Regulatory Consulting

The Regulatory Treadmill

Charisma Lyall
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Keeping up with regulatory developments and the ever-increasing focus on Financial Crime

The only constant in regulation is change. The rate of change in financial services regulation in the Channel Islands and around the world is increasing.  Given global political issues and developments in international regulatory standards it is unsurprising we are seeing unrelenting change to regulatory requirements for AML, CFT and PFP as well as existing products and services.  Neither is it surprising that new regulatory requirements are being imposed for developing or innovative services and products.

It is important to recognise that with regulatory developments accelerating in the Channel Islands, firms must have effective programmes in place to monitor these changes. Early insight will allow firms to identify relevant changes in a timely manner and consider making any necessary adjustments.   

Firms can respond to regulatory developments in one of three ways.  The first, and most risky option, is to ignore the regulatory changes and leave the rest to chance.  The downside of this is that this chicken will generally come home to roost. 

The second option is to review the individual area required by the regulatory change and make only the necessary modifications.  While relatively quick, if this is done all the time, ad hoc changes can quickly make processes inconsistent and complicated and ultimately negatively impact a firm’s controls.

The third option is for the firm to respond to regulatory developments by taking a holistic approach to their reviewing policies and procedures in light of the changes.  This avoids a piece meal approach to the evolution of processes and systems and helps to keep all areas up to date and aligned. 

The latter two options can each be used judicially to balance time and financial cost of keeping up with regulatory change as well as ensuring that your firm continues to meet regulatory requirements. 

Grant Thornton’s Regulatory Consulting team understand the challenges involved in a firm to keep up with regulatory developments and recognise and execute necessary changes on top of day-to-day business.  We are well placed to assist firms in identifying and implementing responses to regulatory change in an effective and commercial manner.  If you would like to discuss your firm’s needs or how we can assist you, please do not hesitate to reach out to a member of the team.