Other parts of this series:
In our last blog, we discussed the concept of RegTech (regulatory technology) as a shared utility and the implications of that approach for financial services firms. There are, in addition, a number of other ways to foster the continued development and adoption of RegTech.
The various regulatory authorities, for example, are in a strong position to act and assume the role of a central collaborative hub, fostering the development and adoption of RegTech. The FCA, in particular, has played a lead industry role in this regards with their continued support of RegTech. As well, ongoing dialogue among regulators, RegTech providers and adopters should be encouraged.
This objective could be furthered by using concepts from the Open Source movement. Regulators may position themselves as a control and collaboration platform (similar to GitHub Inc.) for regulatory code and business logic, either contributing directly to the open repository themselves or encouraging various institutions to participate with regulatory oversight. Regulators may also act as a certifying entity, making sure contributions to the repository meet the required compliance standards and potentially working with stakeholders to manage the workload that this may entail.
There are clear benefits to be gained from agreed upon and transparent regulatory technical standards for business logic and code. For RegTech companies, these standards clearly communicate what is expected. For RegTech adopters, they provide guidance on accepted standards.
By creating an open source platform for the development of core business logic and compliance rules engines, RegTech providers can shift from chasing “minimum compliance” to focusing their resources on the differentiators and value adds that their solutions can offer.
In the next and final blog in this series, I will look at the future of RegTech and how institutions and regulators can work together to promote needed improvements.
Visit www.accenture.com/RegulatoryCompliance for latest insights on regulatory remediation and compliance transformation.
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