Before organisations wring their hands over the rise of red tape, they should look at the equally rapid rise of regulatory technology. It promises to strip the tedium and costs from compliance and reduce risk across whole economies. Even ASIC is excited at the potential.
Regulatory flux has become so extreme that one in three financial services businesses devotes one day a week just to track regulatory change. Thomson Reuters’ 2016 Cost of Compliance survey also reveals that 69 per cent of firms expect to spend more on compliance in 2017 than ever before.
Finance is one of the most heavily regulated sectors – but all businesses face compliance issues, from meeting Australian Securities and Investments Commission (ASIC) requirements to following workplace health and safety rules.
This rise in red tape explains the equally rapid rise of regulatory technology, or regtech, which is being developed to strip costs and risk from achieving regulatory compliance.