GDPR and Communica Breakfast Event

Digterre invites you to its’ exclusive breakfast event on GDPR

The new EU General Data Protection Regulations come into effect on 25th May 2018. This is a major piece of legislation potentially requiring extensive changes within organisations who process personal information.

Digiterre has been actively developing its’ Communica product to ensure it is compliant with the significant aspects of the new legislation.

The event will cover :

  • Managing consent for holding and using personal data;
  • Providing accurate information rapidly for data access requests;
  • Allowing individuals the right to be forgotten.

We will have guest speakers from Microsoft and an industry GDPR Consultant.

Date: Wednesday 25th April
Venue: Millennium Hotel, London Mayfair, Grosvenor Square, London W1K 2HP
Location Map 
Time: Breakfast served from 7.45am

Click here to register

Please feel free to forward this invitation to colleagues who may also be interested in this subject.

Don’t rest on your laurels: compliance with GDPR is just the start in avoiding the cost of data breaches

The financial services industry is no stranger to regulation but the impending arrival of the General Data Protection Regulation (GDPR) on 25 May is setting nerves on edge. The reason is the rather enormous fines facing organisations that fail to comply.

The maximum financial penalty that can be imposed under the GDPR is €20m or 4% of turnover, whichever is the higher. Much has been written about the Tesco breach in November 2016, when 9,000 of its banking customers had their accounts compromised, and the fact that, had the GDPR fine been imposed on the group, it would have amounted to £1.9bn.

Not surprisingly, businesses have been focusing intently on understanding the terms of the GDPR and making sure they are fully compliant. But there is a danger here. The terms of the GDPR were set out in May 2016, since when the tactics and techniques of hackers have grown increasingly sophisticated. Adhering to a set of regulations is not an adequate strategy for data protection.

The real cost of a data breach

When a serious data breach occurs, everyone loses. Customers may find their accounts drained, as in the case of Tesco, or their personal information leaked, as in the case of the Uber breach in 2017. This leaves them feeling insecure and their confidence in the targeted organisation is hit hard.

When hackers stole the personal records of 57 million riders and drivers from Uber, the company agreed to pay a ransom of $100,000 dollars and tried to cover the whole thing up. This dishonesty backfired when Bloomberg broke the story, and Uber has been trying to rebuild its reputation ever since.

A loss of customer confidence can be fatal, especially in the financial services industry. Customers trust their bank to take good care of their financial assets and the data that can unlock them. The cost of rebuilding trust after an incident like the attacks on Tesco and Uber, coupled with the costs of paying compensation, fighting off the attack and rebuilding a more robust data security infrastructure, should be the real focus when putting together your data protection strategy.

Build some realism into your data security

The fact is that data breaches are inevitable. The cyber attack surface is growing all the time and the incidence of attacks, particularly against the financial services industry, is growing exponentially. In 2016 the Financial Conduct Authority received 38 reports of material cyber incidents; in 2017 that figure rose by more than 80% to 69. It’s how you prepare for the inevitable breaches that matters most to your business.

Traditionally it has been a case of protecting your system perimeters, detecting attempts to break in and reacting quickly to stamp them out, but now we know that this is not the most effective approach. While protecting your perimeters is still important as one line of defence, it’s how you contain an attack once it’s inside your network that really matters.

Containment is key

The hackers that attacked Uber got in with relative ease through a third party, then had a field day as they moved around finding valuable data that was not properly segmented and protected. Had they not been able to move around with such ease, the scandal could have been avoided.

Where organisations fall down is not so much in failing to keep out bad actors but in allowing them to move around the whole system once they’re in. It’s like putting all your assets in the same vault – or all your eggs in one basket. Once the hacker’s broken into the basket, there’s no stopping them.

In fact, they might not even have to break in. The most common threat to an organisation’s data security comes from its own employees, both through malicious intent and unwitting carelessness. Robust data security, therefore, should not only carry out the ‘protect, detect, react’ approach but should control the access permissions of every single user, app and device connected to your system.

This means effecting a change in the culture of data security, from one where everyone within the perimeter is assumed to be friendly unless proven hostile, to one where everyone is seen as a potential threat. This ‘zero trust’ approach means determining which users and devices require access to which data assets, then applying segmentation to create an encrypted barrier between assets. With this level of protection in place, any data breach remains localised and contained and the damage is limited.

Restructuring can be good for business

Changing the way you structure and organise your data security may seem like a costly burden, made necessary by the GDPR, but there are significant advantages to be gained. A Digiterre white paper on businesses’ GDPR issues, published in January 2018, revealed concern over the time and cost involved in trying to comply with subject access requests, due to poorly organised records. By putting in place robust administrative processes, with easily searchable digital records, organisations can streamline their data processing to their own advantage, simultaneously refining their target market and communicating more effectively with customers.

In enforcing change in the way businesses and organisations structure their data assets, the introduction of the new regulation has presented an opportunity to review your data security strategy and implement an approach that will not only keep you compliant with the GDPR but, more importantly, keep you out of the headlines as the latest beleaguered victim of cybercrime.

Digiterre’s top 10 hedge fund trends for 2018

Hold onto your hats! From AI to cryptocurrencies – rapid change is the only constant for hedge funds. Digiterre’s top 10 hedge fund trends for 2018. 

What’s the outlook for the hedge fund industry over the year ahead? The industry will continue to evolve and at breakneck speed. Digiterre, a leading provider of workflow and relationship management software systems to the investment management sector, summarise the top ten trends for hedge funds over the months ahead:

1) Political volatility in markets will present major opportunities for hedge fund investments

Brexit and the US mid-term elections will be just two of the upcoming events favouring global hedge fund volumes and activity, contributing to the overall growth rate of 5.5% in 2018 forecast by Agecroft Partners. 2018 is very likely to see a continuation of the hedge fund growth witnessed in 2017 and be a year of macro investing. An estimated $1trn of debt maturing in Europe, the Middle East and Africa will boost the estimated $5trn in dry powder (cash and liquid assets) available as investors seek alternatives to more passive, low-cost investment strategies. These alternatives will include hedge funds, likely to play a more central role in private wealth and institutional portfolios.

 2) Asia and developing markets will be increasingly attractive for investment

 Another extension, even acceleration of 2017 hedge fund activity, will be greater exposure to Asian and developing markets. And especially to the giant economies of China and India – both driving for greater openness to the rest of the world and further reductions in their previously stifling bureaucracies. Hedge funds such as Pharo, Bluecrest and Adar have recently proved the returns possible from emerging markets in stark contrast to some players more exposed to developed markets. Asian markets also typically offer lower P/E multiples, higher volatility and less institutional ownership – all signs traditionally good for hedge fund investment.

3) Cryptocurrencies will be a must for diversified portfolios

The digital coin sector is bound to increase and play a growing part of diverse, rather than single investment strategies.  Whilst it’s still very early days, we think it will continue to experience huge innovation, evolution and exponential growth and will ultimately end up as a commonly used consumer currency. The Cboe options exchange has already announced the commencement of bitcoin futures trading and there are already over 120 hedge funds focused on the area. Commentators like Agecroft expect the number of hedge funds involved in cryptocurrencies to at least double or treble in 2018 alone. Whilst future growth is forecast in the overall industry, at the same time you can’t ignore the significant caution advised over bitcoin, its largest player, who many see as having been bid up by excessive hype and speculation into potentially one of the largest financial bubbles in history!

4) Not only bitcoin, but blockchain technology will roar ahead too

The strong overall hedge fund market performance for 2017 was dwarfed by returns from the HFR Blockchain and HFR Cryptocurrency indexes that track managers investing in bitcoin, ethereum and others in the cryptocurrency space, as well as companies involved in blockchain technologies. In 2018, technical pioneers will continue to build a future where humans play only a minor role in setting up, regulating and reporting the regulatory requirements of investment funds; everything will be underpinned by cutting-edge technologies. Innovations are emerging across the whole investment management chain to bring data securely to the blockchain (e.g. by Oraclize), exchange assets in a secure peer-to-peer way (e.g. with exchanges like Ox, Kyber, Oasisdex), issue digital assets on chain (e.g. such as regulated equities and derivatives) and setup and regulate investment funds.

5) Reinsurance stocks will become increasingly attractive for hedge fund investment

 2018 is likely to see further hedge fund investment growth in reinsurance stocks due to expected price increases, driven by the hurricanes of 2017.  Furthermore, the earthquakes in Mexico and wildfires in California mean that 2017 could even be the worst year on record for insurance losses. Munich Re and Swiss Re, the world’s biggest reinsurers, have said they expect reinsurance rates to rise in consequence, with Swiss Re seeing rates rising by up to 50 percent in disaster-hit areas. Several hedge fund goliaths are betting on a significant recovery for reinsurance stocks including Marshall Wace, Marathon Asset Management and Balyasny Asset Management.

6) Long/short equity managers will seek to add significant value through IT advantages  

Managers will continue to investigate and implement a plethora of new technologies to add value and enhance hedge fund investment processes, client management and decision making. This includes technologies such as quantitative analytics, alternative data sources, cutting-edge CRM platforms, machine learning and artificial intelligence. Information breakthroughs and new technologies will be increasingly used to increase efficiency and accuracy in sourcing information, researching ideas and executing investments. 

7) Hedge fund service outsourcing will continue its upward spiral

Coupled with the growth in use of more sophisticated technologies by hedge funds in the drive for better quality, will be the outsourcing of several parts of hedge fund business infrastructure. This is also likely to include parts of hedge fund research and investment related activities. These may include IT, legal, compliance, 3rd party marketing, back office, data providers and analytics.  In parallel to and in response to these outsourcing shifts, firms will place even more focus on cyber security and disaster recovery policies and procedures.

8) Growth of hedge fund distribution will occur from global marketing innovation

Several specialist law and marketing firms have developed products that can identify and simplify the requirements to market investment funds in over 100 countries around the world. Many of these countries now have lower barriers to entry or benefits that are high enough to justify the various on-costs and requirements necessary to gain a marketing presence. A significant number of investors in these jurisdictions will be looking for high quality hedge fund managers but to date, have been underserved. These products can finally provide a breakthrough to marketing in these jurisdictions.

9) The squeeze on hedge funds will lead to some culling of numbers

The squeeze from both the expense and revenue sides of hedge fund businesses, especially for the majority with less than $100m in assets, will lead to some closures where funds are underperforming.

Furthermore, downward fee pressure will continue on any size of hedge fund struggling with underperformance; this will be coupled by growing competition from alternative, similar investment management products which also have lower fees. These will include smart beta products, alternative uses products and rich premium products.

10) Less traditional fee structures will emerge in 2018

 Finally, less traditional fee structures are likely to become a regular part of new fund allocations. With hurdles (before any performance fees are charged) for any investors who have the leverage to negotiate. We agree that the investor community is correct in demanding that alpha alone should merit performance fees.

And these are only our top 10 trends, by no means all of the trends likely to visit the hedge fund industry in 2018. Hold onto your hats? Fasten your seatbelts too!

(Source: Bloomberg News, Agecroft, Mercury, CNBC, Coindesk, Reuters).

 

GDPR and Communica Breakfast Event

Digterre invites you to its’ exclusive breakfast event on GDPR

The new EU General Data Protection Regulations come into effect on 25th May 2018. This is a major piece of legislation potentially requiring extensive changes within organisations who process personal information.

Digiterre has been actively developing its’ Communica product to ensure it is compliant with the significant aspects of the new legislation.

The event will cover :

  • Managing consent for holding and using personal data;
  • Providing accurate information rapidly for data access requests;
  • Allowing individuals the right to be forgotten.

We will have guest speakers from Microsoft and an industry GDPR Consultant.

Date: Wednesday 21st March
Venue: Millennium Hotel, London Mayfair, Grosvenor Square, London W1K 2HP
Location Map 
Time: Breakfast served from 7.45am

Click here to register

Please feel free to forward this invitation to colleagues who may also be interested in this subject.

 

 

 

 

General Data Protection Regulation (GDPR) White Paper

Digiterre recently undertook a GDPR health check survey to find out industry peers views on concerns and preparations for this major regulatory change. Read Digiterre’s GDPR White Paper for the results.

General Data Protection Regulations and Communica

We wanted to keep you updated on our plans for the new EU General Data Protection Regulations which come into being on 25th May 2018.   This is a major piece of legislation potentially requiring extensive changes within organisations who process personal information.
We are currently working on reviewing our product to take into account some of the relevant issues.  The key aspects we are currently looking at integrating into the system are:

  • Managing Consent for holding and using personal data;
  • Providing accurate information rapidly for data access requests;
  • Allowing individuals the right to erasure and to be forgotten.

If you are a current client and have any queries please contact your Account Manager. Alternatively, if you would like to learn details of the Communica product please contact us at info@digiterre.com.

We are holding an event in March to go over our GDPR enhancements, if you are interested in attending please let us know.

Digiterre wins Best Workflow Management System at HFM European Technology Awards 2017

Digiterre Communica are extremely pleased to announce that it has today won the 2017 HFM European Technology Awards for “Best Workflow Management System”.  The HFM European Technology Awards is an afternoon to acknowledge and celebrate IT and software providers serving the hedge fund sector that have demonstrated exceptional customer service and innovative product development over the past 12 months.

These awards are an acknowledgement for our marketing compliance product which enables the financial services industry to market their products without fear of violating legislation and regulatory requirements.   Our compliance engine has been designed in association with clients from the Buy-side and Sell-side to support them in managing their marketing compliance obligations.   It negates the need for semi-manual systems which cannot hope to scale and also reduce the cost of compliance through automation.   The compliance designer is flexible to adapt to the specific process of individual business and also enable non-technical users to design or modify their compliance processes (as regulation changes).

Ian Murrin Founder and CEO of Digiterre responded to the award by saying that ‘We are delighted and honoured to be the recipients of these awards. The Digiterre Communica team has worked extremely hard and in partnership with our clients, to ensure that our Compliance software meets the wide-ranging needs of different industry participants. These awards validate that hard work and technology investment.   We wanted to develop a product that directly addresses pain points for both Buy-side and Sell-side organisations and which we can continue to enhance so as to meet future regulatory compliance challenges as they evolve. One vital aspect of our success to date has been to develop this in partnership with key industry players. So in addition to acknowledging the huge efforts by my team, I would like to thank all of our clients, prospects and partners for their help in designing, developing and producing the Communica Compliance Engine, all of who have contributed significantly to us winning these awards

For more information on the Communica Compliance Engine please go to www.communica.net/compliance/.

Press contact: Ellie Savage: EllieS@digiterre.com or call +44 (0) 20 7381 7960

Digiterre’s MD Jarrod Martin is taking part in the Prudential Ride London-Surrey 100 for Help the children.

Digiterre’s MD Jarrod Martin is taking part in this years Prudential Ride London- Surrey 100.

Jarrod’s ride is raising money Help For Children which provides grants to the most effective and efficient child abuse prevention and treatment interventions in the UK.

HFC (UK) grants strengthen families, reduce the risk of child abuse, decrease trauma and mild resilience for those children who have been abused. We have one clear goal: to raise as much money as possible to fund high impact organisations that protect and heal children in the UK.

Prudential Ride London is the largest annual cycling fundraising event on the planet – riders in the Prudential RideLondon-Surrey 100 have raised £17 million for good causes since the event began in 2013.

Click here to donate!

https://mydonate.bt.com/fundraisers/jarrodmartin1

Ian Murrin, CEO and founder of Digiterre, speaks to HFMWeek about the latest regulatory trends

 

HFMWeek (HFM): What regulatory developments have been of the most significance to the industry in recent years?
Ian Murrin (IM): Broadly speaking, the sheer number of regulations and their complexity is what has changed most within the industry in the recent years. For global banks that are present in multiple markets, implementation of each regulation can be very complicated with regulators not talking to each other or trying to ensure that solutions can bereused for different regulations. For investment managers, many of whom are small or mid-sized firms, the added burden of regulations such as AIFMD on the marketing side and Mifid II, which can touch multiple areas of the business, can overwhelm an already stretched team making it difficult to achieve compliance.

 
HFM: What were the drivers in these developments and how were they received?
IM: New financial market regulations are obviously aimed at increasing transparency, reducing risk and increasing stability. The themes broadly focus on harmonising and improving market structures, enhancing bank structures to protect consumers and marketing processes to protect investors, increasing tax transparency to reduce tax avoidance and increasing capital and liquidity within banks to enable them to better weather downturns in the markets. This has left the financial services industry with a significant compliance overhead that it is continually struggling to deal with. For example the Mifid II regulations coming into force in January 2018, puts many organisations under significant pressure to ensure they have processes in place to deal with its’ complexities.

 
HFM: How will the growing form of technology impact the industry?
IM: Technology will be very important in enabling firms to future proof their implementations thereby allowing them to more easily and quickly onboard new regulations at a fraction of the cost. Compliance requires the collection of ever increasing quantities and forms of data. Increasingly, and specifically within some of the Mifid provisions, the reporting and analysis has to be done in near-real-time, which precludes relying solely on human oversight and which would overwhelm any manual approach. Big data and other related technologies allows this data to be consolidated in one place and then reported on efficiently and in a timely fashion to meet the needs of regulators, who may require information at very short notice.

 
HFM: What issues surrounding compliance do those within the industry find themselves having to deal with as a result of the growing weight of regulations?
IM: While historically certain regulations allowed some flexibility around reporting there has been a clear shift towards accurate reporting 100% of the time. So, due to the constantly changing regulatory requirements, the technology and related processes need to be flexible and able to cope with being applied to different regulations across multiple jurisdictions over time. However, as “data is the new oil” this need to improve data centralisation, quality and transparency is also an opportunity for organisations to derive more value from the data they produce, using applying big data and AI principles and technologies to spot and act on transient market trends.

 
HFM: What advice can you give for those who may be struggling or unsure of what the next steps are?
IM: The most important step is to understand all of the upcoming regulations that could impact the company. There are efficiency savings that can be made if you look across the regulatory landscape and build a solution that is not only fit for purpose for multiple regulations but one which is built with a “future-looking” perspective; this includes finding ways to leverage the resultant improvements in data quality and visibility, to better inform senior management about business risk and performance and help them spot and seize new market opportunities. Once that is identified it is important to invest the time and money to build the right technology solution for your firm with the right programme management to ensure it is done efficiently and to budget.

Digiterre shortlisted for HFM European Hedge Fund Services Awards 2017

Digiterre are pleased to announce we have been shortlisted for the HFM European Hedge Fund Services Awards 2017

Digiterre have been nominated for several awards including Best cloud computing solution, Best regulatory hosting platform, Most innovative technology provider and Best technology – overall.

The annual HFM European Hedge Fund Services Awards are an afternoon of recognition and reward for those hedge fund service providers that have demonstrated exceptional customer service and innovative product development over the past 12 months.

The winners will be announced at a lunchtime ceremony on Thursday 27th April at The Hurlingham Club, London.