The Right Technology to Manage the Evolving Regulatory Environment

The impact of the financial crisis of 2008 is still being felt over a decade later, not least in the way the finance industry is now regulated. In addition to improving investor protection, regulators have started to demand unprecedented transparency from financial institutions. This was deemed to be the best way to restore confidence in the financial system and avoid another crisis. Tracking regulatory changes is a time-consuming task, but the real challenge is the ever-increasing amount of data involved and ensuring the accuracy and traceability of that data. Add greater investor demands for data and transparency to the mix and you’re in for a serious challenge.

Inefficiencies and Challenges

Unhelpfully, these new challenges are often met by old business models. We see legacy technology and processes that are unable to adapt to changes in the regulatory landscape. Disparate systems and multiple vendors increase operational complexity, risk, cost – and in impaired visibility to provide robust oversight. This can result in an inability to efficiently meet reporting requirements and view KPIs around regulatory risk.

Despite an abundance of RegTech tools, there is a lack of solutions in the market that offer a centralised data hub for investment compliance, regulatory reporting, risk monitoring and fund document management.

What Makes Sense To Us

A robust governance and control framework will deliver technology solutions for the following challenges:

1. Fund Data and Documents: Digital output for EMT, EPT, factsheets, KIIDs, prospectus from one centralised global fund data database. Auditable oversight and approvals between the fund, its service providers, and the regulator.
2. Regulatory Data-Driven Oversight: One platform for all investment compliance, risk and regulatory reporting.
3. Industry Best Practice: One framework for governance & oversight. Automated best-practice for policies, processes, risks, controls and reporting. Centralised view of exceptions, risks and issues.

The digital drama is ready for its next act. Harnessing technology will allow you to manage regulatory reporting as well as increasing investor demands for data and transparency with increased efficiency and lower cost.