FACE Code of Conduct for RegTech Firms: Key Rules
Why in the news
FACE released a detailed code to raise accountability and align regtech companies with regulatory expectations.
Key provisions
| Area | Requirement |
|---|---|
| Scope | Compliance, privacy and cybersecurity, responsible innovation, staff conduct, third-party audits, grievance redressal |
| Data security | Encryption, access controls, regular vulnerability audits, DPDP Act compliance, clear user consent |
| Third parties | Continuous oversight; reporting of breaches, system failures and data leaks |
| Grievances | Complaint channels for customers and employees |
About RegTech
Technology that helps firms meet rules efficiently, using AI, machine learning, big data, cloud and blockchain.
- Automates KYC and AML checks.
- Real-time monitoring, risk analytics, audit trails.
Exam angle
- Timeline: 6 months; law cited: DPDP Act.