The Role of Regulatory Horizon Scanning within the Investment Management Regulatory Change Operating Model.

In the complex and ever-evolving landscape of financial regulations, investment managers face significant challenges in maintaining compliance. Regulatory changes can impact various aspects of investment management, from portfolio construction and risk management to reporting and client interactions. To navigate this terrain, a robust regulatory change operating model is essential and central to this model is the implementation of a regulatory horizon scanning solution. This article explores how such a solution fits into the regulatory change operating model and supports investment managers in achieving compliance and their strategic business objectives.

What is a Regulatory Change Operating Model?

A regulatory change operating model is a framework that investment managers use to systematically manage regulatory changes. The model usually encompasses these key components:

Monitoring and Scanning

Identifying upcoming regulatory changes and assessing their potential impact and, the opportunity to participate in consultations and discussions; potentially influencing the development of regulations to better align with industry needs and practices.

Impact Assessment

Evaluating how these changes affect the company's operations, strategies, and compliance requirements.

Implementation

Developing and executing plans to comply with new regulations, including policy updates, process adjustments, and training programs.

Governance and Reporting

Establishing oversight mechanisms to ensure ongoing compliance and documenting adherence to regulatory requirements.

Continuous Improvement

Regularly reviewing and refining the operating model to enhance its effectiveness.

How does Horizon Scanning fit into the Regulatory Change Operating Model?

Here's how regulatory horizon scanning typically fits into the regulatory change operating model. This table states the objective of each component along with a checklist of suggested actions to implement, to achieve the objective:

Conclusion

In the dynamic regulatory environment faced by investment managers, staying compliant requires a proactive and strategic approach. Regulatory horizon scanning solutions play a critical role in the regulatory change operating model by providing timely, comprehensive, and actionable insights into regulatory developments. By integrating these solutions into their operating model, investment managers can enhance their ability to anticipate and respond to regulatory changes, ultimately supporting compliance, operational efficiency, and strategic decision-making.

If you would like to learn more about Investment Solutions Consultants (ISC) Ltd and our solution for horizon scanning, please get in touch or head over to our website