Week 1 - Overview of regulatory compliance Complete

.docx

School

University of New South Wales *

*We aren’t endorsed by this school

Course

8503

Subject

Information Systems

Date

Dec 6, 2023

Type

docx

Pages

Uploaded by LieutenantFreedom12639

Week 1: Overview of regulatory compliance The recent Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry highlighted the myriad of issues financial services firms experienced and continue to experience in complying with regulatory obligations, and regulatory and community expectations. This week, we examine the complexity of regulatory frameworks and regulators. We look at what the aims of compliance in financial services firms should be. We then look at how those aims can be achieved by way of implementing a comprehensive compliance framework. The framework is built around a way to assess and rank regulatory risks: a Compliance Risk Assessment. Through this process, we collate regulatory obligations into types of risks, assess a firm’s exposure to such risks, examine the effectiveness of existing controls and prioritise action items to address residual risk. Anatoly Kirievsky (Adjunct Lecturer) Week 1 Speech (Transcript) In this week, we're going to look at the core of regulatory compliance. We will go through what a regulator is, what they do, and how to set up an overall compliance framework, and we will see that a compliance framework ultimately seats around a concept of compliance risk assessment. What are my risks?

What are my controls? How effective are they, and therefore, what do I need to prioritise? But it's really important to understand why this framework is required. To understand that we really need to go to the Banking Royal Commission, and the answer to the Banking Royal Commission. In terms of the Banking Royal Commission, it uncovered misconduct on an industrialist level. We're not just talking about the standard response of, this is a couple of bad apples trying to do the wrong thing, whilst the overall institution is trying to do the right thing. We have seen structural problems across some of the biggest and best institutions that we have in Australia. From a regulatory perspective, they looked at what companies have in mind now, what they have in place now, and they said that what currently exists does not work. The answer for banks is a concept of banking executive accountability regime, and under this regime, institutions have to take reasonable steps to address their risks. But most importantly, there's a concept of individual accountability. Accountable persons, who are usually senior executives, directors, and a few other nominated heads of, they face personal responsibility for ensuring that they personally take reasonable steps to mitigate the risks. If they don't take reasonable steps, they face personal risk of being banned from the industry, as well as institutions themselves face the risk of fines that are now going to go all potentially into billions of dollars. Now, that it's very clear what the stick is, the carrot is you get to work in the industry. You get to enjoy the benefits of this work. The stick is you'll get kicked out of the industry and your institutions will be severely penalised. Therefore, how do you make sure that you don't get the stick? The answer is to set up your compliance framework, and that's what we're going to learn about in this week.  Examine the historical factors which led to the regulatory compliance framework.  Understand the aim of regulatory compliance.  Identify key components of a compliance framework.  Describe the CRA process and required data.

TOPIC 1 What is FinTech and what is RegTech? We define the terms FinTech and RegTech. Purpose Before we progress with the course, it's important to understand the meaning of the terms RegTech and FinTech. In this activity, we review the definition of FinTech and the different components that make up the broad "FinTech" field. We then analyse the definition of RegTech and how the two interact. Activity Instructions In this activity you will be introduced to FinTech and RegTech by engaging with some sharing activities and reading and watching some resources. Please follow the instructions provided. An introduction to FinTech and RegTech Define the terms FinTech and RegTech in your own words. Then, read other students’ definitions before hovering over the card to reveal sample definitions. You can add your definitions on the Padlet board by clicking on the plus (+) icon. Please include your name and keep your post short (under 50 words). You must submit your definitions by the end of Week 1.

FinTech and RegTech Defined in students’ words FinTech & RegTech FinTech is implementing technology with the financial sector to create an easier and convenient environment to deliver financial services. RegTech is implementing a regulatory and compliance framework to the FinTech industry to ensure banks are taking responsible measures in providing a financial service. FinTech Financial services via technology creating efficient and effective processors to all members of its eco-system. RegTech. The regulatory frame work and compliance processors for consumers and FI's with technology. Jerome Finette FinTech and RegTech FinTech - is the implementation of technological products, services and processes into the financial sector to make their operations more efficient and effective. This can be in relation to how they interact with customers, regulators, employees etc. RegTech - is a subset of FinTech, is the implementation of technology in order to more effectively and efficiently comply with government regulations and reduce risk breaks in operations. Callum Hunt FinTech & RegTech Def Fintech – broadly this is the use of technology in the financial services industry to replace, automate and improve any existing processes or actions performed by a finance business. RegTech – is the use of technology to replace, automate and improve existing processes or actions required to accurately and more regularly perform compliance checks. The aim is to not only to better comply with Gov regulations but to also protect the business from a variety of risks. Daniel Dumble RegTech and FinTech RegTech uses many technologies such as cloud computing, big data, AI, blockchain, machine learning to perform compliance check and reduce financial risk, increase regulatory compliance and stamp out laundering and fraud, which ensure companies are more effective in reaching regulatory compliance.

FinTech is referring to modern technologies used by businesses that provide automated and improved financial services. FinTech & RegTech Fintech: IT platform and Eco-system innovations that transform the way financial services are delivered by addressing security / privacy concern, remove barrier for entry for new business and minimize the need to rely on 3rd party trust / intermediary RegTech: is a subset of fintech which will qualify the above attributes but specifically into regulatory framework, technology that making sure compliances happen without the need to rely on 3rd party trust or bias of personnel. Tan Nguyen FinTech & RegTech There are a number of definitions for FinTech and in many ways traditional financial services firms and banks are FinTech’s because they use technology to deliver financial services/solutions. However, I have generally considered FinTech to be more contemporary, customer focused, data drive, agile-run, start-up or disruptive organisations. I consider RegTech to be a subset of FinTech, and again, historically most organisations will have used technology (think ubiquitous scripts, VBA, excel spreadsheets, exception reporting and the like) to manage regulatory compliance risk, but there is a new paradigm emerging, similar to the old vs new FinTech analogy I gave above, strongly innovation, technology and data driven, more effective, automated, efficient solutions. Patsy FinTech & RegTech FinTech is a term that has been used in recent years to describe the application of technology to improve time proven financial activities as well as deliver new types of financial activities. In future, the term may be considered superfluous as the nature of modern financial services largely dictates such use of technology as increasingly becoming the norm. RegTech, being a subset of FinTech, could be defined as the use of technological solutions to facilitate compliance with & monitoring of regulatory requirements & risk management. Andrew Nell FinTech and RegTech FinTech (Financial Technology) - the use of technology in aiding the delivery of financial services and solutions to both customers and financial institutions. RegTech (Regulatory Technology) - used mainly by financial institutions and businesses, RegTech is a subcategory of FinTech that eases financial regulation and makes the process more efficient and accessible. Dhira T.

FinTech & RegTech - own words RegTech - a subset of FinTech that's used to assist in a streamlined approach to mitigating risk to flow on to comply with regulation. In this token, this persists in automating some of the more technically manual processes (i.e., exception reporting). FinTech - The use of technology, namely applications typically, to reduce complexity, automate and optimise not the organisations internal functions, but also the customers experience - the end user seeks to gain large benefit here. In today's society, FinTech is largely driving a race to the best UX platform that ultimately challenges expectations and conventional norms in traditional finance (and other industries too!). Mary S Definitions FinTech is a Financial service or product provider that aims to compete with traditional financial institutions by using innovative technology to improve systems and experience. RegTech is the technology that is being used to mitigate regulatory risk and compliance in the ever-changing finance industry. Maggie FinTech is financial sector innovations using technology enabled business models that reduce intermediaries for transactions in entities creating new opportunities for entrepreneurship. In its disruption of traditional financial hierarchy, it has challenged privacy, regulatory & law enforcement frameworks. The first significant growth of FinTech is clearly identified to the 2008 GFC, and now the Covid pandemic will surely create exponential FinTech growth as a response. RegTech is part of the FinTech ecosystem. Technology & its businesses provide solutions to how technology can be used to improve the delivery of regulations in finance and banking systems. The regulator view point & the financial or banking enterprise must find balance for optimal use of emerging innovation and technologies for the good of society. Kadi FinTech and RegTech Any technology that allows or performs financial services (digital currencies and wallets, digital retail payment, robo-advisory systems etc) can be defined as FinTech. RegTech is a subset of FinTech, which focuses on technologies to automate the governance and execution of compliance and regulatory requirements. Fintech - using technology to advance financial services by either creating new business or enhancing existing business and process. RegTech - a subset of FinTech using technology to meet regulatory requirements. Craig Fulton Fintech and RegTech Fintech is a disruptive innovation in Financial Industry

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help