A year of regulatory change
In 2024, regulatory changes from EMIR REFIT in Europe, the Monetary Authority of Singapore (MAS) and the Australian Securities & Investments Commission (ASIC) reshaped derivatives reporting on a global scale. Each reform, while unique to its jurisdiction, shared a common goal: to enhance transparency, harmonise reporting standards and adopt global frameworks. Yet, for reporting firms, the path to compliance was fraught with challenges.
Firms faced the daunting task of overhauling legacy systems to accommodate new data formats, such as ISO 20022 XML, while grappling with tighter reporting deadlines that left little room for error. The expanded scope of reportable data demanded new levels of granularity and accuracy, further straining internal systems and processes. For those operating across jurisdictions, cross-border variations added another layer of complexity, forcing firms to reconcile local requirements with broader global standards. Testing and validation proved laborious, as errors in reporting could lead to costly rejections and compliance penalties. Additionally, firms often depended heavily on third-party vendors to meet these new requirements, leaving them vulnerable to delays and external inefficiencies.
These challenges expose a broader issue: the increasing frequency and scope of regulatory changes place firms at risk if they remain reactive. Businesses must now think strategically about how to deal with such reforms, not just for compliance today but for future-proofing their operations. The emphasis must shift toward scalable, agile solutions that allow firms to adapt quickly to evolving rules. Technology platforms, like those provided by Control Now, play a pivotal role in this shift, integrating regulatory changes seamlessly, automating data validation and minimising disruption.
The lessons from EMIR REFIT, MAS and ASIC are clear: firms that proactively invest in adaptable systems and processes will be better equipped to navigate the complexities of ongoing regulatory evolution. This approach not only reduces operational headaches but positions businesses to thrive in an environment where change is the only constant. It's hugely beneficial to have access to regulatory expertise, such as found in our teams who spend much of their working life engrossed in understanding and ultimately encoding the regulations into our software.
Insights from the Front Line: What Reporting Firms Really Think About Regulatory Intervention
At Control Now, we’re passionate about equipping firms to tackle the challenges of regulatory reporting. During our recent webinar, “Regulatory Intervention – What to Do and How to Avoid It,” we engaged participants with key questions about their experiences, preparedness and thoughts on future technological advancements. The results provided telling insights into the realities faced by reporting firms, where the industry is headed and some thoughts to take forward into 2025.
Technology’s Role in Shaping the Future
When asked which technological breakthrough could have the biggest impact on the future of regulatory reporting, 77% of respondents highlighted machine learning and AI. This overwhelming majority points to the growing importance of automated, intelligent systems to handle complex compliance requirements. Interestingly, blockchain, secure cloud and predictive analytics shared the remaining 23%, reflecting a broader awareness of the potential for innovation in compliance solutions.
For reporting firms, this highlights a shift: the tools of tomorrow are here and now is the time to embrace them. At Control Now, we're actively integrating these advancements to ensure our clients remain ahead of the curve.
Regulatory Intervention: A Shared Challenge
It was eye opening to learn that 56% of respondents had worked at a company that had faced regulatory intervention. This shared experience underscores the importance of being proactive in compliance, as intervention not only disrupts operations but also poses reputational risks.
Preparedness: Are Firms Ready?
When asked about their readiness for a regulatory intervention, only 33% felt ‘well prepared’, while a further 56% said they were ‘prepared.’ Alarmingly, 11% of respondents admitted they felt underprepared. These figures reveal an industry with room for improvement, particularly in terms of readiness planning and rapid response.
At Control Now, we see preparedness as a critical differentiator. By streamlining compliance through our integrated platform, we help firms confidently face any regulatory scrutiny.
The Role of Internal Audits
Regular internal audits are a key defence against compliance failures, yet the survey revealed mixed practices. Only 33% of respondents said their firm audits more than every six months, while 44% conduct audits annually or less often. Shockingly, 33% rarely or never perform internal audits.
This inconsistency highlights a key gap: firms must prioritise proactive auditing to minimise the risk of intervention. Control Now’s solutions are designed to make this process seamless, giving teams the tools they need to spot and resolve issues before regulators intervene.
Reassurance Through Knowledge
Perhaps the most encouraging feedback came at the end of the webinar, when 46% of respondents reported feeling more confident about handling a regulatory intervention as a result of what they had learned. This highlights the value of informed discussions and practical guidance in navigating a complex regulatory environment.
Learn More with Control Now
For those who missed the webinar, a recording, along with all our other webinar materials, is available here. We encourage you to explore these resources to stay informed, prepared and confident in your regulatory compliance journey.
The insights gathered during this webinar reinforce what we’ve always believed: regulatory reporting is evolving and the firms that succeed will be those that embrace proactive, tech-driven solutions. Control Now is here to support you every step of the way.