AuthorPeter Oakes is an experienced anti-financial crime, fintech and board director professional. Archives
December 2024
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The funeral of Queen Elizabeth the Second is happening on Monday, with the mourning period continuing up until that day. Soon after that, final decisions will be made surrounding the currency, and the changing of notes depicting the Queen’s head, to King Charles III’s head. Peter Oakes is a business consultant, Board Director of TransferMate, formerly of the Central Bank, joined Kieran on the show to discuss the process. Click here to LISTEN Linkedin Post HERE
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Download Report - The Use of Supervisory and Regulatory Technology by Authorities and Regulated Institutions Market developments and financial stability implications One for all the #regtech and #suptech ambassadors / champions in the network (and you may have spotted it) - Use of Supervisory and Regulatory Technology by Authorities and Regulated Institutions covering:
As you will see in the images below and in the report, less than 50% of supervisory authorities responding to the FSB survey had a Chief Data Officer or equivalent. Areas where new RegTech tools and uses for data have been developed post 2016 are:
Whereas pre-2016, the supervisory authorities were focused on:
Future technology use by the regulator I thought the section 9.2 Future technology use by the was regulator interesting. The FSB reports that rapid changes to the financial landscape and evolving market structure could be accompanied by changes in supervisory surveillance techniques. [Oakes - Ok so that is relatively obvious] 85% + of survey respondents expect that the continued evolution of available technologies will result in changes to supervisory processes, with 68% expecting this to be a considerable change. However, authorities expressed concern that undue reliance on SupTech tools could lead to misplaced focus on areas where risks can be easily measured. [Oakes - so just because you can do something doesn't mean you should do it]. This may deflect attention from areas of concern that are not as easily given to quantifiable measurement [Oakes - so true]. Retaining a forward-looking human based supervisory process Thus while authorities may recognise the importance of integrating technology into their supervisory approaches, they could also acknowledge the importance of retaining a forward-looking human based supervisory process. The modern supervisory philosophy in most jurisdictions surveyed is based on predictive and human judgement-based oversight of regulated institutions. Technology offers the opportunity to automate routine tasks, develop new analytical techniques and provide better information. Using tools such as AI and ML to analyse increasing volumes of regulatory data provides opportunities for authorities to shift their focus to those aspects where humans excel over machines, e.g. judgement-based decision making. [Oakes- couldn't add anything further to that]. Cases Studies I also recommend a read of Annex 1 where the Case studies and examples are contained. There are case studies from 26 supervisory authorities:
Source: https://www.fsb.org/2020/10/the-use-of-supervisory-and-regulatory-technology-by-authorities-and-regulated-institutions-market-developments-and-financial-stability-implications/ https://www.fsb.org/2020/10/the-use-of-supervisory-and-regulatory-technology-by-authorities-and-regulated-institutions-market-developments-and-financial-stability-implications/
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"Decision makers seem hostile to a consideration of evidence or research". This post relates to the Reserve Bank of Australia board, which has been lashed by a former researcher for failing to understand monetary policy in an email made public. Many of the points raised could be levied at other central banks too. As central banks continue to claim immunity from scrutiny under a misguided cloak of a widely misunderstood principle of 'central bank independence', which applies to some but not each and every aspect of a central bank's remit, we should expect to see more criticism of them particularly:
On the 2nd last point, it is welcome reading that in the case of the Australian central bank the damning email was released by the bank following a freedom of information request. This is not something one could expect from many European central banks. The email also criticised the central bank for:
Here's a link to the Australia article on Reserve Bank Here's the link to Stefan Gerlach's (former Central Bank of Ireland deputy governor) post on his 'lonesome battle against the incantations' Both are worth a read. And when you do, think about any relevance to your central bank and although there is always two sides to every story, in the absence of comment by the Australian central bank, the reports of Dr Peter Tulip's comments make for compelling reading and thinking. This article is reference in my post on Linkedin.
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Here's an enforcement action which will serve as a useful typology for fitness and probity, not to mention culture and behavior, as Ireland heads towards a Senior Executive Accountability Regime by Peter Oakes Peter is was appointed the first Director of Enforcement and Ant-Money Laundering at the newly reconstituted Central Bank of Ireland in 2010, where he led and developed the creation and staffing of the new Enforcement and Anti-Money Laundering Directorate with responsibility for delivering administrative sanction procedure enforcement actions, unauthorised providers actions, fitness and probity supervisory and enforcement actions and development of new regulatory laws. Peter has worked on a number of regulatory enforcement matters since leaving the Central Bank and is available to advise and represent on such matters. Read more here Bullet Point Summary
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