The solution
Assessment phase
The approach was to review the permissions in each jurisdiction; aligning the governance structure with the entities, ownership of existing regulations, and any gaps to be remediated. Engaging with the various stakeholders, which included teams such as horizon scanning, compliance and legal, we collaboratively mapped out the end-to-end processes, permissions, and governance structures.
The exercise allowed the organisation to clearly view their touch points across complex elements, and create a challenge and validation process to get the final position. We followed the below steps to understand and define their regulatory universe:
- Gathered a high-level understanding of the client’s products, jurisdictions and regulators
- Conducted detailed review with horizon scanning teams to validate the horizon scanning applicability
- Conducted business line reviews to align the products, services, and client types with the regulators and non-regulators
- Validated local jurisdictional requirements with local teams
- Validated the overall outcome of the regulatory universe with the compliance and legal team
- Aligned the outcome to the client’s group framework
Focus on horizon-scanning information
We reviewed the horizon-scanning process, mapped the permissions by jurisdiction, overlaid the client-selected third-party providers and taxonomies, and worked with the in-house horizon scanning team to embed the newly tech-enabled regulatory universe. To ensure that the horizon-scanning process captured all relevant rules and regulations, we mapped out the applicable regulators, according to the activities and services they have permissions for, in each jurisdiction our client operates in. This allowed the client an audit trail on all decisions made in the review – giving them the ability to adapt it for new permissions, products, and services going forward.
We delivered a regulatory change universe for the bank with global coverage which outlines the following:
- Current state of in-scope regulated activities across businesses and jurisdictions
- Regulators and non-regulatory bodies that set rules and guidance on the regulated activities, products and customer types for each jurisdiction
Delivering a targeted regulatory universe that outlines the regulated activities and scope across businesses and jurisdictions. Importantly, the universe was agreed and signed off to deliver a consistent understanding across the various areas. The regulatory universe is a living document that gives the first and second lines of defence an anchor to review emerging regulations efficiently.
Finally, as part of our Regulatory Change Framework, we put in place a robust assurance process for monitoring, that demonstrated oversight on the newly tech-enabled process.
![mapping-the-regulatory-universe.svg]()
