By FINTECH Books Contributor, Carl Im
The challenge was to deliver affordable yet effective solution to this problem. Working with Yulchon LLC, we at Solomon Strategic Consulting Limited, a Hong Kong company, delivered a practical and cost-effective solution in 2 months.
Fast product-delivery was possible because the groundwork was already there. One such key takeaway is the importance of legal/technological brain-melding. In a typical RegTech product development cycle, technology strategy is brought in after the problem has been already defined by nontechnical persons, e.g. in-house counsel or a regulator.
But what if it is the wrong problem? Under the new Korean anti-corruption law, all government-workers, teachers, publishers, and all who deal with them can trigger violation. All multinational companies, once fined, either directly or indirectly (e.g., a local supplier is fined), an MNC also faces a fine at home.
In-house counsel had to understand and update legal and regulatory changes while implementing effective practical policies. What proved to be the bottleneck was manually opining upon each request for approval for compliance under the new anticorruption law.
In this case, in addition to being the CEO of Solomon Strategic Consulting Limited, I also have been a senior adviser to Yulchon LLC (Korean law firm, recipient of FT Most Innovative Law Firm Award, 2015, 2016). As such, I have worked as a financial and technical expert witness to various cases ranging from global regulatory investigation to regulatory compliance policy creation.
Experiencing the inner workings of regulation-related processes as a technologist led to development of technologies such as LegalPad™ and Docupaedia™. In this way a technologist who has as much legal service experience (as opposed to legal knowledge) can generate a disruptive strategic insight. This opens up the possibility of a new class of RegTech opportunities.