Politics and RegTech Make Strange Bedfellows - Shield

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Politics and RegTech Make Strange Bedfellows
Politics and RegTech Make Strange Bedfellows
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Introduction
Introduction
The United States does have a bit of a reputation
for being Ameri-centric which is greeted by the
rest of the world with either total nonchalance
or a bit of chiding. However, what is undeniable
is the ripple effect of their politics and
regtech on the financial markets around the
globe. If a Republican is seated in the Oval
Office, regtech can relax for four years. But, if
a Democrat is residing in that storied house,
its a different story. With President Biden now
in office, get ready the pace of regtech is
probably going to become fast and furious.
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A Historical Perspective
A Historical Perspective
Wall Street has different relationships with
Republicans versus Democrats which tend to be
more relaxed with the former. One would think
that those relationships are related to stock
market performance and that, perhaps, one party
has a better track record when it comes to
investment returns. Not so a recent analysis
conducted by Forbes shows that it doesnt always
matter. As it turns out, good investors make
healthy returns on their money regardless of
whos in the White House.
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Build, Tear Down and Rebuild
Build, Tear Down and Rebuild
Thats essentially the cycle thats on rinse
repeat each time the Oval Office switches its
political party affiliations. Were all aware
that the U.S. President appoints people to
critical positions such as the head of the
Department of Commerce, Chair of the Federal
Reserve, and so on. Naturally, whoever is chosen
to fill those roles is going to leave their
imprint on the associated laws and policies of
the office they govern.
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What about eComms?
What about eComms?
Last year, when COVID crashed the office party,
traders retreated to their living rooms. Of
course, this instantly altered the role and the
reach of the compliance officers, plus it put
financial firms on notice. Almost overnight,
financial firms were faced with a new kind of
crisis ensuring compliance through sustained
monitoring, analysis and reporting efforts but
doing so outside of their controlled office
environments.
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Recent events, including the acquittal of the
Russian banker who deleted his WhatsApp messages
in front of the London police officer that was
arresting him, are likely going to spur some
overdue changes when it comes to monitoring
e-Comms. On a positive note, the Biden
administration is expected to favor and encourage
innovations in fintech and regtech that increase
consumer protection and thats good for
startups at large, and RegTech specifically. As
the U.S. enacts changes, so, too will the rest of
the world follow suit as every financial market
globally desires to trade with Wall Street.
International regulators often emulate the policy
changes led by the Americans.
Here, emulate is the keyword. Its rare that
you see regtech directly copy U.S. financial
guidelines. And therein lies the challenge for
international financial firms. Subtle differences
and frequent changes to regulations can leave
compliance officers spinning and blind-sighted if
they dont have reliable compliance solutions
that flex in accordance with the changes.
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Changes Ahead
Changes Ahead
Manual processes have begun to fall out of favor.
With regulations changing as quickly as they do
and with increased scrutiny of trades between
financial markets, we expect to see greater
automation. This allows for increased efficiency
and improved maintenance, as well as reduced
costs, versus manual processes which have to be
fully reworked each time a regulation changes.
Select one, or two such channels and craft
clear policies and system monitoring
protections around their use. If its time for
a regtech software upgrade, consider one that can
flex and analyze disparate data types.
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Contact Us
Contact Us
Email
Phone number
Website
info_at_shieldfc.com
97235685587
https//www.shieldfc.com
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