What is regulatory framework?
A regulatory framework is a set of requirements or beliefs. Regulatory frameworks are often mandatory thanks to the industries they govern; such as finance, law and medicine, though they can also apply on a voluntary basis. They are implemented to guide a company's operations, resulting in improved risk management, transparency, and performance stability.
Why are regulatory frameworks important?
The primary purpose of a regulatory framework is that it acts in the interest of the public and prevents market abuse. In one European Commission regulatory framework, for example, companies have recently been told to make subscription canceling just as easy as signing up.
A global regulatory framework must remain fair and objective, allowing smaller companies to comply just as easily as larger ones without incurring a penalty. Nonetheless, there is widespread support for businesses of all sizes to follow government agency and federal regulations. Global Relay assists organisations in capturing, preserving, and monitoring their corporate communications, to meet regulatory frameworks established by bodies such as the Securities and Exchange Commission (SEC), Financial Conduct Authority (FCA), and FINRA.
Examples of regulatory framework requirements
Regulatory frameworks cover a broad gamut of industries and operations. For example, healthcare services will have to meet a suite of regulatory frameworks in order to be compliant and protect the wider public. A good example of a regulatory framework is the widely known General Data Protection Act which sets data protection requirements for businesses across Europe.
How to write a regulatory framework
Some businesses write their own regulatory frameworks for internal compliance purposes. Writing a regulatory framework requires in-depth knowledge of the rules, and a robust understanding of the overall landscape. For example, the internal framework may require staff to report suspicious behavior, or sign a document stating that the accounts have been double-checked. Bespoke policies are often built in-house to tackle certain compliance challenges, such as how employees are allowed to use social media at work.
Get support for regulatory compliance
Be proactive in your approach to regulatory framework compliance. Partner with Global Relay to get access to one regulatory system, and endless compliance possibilities.