Regulatory Obligations

Machine-derived Regulatory Interpretations


What is machine-derived Regulatory Interpretations?

FinregE’s generative AI for legal/regulatory texts provides a summary of key actions, policies, processes and controls required at a regulatory rule or overall legislation level.

Regulatory Obligations

Using a combination of natural language processing, text analytics and topic modelling techniques, FinregE can extract obligations and actions required under regulatory rules. For financial institutions, these regulatory obligations can be worked with to produce compliance procedures, policies and standards linked to the actual actions required under a regulatory rules text. Regulatory obligations mapping can also be used to highlight gaps in existing policies and standards.

Working with FinregE obligations empowers institutions to develop and maintain an organised and fully mapped digital repository of rules, obligations and associated internal procedures and policies. This increases the capability to search for and adapt regulatory compliance for reporting and change purposes.

Contact us today to try FinregE Obligations and find out more about building a fully linked regulatory obligation to business compliance standards internal library.

What Is Financial Regulatory Compliance?

Financial regulatory compliance is critical to the modern financial landscape, ensuring that financial institutions, businesses, and individuals adhere to regulatory bodies' rules, regulations, and standards. These regulations are designed to maintain the integrity and stability of financial markets, protect consumers, prevent financial crimes, and promote fair competition.


The Role of Financial Regulatory Compliance

At its core, financial regulatory obligations encompass a wide range of rules and requirements that financial institutions, including banks, investment firms, insurance companies, and more, must follow.

The purpose of these regulations is multifaceted:

  • Market Integrity and Stability: Regulatory compliance helps maintain the stability and transparency of financial markets by ensuring that financial institutions operate within a framework that minimises systemic risks. This includes monitoring and controlling the potential for market manipulation, insider trading, and other activities that could disrupt fair market practices.
  • Consumer Protection: One of the primary objectives of financial regulations is to protect consumers from unfair practices, misinformation, and fraudulent activities. Compliance measures require financial institutions to provide accurate and transparent information to clients and ensure that financial products and services suit their needs.
  • Prevention of Financial Crimes: Regulatory compliance plays a significant role in combating financial crimes such as money laundering, terrorist financing, and fraud. Institutions must implement anti-money laundering (AML) and know-your-customer (KYC) procedures to identify and report suspicious activities.
  • Ethical Business Conduct: Financial regulations often dictate ethical conduct in business operations. This includes standards for properly disclosing information, avoiding conflicts of interest, and maintaining appropriate governance and risk management structures.
Real Time Rule Monitoring

Monitor compliance in real-time: both your status and processes

Digital Rulebooks

Access machine-readable libraries of financial global rulebooks

Regulatory Obligations

Extract insights on regulatory actions and requirements across rules

Rule Mappings

Map rule requirements automatically across your compliance policies

Compliance Workflows

Use workflows to action and record the life cycle of regulatory compliance

Compliance Dashboarding

Conduct compliance reporting with dashboards to view your landscape

Importance of Financial Regulatory Compliance

Financial regulatory compliance is crucial for maintaining the trust and credibility of financial institutions, promoting investor confidence, and ensuring the overall health of the global economy.

Some of the key reasons why compliance is of paramount importance include:

  • Legal and Regulatory Consequences: Non-compliance with financial regulations can result in significant legal and regulatory penalties, fines, and sanctions. These consequences can be financially crippling and tarnish an institution’s reputation.
  • Reputation and Trust: Financial institutions rely heavily on their reputation and the trust of their clients and stakeholders. Compliance failures can erode this trust, losing customers, investors, and business partners.
  • Risk Management: Compliance measures help financial institutions identify and mitigate operational, reputational, and legal risks. Institutions can build a more resilient risk management framework by adhering to regulations.
  • Global Business Operations: Financial institutions often operate across international borders in an interconnected world. Compliance with various global regulations is essential to ensure smooth cross-border operations and to avoid conflicts with different jurisdictions.

Key Players in Enforcement

The enforcement of financial regulatory compliance involves collaboration between multiple stakeholders:

  • Regulatory Authorities: Central banks, financial supervisory agencies, and government bodies are responsible for creating and enforcing financial regulations. These entities establish the rules that financial institutions must follow and have the authority to impose penalties for non-compliance.
  • Financial Institutions: Banks, investment firms, insurance companies, and other financial entities are directly impacted by regulatory compliance requirements. They must establish internal compliance departments, policies, and procedures to ensure adherence to regulations.
  • Compliance Officers: Compliance officers within financial institutions are responsible for interpreting and implementing regulations. They design and oversee compliance programs, conduct internal audits, and ensure employees follow the established guidelines.
  • Auditors and Consultants: External auditors and consultants play a role in evaluating the effectiveness of compliance programs and providing recommendations for improvements. Their objective assessments help institutions enhance their compliance efforts.

Why use FinregE to meet regulatory obligations?

FinregE comes with several useful features that can help manage your regulatory obligations.

By using the platform, you can:

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Why use FinregE?

Tax compliance and regulatory requirements tend to differ based on local and regional jurisdictions. Regardless of these differences, however, all financial firms need to maintain a meticulous record of their internal and external data to ensure that they are in line with regulatory policies. 

Maintaining a thorough record makes it easier to process the necessary data to support compliance reporting.

Techniques used for monitoring and maintaining regulatory compliance depend on the model or framework financial institutions use for this purpose. Regardless of the framework used, however,  RegTech can optimise and enhance existing capabilities through the power of AI-driven automation.

Automated systems make it easier to meet regulatory requirements by scanning the latest updates from regulatory bodies and relaying the information back to financial teams. Thereafter, these systems assess existing procedures to identify any compliance gaps and may even recommend remedial action. 

This insight allows organisations to be more agile and responsive when it comes to meeting financial regulatory requirements.

Compliance issues span various aspects of financial operations, ranging from anti-money laundering procedures to data security measures. Other examples of compliance issues cover consumer protection measures, operational resilience, and fraud.

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We recognise that managing and maintaining regulatory compliance is one of the most time and resource consuming activity. We would welcome sharing with you how we are helping our clients harness the power of technology to solve their compliance problems.
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