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Industry roundup: 19 January

MAS enhances guidelines to combat heightened cyber risks

The Monetary Authority of Singapore (MAS) has issued revised Technology Risk Management Guidelines to keep pace with emerging technologies and shifts in the cyber threat landscape. The revised Guidelines focus on addressing technology and cyber risks in an environment of growing use by financial institutions (FIs) of cloud technologies, application programming interfaces, and rapid software development. The guidelines reinforce the importance of incorporating security controls as part of FIs’ technology development and delivery lifecycle, as well as in the deployment of emerging technologies. 

The recent spate of cyber attacks on supply chains, which targeted multiple IT service providers through the exploitation of widely-used network management software, is a clear indication of a worsening cyber threat environment. The revised guidelines set out the following enhanced risk mitigation strategies for FIs:

  • To establish a robust process for the timely analysis and sharing of cyber threat intelligence within the financial ecosystem.
  • To conduct cyber exercises to allow FIs to stress test their cyber defences by simulating the attack tactics, techniques, and procedures used by real-world attackers.

In light of FIs’ growing reliance on third party service providers, the revised guidelines set out the expectation for FIs to exercise strong oversight of arrangements with third party service providers, to ensure system resilience as well as maintain data confidentiality and integrity. They also provide the following additional guidance on the roles and responsibilities of the board of directors and senior management: 

  • The board and senior management should ensure that a chief information officer and a chief information security officer, with the requisite experience and expertise, are appointed and accountable for managing technology and cyber risks.
  • The board should include members with the relevant knowledge to provide effective oversight of technology and cyber risks.

 

BMO Global Asset Management launches ESG tool to align investments and beliefs

BMO Global Asset Management (BMO GAM) has launched MyESG, an online tool to help advisors and individual investors better understand environmental, social and governance (ESG) investing preferences. MyESGTM uses data collected through a BMO GAM survey to help guide the discussion between investors and advisors.

The BMO GAM survey, conducted in conjunction with DCIIA Retirement Center, found four distinct ESG investing personalities:

  • ESG Motivated (22%) - Does not separate belief from investment decisions. Such investors are likely open to numerous ESG-related options and feel strongly about shareholder activism
  • ESG Ready (30%) - Sees value in ESG, but still tends to separate investment choices with personal beliefs. There is opportunity for advisors to further educate investors on how their beliefs are investable
  • ESG Pragmatic (27%) - Approaches ESG from a portfolio perspective, basing investments on financial goals over values. These investors likely need to see that ESG investments provide the right profile for their risk and return appetite
  • ESG Skeptical (21%) - Positive impact is not these investors' motivation, and ESG investments likely need to demonstrate solid risk-adjusted returns. Advisors can start discussions with investors citing examples of where material ESG considerations impacted a company's performance

"When it comes to ESG investing, there is not a one-size-fits-all conversation for advisors and investors," said Kristi Mitchem, CEO of BMO Global Asset Management. "By using these personas, we are looking to deepen the conversation and close the gap between ESG beliefs and investing habits."

Other highlights from the BMO GAM survey include:

  • The majority of investors (72%) strongly agree companies can have a positive impact on the world and make a profit.
  • Roughly a quarter of investors asked their advisor to recommend ESG investments (28%) or had advisors recommend ESG investments (26%) in the past two years. Over half (56%) plan to ask their advisors about ESG investing in the next year.
  • High-net-worth individuals are more likely to believe it is possible to measure the positive or negative impact a company can have on the world.
  • Only seven per cent of investors disagree that shareholder voting could be a powerful way to influence companies to improve sustainability and fair practices over the long term

 

Broadridge targets APAC with COO appointment

To meet growing demand for delivering technology solutions to financial institutions in Asia Pacific (APAC), Broadridge Financial Solutions has announced the appointment of David Ingleson as chief operating officer (COO) for APAC, effective immediately. Based in Singapore, Ingleson will report to Samir Pandiri, president of Broadridge International. In this role, he will oversee regional implementation strategies for Broadridge, direct operations and support of Capital Markets clients in the region, and focus on further investing in Broadridge’s local market expertise and capabilities.

“Clients are facing an extraordinarily complex operating environment and David’s deep industry and regional knowledge are key assets as Broadridge helps clients adopt and apply next-generation technologies to drive business,” said Samir Pandiri, president of Broadridge International. “We are very excited to have David join Broadridge as we expand our regional capabilities and we look forward to his leadership in driving client success and team building.”

Ingleson has more than 15 years of leadership experience establishing and growing financial and technology service businesses in APAC. Prior to joining Broadridge, he held leadership roles at BNY Mellon and was most recently head of Asia Pacific for Eagle Investment Systems, a fintech subsidiary of the company, and previously was head of Service Delivery. Throughout his career, Ingleson has had experience in driving business development, delivering data and analytical services and enhancing operational performance.

Broadridge aims to help financial services clients across the APAC region transform their businesses to scale their revenues, reduce the cost and complexity of their operations, improve corporate governance and onboard new technologies, including AI, blockchain, cloud and digital.

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