Regulatory Compliance: 19 reasons why the old ways don’t work anymore
Published on 11th January 2024Prince sang that he was “gonna party like it’s 1999”, but in this millennium we’ve continued to see a shift from the manual to the automated, from the analogue world to the digital one and now even our partying includes multiple digital workflows, notifications and automations including rsvp notes in our messages, group WhatsApp updates, Ubers and smiling faces with dodgy dance moves flooding Instagram, TikTok, Facebook or Snapchat or whatever platform you’re currently attached to – none of which existed in 1999, or the last century. 🕺💃🏻 🙄
And so it is with regulatory compliance – the whole regulatory landscape has morphed into something so much busier, faster and more complex. Which is why we need to think about things differently.
DEFINITIONS
Definitions vary so we aren’t comparing like with like.
COLLECTION METHODS
Collecting regulatory data from multiple sources is very time consuming.
TECHNOLOGY
Using technologies that are not designed for today’s regulatory volume and complexity.
REGULATORS
New regulatory regime as increasingly, regulators are publishing greater volumes of regulation.
RESILIENCE
Regulators have continued to pile on new regulation to protect both the market against systemic risk and end users. There is much complexity.
DIGITALISATION
Analogue and manual technologies and systems no longer support the requirements of regulatory compliance, affairs and change management.
GLOBAL SUPPLY CHAIN
Global markets connect, and are becoming closer and more streamlined through digitisation.
TIMELINESS
Having information at your fingertips offers opportunities to use it strategise reduce risk and increase competitive advantage.
CURATING AND MANAGING INFORMATION
Entering, sharing, interacting, and finding insights in that information cannot be easily delivered using older, more manual processes.
COMPETITION
How regulation is dealt with, within a firm, can change the way it competes.
REGULATORY OPTIMISATION
When regulatory optimisation is reached it can deliver in areas from reducing risk, cost of enforcements to innovation through digital disruption.
PUSH V PULL
Pulling information is slower than having it pushed straight into your systems 24/7 .
SILOS
Different business lines. Different data silos. Disjointed workflow carrying oversight risk.
REGULATORY COMPLIANCE
It’s been called a tsunami of regulation – since the 2008 financial crises the regulators have published, and continue to publish new compliance requirements including those affecting the individual within the FI.
SPEED
Speed is a competitive advantage. Lack of speed removes that potential.
INCREASE IN REGULATORY NOTICES
Information is problematic if it’s difficult to mine and see insights and answers. Digitised information is an asset.
SOCIALISATION
Stakeholders located in different offices, and jurisdictions with limited, live shared information.
24/7 INFORMATION DELIVERY
In a follow the sun model, regulatory information is required on an up to the hour information flow.
SUSTAINABILITY
ESG requirements are complex with specific regulatory taxonomies needed to deliver usable information.
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