Financial services regional regulatory outlook 2016 has been saved
Financial services regional regulatory outlook 2016
The year for Asia Pacific to make its voice heard
10 December 2015: Financial institutions in the Asia Pacific region will continue to face a significant agenda of regulatory policy development and implementation challenges impacting business strategy. In an Outlook Report launched today, the Deloitte Asia Pacific Centre for Regulatory Strategy predicts that regulatory trends in 2016 will, as in the past few years, be largely driven by international developments.
The program of policy development and supervisory focus can be grouped into three major themes:
- Culture and conduct
Overlaying these critical themes will be the equally complex issue of implementation, according to Kevin Nixon, Lead Partner of the Deloitte Asia Pacific Centre for Regulatory Strategy. “APAC financial institutions will continue to face elevated implementation challenges within an ongoing policy environment that has significant strategic implications,” Mr Nixon said.
“Our paper outlines the moving pieces in 2016, from substantial changes in how capital requirements are
“Digital innovation will play a major role in altering the environment for
The Deloitte Global Change, Regional Context paper suggests that strategic impacts and implementation programs are best managed in a total reform context.
Mr Nixon said: “Implementing individual requirements, as well as adapting business strategy to regulatory initiatives, is best done with an understanding of policy intent and future reforms. Understanding this in a holistic context is vital.
“International trends continue to define the landscape, and local regulators and institutions need to adapt according to the local environment. This complex ecosystem
Across the region
Mr Nixon, who is also the Financial Services Industry Risk & Regulatory Leader for Deloitte Australia, said: “In Australia, financial institutions have a comprehensive local agenda to manage following the Government’s recent adoption of nearly all recommendations of the Financial System Inquiry. While some of these are aligned with, and dependent on, global policy outcomes (such as mortgage risk weights), there is a significant local body of work through 2016 and beyond.
The Financial Services Industry Risk & Regulatory leader for Deloitte China and Hong Kong, Tony Wood suggests that: “Engagement with the policy agenda, particularly in the year of China’s G-20 presidency will be essential to ensure that regulatory reforms are pursued in a manner that is sensitive to the interests of the Asia Pacific region.”
“As Chinese firms continue to expand their international activities, at the same time as there is greater internationalisation of the currency and economy, understanding international trends, cross-border challenges, and market opportunities is of critical importance.
Tsuyoshi Oyama, Head of Deloitte’s Center for Risk Management Strategy, Deloitte Japan said: “In Japan the banking sector is challenged by some revisions of the Basel framework, including credit, operational and interest rate risk in the banking book, and is also increasingly concerned with continuing uncertainties over the future course of regulation.”
Tse Gan Thio, Cyber Risk Services Leader, Deloitte Southeast Asia said: “In Southeast
He added: “Across the entire APAC region regulators are increasingly worried about the risk posed by high degrees of reliance on technology systems, especially how high-profile cyber-attacks and market instability caused by faulty algorithms have exposed the risks that our reliance on technology can bring. We are seeing regulators impose specific risk management requirements for technology with respect to cyber-resiliency, outsourcing and the testing of trading algorithms.”
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/au/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte has in the region of 200,000 professionals, all committed to becoming the standard of excellence.
About Deloitte Australia
In Australia, the member firm is the Australian partnership of Deloitte Touche Tohmatsu. As one of Australia’s leading professional services firms, and winner of both the Australian Financial Review/CFO Audit Firm of the Year and Accounting Firm of the Year awards 2013, Deloitte Touche Tohmatsu and its affiliates provide audit, tax, consulting, and financial advisory services through approximately 6,000 people across the country. Focused on the creation of value and growth, and known as an employer of choice for innovative human resources programs, we are dedicated to helping our clients and our people excel. Formore information, please visit Deloitte’s web site at www.deloitte.com.au.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Touche Tohmatsu Limited
© 2015 Deloitte Touche Tohmatsu