AI tool delivers real time compliance


By Daniel Paperny

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Real-time risk mitigation will usher in a new compliance era for financial advisers by empowering them to take control of their own learning and development to make instant decisions when delivering advice or producing content across digital and social channels, according to Red Marker.

Speaking to financialobserver, Red Marker founder and director Matt Symons said that while advice groups had a “tough task” enforcing regulatory compliance among their planner networks, there was untapped potential in regulatory technology (regtech) and artificial intelligence (AI) that could help streamline and reduce daily compliance burdens.

“On the one hand, the community and regulators seem to be demonstrating diminished patience for even some might say modest technical failures,” Symons said.

“On the other hand, the volume of material that needs to be reviewed is growing at a seemingly exponential rate, so we think the compliance and risk function is on a hiding to nothing.”

The comments come on the back of an announcement last week by global education provider Kaplan Professional that it had acquired Red Marker, the regtech start-up behind AI tool Artemis.

The compliance offering allowed licensees to identify compliance risks and educated advisers by supplying them with real-time feedback, interventions and professional development opportunities.

“The idea that you can bring smart detection and real-time detection together is in our view one plus one equals three, because advisers aren’t then just being alerted to risk, they’re able to fix it themselves,” Symons said.

Artemis, the culmination of a three-year collaboration with Kaplan, drew on machine learning to allow financial advisers to actively engage in their own professional development and remediate posts or messages that were flagged as potential compliance breaches.

Kaplan Professional chief executive Brian Knight was enthused about the prospects of Artemis, calling it a “game-changer” for the advice industry.

He said the need for this type of machine learning-based compliance solution was critical in Australia.

“AI will revolutionise education and it will empower our clients to find ways to ensure their advisers can provide trusted and reliable advice now and into the future … enabling advisers to remediate problems as they arise in real time,” Knight said.

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