Firms are more knowledgeable than ever regarding technological advancements to improve upon their strategies for digitisation, digitalisation, and digital transformation. From a global regulatory perspective, these evolving technologies are posing the need for tighter regulatory compliance to mitigate exposure to risk.
The general consensus across the globe implies that focus should be aimed at protecting investors from threat. To achieve this, regulatory bodies need to regularly review legislation to ensure they consider the new technological environment. That said, firms need to stay abreast of not only the digital advancement opportunities but how they are operating in terms of the regulatory expectations.
Geographical barriers affecting regulations
Markets are becoming more interconnected which creates added oversight and regulatory pressure related to geographical cross-over. The SEC in particular are fully aware of the barriers this causes and highlight “The need for coordination with fellow financial regulators, including foreign regulators, will continue to rise.”
Centralis Group is focused on flexibility being the key; we possess a multi-jurisdictional presence and can therefore support clients affected by the geographical nuances. Our market specialists are on top of the evolving regulatory landscape across the globe and our new digital platform will support clients ensuring their regulatory responsibilities.
Regulatory reporting and assurance of operational resilience
In the EU, regulations such as the DORA instruct firms to perform digital operational resilience testing at least annually. This highlights the importance of compiling regular audits and protecting investors through issues such as data security and even global disruptions such as the pandemic.
Fabio Panetta, Member of the Executive Board of the ECB, recently spoke at the meeting of the Euro Cyber Resilience Board for pan-European Financial Infrastructures and explained that “…Recent attacks call for constant vigilance at an operational level, and the continuous reassessment of regulatory and oversight frameworks to see whether they need to be updated.”
In the SEC’s 2022 – 2026 strategic plan, it discussed “evolutionary risk” and the volatility driven by market and external events. It mentioned how the SEC should pursue new authorities through congress and collaborations with other investors to be better prepared for exposure to risk in order to act with more agility. The SEC also recently adapted its cyber security rules to ensure annual reporting of disclosures.
As a service provider, Centralis Group have very stringent operational controls which are constantly evolving to meet our clients’ changing needs. Annually, we execute audits which test our controls and processes. This is something we pride ourselves on as we take our responsibility to our clients as our priority.
Get in touch with a member of the team today.