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!-- 3.0 RegTech and compliance management -->
RegTech is composed of the words “regulatory” and “technology”. It is a collective term for the application of modern technologies, to get the increasing regulation in the banking- and financial sector under control both from an IT and a legal standpoint.
Introduction
Attitude of the country towards RegTech-services
RegTech services, such as KYC/customer due diligence screeners, transaction monitoring and case management services, have become popular and is adopted widely in the financial sector. Singapore’s primary regulator of financial services, the Monetary Authority of Singapore (MAS), and its representatives have publicly discussed their progressive stance for the adoption of RegTech and have also led financial initiatives to assist institutions with the adoption of technological solutions and infrastructure such as the Financial Sector Technology and Innovation scheme and the Regulatory Technology Grant.
Legal affairs
Obligations and requirements to provide RegTech-services
RegTech are generally not subject to regulation beyond fundamental statutory obligations such as obligations under data protection legislation (Personal Data Protection Act 2012 of Singapore). Where RegTech services are used by a financial institution, it is the obligation and liability of the financial institution to ensure that the service provider and the outsourcing arrangements for their services meets the minimum standards issued by MAS in their various guidelines on outsourcing. Factors that should be assessed by the financial institution include the physical and IT security controls the service provider has in place, the business reputation and financial strength of the service provider and the ethical and professional standards held by the service provider.
Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area
N/A
Economic conditions
Market size for RegTech-services and biggest companies in this business area
Precise market data is limited, but it is the market for RegTech services is generally still immature. While there is no exhaustive list of startups, leading companies of RegTech services include Advance Intelligence Group, Advance and Shield. Nonetheless, with the incentives promoted by regulatory authorities for the adoption of RegTech services, the conditions for further substantial development of RegTech services market in Singapore’s market are existent.
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area
N/A