RegTech Innovations: Shaping Compliance and Risk Management in Financial Services

  • Frank Vesce, Chief Information Security Officer and Head of Technology Risk at Allvue Systems

  • 09.01.2025 11:00 am
  • #RegTech #ComplianceInnovation

The increasing burden of complex regulatory requirements are significantly reshaping the compliance landscape for fund administrators. One prominent example is the Digital Operational Resilience Act (DORA) in the European Union, which comes into effect in January 2025. It mandates compliance across digital operational resilience, adding significant oversight and reporting demands. This is indicative of a broader regulatory trend where compliance isn’t optional—it's critical for institutions that wish to maintain their market position.

The introduction of new asset classes like ESG investments and potential private credit Exchange-Traded Funds adds layers of complexity, too. These assets come with unique requirements, especially around transparency and valuations, which can be challenging to maintain under conventional compliance practices. They also require distinct reporting standards and additional data validation steps, further amplifying the regulatory pressures on fund administrators. This is where technology comes in—advanced data management, automation, and analytics capabilities can streamline the reporting and compliance process, helping GPs and LPs stay ahead of regulatory requirements without compromising operational efficiency.

The global movement towards standardised reporting and greater asset transparency is changing compliance and risk management in financial services, calling for an embrace of clearer asset valuations and a more open approach to data disclosure. These new rules aim to enhance clarity and transparency across financial markets, ultimately benefiting investors by providing a clearer picture of portfolio holdings and associated risks. As global markets continue to tighten compliance expectations, the need for adaptive, tech-forward regulatory solutions will become more urgent than ever. 

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