Compliance serves as the bedrock upon which businesses build trust, stability, and long-term sustainability in an ever-evolving regulatory environment. However, the intricacies of today’s space often pose a significant challenge for FinTechs looking to effectively traverse the regulatory landscape.
AI-driven RegTech firm Ascent has pioneered their Regulatory Compliance Scorecard, designed to give companies a greater insight into their ability to meet current regulatory requirements and adapt to the forthcoming rule changes. This gives financial firms a greater flexibility to adapt to change and avoid getting stuck in a regulatory quagmire.
As part of a three-part series by the Illinois-based institution, they examined some of the essential components needed to build a strong regulatory compliance program. Namely, how companies can define corporate entities, and how they can best identify laws, rules and regulations that apply to your businesses current regulatory situation.
The first pivotal stride towards crafting an airtight compliance program, is to define your corporate legal entities and their associated products and services.
This initial step establishes a clear understanding of the scale and broadness of your businesses operations. By skilfully charting these entities to your array of products and services, you attain a comprehensive overview of your organisational framework, which in turn facilitates a more precise and efficient compliance initiative.
This holistic approach allows you to paint a clear picture of your firm’s operations, enabling you to roam the complex realm of regulations without fear, allowing you to allocate resources effectively, and direct compliance efforts precisely where they are needed most.
Once the corporate entities and product offerings are clearly defined, the next essential phase is the identification of relevant laws, rules, and regulations. This undertaking requires a thorough exploration of the regulatory landscape, with a specific emphasis on the industries and jurisdictions pertinent to your business.
A meticulous process of aligning each regulatory requirement with the corresponding entities, products, and services within your organisation is undertaken. Additionally, providing direct access to supervisory agencies’ primary sources of regulatory information streamlines ongoing compliance efforts.
Establishing a well-documented, navigable path through the intricate maze of regulations empowers your organisation to operate with unwavering confidence and integrity.
Read the full blog from Ascent here.
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