Financial services industry encouraged to embrace RegTech


Brian Knight

Industry education provider Kaplan Professional and RegTech pioneer Red Marker are encouraging licensees and organisations to ensure they are well-equipped to face increased scrutiny from the regulator.

The positive reinforcement follows a recent spate of incidents involving ASIC cracking down on noncompliance and regulatory breaches. Clear examples of this being ASIC’s focus on unlicensed accountants and the clampdown on the use of certain terms under s923A of the Corporations Act. In addition, ASIC have stated they will be utilising more sophisticated tools to analyse data and address identified risks.

With RegTech front of mind for both the regulator and industry, Kaplan Professional and Red Marker are confident Artemis – their real-time compliance solution – will empower organisations to be more proactive and pre-emptive in identifying and remediating their own risk, effectively minimising instances of poor and misleading advice reaching consumers or being detected by the regulator.

Red Marker CEO Matt Symons said he was delighted with the buzz surrounding RegTech, and its ability to make risk and compliance more exciting and positive.

“Good governance starts with capability and the right set of tools – this is a terrific catalyst for change and encourages the industry to be serious about building a true culture of compliance.

“RegTech creates efficiencies and productivity improvements to manage regulatory obligations in a cost effective and compliant manner,” he said.

After more than three years of development as a website and social media surveillance and engagement tool, Artemis has expanded to encompass real-time risk detection in statements of advice, providing the ability to upload documents directly into the engine and conduct an immediate compliance check.

Kaplan Professional and Red Marker are also focussed on working with their clients to connect real-time risk identification with professional education to shape the industry’s training outcomes now and into the future.

Kaplan Professional chief executive Brian Knight said this would enable licensees to identify when and how to train advisers.

“We are building education pieces into the engine – bite-sized chunks of micro-learning – so advisers are able to detect when they have made a mistake, self-correct and learn as they go.

“It is a learner-driven process enabling continuing education to be delivered when and where it is needed, as an integrated part of an adviser’s role.

“We are committed to continuing to work with our clients and the industry to provide meaningful compliance solutions, and further investigate new and innovative ways of utilising artificial intelligence to provide better learning outcomes,” he said.

Symons encouraged the industry to take advantage of RegTech’s and Artemis’ endless potential.

“There is genuine capability out there right now – this is an enormous opportunity for the industry to innovate in the way they do things.

“Those who do not get on board with this technology now will be stuck doing things the old way, while others move further ahead.”

With a host of major licensees already using Artemis, Kaplan Professional and Red Marker welcome the opportunity for more of the financial services industry to capitalise on this innovative RegTech solution.

“It is extremely encouraging to see the number of AFSL’s embracing Artemis and RegTech – what better way to demonstrate to the regulator you are serious about creating a culture of compliance and protecting the best interests of the consumer,” Knight said.

“Their investment in RegTech is enabling them to do all they can to maintain visibility and control across their licence – it is a no-brainer to be on the front foot by being able to identify and mitigate risk before the regulator does and starts to ask questions.”

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