Earlier this month the Vox team attended the JWG RegTech Conference with other firms, regulators and suppliers to explore the RegTech foundation put in place after the financial crisis, the disconnect between change programs and compliance, the increasingly complex and busy regulatory landscape and more.
The overarching theme of this year’s conference was collaboration, collaboration and more collaboration as regulators are increasingly opening up while the industry looks for better and more efficient ways to cooperate.
Here were our three biggest takeaways from the conference:
The Impact of a Digital Regulator
After the FCA’s ‘Call for Input’ in 2015, the overwhelming response from the industry was that regulators most certainly have a role in developing initiatives that encourage the adoption of RegTech—from initial ideas to testing.
Nick Cook, FCA Innovation Director, spoke of the role of the regulator in supporting new RegTech market entries through sandboxes. These regulatory sandboxes allow businesses to test innovative products, services, business models and delivery mechanisms in the real market, with real consumers.
While similar sandboxes have been set-up to explore and test FinTech, few have been created specifically for the RegTech market.
An Update on The RegTech Council
The RegTech Council, created by JWG, is a not-for-profit think-tank modeled off industry bodies like the EDM Council and JMLSG.
Its purpose is to create a space where regulators, firms, academia, and the wider financial and technology markets can openly discuss RegTech challenges and collaborate to find solutions. With more than 100 institutional participants, it aims “to connect all RegTech participants to define common approaches to regulatory compliance and delivering better outcomes for the industry as a whole.”
With representatives from ING, Commonwealth Bank, BlackRock and Credit Suisse, the Council members spoke about establishing a platform for multiple technologies that would host pilot projects and sandboxes that demonstrate success—providing a medium by which to conduct a proof of concept.
RegTech 2020: Getting the Board’s Priorities Right
John Neasham, Head of Data Governance at Deutsche Bank, explained that the cost of compliance is a major focus for any board.
As panelists shared, there are a number of ways to implement cost reduction without compromising compliance standards. These include replacing expensive consultants with technology solutions for tasks like creating and updating compliance documentation; establishing a standardized process by using one common taxonomy across the organization; and replacing spreadsheets with technology platforms and digital visualization tools to better streamline workflows.
By mastering the basics and creating a better infrastructure for cross-functional processes, data management, document management and more, organizations can create better board transparency and understanding.
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