How the Regulatory Genome Project is Changing the Regulatory Landscape

Regulation has always been a source of nightmares for business leaders, entrepreneurs and even regulators.

But the Regulatory Genome Project is changing all that.

Led by the Cambridge Centre for Alternative Finance (CCAF), the Regulatory Genome Project (RGP) is a transformational initiative to sequence the world’s vast amount of regulatory text.

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The Regulatory Genome Project’s primary mission is to create a comprehensive open repository of machine-readable regulatory information.

What is machine-readable regulatory information?

The Regulatory Genome uses machine learning to create a new format — a machine-readable format that can process legal documents, their internal structure, content, meaning and external structure.

Using machine learning and natural language processing, the RGP is sequencing massive volumes of regulatory text, starting with financial regulation.

By 2023, it will have created an open-source repository accessible to businesses, regulators and developers. This will offer regulators and firms the opportunity to acquire unprecedented capabilities in the development, processing and analysis of regulation.

What impact will the Regulatory Genome Project have on the regulatory landscape?

Dr Robert Wardrop, Director of CCAF, says,

“An open access repository of regulatory information will serve to level the regulatory playing field for those who develop and comply with regulation, particularly in emerging markets, and serve as a key resource for researchers in deepening their understanding how the regulatory landscape for digital financial services is evolving.”

The RGP will impact how businesses, regulators and innovators view regulation:

Businesses

Regulation will become an automated process that will save businesses huge amounts of time and money.

The machine-readable regulatory information will also become an industry standard. Whether they like it or not, organisations will have to adapt to this transformative change. Regulatory bodies in Europe and the USA are already pushing for this technology.

Regulators

The RGP is working closely with regulators, drawing on their feedback to develop and review the taxonomical structure representing the underlying financial regulatory obligations.

Globally, regulators are on a mission to digitise their rulebooks, and they can use the RGP to supplement their work. They can access regulatory content from the RGP to increase the efficiency of their regulatory benchmarking processes that go into developing policies and regulations.

Entrepreneurs

The RGP is standardising and laying the foundation for innovation within the regulatory landscape — particularly related to financial services, and making interoperability between regulatory applications possible.

The repository’s dynamic, structured and machine-readable content will provide entrepreneurs, developers and FinTechs the basis for innovative solutions that can be translated into commercial applications.

The standardised machine-readable regulatory information available from an open repository will change the way financial regulation is implemented and supervised.
The RPG will promote opportunities for impactful collaboration between financial institutions, technology firms, service providers and regulators.

Sign up for the Cambridge RegTech: AI for Financial Regulation, Risk, and Compliance programme to gain a granular understanding of the new shape of regulatory compliance. The programme is directed by Dr. Robert Wardrop, who masterminded the Regulatory Genome Project.

Cambridge RegTech: AI for Financial Regulation, Risk, and Compliance Programme is delivered as part of a collaboration with University of Cambridge Judge Business School and Esme Learning. All personal data collected on this page is primarily subject to the Esme Learning Privacy Policy.

 

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