By Alexander Culley, CEO and founder, C & G Regulatory Solutions

It’s Sunday 17^th July and the UK is about to go into meltdown, literally and figuratively.

Thankfully, I was set to escape the searing heat as Behavox had kindly extended me an invitation to attend its conference on Artificial Intelligence in Compliance and Security, to take place in Montreal, Canada, on 19^th July.

Unfortunately, I couldn’t escape the figurative meltdown that is currently Heathrow Terminal 2. Upon entering departures, I discovered that my flight had been cancelled. I saw the snake like queues for security and wondered whether to abandon ship. Witnessing the ensuing chaos, I put my chances of getting on a flight in time to make the conference at less than 10%. I decided to persevere. After waiting for two hours to learn my fate, I at last received some good news: I was re-booked on a direct flight to Montreal early in the afternoon on the same day. I had lucked out.

How was the conference organised?

Set in Behavox’s spectacular offices in the heart of Montreal, the conference commenced with refreshments and an opportunity to network. Founder and CEO Erkin Adylov opened the conference with some insights into Behavox’s journey so far. This was followed by three structured presentations concerning testing, quality assurance and data coverage of AI compliance models as well as using continuous learning to enhance the reliability of voice transcription. Former Securities and Exchange Commission (“SEC”) Commissioner Dr Michael Piwowar closed the formal presentation stage of the conference with some anecdotes illustrating how technology is changing regulators’ culture and processes. After a generous lunch, Behavox invited guests to spend time exploring its information paddocks. Designed to showcase Behavox’s products, each of the 16 paddocks provided an opportunity for attendees to meet the thought leaders and developers behind each innovation “up close and personal”. A champagne reception followed the paddock exhibitions to cap off an action-packed day.

Compliance and other professionals had flown into Montreal from many jurisdictions to attend. There were several opportunities to informally exchange ideas and experiences during the day.

What topics did the conference cover?

The following topics were covered during the conference:

• how communications data can provide “behaviour-at-risk” insights. For example, data could signal that an employee is under serious stress, whether because of home or work pressures. Such stress could lead a normally responsible employee to behave irrationally and, by extension, trigger a “conduct event”. Accordingly, having the ability to spot signs of stress early on is not only in an employer’s interests. It may also help to save an employee’s career;
• how to use continuous learning to improve the accuracy of voice transcription. Devising a policy to meet regulators’ expectations concerning voice surveillance is a major headache for compliance professionals. How does a firm select how many calls to review? How does a firm decide whose calls to review whilst taking care to prevent persecution? How does a firm ensure that its finite resources are deployed reviewing the calls that could emanate from the greatest potential sources of misconduct? Using artificial intelligence techniques to transcribe call data as accurately as possible for screening and analysis helps to answer these questions; and
• how Behavox ensures its compliance models are robust through rigorous testing and quality assurance. Bias is the enemy of reliability in the development of artificial intelligence applications. Behavox provided attendees with an overview of the systems and controls it has implemented to counteract this.

What were some of the key takeaways for compliance professionals?

• Ensure your risk assessments (conduct, market abuse etc.) expressly acknowledge limitations in your existing surveillance apparatus. For example, can your existing software translate and screen communications in foreign languages? If not, can you realistically address the gap through additional headcount? Do you have the budget for this?
• Consider how realistic it is to try and stay on top of enforcement cases brought by regulators and trading venues. These cases often contain transcripts that can be very helpful in seeking to calibrate communications surveillance platforms. However, locating relevant cases and wading through reams of content is a significant distraction from the day job. Can your communications surveillance software vendor manage this burden for you?
• Determine whether your communications surveillance software vendor can learn from the data that ingests from all its customers, for the benefit of all its customers. Anonymised event “pooling” has long been a feature of operational risk management, particularly in the banking sector. Language and abuse typologies continually evolve. Therefore, learning from pooled data offers an opportunity to recognise new behaviours before they have spread to your organisation.

I am interested in learning more about Behavox’s products. Who should I contact?

Please email enquiries@cgregulatorysolutions.com. C & G will put you in contact with a Behavox representative.

I am seeking guidance or a health check of my existing communications surveillance arrangements. Who should I contact?

C & G’s consultants have experienced the challenges of physical and remote trading floors first hand. Both consultants have held senior positions in industry where they managed surveillance teams and liaised with regulators on a daily basis.

Whether you are looking for ad hoc advice or a review of your existing communications surveillance arrangements, please contact enquiries@cgregulatorysolutions.com for a free one-hour initial consultation.