FinSA and regulatory outlook

New regulations are primarily associated with additional bureaucracy and expenses. However, if handled correctly, they can also contribute to the standardisation and industrialisation of processes in the bank. At best, the optimised processes anticipate technological change with the associated new products and services in the bank portfolio.

Finnova adheres to these guiding principles when implementing new laws and provisions – and FinSA is a good example of this. Our endeavour is to make the end-to-end processes concerned as independent of channels and service-related as possible. The master data storage in the Finnova system ensures consistency here. This way, roughly the same K&E and risk profiling of the client should apply, both in the creation of the investment proposal, the entry of the transaction by the client advisor during a telephone advisory, independent trading in e-banking and also in the case of the involvement of the robo-advisor in future.

It is of great importance to ensure the compliant documentation of processes as well as a complete audit trail, for instance in the linking of the investment proposal with the consultation protocol and the resulting transactions.

The processes concerned need to not only be compliant, but also implemented in a manner that is as efficient and automated as possible, both to reduce compliance risks and to relieve the front office. Examples of this are the automated pre-trade checks according to various aspects or the reference and display of the basic information sheet.

While the large regulatory wave appears to be subsiding somewhat, the compliance departments will not run out of work for the foreseeable future. Whether in the case of the small bank regime, in the case of changes to deposit insurance, the revision of the data protection law or future topics such as sustainable finance – Finnova is on the ball and ensures ‘smarter banking’.