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Financial Markets Regulatory Outlook 2019

10 years on from the crisis

Our annual assessment from Deloitte’s EMEA Centre for Regulatory Strategy explores how major regulatory trends will shape the financial services industry in the year ahead and provides solutions to guide leaders in effectively navigating the changes.

At a glance

We have identified six cross-sector themes of strategic significance for the financial services industry in 2019. Alongside our six cross-sector themes, we have also identified six supervisory constants – although not new, these will be important areas of supervisory focus in 2019. We also have a number of sector specific themes, related to Banking, Capital Markets, Insurance, and Investment Management respectively. A snapshot of each theme is contained in the tabs below, or you can access a full summary of our predictions with the tool further down the page.

FINMA has stated its commitment to ‘promote equivalence with relevant international requirements’; Across all sectors, we expect to see the impact of this, with revised regulations and supervisory approaches landing in 2020.

In the forthcoming year, firms operating in Switzerland will need to focus their regulatory risk management efforts on responding across this diverse suite of topics including: cyber security, client protection, mitigation of the too big to fail problem, IBOR, enhanced data quality and internal measures to prevent financial crime. Simultaneously, firms are also operating with political uncertainty from Brexit and US reforms; firms will need to have fall-back solutions in place to succeed in this environment.

Looking further into the future, the regulatory landscape will continue to broaden. We expect this to encompass market disruptions linked to technological innovation and climate change. The inclusion of climate change for the first time in this report shows the significance of this topic. Firms will need to monitor these emerging global trends and the most proactive will start to incorporate these themes into their regulatory strategy, risk management frameworks, and stress testing capability.

Snapshot

Each theme is contained in the tabs below, or you can access a full summary of our predictions with the tool further down the page.

Our predictions for 2019

Select issues and themes from the below list to receive a customised summary of our predictions for the year ahead.

Choose cross-sector themes:









Choose supervisory constants:












Choose sector-specific issues:


Banking





Capital Markets






Insurance





Investment Management





Watch our webcast on the 2019 outlook

To help you digest these regulatory predictions, watch our webcast, where ECRS leaders David Strachan and Andrew Bulley were joined by Liverpool Victoria’s CRO Wayne Snow, Lloyds Banking Group’s Group Director of Conduct, Compliance and Operational Risk Letitia Smith, and Deutsche Bank’s Managing Director of Government and Regulatory Affairs Matt Holmes to discuss the regulatory developments in the year ahead.

Regulatory timeline tool

Access our interactive timeline tool to receive a high-level view of recent and upcoming regulatory milestones for the financial services industry.

How our 2018 predictions fared

See how we rated ourselves looking back at our Regulatory Outlook for 2018.

Get the latest on these issues with our monthly podcast

Regulated Radio is our podcast where we explore the major public policy developments shaping the financial services industry in under 20 minutes each month. Subscribe today!

About the EMEA Centre for Regulatory Strategy

The Deloitte Centre for Regulatory Strategy is a powerful resource of information and insight, designed to assist financial institutions manage the complexity and convergence of rapidly increasing new regulation.

With regional hubs in the Americas, Asia Pacific and EMEA, the Centre combines the strength of Deloitte’s regional and international network of experienced risk, regulatory, and industry professionals – including a deep roster of former regulators, industry specialists, and business advisers – with a rich understanding of the impact of regulations on business models and strategy.