Preparing for legislation changes in 2025 - Albany Beck’s Change Management Solutions Breakfast Roundtable

How can financial firms manage change in an ever-evolving and complex regulatory landscape?

This was a key question for our attendees at our recent roundtable in Dublin, in which we explored the opportunities and challenges facing businesses in today’s complex environment.

 As new legislation comes into play, industry leaders gathered together to exchange insights, hear advice from our team of experts, and discuss their current obstacles and objectives.

In this article, we share the key takeaways from the event to help firms bolster their compliance efforts and stay on the right side of regulations.

DORA Register of Information

As we approach the January deadline, DORA experts Nexus Assurance led a fantastic session on the upcoming legislation changes, helping attendees boost their implementation efforts.

The Register of Information requirement within DORA should be a key focus point for financial businesses, as well as alternative investment firms and credit management organisations. This is a technical standard on contractual agreements for third-party IT services, which will be maintained and updated.

Regulators will request organisations’ register of information at the end of Q1 in 2025. We discussed how this information will be used to draw comparisons across data and make assessments on what good looks like across financial firms, along with challenges of providing regulators with high-quality, accurate information with clear explanations.

As DORA readiness is currently at 2.8/5 as per a recent CSSF survey, it’s vital that businesses review their operations and follow the necessary compliance measures.

The Upcoming EU AI Act

Another key discussion point was the upcoming EU AI Act, which will lay out the use and development of Artificial Intelligence.

Launching in August 2024, the EU AI Act will require firms to take a risk-based approach to their use of AI. They will need to classify their Artificial Intelligence into risk categories, and apply specific rules according to the risk they pose.

The new legislation means that some uses of AI will be prohibited, and those that are acceptable will work under strict governance and transparency. However, it’s important to note that uses that are categorised as minimal risk are not subject to this.

Depending on the severity of non-compliance, penalties will range from EUR 7.5 million or 1.5% of worldwide annual turnover to EUR 35 million or 7% of worldwide annual turnover.

While the details of the Act’s implementation are still underway, we discussed how important it is for businesses to prepare for each stage of the new legislation, starting in February 2025.

Moving Forwards

With these new changes on the horizon, it was great to see so many leaders and professionals come together to share knowledge to improve operations.

If you weren't able to attend this event but you're interested in learning more about accelerating your compliance measures, reach out to our Ireland team.

Speak to Adam or Emer to find out how Albany Beck’s change and transformation experts can help you protect your business and build digital resilience.