There’s been no shortage of financial regulations since 2008 and, if 2020 is anything to go by, there’s likely to be no let up any time soon either. Being a technology firm specialised in regulatory risk technology, meanwhile, our customers expect us to identify and react to all relevant changes that affect their risk and compliance functions, be it from the SEC, ESMA, CBI, FCA. AMF, CSSF and others. So, how do we stay abreast of all this emerging regulatory change? And how do we ensure that our customers’ are always acting in accordance with the latest rules and regulations?
For starters, AQMetrics has a centrally managed function, led by the Head of Compliance, which is responsible for monitoring new regulations and changes to existing regulations. Our Head of Compliance is approved by the regulator as a pre-approved control function, responsible for the monitoring and management of regulatory change.
As a regulated entity, AQMetrics receives notifications from the regulators when new regulations are being considered. Furthermore, AQMetrics closely follows the various regulatory consultation processes as they are announced. On an ongoing basis AQMetrics reviews new versions of technical guidelines from the regulators and poses questions to the regulator, much like a regulated financial firm might.
When AQMetrics delivers technology solutions for a new or changing regulation, it always requests access to the regulators test system in advance of them being made available. As a result AQMetrics works closely with the regulators technical personnel to test and quality assure change in advance of going live. That assures that AQMetrics technology, is always in compliance with the regulator, and functions in the spirit, not just the letter, of the law.
But that’s not all. AQMetrics also tracks multiple sources to identify regulatory change, including the following organisations:
- Global financial regulatory authorities, in each jurisdiction including ESMA, CBI, FCA, AMF, BaFin, CSSF, AFM, SEC, CFTC, NFA, FinCEN, FINRA, FDIC, MAS
- Other legislative authorities, e.g EIOPA,
- Central banks, including BoE, ECB, EBA, DNB
- Government finance ministries
- Tax authorities, including HMRC and IRS
- Industry associations, including AIMA, IA, SIFMA
- Expert working groups, including the EDM council
- Specialist legal firms
Information is pulled directly from these sources, via automated updates, Q&As, direct consultation and workshops. Where required, we also seek independent legal advice from leading regulatory experts in each jurisdiction.
In our online risk register, AQMetrics identifies all regulatory developments that may impact our customers risk and compliance functions, including existing and emerging regulations. The risk register tracks the following information:
- Regulatory developments emerging across different jurisdictions,
- Legislative analysis of these regulatory changes (third-party legal analysis is obtained, where required)
- Impact assessment of the regulatory change on both the firm and the AQMetrics platform
- Recommended safeguards and controls to preserve compliance
- Quantitative scoring system is used to assess the weight of the relative impact of the regulatory change to our customer base, according to their authorisation status and jurisdiction
- Implementation plan to address compliance requirements (see further information below)
- Cost to address regulatory risk / compliance requirement
- Workflow to identify regulatory change owner, authorisation of the change and associated tasks / responsibilities
Finally, AQMetrics has implemented a robust change control framework to identify and manage changes of all types, including regulatory changes. This allows AQMetrics to effectively pre-empt and respond, not only to ongoing current and emerging changes, but also to ensure the organisation and our stakeholders are adequately prepared for future changes.