Navigating new regulations: A proactive approach to compliance in FinTech


Maintaining a strong compliance program is a continuous effort. To stay on course, it’s crucial to proactively monitor regulatory changes to ensure that your organization can respond promptly to its evolving regulatory obligations.

RegTech firm Ascent recently posted the third article in its series on building a strong compliance program, this time focusing on change management strategies.

In the dynamic world of compliance regulations, automation is your ally. Compliance automation tools, such as Ascents, employ AI to continuously monitor multiple financial services regulatory sources for rule changes and new obligations, filtering out irrelevant information, identifying rule changes that are directly applicable to a business. This eliminates the need for your team members to read through large numbers of regulatory reports searching for relevant information.

Additionally, employ a centralized obligations library that updates automatically in response to regulatory changes, streamlining the process of staying compliant and driving efficiency among your compliance team.

For example, Ascent provides a regulatory obligations library that automatically delivers relevant changes to these obligations based on new regulations that are pertinent to your business. This makes it easier for compliance teams to stay current on regulatory changes without having to read through mounds of regulatory reports – to not only save time, but also enhances the accuracy and completeness of your compliance efforts.

Tracking compliance tasks is vital. A comprehensive system that reports in real-time on task status—whether open, closed, or assigned—is indispensable. Internal documentation detailing how tasks were closed out provides transparency and accountability. Similarly, having a well-defined process for handling regulatory changes, from notification to review, analysis, and closure of tasks, ensures that your organization can respond effectively and efficiently.

Documenting compliance efforts is more than just a box to check—it’s a strategic advantage. Well-documented procedures and proof of compliance not only provide a clear record of your organization’s commitment to compliance but also serve as a shield against potential regulatory scrutiny.

Finally, it’s essential to anticipate growth and expansion. Implement a system to capture information on new initiatives, offerings, or acquisitions that may subject your organization to new regulatory requirements. This forward-thinking approach allows you to accelerate and de-risk expansion into new jurisdictions or service offerings by swiftly identifying the exact obligations that apply to those activities.

Planning for expansion with compliance in mind isn’t just about ticking boxes; it’s about ensuring the sustainability and resilience of your organization. By proactively addressing compliance challenges as you grow, you position your organization for long-term success and stability.

A strong compliance program encompasses the identification, definition, creation, centralization, monitoring, and management of regulatory obligations. This program, supported by robust procedures and proof of compliance, empowers organizations to plan and expand confidently in a complex regulatory environment. By embracing these key components, businesses can navigate the intricacies of compliance with agility and precision, mitigating risks and securing a solid foundation for sustainable growth.

Read the full post here.

Keep up with all the latest FinTech news here.

Copyright © 2023 FinTech Global

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst


The following investor(s) were tagged in this article.