Regulatory Compliance

In the evolving landscape of financial regulation, understanding and complying with Dodd-Frank 1071 presents both challenges and opportunities for financial institutions. Mastering this terrain can seem daunting, but with the right strategies and insights, compliance can become a catalyst for growth and innovation.

Compliance with Dodd-Frank 1071 has been an important and sometimes contentious topic of discussion, due in part to varied sentiment, the US district court injunction, anticipated new effective dates, requisite change management, and rigorous regulatory enforcement. To make matters even more challenging, strategies and interpretations of compliance requirements are inconsistent across institutions, making the job of compliance an ongoing task.

Seizing the OpportunitiesAs financial institutions figure out how to keep up with these challenges, they have several opportunities and choices. Compliance with Dodd-Frank 1071 presents opportunities for expanded customer data analytics, operational standardization, and tapping into underserved market segments. Leveraging these potential benefits can lead to significant advancements for financial institutions.

“We want to begin collecting the data as soon as we can so we can start validating our processes and our training environment.” - Jason Spelliscy, Senior Manager - Product Compliance, nCino

nCino's Role in ComplianceWith over 300 customers originating 1071-reportable loans on our platform, nCino is keen on making compliance manageable and beneficial for financial institutions. Our robust solution includes logic-based mappings, data review screens, comprehensive data capture, viewing restrictions, permissions, and data extracts. Our goal is to create a seamless experience for FIs and their users.

Regulation is a constant in the banking industry, with new requirements regularly being introduced. The challenge lies in interpreting and actioning these regulations, and with the UK Consumer Duty regulation approaching, it's clear that financial institutions in the UK need to be proactive.

What is Consumer Duty?The FCA’s proposed Consumer Duty regulation requires firms to prioritise their customers’ interests by focusing on delivering “good outcomes”.

According to the regulation, “good outcomes” are based on three core principles: acting in good faith, supporting financial objectives and avoiding foreseeable harm. In other words, lenders must act in their customers’ best interests by providing tailored products and services, communicating transparently and avoiding any potential harm.

- Starting on July 31, 2023, every lender will be required to define and monitor what constitutes good outcomes for their customers.

- From September 2023, the FCA will be reaching out to a select number of firms to investigate what has changed (or not) in the gap analysis.

- Beginning in January 2024, lenders will be asked for dashboard samples with supporting data demonstrating avoidance of harm.

The regulation will continue to evolve throughout these phases. Based on the findings, the FCA could recommend further changes to improve compliance with the Duty through 2025.