TACT recently partnered with Finastra to host a Loan Agents and Trustees Roundtable. Among those presenting, was Truva’s Iva Bardhi who spoke about best practice and future trends in delivering Market and Regulatory compliance.
Iva explained: “The obligation on the Loan market is to comply with Regulations, such as AML/KYC and GDPR, yet these rules are ever changing within a continually shifting, politically evolving world. Ensuring Compliance requires in-depth knowledge of the regulations with the ability to apply them to each client’s unique fact pattern. With each new regulatory update, it is essential to get across the details from the bottom up.”
Below are a few insights on trends to watch and best practices for Trustees and Loan Agents collated by our Trustee team:
Increasing regulatory complexity
As regulatory frameworks continuously evolve due to changes in cross-border regulation, global politics, and investment product innovation, it is more valuable than ever for institutions to invest in the right regulatory team and support their staff with rigorous and advanced IT systems. This investment will enable institutions to navigate rapid changes effectively and remain agile in the face of future policy shifts.
Growth in data requires robust governance
Because implementation is not straightforward, it is essential that those ensuring compliance within a Loan Agency or Trustee business have a robust and in-depth understanding. Stringent data protection and privacy mandates necessitate robust governance frameworks to safeguard sensitive customer information.
Cost of compliance
Businesses that recognise the value of regulation will understand the need to invest in compliance. The right specialist, high-quality personnel, regular comprehensive training initiatives and external legal advice combined with technological investment will ensure Compliance is delivered reliably and transparently for clients.
AI and human partnership
The advance of AI can streamline compliance processes when used wisely. A Compliance team who has a robust grasp of Regulations can benefit from this innovative and useful technology when integrated into their work flow. However, risks enter the system if the technology is run by those without sufficient understanding of the underlying rules. Additional challenges, such as integration with legacy systems and data security need to be addressed.
In addition, an internal technological understanding is also required within the business. It is not often that one provider can deliver end-to-end. Each new platform needs to integrate across the whole and ensure data security is foremost or the systemic risk is increased rather than reduced. With each platform coming with a hefty price tag, it requires a careful analysis to select the right provider.
When a Trustee Services team are truly across the details of AML & KYC their clients can be confident that whatever global forces and IT innovations come into play, their compliance is assured.
