Interviewed Company Kompli-Global
Interview with Jane Jee CEO
Interview Monday 3rd July 2017:
Subjects: Disruption, Regtech, Brexit,
CEO Jane Jee talks with Fintnews about Regtech…
First off, let’s define Regtech. “A system for using technology to address regulatory requirements supported by the FCA and other regulators”… and we could add “who are realising that they have piled on regulation and now firms are buckling under the weight of it.”
The function of Regtech is facilitating and enabling regulatory compliance. Ahh if only life was so simple.
“It’s ten years since the 2007 money laundering regulations came into force, and ten years is a long time. The new money laundering regulations 2017 are now in effect and this, along with many other factors including the actual becoming of fintech as a sector as well as more serious and specific approach to global money laundering, means Regtech is now a high growth component of the fintech ecosystem.
There are 27 regulators in the UK in total. Regulation is a big book. Very big. So let’s start on a chapter we can all relate to. Brexit.”
Fintnews: Jane, let’s talk about Brexit, in terms of Regtech. What was the reaction of the sector when Brexit was announced?
“… initial disappointment …it created uncertainty regarding the financial passporting, whereby if you set up business in the UK you can do business in Europe just by notifying the regulators. Now, some companies will be looking at relocation… although due to the size and significance of London in the global financial markets, most will stay or keep a foot in the UK at minimum.”
Fintnews: Will Brexit change Regtech as a sector?
“Regulation is not going to lessen because of Brexit. Putting in bluntly, a lot of EU legislation is drafted in the UK and because of that we aren’t going to see regulation reducing in volume…”
Fintnews: Is it going to change?
“There will be subtle changes after Brexit until then all EU legislation continues to apply… including GDPR…”
Fintnews: Would it be advantageous for the UK to have our own independent regulatory framework or not, in your opinion?
“With everyone preparing to comply with existing regulation and because of our need to position ourselves on the global stage, we don’t want to look lax on regulation, we will always have an eye on what’s happening in the EU but it may be an advantage. For example, the UK could choose, by its regulatory framework, to attract Chinese fintech companies, or US ones. In terms of global positioning, London is currently still global fintech capital, certainly in payments the UK leads the world, therefore for fintech and associated Regtech there is the opportunity to develop a global blueprint, not just an EU one.”
Fintnews: Do you think it would be interesting if the UK could position itself as a kind of translator or hub for cross continental compliance?
“One of our strengths is ability to pick what is good in other markets and make it our own. We have been good at taking the lead in relation to compliance… putting ethical principles behind legislation… as a county we have been better at that than others. Potentially translating global regulations as technology and developing courts that can deal with global disputes on tech and the regulatory framework… would make for an interesting dynamic…based on the established strength of UK laws and regulators. We have a lot of history in creating and being creative within the legal sector.”
Read the interview and analysis in full in The Fintech Times in print this July.
