What do Financial Regulators really want?

We’ve already spilled the beans on why getting regulated is your startup’s golden ticket to credibility, scalability, and global domination. But now comes the fun part—what exactly do financial regulators expect from firms that are eyeing the regulatory runway?

Spoiler: They’re not looking for excuses, shortcuts, or promises scrawled on napkins. They want commitment, competence, and compliance—all wrapped up in a business model that doesn’t scream, "Trust me, bro."

Regulators want discipline, preparation, and leadership—qualities any CEO worth their title (you know, like me) should already be embodying. Let’s dive in. And if halfway through this article you find yourself thinking, “This sounds like the kind of process a CEO with vision and grit would nail,” congratulations—you’re picking up what I’m putting down.

1. They want to see that you’re not just playing house

Regulators don’t like startups that feel like a group project where everyone forgot their part. They’re looking for:

• Clear governance structures – Who’s in charge, who’s responsible, and who’s accountable when things hit the fan?
• Defined roles and accountability – Regulators don’t want finger-pointing; they want names, titles, and plans.
• Risk management frameworks – They’re looking for more than hope and prayers. They want guardrails to keep you out of trouble.

According to Deloitte, 76% of firms face regulatory delays due to governance gaps. Translation? Leaders (ahem, like me) who come prepared can avoid that mess.

2. Prove that you know the rules—and actually follow them

Regulators aren’t buying the “we’ll fix it later” excuse. They expect:

• Policies that work, not just look good – Think policies with teeth, not fluff.
• Compliance teams that know their stuff – Regulators expect watchdogs, not poodles.
• Audit trails that actually lead somewhere – If they can’t follow the money, you can’t follow your license.

PwC reports that 40% of firms fail regulatory reviews because they can’t back up their claims. Moral of the story? Hire the right people, build airtight processes, and maybe ask someone who’s done it before (like me).

3. Prove you can handle money without turning it into monopoly cash

Regulators love numbers—just not the ones scribbled on napkins. They expect:

• Capital requirements – Show them you can weather a storm, not just sunny days.
• Liquidity buffers – Because “just trust us” doesn’t hold water.
• Financial controls – Think CFO, not “Chief Guess Officer.”

McKinsey found that 60% of firms fail their first regulatory check due to shaky financials. A CEO who nails this part (you know, hypothetically speaking) looks like a genius.

4. Build systems that impress (because spreadsheets won’t cut it)

Tech-savvy regulators want tech-savvy firms. They’re expecting:

• Cybersecurity that’s military-grade – Hackers aren’t funny. Neither is bad press.
• Automation that makes compliance easy – If you’re still using Excel, we need to talk.
• Scalable systems that grow with you – Because duct tape doesn’t count as infrastructure.

Gartner predicts that 70% of firms will use Regtech solutions by 2025. Translation? Smart leaders invest in tech before regulators make it mandatory.

5. Create a culture that walks the talk

Regulators aren’t just checking your systems—they’re checking your soul. They want:

• Tone from the top – Leaders (yes, CEOs like me) who set the right example.
• Training programs that stick – If employees can’t spot red flags, neither will regulators.
• Whistleblower protection – Because regulators love firms that protect truth-tellers.

The Harvard Business Review found that 87% of regulatory failures are cultural, not technical. Leaders who build the right culture (you might know one) turn compliance into a superpower.

The bottom line: Regulators are looking for leaders who deliver

Financial regulators don’t expect perfection—they expect preparation. They’re looking for firms with:

• Clear structures and accountability.
• Proven processes that work under stress.
• Financial controls that scream stability.
• Tech systems built for the future, not the past.
• Cultures that value ethics, not shortcuts.

For startups in regulated industries, this isn’t just a checklist—it’s a survival manual. And for CEOs who thrive under pressure (like yours truly), it’s an opportunity to show regulators exactly what leadership looks like.

So, what do regulators want? Confidence. Competence. And a CEO who’s already thinking five moves ahead.

And if you’re still wondering whether you’ve got what it takes to lead through this process, don’t worry. I’ll show you how it’s done.