreign entities must implement IT equipment systems in accordance with Chinese directives.

See the Financial Times report here.

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