regtech financial promotions monitoring · •show us your solutions 12.00pm –lunch and...

Regtech Monitoring Financial Promotions: Demo and Symposium – Event Pack

2 August 2019 Sydney

Problem Statement and Outcomes

Monitoring Indicators:

• Regulatory compliance

• Risk metrics

Problem Statement:

Provide regtech solutions

to monitor, identify and

analyse the promotional

material relating to

banking, credit, and

insurance.

2 August 2019ASIC Regtech Monitoring Financial Promotions: Demo and Symposium

Key Components

Identify and extract key informative features including (but not limited to):

• Categorisation of the type of financial promotion, such as:

– Traditional (billboard, web banner, television, radio, print etc.)

– Non-traditional (podcasts, social media, forums, YouTube)

• The financial product (or products) associated with the promotion

• Entities referenced in the promotion (e.g. ACN companies, Australian

Credit Licensees)


Key Components cont.

Potential indicators of risk or unclear content including (but not limited to):

• High-risk words in the promotion such as: ‘lowest’, ‘cheapest’, ‘best’, ‘largest’, ‘instant’, ‘free’, ‘guaranteed’

• Inconsistent or unclear information in the promotional material such as:

– Small or illegible text

– Disclaimers inconsistent with headline claim

– Interest rates being quoted in a non-annualised format

• Specific requirements for financial promotions relating to credit products, including where detailed in relevant legislation and regulatory guidance such as:

– National Consumer Credit Protection Act 2009 and National Credit Code;

– Australian Securities and Investments Commission Act 2001; and

– ASIC Regulatory Guides, including Regulatory Guide 234 Advertising financial products and services (including credit): Good practice guidance.


https://www.legislation.gov.au/Details/C2019C00154

https://asic.gov.au/regulatory-resources/credit/credit-general-conduct-obligations/national-credit-code/

https://www.legislation.gov.au/Details/C2019C00168

https://asic.gov.au/regulatory-resources/find-a-document/regulatory-guides/rg-234-advertising-financial-products-and-services-including-credit-good-practice-guidance/

Target Outcomes

• Demonstrate how technology can be used

to help in determining the clarity and level of

compliance of financial promotions material

based on a sample of advertising in different

formats provided by ASIC, as well as a wider

sample of promotional materials which could

include social media, forums, podcasts and

others.

• Identify opportunities and challenges of using

regtech to identify, monitor and analyse

financial promotions and thereby deduce

outcomes for consumers.

• Increase awareness and understanding

amongst industry of the current capability,

and future potential, of regtech tools in their

application to financial promotions and

advertising.

• Identify options for next steps by ASIC and

stakeholders to continue to promote the use

of regtech to monitoring and analysing

financial promotions.


Through this event and ASIC’s other regtech initiatives, ASIC’s target outcomes

are to:

The Data

Dataset

ASIC has provided approximately 180

examples of promotional material

relating to banking, credit and

insurance to demonstrators.

Demonstrators are expected to use the ASIC dataset, as a minimum, and public

information such as ASIC regulatory

guides.

Demonstrators are encouraged to use

other relevant data (e.g. third party,

public or own data), financial product knowledge or information.


The Event

ASIC Regtech Monitoring Financial Promotions:Demonstration and Symposium – Overview Agenda

Friday 2 August 2019

9.30am – 3.30pm

Level 17 PwC Receptionthen follow the ASICwayfinders

PwC AustraliaOne International TowerWatermans QuayBarangaroo NSW

9.30am – Registration and Morning Tea

10.00am to 10.30am – Welcome and Introductory Addresses

Morning Session 10.30am to 12.00pm

• Demonstrations (10-12 mins each)

• Show us your solutions

12.00pm – Lunch and Networking

Afternoon Session: 1.00pm to 3.00pm

• Panel discussion

• Wrap up

3.00pm - 3.30pm – Network over light refreshments


https://www.pwc.com.au/about-us/newdirection/sydney.html

Welcome


Mr Craig Madden

(Elder)

Craig Madden is a proud Gadigal/Bundjulang man who was born and raised

in the inner city suburbs of Redfern and Alexandria were he still resides today.

Mr. Madden’s very personal experience of Aboriginal history comes from his

rich childhood spent listening to Yarns from his family and around the local

community, running through creeks in Baryulgil with his Brother, Sisters &

Cousins throughout his holidays, playing football for the Redfern All Blacks and

Alexandria Rovers football teams and his education in Aboriginal Studies at

the University of South Australia.

Mr. Madden has actively worked within the Aboriginal community for the past

25 years as an Aboriginal Employment Consultant for Australia Post and as

Aboriginal Welfare and Community Liaison Officer for Corrective Services

New South Wales where he is still currently employed.

Mr. Madden is a current Member of the Metropolitan Local Aboriginal Land

Council, a member of the Redfern Aboriginal Housing Company, a member

of Babana Aboriginal Men’s Group Redfern and a former Director and

current member of the Aboriginal Medical Service Redfern.

Welcome


Commissioner Cathie Armour

ASIC

Cathie Armour first began as a Commissioner on 3 June 2013.

Cathie has been reappointed for a further 5 years to June 2022.

Before joining ASIC, Cathie held legal counsel leadership roles in

international financial institutions. Most recently, she was

General Counsel for Macquarie Capital and an Executive

Director of Macquarie Group. She has also held senior

compliance and operational risk positions at Macquarie Capital

and at JP Morgan in Australia.

Cathie began her career in private legal practice and was a

lawyer at law firms in Sydney and in New York.

Cathie is a member of Chief Executive Women and a Graduate

of the Australian Institute of Company Directors.

Event Moderator


Tim Gough

Senior Executive Leader, Credit, Retail Banking and Payments

ASIC

Tim leads ASIC’s Credit, Retail Banking and Payments team. The

team oversees supervision of retail banking, consumer and small

business credit, mortgage brokers and other credit

intermediaries, and electronic payments. This includes

responsibility for the regulation of responsible lending and ASIC’s

work to monitor and review consumer outcomes from financial

services. Tim originally joined ASIC in 2005 and held roles in

ASIC's Deposit-takers, credit and insurers team. He started his

career in the community sector as a solicitor with the Consumer

Credit Legal Service (Victoria) and then as Principal Solicitor of

the Consumer Law Centre of the ACT. Most recently, Tim was

the Deputy Ombudsman at the Credit and Investments

Ombudsman from April 2016 to August 2018.

Problem Introduction


Christian Groves

Senior Manager, Credit, Retail Banking and Payments

ASIC

Christian is a Senior Manager in the Credit, Retail Banking and

Payments team which has responsibility for the oversight of retail

banks, credit unions, non-bank credit providers, lessors,

mortgage brokers, and non-cash payment facility

providers. Christian has been at ASIC for 9 years also working as

a Senior Lawyer in the Financial Services Enforcement team.

Prior to joining ASIC Christian worked as a lawyer in the

commercial litigation, consumer credit and crime areas.

Christian holds a Bachelor of Commerce and Bachelor of Laws.

Demonstration:

5 Identified Demonstrators

Each demonstration

10-12 minutes

Brief Q&A for each

demonstration


Problem Solvers


Cognitive View is a transformative RegTech that analyses customer communication data to

identify conduct related issues and automating risk & compliance processes. Bad customer

experience, mis-selling, non-conformance to regulatory guidelines are big challenges for

many organisations as they lose customers, are fined by regulators and incur reputational

risk.

Cognitive View helps regulated entities in meeting their obligations, understanding of

customer experience at various stages of the customer journey. It also prevents a potential

breach at various stages of the product lifecycle including financial advertising and

promotions to reduce conduct related risk.

Problem Solvers


Law of the Jungle is an enterprise cloud solution that helps marketers clear compliance

issues, using AI and advanced technologies to deliver answers, break down complexity and

reduce time-consuming back and forth with Legal and Compliance functions.

The company, formed in 1999, was a first mover in commercialising a technology-based rules

engine for use by non-lawyers. Our marketing compliance solution has been judged ‘Best

RegTech solution’ (General Compliance category) from a global field by UK expert panel

RegTech Forum. The solution is targeted to financial services and other key sectors.

Problem Solvers


Red Marker’s cloud-based SaaS platform automatically analyses digital content for

probabilistic compliance risk using artificial intelligence, machine learning and natural

language processing. Our platform also provides a simple, user-friendly workflow solution to

manage these risks and streamline the compliance process. Red Marker has established a

partnership with Allens law firm, allowing Legal, Risk and Compliance professionals to benefit

from the best of both AI and legal expertise simultaneously.

Problem Solvers


The Sintelix text intelligence solution thrives on unstructured data. Sintelix is a leading text

analytics solution used by law enforcement, defence and intelligence customers worldwide.

Sintelix offers unparalleled information extraction capabilities including entity and relationship

extraction at high accuracy from text in many languages.

Sintelix combines vast amounts of structured and unstructured data from multiple sources to

create entity networks. Data can then be analysed with easy to use visualisation tools

including lists, tables, maps, link charts and timelines.

Sintelix excels in analytical power, accuracy, speed and scalability. Sintelix delivers

significant time and cost savings while also creating new possibilities.

Problem Solvers


Visteo is a Sydney based software development & product advisory firm, building fintech,

regulatory & business solutions for customers in Australia and abroad since 2007.

Our core management team has extensive domain experience of over 40 human years in

financial services, specifically in running regulated functions and building analytical solutions

for capital markets & investments.

We are team of 75+ engineers, designers and solution architects with extensive experience in

cloud technologies, enterprise analytics and open source, based out of Australia and India.

Commentator Observations and Recap of Demonstrations

1.00pm to 1.25pm

Zoe Willis, KPMG

Gleb Shinkarsky, Promontory

Synopsis

• What opportunities for enhanced consumer outcomes

were demonstrated?

• What are some of the potential barriers or challenges in

using regtech to produce better consumer outcomes?

• What themes (if any) were demonstrated in the use of

technology?


Commentator


Zoe Willis

Lead Partner for Regtech, emerging technology and data

KPMG Australia

Zoe is a Data Partner with over 20 years of experience leading

the data space.

Zoe is the lead partner for Regtech, emerging technology and

data in KPMG.

Her experience has crossed the Risk, Audit and Management

consulting functions, and often brings new insights across

engagement types to ensure that leading data techniques,

technology and management are applied ensuring the best

outcomes. Hey key industry focus are Financial Services,

Government and Health.

Commentator


Gleb Shinkarsky

Senior Principal

Promontory Australasia, an IBM Company

Gleb is a Senior Principal with over 10 years of consulting

experience focusing on data and analytics. Working

predominantly in the risk and compliance space, Gleb leads

strategy, advisory and assurance engagements in the financial

services sector. In his role at Promontory, Gleb also works closely

with IBM on a number of RegTech initiatives. These have

included the application of leading technologies to help in the

prevention and detection of conduct related matters, as well as

other compliance and supervision related innovations.

Panel Discussion: Regtech – Experience and Potential

Facilitator:

Mark Adams, ASIC

1.30pm to 2.45pm

Panel:

• Mark Staples, Data61

• David Cummins, PwC

• Jasper Poos, CBA

• Nigel Bond, Westpac

• Larissa Shafir, Citibank

• Deborah Young, The RegTech Association

Synopsis

• What are the challenges for compliance in financial

promotions?

• Is there scope for technology solutions currently or in the

future?

• Where is the development at?

• What is your experience?


Discussion Panel – Facilitator


Mark Adams

Senior Executive Leader, Strategic Intelligence and Co-

Ordinator Innovation Hub

ASIC

Mark leads the team responsible for driving ASIC's data science

agenda as well as leading ASIC’s economic and risk analysis

unit. Mark also leads ASIC's Innovation Hub and regtech

initiatives. Mark has held a range of senior executive positions at

ASIC including lead of ASIC's competition in equity markets

project and the Exchange Market Operators, Regulatory Policy

and International teams. Between 2012 to 2014, Mark held

secondments as Principal Adviser, Financial System Inquiry

Secretariat and Director, Strategy, Research and Risk, Ontario

Securities Commission. Prior to joining ASIC, Mark worked in the

corporate and superannuation areas of a national law firm.

Discussion Panel


Dr Mark Staples

Senior Principal Researcher, Software Systems

DATA61 | CSIRO

Mark Staples is a Senior Principal Researcher at CSIRO’s Data61,

where he leads the regtech program and a number of

blockchain initiatives. He has previously held software and

systems engineering management roles in industries including

industrial control, electronic payments, and medical devices.

He has degrees in computer science and cognitive science

from the University of Queensland, and a PhD in computer

science from the University of Cambridge.

Discussion Panel


Nigel Bond

General Counsel, Consumer, Business & Wealth

Westpac

Nigel Bond is the General Counsel, Consumer, Business & Wealth

at Westpac covering a number of areas including BT, Retail &

Business Banking. Before Joining Westpac in 2014, Nigel spent

8½ years with The Royal Bank of Scotland in both London and

Sydney. While with RBS he occupied a number of roles including

Asia Pacific General Counsel and Head of Legal Australia,

before that he worked for both Clifford Chance and Freehills.

Nigel has a Bachelor’s of Science (Neurobiology/Psychology)

and Law (Hrs) from the Australian National University.

Discussion Panel


David Cummins

Partner

PwC

David is a PwC Partner in their Technology Advisory business. He

has over 20 years experience in advising on all matters related

to technology strategy, operating models and implementation

roadmaps. He consults primarily with PwC’s Financial Services

clients across the Big 4 as well as challenger brands. Most

recently David has been active in assisting our FS clients

navigate the regulatory process from a licensing perspective as

well as opportunities for digital transformation using customer

experience and data/analytics platforms.

Discussion Panel


Jasper Poos

Head of Governance and Assurance, Institutional Banking and

Markets

CBA

Jasper has a strong international track record building operational risk

and compliance teams in emerging and innovative environments. For

the last 4 years Jasper has been working with CBA Institutional Banking

and Global Markets setting up a central function that looks after

operational risk and compliance frameworks, training, policy and

assurance. He also drives innovation in risk working with the CBA

innovation labs and Emerging Tech team across the globe.

Before joining CBA Jasper worked with ING for 9 years. Before relocating

Jasper was Global Head of Compliance for ING’s innovator and online

disruptor ING Direct, looking after teams in the US, Canada, Japan,

Australia, Spain, Italy, Germany, France, Austria. He also spent a few

years leading compliance for ING Bank in the Netherlands and being

their ambassador to the Dutch innovation platform.

Discussion Panel


Deborah Young

Chief Executive

The RegTech Association

Deborah Young is the founding CEO of the RegTech Association, a

community of more than 120 organisations who collaborate, educate

and have ground-breaking conversations. The eco-system comprises

regulators, regulated entities, professional services, government and

technology firms. The RTA was established in 2017 as a non-profit with

a mission to accelerate the adoption of RegTech and to sustain APAC

as a global centre for RegTech excellence. Deborah has more than 20

years experience in financial services advocacy and engagement

across technology, venture capital, private equity, financial

markets, insurance and superannuation. She is passionate about

building a community that accelerates deployment of technology that

drives productivity and superior customer outcomes. Deborah is a 2019

finalist for Women in Finance, CEO of the Year and has an Executive

MBA (Global) from UTS Business School.

Discussion Panel


Larissa Shafir

Director, Head of Consumer Bank Independent Compliance Risk

Management

Citibank (Australia)

Larissa Shafir has over 25 years’ experience in the financial services

sector gained across a variety of legal roles in private practise, in-house

and at ASIC, and compliance and risk roles in Wealth Management and

Consumer Banking organisations. Earlier this year, Larissa joined

Citigroup as Head of Compliance for Citigroup’s Consumer Bank in

Australia. Prior to that, Larissa worked at CBA for over 10 years including

as General Manager Compliance, Retail Banking and Head of Legal,

Retail Banking. Larissa has a deep interest in regulation of the financial

services industry and is passionate about finding practical and

commercial solutions for managing compliance and regulatory risk.

Attendees


BT IOOF illion SeaFund Refinitiv Dwyer Harris Gilbert + Tobin Apt Wealth PartnersKing & Wood

MallesonsCrestone Wealth

Management

ANZ KPMG MyFENG Suncorp Agent Cogo exSell Group Dequity Partners Cirrus TechnologiesKnights

Capital GroupPromontory

(an IBM Company)

CBA Mozo Pepper SuperEd Concentrix GRC Solutions KYC Intelligence Certainty ComplianceNorton

Rose FulbrightGlobalee

Investment Services

IFS Tyro QSuper Westpac G2 Company Advice RegTech N2N Link Pty Ltd Continuing EducationPengana

Capital GroupPeople's Choice

Credit Union

MLC Volt Sargon AMP Bank Link Group Macquarie Bank Allen & Overy LLP Gen Advisory Pty LtdBank of

CommunicationsAberdeen Standard

Investments

NAB Youi Allianz Deloitte Simple KYC Piper AldermanArgus

InformationTeachers Mutual

BankVirgin Money

AustraliaFinancial Education

Professionals

NSX Jaide Dentons Rabobank YTML Group Adviser Ratings Black Arrow Group University of SydneyAkshay Mathur

Pty. Ltd.AI Innovations &

Technologies Pty Ltd

OFX Allens Hollard RoyalPay Barnett LawAssuredSupport

CommonwealthBank

UNSW Business SchoolMark Nolan &

AssociatesFinancial Planning

Association of Australia

TAL Aussie Icebloq Sitecore Evans Dixon AustralianSuper PetSure Australia Willis Towers WatsonSearl Street Consulting

Pinnacle Investment Management Group

Limited

AFMA BrickX Paragem 86400 Ltd IPF DigitalChubb

InsuranceTheta Asset Group

Encore AdvisoryGroup

Centrepoint Alliance Ltd

Australian Building and Construction Commission

GRCI HN Law Regtech AusPayNet Sam Funnell FIIG SecuritiesAeriography

Pty LtdIFM Investors

Pty LtdBendigo and

Adelaide Bank

Event VibeThe Symposium event is designed to be an open ideation where innovators can openly

discuss new technologies to better monitor the promotions area.

Engage in the spirit of the event with a collegial respect.

• Intellectual Property – Any intellectual property (IP) cannot be protected by ASIC and

participation expectations are to respect others’ contribution.

• Logistics – Attending or participating in the event will require self funding (including

any travel or accommodation). Organisations are responsible for their own

arrangements.

• Social Media – participants are welcome to contribute supporting communications

via social media #ASICregtech19.

– Questions during the event can be submitted via

https://app.sli.do/event/13hnia29,

event code #ASICregtechmfp2019


https://app.sli.do/event/13hnia29

Where to now?


Financial Advice Files Symposium

Thursday 22 August, Sydney

Demonstrator Submissions due 11 August

Observer interest open until 8 August

Voice Analytics & Voice-to-Text

Trial and Symposium

Findings to be shared in Sept/Oct

Subscribe to the Mail List to receive exclusive news

including updates on future trials

https://asic.gov.au/for-business/innovation-hub/innovation-hub-events/

https://asic.gov.au/for-business/innovation-hub/innovation-hub-events/

https://asic.gov.au/for-business/innovation-hub/news/mail-subscriptions/

[email protected]

regtech financial promotions monitoring · •show us your solutions 12.00pm –lunch and...

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