Regulatory reforms, a continuous challenge

The financial industry faces a huge regulatory reform as we speak: Banking union, Capital Requirement Directive IV (CRD IV), Solvency II, Market in Financial Instrument Directive II (MiFID II), Market Abuse Directive II (MAD II) just to name a few. All these complex sets of regulatory changes are coming through a lengthy and volatile law making process. Continuous changes, multiple delays and hard deadlines are all part of the game.

Financial institutions need integrated and practical solutions that grant them the right to operate in their chosen markets. Non-compliance is not an option. At the same time they need to deal with the drastically growing reporting obligations for delivering of more and more data. The number of requirements are increasing with much stricter governance requirements. Transparency and traceability of implementing regulatory requirements are the fixed agenda items in conversations of financial institutions with their (multiple) supervisory authorities. 

Regulatory volatility

Regulatory change processes have to deal with a great amount of uncertainties and (often) unpredicted changes of draft sets of requirements. Lack of clarity and the often last minute availability of a stable set of regulatory requirements endangers the final delivery of regulatory change processes.

Agile understanding and interpretation of the (draft) set of regulatory requirements, and the capability of a quick and adequate assessment of the operational impact are among the most important steps in performing a timely implementation of a complex regulatory change. 

Supervisory scrutiny

Facing the unsatisfied public opinion regarding their performance during the resent financial crisis, both the supervisory authorities and the political establishments are asking for more and stricter implementation of regulatory requirements.

The recent legislations demand an increasing level of detailed operational data and more evidences of governance assurance from financial institutions. Keeping the link between the (often) changing external regulatory requirements and their internal interpretation (the institution's policies) and related evidences is therefore of a vital importance.