Share these talks and lectures with your colleagues
Invite colleaguesPractice paper
How distributed ledger technology could solve regulatory problems
Journal of Financial Compliance,
3
(1),
60-66
(2019)
Abstract
Distributed ledger technology (DLT) is at the forefront of emerging technologies, and one which we believe has the potential to radically affect and transform not only the financial services industry (FSI), but all industries. Nascent as the technology currently stands, its core attributes have the potential to completely change the way our world works, in the same way that the internet has done. Through 2017–2018, we have interacted with key players in financial services (FSIs as well as regulators) to understand their demands; and explored the financial technology (FinTech) and regulatory technology (RegTech) spaces to find viable solutions in the market. This paper aims to explain how three functionalities of DLT (namely immutability, trade matching and smart contracts) can revolutionise the process of regulatory compliance for FSIs. The authors have included a use case of how an underlying DLT could be beneficial to future proof elements of the regulatory initiative published by the Bank for International Settlements in January 2013 for systemically important banks to improve risk data aggregation and risk reporting (BCBS239).
Keywords: regulatory compliance distributed ledger technology
The full article is available to subscribers to the journal.
Author's Biography
Tom Spouse is the founder and CEO of Prospect 33, one of the industry’s leading tier 2 consultancies with a strong focus on regulatory implementation. Since 2017, Tom has focused his attention on the emerging FinTech landscape that is exponentially growing within the industry. What has been observed from Prospect 33’s client base of tier 1 banks that the internal adoption of distributed ledger technology (DLT) solutions are slow to take root.
Ben Green is a change management professional with over 25 years of experience delivering change in tier 1 global banks. In the last 5 years, Ben has managed change portfolios and specific change programmes with a focus on meeting some of the global regulatory demand being placed on banks. Considering the rate of adoption of DLT solutions in financial services, Ben has been strategically partnering with Prospect 33 to consider where DLT solutions can benefit financial services institutions in maintaining and extending compliance with regulation.
