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The REGTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries in Regulation




The REGTECH Book: The Financial Technology Handbook for Investors, Entrepreneurs and Visionaries in Regulation

Janos Barberis, Douglas W. Arner, Ross P. Buckley

ISBN: 978-1-119-36214-2 July 2019 224 Pages


The Regulatory Technology Handbook

The transformational potential of RegTech has been confirmed in recent years with US$1.2 billion invested in start-ups (2017) and an expected additional spending of US$100 billion by 2020. Regulatory technology will not only provide efficiency gains for compliance and reporting functions, it will radically change market structure and supervision. This book, the first of its kind, is providing a comprehensive and invaluable source of information aimed at corporates, regulators, compliance professionals, start-ups and policy makers.

The REGTECH Book brings into a single volume the curated industry expertise delivered by subject matter experts. It serves as a single reference point to understand the RegTech eco-system and its impact on the industry. Readers will learn foundational notions such as:  

•    The economic impact of digitization and datafication of regulation  

•    How new technologies (Artificial Intelligence, Blockchain) are applied to compliance

•    Business use cases of RegTech for cost-reduction and new product origination

•    The future regulatory landscape affecting financial institutions, technology companies and other industries

Edited by world-class academics and written by compliance professionals, regulators, entrepreneurs and business leaders, the RegTech Book represents an invaluable resource that paves the way for 21st century regulatory innovation.


About the Editors


1: Introduction

1.1 What a RegTech Compliance Killer System Will Look Like

1.2 Technology Enabled Collaborative Compliance

1.3 The age of RegTech disruption to the status quo is here

1.4 RegTech and Financial Crime Prevention

1.5. RegTech: Tackling Regulation with Innovation

1.6 Identities, the RegTech Holy Grail

2: The RegTech Landscape

2.1 Islamic RegTech

2.2 How RegTech Could Help Determine the Future of Financial Services?

2.3 Introducing the RegTech Quality Compass: The Five Factors of RegTech Quality

2.4 How Banks are Managing Their Risk Through Technology and Market Infrastructure

2.5 RegTech and the Science of Regulation

2.6 GDPR and PSD2: Self-Sovereign Identity, Privacy and Innovation

2.7 Rise of RegTech in the German Market

2.8 The Power of RegTech to Drive Cultural Change and Enhance Conduct Risk Management across Banking

3: Regulatory Innovation and Sandboxes

3.1 Discover the Innovative Technology behind RegTech Leaders

3.2 Enabling RegTech Upfront: Unambiguous Machine Readable Regulation

3.3 Align Open Banking and Future-Proof RegTech for Regulators and TPP to Deliver the Optimal Consumer Convenience and Protection

3.4 A Seat at the Table – Bringing the Voice of FinTech to the US Regulatory Process

3.5 Sandbox Game for RegTech

3.6 Legal Guidance for Entering the Sandbox and Taking Advantage of Cross-Border Cooperation Agreements

3.7 Disrupting the Sandbox – Why, who and how?

4: A Call for Innovation or Disruption?

4.1 Governance Risk and Compliance: Complex or Complicated?

4.2 Innovation or Disruption: It Is Not Always Black and White

4.3 How to Use Digital Marketing Data in Regulated Industries

4.4 Invention versus Reinvention

4.5 Making Regulation Machine Readable

4.6 Can We Digitise Know Your client?

4.7 Overcoming the Constraints on RegTech Potential

5: RegTech Investment and compliance spending

5.1 Why a Substantial Investment in Financial Services RegTech Now, Will Strategically Reduce Your Future Regulatory Compliance Costs

5.2 Old Tech + New Tech = RegTech: Excel Spreadsheets and End User Computing in a Regulated World

5.3 Will Financial Institutions Ever Achieve a 100% Compliance with Anti-Money-Laundering and Combating the Financing of Terrorism Rules?

5.4 Merits and Demerits of a Shared Risk Engine

5.5 Spend on Compliance: A Necessary Evil or Business Enabler?

6: RegTech for Authorised Institutions

6.1 RegTech Opportunities in a Post-4MLD World

6.2 Passporting in the EU - Is an Opportunity Also a Problem?

6.3 RegTech Applications Architecture in Financial Holding Companies - A Chinese Perspective

6.4 Regulation in a Digital World

6.5 What Do PSD2 and Similar Activities Mean for Banks and FinTech Startups?

7: RegTech from a regulatory perspective

7.1 The Role of Anti-Money Laundering Law and Compliance in FinTech

7.2 Banking Supervision at a Crossroads – RegTech as the Regulators’ Toolbox

7.3 FinReg, FinTech and RegTech – Quo Vadis, EU?

7.4 The RegTech Landscape from a Regulator’s Perspective

7.5 RegTech is for Regulators Too, and Its Future Is in Emerging Markets

8: Blockchain and AI in RegTech

8.1 The augmented compliance office

8.2 Dissolving Barriers: A Global Digital Trust Protocol

8.3 Can AI Really Disrupt Monitoring for Suspicious Activity?

8.4 Forging a Responsibility and Liability Framework in the AI Era for RegTech

8.5 Compliance with Data Protection Regulations by Applying the Blockchain Technology

8.6 Blockchains are Diamonds’ Best Friend: The Case for Supply Chain Transparency

9: RegTech Applicability Outside the Financial Services Industry

9.1 Protecting Consumers and Enabling Innovation

9.2 RegTech Impact on the Private Security Industry

9.3 Art and RegTech: How Blockchain Can Improve Provenance

9.4 The Potential of RegTech in Improving the Effectiveness of Environmental Regulation

9.5 RegTech Applicability Outside the Financial Services Industry

9.6 Using RegTech as a Cross-Industry Digitalisation Tool

9.7 RegTech Unleashed: Discovering the Pathways Beyond Finance

9.8 RegTech Outside Finance: Four Options, One Clear Choice

9.9 RegTech: A Safe Bet for Tackling AML and Fraud in the Gambling Sector

10: Social Impact and Regulation

10.1 The FinTech Ecosystem between Legal Compliance and Social Dimension

10.2 The End Justifies the Means: Putting Social Purpose Back at the Heart of Banking and Financial Regulation

10.3 RegTech’s Impact on Trust and Identity

10.4 How Technology is Driving Financial Inclusion

10.5 Banking the Unbanked and Underbanked: RegTech as an Enabler for Financial Inclusion and Empowerment.

10.6 Super Hero Way: Enhancing regulatory supervision with SuperPowers

11: The Future of RegTech

11.1 Market Surveillance 2020

11.2 I Regulate Therefore I Am? Regulating Humans and Machines’ Conduct and Culture

11.3 The Future of RegTech

11.4 From RegTech to TechReg - Regulation in a Decentralised World

11.5 Emerging Innovations in RegTech

List of Contributors