Fund distribution: How to use RegTech to tackle the unforeseen
In this article, we demonstrate how RegTech can help tackle the unforeseen, where the revised version of the handbook not yet exists.
You have heard us talking about regulatory responsiveness before. It helps embrace the human factor of client interaction in wealth management and prepare us for the political changes on the horizon.
In asset management, RegTech solutions enable many agile moves, allowing companies to master legal challenges, spot distribution opportunities and operate in synch with a dynamic eco system.
Put short: regulatory responsiveness helps going with the flow — compliantly.
Aiming to diversify distribution strategies, asset managers look to allocate funds where possible to benefit on the potential of new market opportunities. This often means embarking on new territories.
While many markets are stable and predictable, others might undergo political change and social developments, some of which could take sudden, unexpected turns.
In cases of conflict, for example, countries may temporarily lose international market participation, whereby all cross-border activities get blocked or in other ways heavily influenced or limited. In fund distribution, regulatory change can happen overnight.
Using static regulatory intelligence resources in such turbulent space will most likely put the organisation at risk. Paper-based legal memoranda and country manuals, still used by companies for cross-border activities, do not reflect the day-by-day development of critical situations and their impact on the legal framework for fund distribution.
With a digital, binary repository of legal intelligence, organisations are able to update rules in real-time and instantly share it across the business. The clarity keeps processing and interpretation of the new rules to a minimum, allowing the workforce to act fast to business critical matters.
If you would like to learn about digital compliance and regulatory responsiveness for your cross-border activities, we are here to talk.
