RegTech Legal Services
Regulatory technology — RegTech — is transforming how financial services companies manage compliance obligations. From automated transaction monitoring and AI-powered risk assessment to real-time regulatory reporting and digital identity verification, RegTech solutions promise to make compliance faster, more accurate, and more cost-effective. But the companies building and deploying these tools face their own complex legal questions: How do you ensure your compliance technology actually satisfies the regulations it's designed to address? What liability attaches when automated compliance tools miss something? How do you structure vendor relationships with regulated clients who have specific oversight obligations?
FinTech Law provides legal services to both RegTech companies building compliance technology and financial services firms deploying RegTech solutions. Founder & Managing Attorney Bo Howell founded a RegTech startup himself and understands the industry from the inside — not just the legal framework, but the product development, go-to-market, and client deployment challenges that RegTech companies face.
Our RegTech Services
RegTech Company Counsel
RegTech startups need legal counsel who understands both the technology they're building and the regulatory environment their products serve. FinTech Law serves as outside general counsel to RegTech companies, providing legal support across the full business lifecycle: corporate formation and structuring, fundraising and securities compliance, intellectual property protection for proprietary algorithms and compliance methodologies, SaaS and platform licensing agreements, customer contracts with regulated financial institutions, data privacy and security compliance, and employment and contractor arrangements.
Our practice adds particular value in areas where RegTech companies face regulatory intersection — for example, when a compliance monitoring tool handles client PII subject to GLBA or when an automated advisory tool might trigger SEC registration requirements.
RegTech Vendor Agreements for Financial Institutions
Regulated financial institutions — investment advisers, fund managers, broker-dealers, banks — that adopt RegTech solutions remain fully responsible for the compliance functions they delegate to technology vendors. The SEC, FINRA, OCC, and state regulators have all emphasized that outsourcing compliance activities does not outsource compliance obligations.
FinTech Law helps regulated clients structure their RegTech vendor relationships with appropriate contractual protections: service level agreements tied to regulatory performance requirements, audit and examination access rights (required by many regulators), data ownership, portability, and security provisions, business continuity and disaster recovery commitments, indemnification and liability frameworks, and termination and transition provisions that maintain compliance continuity.
We also assist with the vendor due diligence process that regulators expect when a firm selects a technology vendor for compliance-critical functions.
Regulatory Compliance for RegTech Products
RegTech products must be designed with the regulatory requirements they address deeply embedded in their architecture. A transaction monitoring tool that doesn't flag the right SAR-triggering patterns, or a compliance reporting system that generates filings with data errors, creates regulatory risk for both the vendor and the client.
FinTech Law advises RegTech companies on the specific regulatory requirements their products must satisfy — whether that's AML/BSA reporting, SEC filing requirements, CFTC trade reporting, or state licensing compliance. We help product teams translate regulatory requirements into functional specifications and ensure that marketing claims about compliance capabilities are accurate and defensible.
Automated Compliance and AI Governance
The integration of artificial intelligence into compliance processes — automated trade surveillance, AI-powered regulatory reporting, machine learning for fraud detection — raises questions about algorithmic accountability, explainability, and the appropriate level of human oversight.
FinTech Law advises on the governance frameworks that regulators expect when AI is used in compliance functions. This includes documentation requirements, model validation processes, human review protocols, and the disclosure obligations that apply when AI-generated output is used in regulatory filings or client communications. Our firm's own deep experience implementing AI in legal operations provides practical perspective on the governance challenges.
RegTech Solutions We Advise On
FinTech Law works with companies building and deploying RegTech solutions across several categories:
Transaction monitoring and surveillance. Automated systems that monitor trading activity, client transactions, and communications for suspicious patterns, potential market manipulation, or compliance violations. These tools must satisfy specific regulatory requirements under the BSA/AML framework, SEC/FINRA surveillance obligations, and exchange rules.
Regulatory reporting and filings. Platforms that automate the preparation and submission of regulatory filings — Form ADV, Form PF, Form N-PORT, SAR/CTR filings, and other required reports. Accuracy is non-negotiable, and the regulated entity remains legally responsible for the content of automated filings.
Risk assessment and management. AI-powered tools that identify, quantify, and prioritize regulatory and operational risks. These systems must be validated, explainable, and subject to human oversight — particularly when their output informs decisions that affect clients or trigger regulatory obligations.
Identity verification and KYC. Digital identity verification, customer due diligence, and know-your-customer (KYC) solutions that satisfy BSA/AML requirements and help financial institutions onboard clients efficiently while maintaining compliance.
Compliance program management. Platforms that help firms manage their compliance programs — policy libraries, training tracking, certification management, regulatory change monitoring, and compliance testing and monitoring tools.
Data privacy and security compliance. Tools that help companies manage data privacy obligations — consent management, data subject rights request processing, data mapping, and privacy impact assessments.
