At Nexus Governance we get to experience how fund industry firms, regulated fund entities and their respective board are reacting to regulatory change. We thought it might be helpful to share a few insights:
1. The better outcomes in regard to the implementation of regulatory change seem to have a common theme: The organisation spends time to understand why the regulation was necessary and continues to remind itself of the reason. They never lose sight of the regulatory objective.
2. Playing it safe can be counter-effective. For example if an organisation decides to push a regulation to every part of their company when it clearly isn’t applicable or best practice to do so the regulatory objective may not be achieved. Compliance spend will also go up and the firm will lose focus on the important stuff.
3. Having an expert or experts in the front row is critical and will enable you deliver an effective (efficient, economical, and compliant) solution. Be wary of having a regulatory change “go-to person”. Your experts should change depending on the area of focus.
4. Documentation and policies are part of the journey but don’t see them as a panacea. >75% of the challenge will sit outside of the papering process.