Regulatory change management
RCMAlso called reg change management, regulatory change
Regulatory change management is the process firms use to identify new or amended rules, assess their impact and update policies, controls and systems before they take effect. It links horizon scanning to an obligations register and to named owners. Supervisors expect firms to have adequate procedures to keep compliant as rules change.
How it works
A compliance team monitors regulators, legislatures and standard setters for consultations, final rules and guidance. Each item is assessed for relevance, mapped to affected obligations, business lines and controls, and assigned an owner and deadline. Implementation is tracked to completion and evidenced. Many firms use regulatory intelligence feeds and language models to classify updates and link them to internal policies.
The process matters because volume is high and deadlines are fixed. Missed changes lead to breaches, remediation and enforcement. In the UK, SYSC 6.1 requires adequate compliance procedures and the Senior Managers Regime assigns individual accountability. In the US, investment advisers must review their compliance policies at least annually under Rule 206(4)-7, including for changes in applicable law.
The rules
Requires adequate policies and procedures to detect and minimise the risk of failing to comply with regulatory obligations.
FCA-authorised firmsRequires written compliance policies and procedures, an annual review of their adequacy, and a designated chief compliance officer.
SEC-registered investment advisersCommon questions
What is the difference between horizon scanning and regulatory change management?
Horizon scanning is the first stage, spotting upcoming rules and consultations. Regulatory change management covers the full cycle, from assessment and ownership through to implementation and evidence.
What is an obligations register?
An obligations register is a structured list of the rules a firm must follow, linked to policies, controls and owners. It lets firms see quickly which controls a new rule affects.
How is AI used in regulatory change management?
Firms use natural language processing and language models to classify regulatory updates, summarise them and suggest links to existing obligations and policies. Compliance staff review the results before acting.
Our coverage
News and analysis on regulatory change from RegTech Post.
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