MyComplianceOffice Blog

The FCA wants to see firms operating in this challenging period and are providing some flexibility to regulated firms to ensure continuity. Last week the FCA published an updated statement regarding expectations for solo-regulated firms and this week extended the time limit for obtaining appropriate professional qualifications.

PWC predicts that more than 30% of today’s human workforce will be replaced by artificial intelligence (AI) and/or robotics by the year 2030. This kind of development will change the way we work, and we have been aware of this for a period of time now. Jobs requiring social, emotional, and literary abilities are at the lowest risk of displacement. However, jobs that require manual labour or repetitive tasks that can be automated will see a higher impact in the coming years.

As most employees are now working from home, without a doubt, compliance has become more challenging and regulators expect firms to be prepared to manage the risks and challenges promptly. Compliance Week has run a survey to understand how prepared were compliance professionals and organizations for the COVID-19 pandemic.

On April 7 the SEC published two Risk Alerts providing broker-dealers and investment advisors with information on the expected scope of initial Regulation Best Interest enforcement. The guidance indicated that initial exams will focus on evidence that firms have made “good faith” efforts to comply.

On April 2 the SEC issued a statement indicating that despite the disruption of the COVID-19 pandemic, the June 30, 2020 deadline for Regulation Best Interest (Reg BI) would not be deferred.