Wells Fargo Investigation into Bias against Women

Wells Fargo for the last few months investigated a gender bias against senior female leaders in its wealth management unit. After interviewing dozens of women including internal town halls, the investigation was closed.

Within asset and wealth management at large, there has been a greater focus on diversity and inclusion, but as this week’s news shows, the percentage of female senior leaders, partners and executives in the investment management industry is still far too low.

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WEF Future of Jobs Report 2018… is your job safe from AI?

The World Economic Forum just published a 175 page report on the future of jobs (a follow-up from the original 2016 report: Future of Jobs – Employment, Skills, and Workforce Strategy for the 4th Industrial Revolution).

Turns out, the future is bright – and bleak.

  • Machines will do more work than humans by 2025, but I guess that’s actually a good thing.
  • Ubiquitous high-speed mobile internet access, AI, widespread adoption of big data analytics, and cloud technology combined will positively drive growth from 2018-2022, with machine learning and augmented and virtual reality likewise receiving significant interest and investments.
  • The human-machine frontier for existing tasks across industries will shift: 71% of all tasks today are performed by humans, 29% by machines. By 2022, the ratio will be 58:42.
  • The changes outlined above are profound, especially for investment managers, many of which are still only exploring the automation of basic back office tasks.
  • So will your job still exist in five years? Take a look below:
  • AI, technology and innovation is a specialty session for the CSI member executives this month in Boston, with a multi-hour workshop and open discussion, including AI pioneers giving their input for asset managers.

    Don’t miss the tech boat.

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    Warburg Pincus invests $100m in Canadian compliance supply chain data management software firm

    Who says compliance is boring… combine compliance and regulatory issues with technology and software solutions and you get something noteworthy. At least according to private equity firm Warburg Pincus, who yesterday announced $100 million investment in Ottawa-based Assent Compliance, a leader in supply chain data management software.

    The investment helps Assent Compliance build out its software and platforms, as well as to enhance its product compliance, vendor mangement, and corporate social responsibility solutions, to “respond to the significant volume of data and regulatory requirements”.

    CEO Andrew Waitman joined Assent three years ago, after stints at professional services firm Pythian and as managing partner of Celtic House Venture Partners.

    FinTech and RegTech have been front and center for investment managers as they are dealing with new regulatory developments and global competitors.

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    Facebook data breach lets hackers control 50 million accounts

    Facebook announced that hackers had used a weakness in Facebook’s code regarding its “view as” feature this week to take over control of up to 50 million accounts. The hackers got access tokens to stay in accounts without re-entering a password.

    Some 50 million users had their access tokens stolen – they were reset by Facebook, and now users have to re-enter their passwords when they try to access the service.

    Facebook said the hack happened because of “complex interaction of multiple issues in our code”.

    The complexities of cybersecurity were discussed in a special workshop on AI at our most recent female executive roundtable for Women in Compliance, and also in our round tables in Paris and London with CISOs from large financial services and fashion brands.

    To be part of the technical committees or to learn more about CSI, give us a call.

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    GAM CCO steps down two months after joining the firm from the FSA

    Natalie Baylis two months after joining Swiss alt asset manager GAM from the UK’s Financial Conduct Authority as Group Head of Compliance and member of GAM Holding AG’s Group Management Board to help with the aftermath of Tim Haywood’s suspension, abruptly announced her departure this week.

    Bond PM Haywood had managed over $7 billion for GAM, but was suspended for breaching policies on record-keeping, risk management, and gifts and entertainment (triggered by an internal whistleblower).

    Baylis cited “personal reasons” for leaving, and now Schroder’s GC for wealth and asset management, David Kemp, will take over on an interim basis, working partnership with another newcomer, Rachel Wheeler, who two months ago became GAM’s GC from Aviva.

    CEO Alex Friedman and Head of Investments Matthew Beesley have been working with key accounts to retain assets and regain trust, and, given the board director issues around Haywood, GAM implemented a new policy that bars PMs from being on boards of any investment-advisory entities.

    The Compliance Strategy Institute in its most recent “Women in Compliance” executive roundtable in NY discussed how female leaders can work with their counterparts in risk, investments, tech, data and legal to ensure better communication and processes, to establish regulatory and compliance partnerships with the business side.

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    Compliance 101 – Uber has to pay $148 million for its 2016 data breach/coverup

    Hackers in 2016 stole personal data for tens of millions of Uber users (and also drivers). Uber didn’t report the breach and decided to pay two hackers (one of them a 20-year old Floridian) $100K on HackerOne to stay quiet and delete the data.

    HackerOne, btw, is described as “the most trusted hacker-powered security platform”, with HackerOne:

    Response (a compliant process for receiving/acting on vulnerabilities discovered by third parties)

    Challenge (improving pen-test results with a project-based vulnerability assessment program)

    Bounty (a private, fully-managed bug bounty program for continuous coverage)

    HackerOne receives an IRS W9 or W8BEN forms before payments can be made, and Reuters reported on Uber making payments to the Florida hacker on the platform.

    All 50 states and D.C. filed a lawsuit and yesterday the California attorney general announced a settlement of $148 million with the company. Uber also agreed to strengthen its cybersecurity infrastructure and provide updates to the states on a quarterly basis.

    Tony West, Uber’s CLO, joined once the prior chief security officer was fired, handled the cleanup process. The company said that the hackers had targeted third-party cloud-based services. Uber still has to deal with private party lawsuits and those of some specific cities.

    A lot of important lessons on cybersecurity, compliance setups for financial services providers and the growing importance of Artificial Intelligence.

    We discussed AI and cybersecurity/cryptocurrency issues in our most recent CSI roundtable in NY.

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    WomenInCompliance.com – meet speaker Neshie Tiwari, CCO of Ellevest

    Neshie Tiwari is the chief compliance officer for Ellevest, the investment management company for women by women, co-founded by Sallie Krawcheck in partnership with Charlie Kroll.

    Ellevest was founded in 2016 as a digital financial advisory platform for women.

    According to Neshie, “everyone is responsible for compliance…. and ethics.”

    In the most recent “What the Elle?” Newsletter from August 21, 2018, she also described situations with potential conflicts of interest and how Ellevest published details on the possible conflicts and its mitigation in Ellevest’s Form ADV.

    Other focal points for CCOs, in Neshie’s opinion, are “the benefits of diversity to build a strong business”, to “talk. A lot.” and “rules are good. A ‘true north’ is better.”

    She will share her thoughts in panels and workshops at WomenInCompliance.com. While space is limited, we still have a few spots left for C-level female (and male) compliance, risk, data, tech and legal officers.

    See you on September 18th.

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