June 15, 2018
Despite a general trend towards deregulation, the changes to the de minimis threshold are unlikely to have a major impact on the regtech industry, explains Bruce Runciman, executive director at AxiomSL, a provider of regulatory and risk management solutions for the financial services sector.
For smaller firms sitting under the threshold, although not formally subject to more stringent swap dealer rules, it is within their best interest to work closely with regtech companies and play within the confines of the compliance sandbox in order to avoid market scrutiny and reduce overheads, Runciman says. At the very least “it makes sense on a cost basis,” he added.
Furthermore, many of the regulations regarding risk management for instance are a net benefit for financial services providers and their clients, with institutions likely to continue to implement solutions to minimize risk even if they are no longer legally required to do so.
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