FinregE cautions firms against deregulation complacency

By Milan Rojan

FinregE has warned financial institutions against viewing political calls for deregulation as a signal to scale back compliance investments, arguing that regulatory complexity is likely to persist despite policy debates around reducing rules.

The warning has followed recent comments by Conservative Party leader Kemi Badenoch, who called for an overhaul of regulations introduced after the 2008 financial crisis. Speaking at TheCityUK’s annual conference, Badenoch said excessive regulation had constrained growth, weakened the competitiveness of the City of London and fostered a culture of caution within financial services.

In response, London-based regulatory technology provider FinregE said firms should distinguish between political rhetoric and operational realities. The company noted that financial institutions continue to face increasing regulatory expectations across multiple jurisdictions, alongside evolving requirements in areas such as operational resilience, financial crime, data governance and artificial intelligence oversight.

According to FinregE, the primary challenge facing organisations is no longer the volume of regulation but the ability to identify, interpret and operationalise regulatory change efficiently. The company said firms that treat deregulation discussions as a reason to reduce investment in compliance capabilities could expose themselves to future operational risks.

Rohini Gupta, CEO of FinregE, said “Political announcements create headlines. Regulatory obligations create operational realities. The two should not be confused. Financial institutions do not operate within the confines of a single political agenda. Even where regulation is simplified, the need for clarity will not diminish.”

FinregE also highlighted the fragmented nature of regulatory change management within many organisations, where obligations are identified, interpreted and assigned through separate systems before evidence is compiled in response to supervisory requests. The company argued that such processes can create inefficiencies, delays and accountability gaps.

To address these challenges, FinregE has positioned its regulatory operating system as a platform that connects regulatory intelligence, impact assessments, policy management, control mapping and evidential traceability across the compliance lifecycle.

The company said firms that can rapidly interpret regulatory developments, connect obligations to actions and maintain auditable evidence of compliance will be better positioned to navigate an increasingly complex regulatory environment.