A New Paradigm for Regulatory Change and Compliance

We are pleased to publish this whitepaper from the RegTech Council (RTC) which was discussed at our recent event – RegTech Capital Markets Conference on 7 March 2018. The objective of this paper is to demonstrate how regulations can be processed using open-standards-based semantic technologies and regulatory compliance made more efficient and effective. Specifically, it sets out to define the benefits such an approach can offer regulators and financial firms by mapping compliance imperatives onto impacted business activities.

About the RegTech Council:

The RegTech Council is a not-for profit think-tank, which provides a bridge between regulators, firms, academia and the wider financial and technology markets. It is a not for profit association with transparent formal structures and byelaws. Established in May 2017, the RTC has members across the globe including regulators, financial services firms and service providers. The aim of the RTC is to provide a forum where regulators, regulated firms and tech firms can consider solutions to the challenges presented by the implementation and uptake of new regulatory technologies and help to ensure that RegTech delivers on its promise to the industry. The Council’s focus is to generate real outputs (papers, taxonomies and proofs of concept), which in turn can be operationalised by our members in order to gain the increases in efficiency, effectiveness and scale promised by RegTech.

About the Authors:

Professor Tom Butler, Business Information Systems, University College Cork is Principal Investigator at the GRC Technology Centre. A former Government of Ireland Research Fellow, Tom’s research focuses on RegTech and RiskTech solutions for the Financial Industry viz. (a) Semantic Technologies—both RegTech and FinTech —to address the challenges faced by banks and other financial institutions in the area of regulatory compliance; (b) RegTech for diagnosing and analysing Conduct Risk; (c) Building and applying vocabularies, ontologies and related semantic technologies to address the challenges posed by regulatory, operational, and conduct risks; (d) Designing Business Models for FinTech and RegTech innovations. His recent research successes include participation in the Bank of England/Financial Conduct Authority (FCA) RegTech Sprint and in the RegTech Council’s New initiatives Project. Tom has generated over €8.3 m in research funding, written 71 conference papers, 82 full research papers, 22 book chapters, edited 2 books and written a range of other articles, including 11 RegTech invention submissions.

Paul North, Head of Product Management EMEA – BNY Mellon. Paul is Head of Product Management across the EMEA region within BNY Mellon Asset Servicing. In this role Paul has responsibility for overseeing the enhancement and development of products that support clients across the 107 countries in the EMEA region. Prior to joining BNY Mellon in early 2006, Paul was an executive within the Investment Operations business for JP Morgan Chase Worldwide Securities Services where he took a leading role in the development of its investment operations outsourcing business infrastructure. Paul has significant experience in the financial services industry and has held various senior positions across business development, IT, operations and project management during his career to date. Notably he spent 15 years with Accenture, three of these as Partner, charged with responsibility for several major client relationships. During his tenure at Accenture Paul worked on various IT and operational architecture, change management and outsourcing projects. He also served as a partner in the asset management group. Paul lives in Oxfordshire and holds an honours degree in Mechanical Engineering from Imperial College of Science and Technology.

John Palmer, Senior Manager responsible for Enterprise Data Architecture – Bank of England. John runs the data architecture practice within Technology at the Bank of England and was formerly part of the Chief Data Office responsible for Data Quality Architecture and Standards. John has been at the Bank for three and half years and has been guiding their One Bank Data Architecture program and Master Data Management initiative. John has established the enterprise common logical data model and dictionary to support the MDM and various business projects and provide a facility to share data with external parties. John has also coordinated international, cross regulator initiatives on Legal Entity Identifier usage, and establishing standards for using Granular Data for regulation. More recently John has provided technical expertise to various Semantic Web based Regtech initiatives such as the FCA Techsprint on machine executable regulations. Prior to joining the Bank of England John led various Data Architecture and Data Analytics teams at JP Morgan, Aviva Investors, HSBC and M&G Investments, involved in large scale data transformation and exploitation ventures. John’s career over the past 25 years has been focused around data and information within the finance industry particularly in enterprise wide strategy applying a pragmatic, practical perspective. John lives in Essex and holds an honours degree in Geology.

You can download the paper here.