Artificial intelligence and biometric functionality will soon be part of the toolkits of global regulators, predicts law firm Herbert Smith Freehills.
In a report released yesterday, Herbert Smith Freehills (HSF) suggested that corporations and financial institutions will face an increased compliance burden as regulators upgrade the technology at their disposal.
HSF Australian head of disputes Luke Hastings said regulators have lagged on the adoption of new technologies into their investigation and enforcement procedures in recent years but that the status quo is likely to change.
“Global regulators will increasingly use artificial intelligence and biometric tools to collect, analyse and respond to data, as well as to predict and detect financial services wrongdoing. As a result, regulators will demand more information and move closer to real time surveillance,” Mr Hastings said.
“This will mean an increased burden for companies and they will need to ensure they are meeting regulatory requirements, not just in the jurisdiction they are headquartered, but in all the countries they do business.”
The firm also anticipated that 2017 will see ASIC seek greater enforcement and penalty powers for itself, alongside an ongoing focus on competition issues and consumer credit crackdown.
“Both ASIC and the Australian Competition and Consumer Commission want to strike a balance between protecting consumers and promoting competition and innovation,” said HSF partner Fiona Smedley.
“We expect that 2017 will see continued co-operation between both regulators.”