Regulatory Strategies

Increasingly, authorities in multiple jurisdictions require financial institutions and their overseers to map how their regulatory, risk management and oversight programs and systems environment are designed and executed. This is particularly true where a compendium of different operations, such as, exception reporting, position reporting, trade surveillance, financial surveillance, risk management, record-keeping, custodianship, security and oversight are outsourced to several different, unrelated, and sometimes not directly regulated, fin-tech or sup-tech providers, and/or involve multiple different electronic systems, some of which may be so-called legacy systems. One purpose of the mapping process is to cause institutions and authorities who remain legally accountable for delegated-- and combined delegated tasks and systems-- to be able to demonstrate to authorities and external validators, that they have the capacity to confirm and oversee proper execution of the tasks assigned and the efficacy of the overall operational and regulatory program. Additionally, mapping may help institutions be able to see where they may have potential legacy system risk. Understanding the interfaces among the various systems is essential to addressing the competency of the parts and the integrity, resilience and reliable performance of the whole. 

ALIGN can help you review your diagram of the combined functionality of these complex structures including how the different parts interface and communicate to assess whether the overall structure as designed works conceptually and to provide relevant comment.  ALIGN can also help your institution, market or authority design scenarios or exception reports to test whether the combined operation and oversight regime operates in practice as expected.

ALIGN’s experience, services, and knowledge can assist you in constructing, testing and enhancing the efficacy and communication protocols for such multi-part structures and develop mechanisms for identifying gaps in their functions.

In such an exercise ALIGN can strategize with senior management on a play book, project plan, or road map that takes into account stakeholder interests including ownership and performance of the process parts and the structure as a whole.