In the past, regulations have gotten a bad rap. Wealth managers have seen compliance as a burden that drags them down while banks have viewed them as an obstacle getting in their way. But what if wealth managers and banks could see regulations as an opportunity? WealthBriefing's newest study, "Global Compliance and Innovation Trends in Wealth Management," written in partnership with Appway and Deloitte, finds that compliance is actually a means to innovation rather than a hindrance.
Some jurisdictions have realized this fact and acted on it quicker than others. Below is a list of some major global regions and how they're embracing or not embracing the regulations affecting them:
The United Kingdom
The United Kingdom is leading the way as one of the world's most FinTech-friendly regulators, as its 'regulatory sandbox' (a temporary waiving of some rules for start-ups) is among the more prolific.
Switzerland has an open approach to blockchain technology and cryptocurrency, offers low tax rates, and is close to technical universities ETH Zürich and Hochschule Luzern.
Hong Kong and Singapore
Hong Kong is setting up a new FinTech bank in response to the regulator's "smart banking" drive. The Hong Kong Monetary Authority is creating a quicker payment system and its own version of a FinTech "sandbox," while also promoting virtual banking, a "banking made easy" initiative, an open Application Programming Interface, and more cross-border cooperation with other regulators.
The Monetary Authority of Singapore and the Association of Banks in Singapore, meanwhile, have awarded 10 financial software firms $1.15 million in prizes.
The United States
While technology spending has gone up, WealthBriefing's study points out that "… the Government is cutting regulation for the first time in years." Plus, The New York Department of Financial Services has not been kind to Bitcoin exchanges, which led the industry to move to the Isle of Man.