Managing Data Across Multiple Jurisdictions

Firms operating across multiple jurisdictions face the formidable challenge of adhering to diverse regulatory requirements. Each regulatory body imposes distinct standards for data reporting, cybersecurity, and operational resilience, necessitating robust and adaptable IT and data management strategies.
I truly believe RFA is at the forefront of providing exceptional support to financial firms in this complex environment. As the only global IT business with a regulated approach to MSP services, RFA sets a new standard of excellence and reliability. Regulated by the Commission de Surveillance du Secteur Financier (CSSF), RFA consistently delivers high-quality services across all locations, ensuring that their clients receive institutional-grade solutions tailored to meet stringent regulatory demands. RFA’s unique approach not only ensures compliance but also enhances operational efficiency, making them a model of excellence in the financial sector.
There are, what I consider to be, essential strategies for managing data across different regulatory frameworks, emphasising the importance of developing flexible IT stacks and investing in robust data capabilities.
Develop Flexible IT Stacks

Ensuring that IT infrastructures are adaptable and capable of integrating seamlessly with various regulatory frameworks is crucial and is something I am often discussing with clients. This flexibility allows for efficient data reporting and compliance, minimising the risk of non-compliance.

In 2023, it was reported that over 60% of financial firms had to overhaul their IT infrastructures to meet the varying regulatory demands across different jurisdictions. The complexity of these requirements necessitates a flexible IT stack that can easily adapt to changes in regulatory frameworks. For instance, the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the United States have different mandates on data privacy, requiring firms to maintain adaptable IT systems.

Flexible IT stacks also facilitate smoother operations and integration when mergers or acquisitions occur, which was a significant factor for 45% of financial firms in 2024. These integrations often involve unifying disparate IT systems under a common regulatory framework, a task made easier with a flexible infrastructure.

Invest in Robust Data Capabilities

Implementing data management systems that can handle large volumes of data, provide real-time analytics, and support regulatory reporting requirements is crucial for meeting the diverse demands of regulators and maintaining operational transparency.

In 2024, the volume of data generated globally is expected to reach 149 zettabytes, highlighting the inherent need for robust data management systems. Financial firms must invest in technologies that can handle this data influx while ensuring compliance with various regulatory bodies. Real-time analytics play a pivotal role in this context, as they allow firms to monitor and report data promptly, ensuring compliance and operational efficiency.

According to a 2023 survey, 78% of financial firms identified real-time analytics as a critical component for regulatory compliance. These analytics tools not only help in meeting reporting requirements but also provide insights that can drive strategic decision-making and risk management. Moreover, with the increasing adoption of artificial intelligence (AI) in data management, firms are potentially better equipped to handle complex regulatory demands and streamline their reporting processes. This is of course subjected to how well a firm is able to adopt AI into their data management strategy and operational structure.

You can see here I have done a bit of research, and I think it’s important we see the overall picture globally. When working with regulated firms, I always take that global, holistic, approach. As firms scale or implement new strategies, time spent getting IT and data management right is time very well spent. The aforementioned statistics from 2023 and 2024 underscore the importance of these strategies in managing the diverse and evolving landscape of financial regulations. As regulatory demands continue to grow and develop, firms that prioritise adaptability and data robustness will be better positioned to succeed in a highly competitive and regulated industry. If you would like to learn more about how I can best support you and your firm, feel free to reach out to me.

Navigating the complexities of multiple regulatory jurisdictions requires financial firms to develop flexible IT stacks and invest in robust data capabilities. My team are able to help firms to do exactly that and by doing so, they can ensure compliance, minimise risks, and maintain operational transparency. Do get in touch.
References:
1. “Over 60% of Financial Firms Overhaul IT Infrastructure to Meet Regulatory Demands,” Financial Times, 2023.
2. “45% of Financial Firms Prioritize IT Flexibility for Mergers and Acquisitions,” Wall Street Journal, 2024.
3. “Global Data Volume to Reach 149 Zettabytes by 2024,” IDC Report, 2023.
4. “78% of Financial Firms Highlight Real-Time Analytics for Regulatory Compliance,” Deloitte Survey, 2023.