Organisations continue to be burdened by relentless and complex regulatory changes and there is no end in sight. RegTech plays an important role in helping organisations streamline their compliance process and stay ahead of the law.
Over the last decade, regulatory rule changes have increased a whopping 500%, with a new
regulatory update being implemented every 7 minutes, according to Thomson Reuters’
2018 Cost of Compliance Report. It’s therefore not surprising that fines for non-compliance
have become more frequent and more severe as organisations have found themselves
unsuspectingly falling foul of the law.
This exponential increase in regulatory requirements has been one of the primary drivers
of the growth in the RegTech market and the associated solutions provided as
organisations seek to minimise their risk.
1. What is regtech?
Regtech is the combination of regulation and technology tools designed to help
organisations manage their regulatory processes and facilitate compliance efficiently.
While the term and idea of regtech has taken a little longer to catch than its sister term
‘legaltech’, investment has ramped up and the industry has begun maturing.
The Global RegTech Market is estimated to be USD 7 Bn by the end of 2021 and is expected
to reach USD 15.8 Bn by 2026, growing at a CAGR of 17.5%.
According to the Thomson Reuters Regulatory Intelligence 12th annual survey the drivers of
this growth are:
- The increasing volume of regulatory change
- Keeping up with this regulatory change
- The lack of skilled resources and budget
Additionally:
Even though regtech tends to be associated with the financial industry, its application is
relevant across all sectors that have rules and regulations that require monitoring and
complying with.
2. The regtech landscape
The regtech market can be split into 3 categories:
The CleanChain’s Compliance module in partnership with Libryo is a regtech tool designed
to address all 3 of these areas above, but for now we’ll focus more on the regulatory tracking
aspect below.
3. The power of regulatory tracking technology
The pace of regulatory change is increasing across all legal categories (Financial,
employment, health & safety, environmental, data security etc.) and keeping up with these
changes is time-consuming, even for legal and compliance professionals. The moment you
begin to multiply this effort across different operational sites, jurisdictions and languages - it
quickly becomes a mammoth task to manage and know your specific legal obligations.
How CleanChain’s Compliance module regulatory tracking works
The world of law is complicated and always changing. Each part of your operations face
obligations from a unique collection of regulatory texts. Which texts you require to answer
the legal questions depend on several factors such as jurisdictions and operational activities.
The CleanChain’s Compliance module uses unique regulatory tracking technology to capture
your organisation’s applicable laws and track them for updates.
Step 1. Creating collections of law
Our legal experts source and create the collections of laws that apply to your operations
at a site-specific level. Unique regulatory tracking technology helps keep you updated
whenever a law changes.
Step 2. Standardised, automated regulatory texts
The regtech platform transforms these collections of laws into a globally standardised,
machine-readable format that can be automatically updated.
Step 3. Simply presented and summarised
The collections of laws are translated into multiple languages and simplified for fast and
easy interpretation. This means you don't have to be a legal expert to know how to
comply with the law. Legal highlights can be provided to you through the platform or a
third-party application.
Step 4. Automatic legal updates and notifications
Whenever your legal requirements change, you and your team will be automatically
notified of the update in the platform and via email to help keep you on the front foot,
always.
Benefits of RegTech
1. Gain Efficiencies — Keeping up with the growth in regulation is near impossible
with existing resources. Technology, provides organisations with the ability to
process high volumes of data, quickly and generate relevant insights to drive actions.
2. Increased accuracy and understanding — The existing manual processes are
plagued by human errors. Technology facilitates a streamlined compliance process.
3. Improved transparency — Technology provides transparency, connecting people
and processes and eliminating the silos.
4. Improved risk management — Many RegTech tools help protect against various
types of risk by monitoring the regulations that require addressing, tracking and
reporting on your progress across your value chain.
Learn more about how CleanChain's Compliance modules regulatory tracking has helped
other companies stay on the compliance front foot.
www.cleanchain.com
cleanchain.team@adec-innovations.com
