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With this online course, you will:
- Understand the role of international standard-setting bodies like the G20, FSB, and FATF in shaping financial regulations globally.
- Grasp how the emergence of fintech companies like challenger banks is transforming the financial landscape and driving a need for regulatory technology (RegTech).
- Be able to analyse different regulatory structures such as sectoral, integrated, functional, and Twin Peaks models including their historical shifts.
- Identify key regulatory objectives around financial stability, systemic risk, consumer protection, transparency, and integrity that underpin oversight of the financial system.
- Recognize how regulatory mandates create standards for responsible and ethical business practices that financial institutions must embed through regulatory compliance procedures and technologies.
Application of regtech
This chapter will highlight the central role of the G20 in setting global regulatory directions, which are developed into non-binding "soft law" standards by organisations like the Financial Stability Board and the Bank for International Settlements. These international guidelines, such as the FATF's anti-money laundering recommendations, are voluntarily integrated into domestic legal systems and influence enforcement through international monitoring and compliance mechanisms
Fintech needs Regtech
This chapter emphasises the symbiotic relationship between financial technology (Fintech) and regulatory technology (Regtech). It highlights the necessity of Regtech solutions like electronic Know Your Customer (eKYC) for the viability of Fintech innovations, such as challenger banks, which enable remote and rapid account opening that complies with regulatory identity verification requirements. The chapter also discusses the balance between enhancing customer onboarding experiences and meeting stringent regulatory standards to prevent issues like money laundering, as demonstrated by significant fines imposed on major banks for compliance failures.
The chapter "Supervisory Architecture" delves into the complexity of global financial regulatory structures, highlighting that while regulatory objectives may be universal, each jurisdiction has its own unique system. It discusses the four primary regulatory frameworks: sectoral, integrated, functional, and Twin Peaks, each differing in how they oversee various financial sectors and functions. The chapter underscores the challenges these differing structures present for compliance and the role of Regtech in simplifying and reducing the cost of adherence to these diverse systems.
Chapter 4, emphasises the importance of understanding regulatory mandates in the context of RegTech (Regulatory Technology). It explains that regulations are not arbitrary but are designed to prevent financial crises and support economic stability, which are costly to the financial sector, governments, and society. The chapter delves into two forms of regulatory mandates: macroprudential regulation, which deals with systemic risks and interconnections in the financial system, and microprudential regulation, which focuses on the safety and soundness of individual financial institutions. Both areas highlight the critical role of technology in gathering, analysing, and reporting data to ensure compliance and uphold the mandates of financial stability and consumer protection.
Sandboxes and Proportionality
Chapter 5, teaches that regulatory sandboxes are innovative platforms established by regulators to test and nurture financial technologies in a controlled environment, aiming to strike a balance between risk management and the promotion of innovation without stifling it. It emphasises the importance of regulators adopting a proactive, adaptive, and proportionate approach to regulation that embraces technological advancements and data analysis to better assess risks and support new financial solutions.
Meet your instructor - Douglas Arner
Kerry Holdings Professor in Law at The University of Hong Kong
Douglas W. Arner is the Kerry Holdings Professor in Law and RGC Senior Research Fellow in Digital Finance and Sustainable Development at the University of Hong Kong, where he is also a Senior Fellow of the Asia Global Institute, Associate Director of the HKU-Standard Chartered Foundation FinTech Academy and a Member of the Management Committee of the Techno-Entrepreneurship Core as well as principal of the Reg/Tech Lab and Faculty Director of the Law, Innovation, Technology and Entrepreneurship Programme (LITE).
He is a non-executive director of NASDAQ and Euronext-listed early-stage biotechnology development firm Aptorum Group, an Advisory Board Member of the Global Impact FinTech (GIFT) Forum, SuperCharger Ventures, Policy 4.0, the International RegTech Association, the Alliance for Innovative Regulation and the Centre for Finance, Technology and Entrepreneurship (CFTE), and co-founder and an executive board member of the Asia Pacific Structured Finance Association. He leads the largest FinTech online course on edX, now with over 125,000 participants drawn from (almost) every country in the world.
Douglas focuses on the interlinkages between finance, technology and broader sustainable development. He has published twenty books and more than 200 articles, chapters and reports on finance, technology, regulation and development, including most recently FinTech: Finance, Technology, Regulation (Cambridge 2023 forthcoming, with Ross Buckley and Dirk Zetzsche).
Meet your instructor - Janos Barberis
Co-founder of Supercharger Ventures
Janos Barberis skillfully combines academic rigour with an unrivalled entrepreneurial spirit. He has an established track record in the FinTech Industry (named 32nd Most Powerful Dealmaker globally, Institutional Investors, 2018) and in academia (13th legal scholar in the world, SSRN, 2018). He is driven to deliver actionable insights which have benefited the business transformation and innovation of Tier-1 financial institutions, across 400 B2B partnerships with cutting-edge technology start-ups. The 49 start-ups across Janos’ accelerator cohorts have raised over US$500 million and are regularly listed as leading FinTech companies, globally.
He has promoted sustainable innovation in financial markets by heavily investing in Human Capital development. Regular stakeholder interactions with senior government officials and development agencies combine start-up ecosystem access with policy-minded advice.
Janos currently focuses on the financial stability implications of BigTech firms, given their “too-large-to-ignore scale” and promotes a sustainable finance agenda via start-up business models. He leads a team of 18 people across key FinTech hubs, including Hong Kong, Singapore & London.