The need for compliance officers and compliance departments within our work places happens very often. Their main goal is to prevent organizations from violating important government regulations. Thus is especially important when our governments adds new regulations or changed the existing ones. No one wants to be responsible for an organization being penalized for any type of government violation, as a violation can cost an organization a lot of money.
These regulations and changes do not always just effect the organization. These changes can also effect consumers too. There are affects in business expenses that trickle down to dropping stock prices.
Thus is partly because of the high cost of compliance four businesses. Compliance can cost financial institutions up to $65 billion dollars or more per year. They are also thinking thus number will rise by 2020, with financial institutions spending an average of $118 billion dollars in compliance costs.
Regulatory technology can help greatly reduce these costs associated with compliance. Regulatory technology comes in the form of computer software. Investors should stick with firms that use this technology for compliance.
Regtech companies are very small right now, and many of them have not even made anyone a share holder of their company. The organization whom are heavily regulated will benefit most from this regulatory technology. The more organizations that understand how this technology can work for them, the more money these organizations will save in costs for compliance.
The good news is that most government agencies just started learning about regulatory technology, and are looking to include them as part of the compliance regulations. This has become reality in America, Britain, and Singapore, and could very well become reality with many other government agencies.
Jeff Yastine is employed as a writer, reporter, and has made investments for the past 20 years. The information he reports is meant to provide valuable information to investors to maximize their profits. Jeff Yastine started working as an editorial director at Banyan Hill Publishing in 2015. Jeff is also the editor of a newsletter called Total Wealth Insider, an investment newsletter. Last, he also writes for several popular websites. More info here:https://stocktwits.com/jeffyastine