Regnosys, a RegTech startup founded by two former Goldman Sachs employees, has managed to rake in $900,000 in funding.
Co-founded in 2016 by Leo Labeis and Pierre Lamy, Regnosys’ claim to fame is seeking to help firms leverage technology so that they may better manage their regulatory compliance. REGnosys addresses the issue with its regulatory platform that is based on a canonical representation of marketplace standards, flows and practices, automatically translated into executable code and bound to rule provisions.
CEO and Founder, Leo Labeis, former Managing Director in Goldman’s securities division, conducted their global MiFID II programme and currency trading strats teams, while COO and co-Founder Pierre Lamy, former Managing Director in the technology division, spearheaded their Dodd Frank implementation and was chair of the ISDA FpML Standards Committee and member of the CFTC Technology Advisory Committee.
The firm attracted the support of private investors, and plans to use the new inflow of funds to continue product development. Lamy commented on the news and emphasized on the need for disruption across the regulatory sector, talking about how technology could help financial services firms become more transparent. Labeis also talked about the news, saying:
Technology to discharge regulatory obligations at financial firms has become too complex and opaque to be auditable. The compliance code base rapidly gets out of sync with statically documented specifications, particularly when implemented across a number of business applications and subject to post-compliance adjustments, which can leave firms exposed to consequential non-compliance tail risk.
Patrick de Nonneville, one of the investors, is slated to come on board as a senior advisor to the company. He said:
I am making this investment because I believe in the company’s financial prospects, based on the profile of its founders, the solution they’re building and the size of the problem they address.
The investor continued, saying that Regnosys’ proposition made a “huge amount of sense” for financial institutions, as they struggle against the challenge of keeping up with the unprecedented pace of regulatory changes. Claiming that his investment in the round had been small, Nonneville nevertheless insisted that the startup’s fundraise had generated “a large amount of interest”.