INSUBCONTINENT EXCLUSIVE:
Marc Gilman is General Counsel and VP of Compliance at Theta Lake
He is also an Adjunct Professor at Fordham University School of Law. Technology has been used to manage regulatory risk since the advent of
the ledger book (or the Bloomberg terminal, depending on your reference point)
However, the cost-consciousness internalized by banks during the 2008 financial crisis combined with more robust methods of analyzing large
datasets has spurred innovation and increased efficiency by automating tasks that previously required manual reviews and other
From a practical perspective, everything from the security requirements influencing software architecture and development to the sales
process are substantially different for FinServ RegTechs.The most successful RegTechs are those that draw on expertise from security-minded
engineers, FinServ-savvy sales staff as well as legal and compliance professionals from the industry
FinServ RegTechs have emerged in a number of areas due to the increasing directives emanating from financial regulators.This new crop of
startups performs sophisticated background checks and transaction monitoring for anti-money laundering purposes pursuant to the Bank Secrecy
Act, the Office of Foreign Asset Control (OFAC) and FINRA rules; tracks supervision requirements and retention for electronic communications
under FINRA, SEC, and CFTC regulations; as well as monitors information security and privacy laws from the EU, SEC, and several US state
fields to determine how solutions have been structured to meet regulatory demand as well as some of the operational and regulatory
