Understanding the Complex Web of New Regulations Impacting the Tech Sector
The regulatory landscape in 2024 presents a complex environment for tech investments, influenced by new regulations and market dynamics. Key insights from KPMG, Xceptor, and EY highlight the major regulatory changes and challenges that are reshaping the tech investment scene.
A significant focus in 2024 is on AI regulations, with the EU's new AI Act and the US AI Bill of Rights setting new standards in AI governance. These regulations mandate more transparent and responsible AI practices, affecting everything from algorithm design to data management.
The financial services sector is undergoing a transformation, with the implementation of T+1 in the US and Canada serving as a benchmark for global financial institutions. This change necessitates a proactive approach to leveraging technological advancements and adapting operational frameworks.
Other regulatory changes include proposed modifications to capital management rules under Basel III, requiring financial institutions to implement an expanded risk-based approach. This represents a fundamental shift in financial risk management and reporting.
Financial services firms in 2024 need to prioritize consumer impact, ESG, digital assets, digitalization of finance, financial crime, and operational resilience. A focus on people, processes, data, and technology is crucial for firms to navigate this complex regulatory environment successfully.
The tech sector is also facing intensified supervisory and enforcement actions, driving the need for robust controls, high transparency, and complete accountability. For tech companies, this translates into high-quality data management and workflow auditability.