Financial services firms spend 50-70% of their change budget on regulatory programmes.
An effective ‘control environment’ is critical for receiving and responding to regulatory change in a timely, sustainable, end-customer friendly, and cost-effective manner.
New regulations continuously emerge and you need to scan, assess, and respond in an effective, timely, and sustainable manner.
Ensuring repeatable processes to effectively respond to regulatory change is an important aspect of having an ‘effective control environment for managing regulatory change’.
Ability to horizon-scan, evaluate, and respond to multiple regulations across jurisdictions, products, and customers. This is critical for regulated firms.
Industry approximation is that 50% of regulatory change is not executed well, costly, and at times results in remediation and regulator censure. Regulatory assurance is an effective method to ensure content-based intervention. An early warning signal and course correction can ensure the regulation is implemented right first time in a client/customer-friendly, cost effective, and sustainable manner.
RegTech is any technology, automation, or data-based solution which results in simplifying regulation, reducing cost, and increasing the confidence of meeting regulations in a sustainable manner.
Our regtech enablement model is a tried and tested approach to ensure real benefits of implementing a solution. Regtech enablement is achieved through identification and selection of the most appropriate software, with effective implementation.
A number of critical conduct, prudential, tax, and financial crime regulations can be solved through rigorous data-led solutions. Examples include DGSD/FSCS, FATCA/CRS, MIFID II, Dodd-Frank EMIR, 5th AMLD, etc.
Architecting a solution which is data-led and with a common data model results in reducing the work-load, improving completion and accuracy, and minimising impact on the end customers. Recent ‘Dear CEO’ letters have focussed on regulatory reporting and data quality issues.
A number of critical regulatory reports and attestations across prudential, conduct, financial crime, and data protection regulation requires regulatory operations.
Unfortunately, regulatory operations are heavily manual, have issues in offshore/onshore mix, skills and capability gaps, and are costly.
Regulatory intelligence, data-led solutions and automation can result in cost effective, sustainable, and client-friendly regulatory operations functions.
You can get insight and guidance from our expert teams across multiple key areas:
- Develop an effective regulatory change framework to respond to multiple regulatory changes and demonstrate an effective control environment
- Develop a thematic approach to regulatory change which enables prudential, conduct, financial crime, and data regulations to be considered and executed – reducing regulatory change-budgets by 20%
- Independent regulatory assurance over specific programmes or entire regulatory-change portfolios to develop early-warning indicators to prevent issues in meeting regulatory obligations and timelines
- Effective approach to regtech enablement from strategy, sourcing, and selection through to integration support
- Partnership with regtech providers to develop integrated solutions to regulatory issues and opportunities
- Development of data-led regulatory change approaches, including regulatory data platforms (open data)
- Optimisation of regulatory operations to reduce cost, improve quality, and improve customer experience