Evolving regulatory landscape: The road ahead

The road ahead

What will regulation look like for the FS Sectors in 2016 and beyond?

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Regulatory reform has clearly moved from the design to the implementation stage. This is not to say that all the details are in place. Indeed the flow of new regulatory initiatives at times seems both undiminished and overwhelming. But in most areas there is at least now a clear direction of travel, and in many areas sufficient details, to enable firms to up the pace of their own journeys to a viable and sustainable future. 

KPMG member firms are helping many firms across the world on these journeys, dealing with a raft of regulatory pressures too long a list to repeat here, with capital, leverage, liquidity, recovery and resolution planning, capital markets, retail and wholesale conduct, governance, board and senior management responsibilities, and data quality all high up the list. 

The journey ahead will be different for each sector:

  • Banks: For banking, the stakes are in the ground and we are in a phase of testing to see how well they will implement regulation. 
  • Insurance: The challenge for insurers will be, for many in the UK, to recalibrate for Solvency 2; and for how they manage their cost base and innovation – regulators will be on top of this. 
  • Asset Management: For asset managers, the test will more likely to be about economic regulation. Pricing, transparency, and their fiduciary obligation to deliver on their covenant are on the watch list for regulators. Questions related to competition and anti-trust inquiries may become an interesting feature for the world of asset managers. 

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