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RegTech and compliance management
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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
New Zealand has only recently gained awareness of RegTech. New Zealand’s legislation does not distinguish between products and services provided with reliance on FinTech and those that are not.
Some discussion in this space suggests, that, in particular, use of RegTech in relation to FMCA compliance could be difficult and further development within this regulatory framework would be required in order for RegTech to suitably interact with it.
Regardless, the FMA is supportive of the FMCA’s purpose, and it could be expected that it will be collaborative with RegTech providers going forward. The FMA itself openly requests to know more about the range of tools available to enable it to analyse regulatory data.
Legal affairs
Obligations and requirements to provide RegTech-services
There is nothing RegTech specific within any sector and it is entirely dependent on the scope of the services provided. Simply providing IT services to a bank or other provider of financial services, which don’t relate to the actual banking or financial systems, will not likely invite any requirement for licensing. There is no specific licence required to provide advice on or support for financial regulatory compliance.
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
As discussed above, RegTech in New Zealand is in its infancy and there are likely plenty of gaps within the market to be explored particularly, as relating to the FMCA regime. There is, however, a somewhat competitive market in place for RegTech solutions in relation to AML compliance.
Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area
N/A.