Regulatory Business Profile

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Braithwate’s approach to developing a regulatory business profile

  • The regulatory business profile defines the key attributes of a firm’s business that determine the regulatory obligations which apply to that business

  • We use an iterative approach to developing a regulatory business profile; the more granular the profile, the better the results

  • It’s important that the business profile is kept up to date as the firm’s business and the markets evolve

Dimension Example data required Purpose Mapping to regulatory requirements
Entity
  • Jurisdiction
  • Legal entity type
  • Authorisation / licence(s)
  • Regulatory permissions
This information is sufficient to generate a baseline regulatory business profile, however the results will likely include regulations which may not be directly relevant to the business.
  • Determines which regulatory regimes apply
    (e.g. MiFID, CASS, MAR etc.)
  • Prudential classification (IFPR, CRR etc.)
  • Overall governance requirements
  • Information security + data protection usually apply at this level
Business
  • Product and business lines
  • Regulated activities
  • Non-regulated activities
 Build out a more granular profile of the business helps us to better filter the in-scope regulation to match the firm’s actual business.
  • Informs conduct of business rule application
  • Financial crime rules are often tailored by business line
  • Reporting usually determined at this level
Customers
  • Sectors served
  • Customer classification
  • Channels employed
 Adding customer information adds a further level of refinement to the results.
  • Refines conduct of business rules
Key metrics
  • Balance Sheet (e.g. Total Assets, Leverage)
  • Transaction volumes
 Adding these metrics can help ensure the correct regulatory requirements are identified, especially when multiple paths are available dependent on the firm’s size / volume etc.
  • Refines rule selection, especially for prudential and reporting requirements