Regulatory inflation refers to the acceleration of regulatory requirements, which brings new technical challenges.
Firms are finding this very demanding in terms of meeting their regulatory compliance and regulatory risk challenges.
The 5 Drivers Of Regulatory Inflation
- New financial assets such as cryptocurrency and FinTechs (financial technology firms) entering the traditional financial sectors.
- More interest in sustainability and ESG.
- The battle to tackle money laundering and the financing of terrorism with new AML/CFT controls.
- Newer cyber security and data privacy regulations
- After the 2008 crash, increased financial regulation has been followed by more operational regulation in the financial markets.
The Risks Of Non-Compliance And Technical Regulatory Challenges
To find out more about the risks of non-compliance and how weak regulatory change management increases regulatory risk, as well as further detail on the technical regulatory challenges and how technology is changing the regulatory risk landscape, please follow this link.
