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Asia-Pacific paving the way

Deloitte Centre for Regulatory Strategy report

22 January 2019:  Asia-Pacific continues to be a dynamic growth region marked by world-leading innovation in financial services according to Kevin Nixon, Deloitte Senior Adviser, and co-lead Deloitte Centre for Regulatory Strategy. 

Nixon expects Asia-Pacific regulators to focus on harnessing the dynamism of the region in the coming year as financial services evolve, while seeking to ensure the safety and soundness of the transformed financial system. He said: “Given the regulators are now in the final stages of implementing the post-crisis reforms, along with Asia Pacific firms, they are treating new technologies, open banking models, robust privacy and cyber risk management less as challenges to be overcome, than as paving the way for the future of financial services.

“Given the region’s continued strong GDP growth relative to the rest of the world, deepening financial inclusion and ground-breaking technology, we expect the Asia-Pacific region to have a competitive edge on the global stage,” Nixon said.

Asia Pac regulators have embraced the challenges they experienced to the status quo, and are rapidly increasing financial inclusion for the diverse players in the region according to the Deloitte's 2019 Asia Pacific Financial Services Regulatory Outlook report, released today.

Trust, Technology, and Transformation, explores nine themes that the Deloitte Centre for Regulatory Strategy expects to dominate the financial services regulatory agenda in the region over the coming year. While the significance of each of these nine themes will vary across different jurisdictions, sectors and institutions, all areas identified will be relevant to financial services firms operating in Asia Pacific.

The impact of the recent Australian Royal Commission into Misconduct in Banking, Superannuation and Financial Services and the growing introduction of personal accountability regimes, will mean many regional supervisors expect firms to fully embrace managing culture and implement a holisitc approach to risk governance. Managing the risks and behaviours inherent in these areas, along with financial crime and cyber risk, as the Asia-Pacific regulators shift towards a dynamic supervisory model will be critical. 

The ‘how and when’ of locally implementing the global Basel standards of FRTB, IRBB, RRPs, and TLAC, as well as finding benchmark replacements, will be worth watching. As will how the jurisdictions in the region harness and manage innovation. The 2019 Outlook takes stock of these developments, and goes into the detail of the top nine issues across countries to provide context, implications, and insights into how best to manage their risks. 

Implementing the post-crisis agenda
1. Basel implementation 
2. Interest rate benchmark – ‘Beyond IBORs’

Managing risks and behaviours
3. Conduct and governance
4. Financial crime
5. Dynamic supervision

Harnessing and managing innovation
6. Emerging technologies in 2019
7. Privacy
8. Open Banking
9. Managing Cyber Risk

For more analysis and details on the report, please visit the Deloitte Asia Pacific Centre for Regulatory Strategy.

Media contact

Louise Denver
Corporate Affairs & Communications, Deloitte
M: +61 414 889 857
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