The regulatory environment in which we operate is multi-dimensional, complex, and not simply the responsibility of the compliance team. Regulatory change can have strategic impact on your business model, incur significant costs and keeping on top of it is challenging. However, it is important to not only identify the threats posed, but also see the opportunities.
Financial services has been evolving at a rapid pace, with the introduction of new products, players and technologies, higher expectations of regulators, challenging economic conditions and of course, the associated regulatory response. Firms have to keep on top of all of this to ensure they are well-run, successful and compliant.
For good regulatory risk management and to avoid Rumsfeld’s ‘unknown unknowns’, firms need to know what regulatory change is on the horizon. The regulatory environment is crucial to strategic decisions to avoid costly mistakes. Knowing and understanding your regulatory horizon is not that straightforward though:
- Different pieces of legislation (but often connected to each other) move at differing paces
- There can be a lack of harmonisation in transposition into domestic law, and
- Policy comes from many sources, be it domestic government, European or global bodies.
We know that you do not always have the time to immerse yourself in every detail that is published by regulators. This is where Bovill comes in. We can support your Board and Compliance Department as we fully understand the regulatory horizon and are able to recognise the impact of regulatory change. Take a look at these pages for our initial thoughts on the current regulatory horizon.