How to stay ahead of the regulatory curve in 2023


In a time when regulatory trends and developments and changing rapidly, its more important than ever to keep your eye on the ball. In a recent post by Ascent, the company outlined how firms can stay ahead of the curve.

The banking sector in 2023 is set to face a significant shift in regulatory oversight. Regional banks will need to navigate the intricate maze of state, federal and international compliance requirements, which is further complicated by anticipated regulatory scrutiny and the potential for new regulations.

It’s anticipated that certain rules will be modernised or even replaced, as the industry keeps pace with the changing banking landscape.

In light of these transformations, it’s imperative to have a solid understanding of your regulatory compliance status. The ability to adapt quickly and efficiently to changes remains central to maintaining compliance. However, shifting from a reactive to proactive approach will streamline any adjustments that new regulations may necessitate.

According to Deloitte, certain aspects will be paramount for regulatory oversight, such as enhanced data governance and reporting, cyber and IT risk and consumer protection and financial inclusion.

A structured compliance regimen can ensure adherence to these areas of oversight and facilitate swift adaptation to changes. Ascent has recently launched the Regulatory Compliance Confidence Scorecard, a tool designed to help identify gaps and areas for improvement in a bank’s compliance environment.

The Scorecard evaluates organisational principles, such as the definition of corporate legal entities, and the identification and mapping of laws, rules, and regulations to these entities, products, and services. Its questions are grounded in principles that ensure the integrity of compliance data.

With a rigorous organisation of business entities against applicable rules and regulations, coupled with automated notifications of new enforcement actions or guidance relevant to your entities, you are well-placed to measure new rules against ongoing business and strategic initiatives.

A clear understanding of the current nexus between your organisation, its entities, its products, and the applicable rules can enable swift and minimal disruption to regulatory changes. For example, recent banking industry mishaps have initiated talks of new or extended regulations for regional banks. A robust compliance organisational structure can simplify the accommodation of new regulatory frameworks, saving time and money, while reducing non-compliance risks.

Indeed, 2023 looks set to be a pivotal year for regulatory changes. We recommend consulting the Regulatory Compliance Confidence Scorecard to evaluate your bank’s readiness for what’s to come. If you’re falling short, it’s time to get prepared and organised.

Read the full post here.

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