Laws are constantly changing, making it suffocating to keep up. Added to that reality, regulators expect organisations to navigate complex rules and regulations across various jurisdictions. We’ve observed that traditional compliance strategies fall short, leading to missed regulations, late identification of changes, and fragmented processes. At ITLawCo, we redefine regulatory management by creating a dynamic regulatory universe.
What is a regulatory universe?
A regulatory universe is an advanced, strategic framework that integrates all relevant regulations, standards, and compliance requirements into a cohesive system.
It offers:
- Regulatory mapping: Thoroughly identifying and cataloguing applicable regulations across different jurisdictions and sectors.
- Licensing and permissions: Aligning regulatory requirements with your products and services to ensure you have the necessary permissions.
- Jurisdictional footprint: Detailed overlay of your regulatory obligations within the jurisdictions you operate, providing a clear view of all relevant requirements.
Case study: Helping a global bank create a regulatory universe
The challenge
A leading global bank faced significant challenges in managing its expansive regulatory landscape.
The bank’s issues included:
- Missed regulations: Due to the vast scope of products and jurisdictions, important regulations were sometimes overlooked.
- Late identification: Regulatory impacts were often realised too late, resulting in rushed compliance efforts.
- Lack of clarity: Tracking responsibilities were unclear, leading to disorganised and inefficient compliance processes.
- Regulatory interpretation: Incorrect tagging and misunderstanding of regulations caused inefficiencies and additional workload.
These challenges underscored the bank’s need for a more efficient approach to regulatory management.
Our approach
In response to the bank’s challenges, we implemented a multi-phase approach that redefined how the bank built and utilised their regulatory universe.
Assessment phase
First, we took the following steps:
- Holistic understanding: Deep dived into the bank’s products, jurisdictions, and regulatory environment. Our aim: to gain a view of its regulatory landscape.
- Stakeholder engagement: Collaborated with horizon scanning, compliance, and legal teams to map out processes, permissions, and governance structures, considering their perspectives. FYI, horizon-scanning teams are groups that monitor and analyse emerging trends, regulations, and potential changes in the external environment that could impact an organisation. Their goal is to identify and assess these developments early, helping the organisation stay ahead of potential issues and adapt strategies proactively.
- Requirement validation: Aligned the regulatory universe to the bank’s organisational framework and validated local jurisdictional requirements to ensure complete coverage.
Development phase
During this phase, we took pointed actions:
- Dynamic mapping: Created a map of permissions and regulators, incorporating third-party providers and custom taxonomies.
- Technology integration: Implemented a tech-enabled regulatory universe that provides real-time updates and automated alerts for regulatory changes.
- Enhanced horizon scanning: We refined the horizon-scanning process to ensure the bank captures and acts on all relevant rules and regulations efficiently.
The outcome
In the end, our approach resulted in a regulatory universe which effectively became a strategic asset for the bank:
- Global insight: Detailed understanding of regulated activities and jurisdictional requirements across the bank.
- Clear tracking: Precise identification of regulators and non-regulatory bodies, simplifying regulatory tracking.
- Efficient monitoring: A tech-enabled framework that offers automated alerts and reduces gaps, enhancing the bank’s adaptability to regulatory changes.
Sample components of a regulatory universe
| Component | Description | Example |
|---|---|---|
| Regulatory framework | The structure of regulations governing different sectors and jurisdictions. | GDPR for data protection, MiFID II for financial services. |
| Licensing and permissions | Requirements for operating within specific regulatory frameworks, including necessary licenses and permissions. | FCA license for financial services in the UK, SEC registration for securities in the US. |
| Regulatory mapping | The process of identifying and categorising applicable regulations based on products, services, and jurisdictions. | Mapping of data protection laws by country for a multinational corporation. |
| Jurisdictional footprint | The geographical and legal jurisdictions in which the company operates and must comply with local regulations. | EU countries for GDPR compliance, specific states in the US for sector-specific regulations. |
| Stakeholder engagement | Involves engaging with various internal and external parties to ensure all perspectives and requirements are considered. | Collaboration with legal, compliance, and horizon scanning teams. |
| Horizon scanning | The process of monitoring and anticipating regulatory changes that might impact the organisation. | Regular updates on emerging regulations from regulatory bodies and industry groups. |
| Regulatory impact assessment | Evaluating how new or updated regulations will affect the organisation’s operations and compliance. | Assessing the impact of new data protection regulations on existing customer data practices. |
| Compliance tracking | Tools and processes used to monitor and ensure adherence to regulatory requirements. | Compliance dashboards tracking adherence to various regulations across jurisdictions. |
| Reporting and documentation | Maintaining records of compliance efforts, regulatory changes, and responses to audits or inspections. | Documentation of compliance checks, audit reports, and correspondence with regulatory bodies. |
| Technology integration | Use of technology to automate and streamline the monitoring, tracking, and reporting of regulatory changes. | Automated alert systems for new regulatory updates, integrated compliance management systems. |
| Governance structure | The framework for managing and overseeing regulatory compliance within the organisation. | Compliance committees, dedicated regulatory officers, and internal audit functions. |
| Training and awareness | Programs and initiatives to educate employees about regulatory requirements and changes. | Regular training sessions on compliance and regulatory changes for staff. |
The impact of our approach on organisations
- Increased efficiency: Streamlined identification and assessment of new regulations reduce the time and resources needed for compliance.
- Enhanced responsiveness: Rapid adaptation to regulatory changes with a clear understanding of their impact.
- Reduced gaps: Comprehensive coverage of applicable regulations minimises the risk of missed requirements and associated penalties.
The regulatory universe serves as a living document that provides a robust foundation for both the first and second lines of defence, enabling organisations to stay ahead of regulatory changes and maintain a proactive compliance posture.
Sectors we support
At ITLawCo, we provide tailored regulatory solutions across a wide range of sectors, ensuring that each industry’s unique needs and challenges are addressed. Our expertise spans the following areas:
- Biometrics: Compliance with data protection and privacy regulations for biometric data.
- Energy and natural resources: Navigating regulatory requirements in the energy sector, including environmental regulations.
- Education technology: Adhering to educational standards and data protection laws in edtech.
- Enterprise software and SaaS: Managing regulatory compliance for software and cloud services.
- Financial services: Meeting complex financial regulations and compliance requirements.
- Healthcare and life sciences: Ensuring adherence to medical and pharmaceutical regulations.
- Hospitality: Complying with sector-specific regulations and consumer protection laws.
- Information security: Addressing cybersecurity regulations and standards.
- Insurance: Navigating regulatory frameworks for insurance products and services.
- Management consulting: Ensuring compliance with regulations affecting consulting services.
- Manufacturing: Meeting industry-specific regulations for manufacturing processes.
- Public sector: Managing compliance within government and public service regulations.
- Retail and consumer sports: Adhering to regulations affecting retail operations and sports industries.
- Robotics: Navigating regulatory challenges in robotics and automation.
- Technology and cloud computing: Managing compliance for emerging tech and cloud solutions.
- Telecommunications: Ensuring adherence to regulations governing telecommunications services.
- Venture capital: Complying with regulations affecting investment and venture funding.
- Hotels and leisure: Meeting regulatory requirements for the hospitality and leisure industry.
- Media: Navigating regulations related to media and broadcasting.
- Real estate: Complying with property laws and regulations.
- Transport and infrastructure: Addressing regulatory requirements for transportation and infrastructure projects.
Partner with us
Navigate regulatory management easily with ITLawCo. Our expertise in building and managing regulatory universes will help you navigate your regulatory landscape with confidence. Contact us today to discover how we can support your business goals.
