Regulatory Complexity Is Surging 

How Employee Compliance Teams Can Keep Up 

Keeping up with the rapidly shifting regulatory landscape has never been more challenging. Compliance professionals are expected to stay ahead of evolving mandates, navigate jurisdictional inconsistencies, and implement policies that align with an increasingly complex set of rules—all while regulators ramp up enforcement efforts worldwide. 

With the pace of change accelerating, how can compliance teams ensure they’re prepared for what’s next? To support firms in this ever-changing environment, StarCompliance (Star) has released an updated version of Riding the Regulatory Wave – A Guide to Navigating the Shifting Tides of Employee Regulatory Compliance, designed to help organizations track major regulatory trends, identify risks, and implement best practices for staying compliant in 2025 and beyond. 

Here’s a look at some of the most pressing regulatory developments reshaping compliance today. 

1. Crypto Regulations Are Diverging—Firms Must Adapt 

The regulatory landscape for crypto assets remains fragmented, with different jurisdictions moving at different speeds. Some regions are embracing structured oversight, while others remain uncertain, leaving firms in a state of regulatory limbo. 

• The EU’s Markets in Crypto Assets (MiCA) regulation, enacted in late 2024, introduces licensing, consumer protections, and transparency mandates across all 27 member states. It also tackles conflicts of interest and market abuse, requiring firms to mitigate biased decision-making and prevent insider trading, front-running, and manipulation, aligning crypto markets with traditional financial standards. 
• Dubai’s Virtual Assets Regulatory Authority (VARA) has positioned the UAE as a global crypto hub, enforcing tiered licensing and compliance obligations for exchanges, wallet providers, and token issuers. 
• Financial Conduct Authority (FCA) in the UK is expanding its oversight of crypto assets through evolving regulations, including discussion paper DP24/4: Regulating cryptoassets – Admissions & Disclosures and Market Abuse Regime for Cryptoassets, to enhance market transparency and prevent financial misconduct. By aligning crypto markets with traditional finance, UK firms face stricter compliance obligations focused on transparency, monitoring, and risk mitigation.  
• The U.S. remains in flux, as the SEC continues its enforcement-led approach while lawmakers debate long-term regulatory frameworks. At the beginning of 2025, the agency formed a Crypto Task Force aimed at analyzing and building a foundation for clearer guidelines. 

With differing rules across jurisdictions, compliance teams managing crypto-related activities must remain agile, implementing pre-clearance processes, transaction monitoring, and adaptable policies to keep pace with evolving regulations. 

2. Insider and Shadow Trading: A Heightened Enforcement Focus 

Regulators have long scrutinized insider trading, but the focus is expanding to shadow trading, where individuals use material non-public information (MNPI) about one company to trade in economically linked securities. 

• The SEC’s amendments to Rule 10b5-1 (2023) introduced cooling-off periods, enhanced disclosure requirements, and stricter controls on trading plans. 
• The SEC’s landmark 2021 shadow trading case (SEC v. Panuwat) set a precedent for enforcement, signaling that regulators are closely monitoring the misuse of MNPI—even in trades involving third-party securities. This was reinforced by the 2024 ruling in SEC v. Peizer, which further clarified the scope of liability for shadow trading, emphasizing the risks of leveraging confidential information for indirect financial gain. 

Firms must enhance surveillance and monitoring tools to detect unusual trading patterns and ensure employee education keeps pace with these evolving risks. 

3. The Expansion of Individual Accountability Regimes 

Regulators worldwide are shifting towards holding individual executives accountable for compliance failures—a significant trend that is reshaping compliance structures. 

• The UK’s Senior Managers and Certification Regime (SMCR) set the foundation for personal accountability in financial services. 
• Singapore’s Individual Accountability and Conduct (IAC) Guidelines emphasize ethical leadership and risk management. 
• Ireland’s Individual Accountability Framework (IAF) extends personal liability for financial misconduct, holding senior executives accountable for regulatory breaches within their firms. 
• Australia’s Financial Accountability Regime (FAR) enhances accountability in the financial sector by imposing personal liability on executives for misconduct and compliance failures. 

Organizations need to establish clear accountability mapping, conduct standards, and governance frameworks to align with these new regulations and foster a culture of transparency. 

4. Remote and Hybrid Work: A Compliance Challenge 

The widespread adoption of remote and hybrid work models has introduced new regulatory expectations around oversight, supervision, and operational integrity. 

• The UK’s Financial Conduct Authority (FCA) has outlined requirements for firms to maintain governance structures and ensure regulatory access to key records. 
• FINRA in the U.S. Firms using the RSL designation must meet FINRA requirements, conduct risk assessments, and update FINRA quarterly, as it tests remote supervision for compliance outside traditional offices.  

To remain compliant, organizations must adapt employee compliance frameworks to support flexible work environments, ensuring surveillance, data security, and employee supervision remain intact. 

5. Technology is No Longer Optional for Compliance 

With regulatory complexity increasing, technology is now a necessity for compliance teams aiming to manage risk efficiently. Manual processes can no longer keep up. 

• AI-driven analytics can help identify trading patterns and potential insider risks. 
• Enhance Data Integration & Coverage with cryptocurrency exchanges, trading platforms and blockchain data sources could provide a clearer understanding of all employee trading activities. 
• Automated surveillance tools enable real-time monitoring of transactions. 
• Cloud-based compliance solutions streamline reporting and audit readiness. 
• Educating and Training employees leads to better understanding of internal and external regulatory policies. 

At Star, we continue to develop cutting-edge employee compliance technology to help organizations stay ahead of evolving regulations, providing the tools compliance teams need to operate with confidence. 

Navigating the Future of Compliance 

The regulatory environment will only continue to evolve, creating new challenges for compliance professionals. To keep pace, firms must stay informed, strengthen compliance frameworks, and invest in technology-driven solutions to navigate complexity and mitigate risk. 

With the latest edition of Riding the Regulatory Wave, Star is committed to helping compliance teams anticipate change, proactively manage risk, and build resilient compliance programs for the future. Download the full guide today and ensure your compliance team is prepared for the year ahead.

To learn more about Star’s full suite of products and solutions for all your employee compliance needs, from Conflicts of Interest, Shadow Trading to Individual Accountability Regime management, schedule a personalized demo here.  

Steve Brown

As Head of Business Development, Steve Brown is responsible for helping drive growth at Star, with a focus on go-to-market planning, data and vendor partnerships, channel sales, new markets, and mergers and acquisitions. Steve joined Star in April 2021, and brings with him 25 years of experience advising financial firms on regulatory compliance. Prior to joining Star, Steve was Director of Broker-Dealer Client Services at Compliance Risk Concepts LLC, a senior director at PwC, and Head of Fixed Income and Capital Markets Compliance at U.S. Bancorp Investments, Inc. Steve began his career at Wachovia, where he was Head of Global Investment Banking Compliance and Control Group, and is considered a pioneer in the control room space—having established the bank’s first formal control room function.

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