Country _ Name
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.


Attitude of the country towards RegTech-services

Despite RegTech solutions being adopted in certain critical areas, RegTech is not yet being implemented widely.

Almost half of RegTech vendors viewed the current levels of RegTech adoption in financial institutions to be ‘moderate’ with a third of respondents classing the level as ‘low’.

Legal affairs

Obligations and requirements to provide RegTech-services

In general, companies providing RegTech solutions are not subject to regulation, and so are not required to be authorised.

RegTech companies providing services to regulated firms may indirectly be subject to regulatory requirements, such as regarding operational resilience, through their contractual arrangements.

Under the EU Bank Recovery and Resolution Directive (2014/59) (“BRRD”) as implemented in the UK by the Financial Services (Banking Reform) Act 2013, there are limited circumstances where the Bank of England can require a supplier to a bank undergoing a “Bail-In Stabilisation Option” to continue providing services without payment, or not to terminate a contract for services (in each case for not more than two business days). The PRA rules require a bank to impose a term in its contracts with suppliers to agree to be bound by the exercise of those powers by the Bank of England to make special bail-in provision (and other provisions of the BRRD).

Additional comments regarding the legal situation for RegTech-services or what RegTech’s must be aware of in this business area

The regulatory approach to RegTech services (as outlined above) is generally very “light touch” in the UK.

Economic conditions

Market size for RegTech-services and biggest companies in this business area

Most RegTechs are optimistic about their commercial performance, with almost two thirds experiencing sales growth in 2020 and an even larger majority (82.3%) were expecting further growth in 2021.

Additional comments regarding the economic situation for RegTech-services or what RegTech’s must be aware of in this business area

Regulatory compliance and obligations present substantial operational burdens and costs to firms carrying on regulated activities. The risks for authorised firms of fines or other sanctions imposed by regulators for breach of regulation can be substantial. As a consequence, there is a substantial appetite for effective RegTech solutions within the United Kingdom. However, as yet, it is not obvious that RegTech suppliers have been able to implement disruptive solutions.



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