Financial firms must comply with a wide range of regulations, including those issued by the Financial Conduct Authority (FCA), Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). Failure to comply with applicable regulations can result in fines, penalties and reputational damage.
Compliance can be a complex and challenging task, especially for large financial firms with a global reach. Program serving such firms must constantly monitor their operations to ensure that they are complying with all applicable amendments and new rulings, which can be a time-consuming and resource-intensive process.
In such cases, compliance teams might find that regulatory technology (RegTech) and compliance automation can help them manage their firms’ compliance programs more effectively. To be clear: RegTech refers to technology solutions that are designed to help financial firms comply with regulations and regulatory requirements. Compliance automation refers to the use of technology to automate compliance tasks and processes.
Benefits of implementing RegTech and compliance automation into your firm’s compliance program
Firms might find automation helpful in maintaining their compliance programs and avoiding violations. Benefits may include:
- Improved efficiency and productivity.
Your compliance team can automate many of the manual tasks involved in compliance. This can free up the compliance professionals serving your firm to focus on more complex tasks and to be more proactive in managing compliance risks.
- Improved accuracy and consistency.
Automating your firm’s compliance programs can reduce human error and ensure that compliance processes are applied consistently across the firm.
- Enhanced risk management.
Compliance teams can use RegTech and automation to help them identify and manage risks more effectively. This can be done by using data analytics to identify patterns and trends that may indicate potential compliance issues.
- Improved regulatory compliance.
With the help of RegTech and compliance automation, compliance teams can meet their regulatory obligations more efficiently and effectively. This can help firms to avoid fines and other penalties.
How to get started with RegTech and compliance automation
Considering the support technology can offer, your firm may benefit from introducing automation to its compliance program. Here are a few tips to help your team get started:
- Identify your needs.
The first step is to identify the specific areas of your compliance program where RegTech and compliance automation could be most beneficial.
- Research RegTech and compliance automation solutions.
Once you have identified your needs, you can start to research RegTech and compliance automation solutions. There are a number of vendors that offer a variety of solutions.
- Select a solution.
When selecting a solution, it is important to consider your specific needs, budget and resources. You should also make sure that the solution is compatible with your existing systems and processes.
- Implement the solution.
Once you have selected a solution, you will need to implement it. This may involve working with the vendor to configure the solution and train your staff on how to use it.
- Monitor and evaluate the solution.
Once the solution is implemented, you should monitor and evaluate its performance to ensure that it is meeting your needs.
RegTech and compliance automation can offer significant benefits to UK financial firms. By automating compliance tasks and processes, firms can improve their efficiency, accuracy and risk management. Which can help firms to meet their regulatory obligations more effectively and to avoid fines and other penalties.
Complying with COMPLY
As a compliance professional, you should consider how technology can help you manage your firm’s compliance program more effectively – and COMPLY can help.
COMPLY offers tailored services to meet each firm’s specific needs and assess and mitigate compliance risks effectively. By utilizing COMPLY’s solutions, firms can ensure they are prepared for regulatory changes, maintain updated policies and procedures and minimize the risk of violations.