The evolving financial landscape calls for a more efficient approach towards regulatory compliance. RegTech company Ascent believes regulatory mapping is vital for compliance.
Amid increasing regulatory burdens and the dynamic nature of regulations, the focus on compliance has heightened, thus fuelling the growth of the regulatory compliance industry. Despite this, the lack of standardised terminology around common concepts, such as “regulatory mapping”, remains a key concern.
It stated that regulatory mapping is a crucial term in compliance which holds different interpretations across the industry.
The first definition refers to the process of analysing regulatory texts to understand the specific obligations that apply to a business. This process, whether conducted internally or outsourced, involves understanding all applicable rules and determining any unique obligations across jurisdictions. Most firms create a rule register or rule inventory for this purpose.
The second interpretation pertains to the relationship between regulatory changes and a firm’s obligations. This involves the continuous monitoring of regulatory websites, news feeds, and other sources to capture the latest rule amendments and apply them to the organisation. Compliance personnel are tasked with the intricate process of impact analysis to discern how changes affect a firm’s existing obligations.
The third definition links an organisation’s obligations to its internal controls, policies, and procedures. With regulatory changes, firms need to coordinate and execute changes across the business.
However, the task of regulatory mapping presents a complex network of legal documentation, rule changes, and internal processes. Most organisations still use manual and siloed processes to identify these changes, thus making regulatory change management a daunting task.
RegTech offers automated tools to manage the growing regulatory burden, thereby reducing the need for additional personnel and resources. Well-implemented RegTech tools can significantly reduce the manual work of mapping regulatory requirements.
There are several benefits to utilising automation in regulatory mapping processes. It enhances the efficiency and accuracy of converting regulatory text into specific obligations and streamlines the process of capturing relevant regulatory changes. Further, it allows compliance teams to shift their focus towards compliance facilitation, regulatory strategy development, and proactive planning for regulatory change.
Ascent, a key player in the FinTech sector, aids financial firms in conducting all three types of regulatory mapping more accurately, efficiently, and at a lower cost. Ascent’s solutions include automating the identification of obligations for specific organisations and offering a seamless connection via API to leading GRC platforms, such as IBM OpenPages, to map obligations to organisational controls, policies, and procedures.
Read the full post here.
Keep up with all the latest FinTech news here
Copyright © 2023 FinTech Global
Copyright © 2018 RegTech Analyst
