Adopting technology to meet customers’ needs is essential. In regulated industries, lawyers must stay on top of developments to guide digital transformation teams in navigating risks without stifling progression. Our roadmap outlines the challenges faced when adopting technology.
The future of regulation
The legal industry needs to anticipate ways in which industries are going to digitalise and get ahead of the regulation in order to accelerate the digital transformation of our customers. On the whole, regulators want feedback and want to work with industries to ensure it is an environment that allows for innovation and growth.
It is incumbent on the legal industry to help lead these discussions and facilitate dialogue between regulators and regulated industries to ensure that digital transformation is accelerated and consumers and businesses remain protected.
Early adoption of technologies
Technologies often remain unregulated when consumers begin to use them. Pressure from industry bodies and third parties gives lawyers an opportunity to predict what might come next. You need to recognise these pressures, early, and provide direction to the business on what new regulation could look like and what the implications could be.
The regulation gap
Lawyers must help regulators keep pace with emerging technology to ensure regulation is fit for purpose. Regulators vary in their level of tech knowledge and their approaches to any raised concerns. Those with a global view of the regulators, and potential new regulation, will feel more confident and will be faster to respond when changes happen.
"Regulators globally and across industries are at different stages of their knowledge and their appreciation of how technology affects the industries they deal with and they can often take divergent approaches."
All-encompassing regulation
Some regulators are beginning to examine the entire eco-system of their industries, including suppliers. This means companies who were not previously the subject of regulation are now in the spotlight. Tech suppliers need to understand how this increased scrutiny can affect them and companies need to ensure that they know their suppliers better than they may have needed to previously.
"Regulation is increasingly all-encompassing with an expectation that companies have a greater oversight of their suppliers."
Regulation without borders
The increasing number of businesses operating in a virtual world can theoretically remove borders. The boundaries between established regulated digital industries and those becoming technology-led are also less clear. This creates uncertainty. Regulators across different countries need to agree areas of responsibility and work together to standardise regulation. Keeping on top of these changes and reducing the uncertainty will expedite the process of digital transformation. Our cross-jurisdiction analysis and work with regulators means we can help to identify and resolve your potential issues and accelerate your digital journey.
"Increasingly companies are offering products from one country to another and regulators globally are at very different stages in their regulation of products and channels."
We can help you navigate the regulatory landscape, providing cross-jurisdictional overviews and comparisons of key regulatory risks.
EU View
As equivalence for financial services has not been agreed, regulators expect firms to have robust controls for the continuation of business from 1 January 2021. We have developed EU View as a ready to go control framework that demonstrates to regulators that your firm is prepared to operate compliantly and provides your business users with clear RAG rated guidelines on the dos and don’ts in each of the EU27 jurisdictions.
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