Horizon scanning
Also called regulatory horizon scanning
Horizon scanning is the systematic tracking of upcoming laws, rules, guidance and supervisory priorities that could affect a firm. Compliance teams watch regulators, legislators and standard setters, then flag what is relevant early, so the business has time to plan before new requirements take effect.
How it works
Analysts monitor consultations, policy statements, speeches, enforcement notices and legislative calendars across the jurisdictions where the firm operates. Each item is filtered for relevance, summarised and given an owner. Material changes move into the regulatory change process, where obligations are mapped to policies and controls. Many firms publish a regular horizon report to senior management.
Early warning gives firms time to budget, build systems and respond to consultations. Missed changes lead to late remediation and breaches. Regulators help through public planning tools. In the UK, the Regulatory Initiatives Grid sets out the pipeline of planned work from the Bank of England, PRA, FCA and other bodies.
The rules
Public map of planned regulatory initiatives by quarter from UK financial regulators, first published as a pilot and updated periodically since.
UK financial services firms and their regulatorsCommon questions
How is horizon scanning different from regulatory change management?
Horizon scanning finds and assesses upcoming changes. Regulatory change management is the wider process that follows, mapping each new obligation to policies, controls and owners, and tracking implementation to completion.
What sources do compliance teams scan?
Typical sources are regulator websites, official journals, legislative trackers, consultation papers, supervisory speeches, enforcement notices and standard setters such as the Basel Committee and FATF.
Is horizon scanning a regulatory requirement?
No rule names it as such. Regulators expect firms to keep systems and controls that ensure compliance, and spotting new rules in time is part of that. Supervisors often ask how firms identify upcoming change.
How far ahead does horizon scanning look?
Most programmes track items from early discussion papers to final rules. Long legislative files, such as EU regulations, can sit on a horizon report for several years.
