Financial Markets Interim Regulatory Outlook 2020

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Financial Markets Interim Regulatory Outlook 2020

Hard Times

Our interim assessment from Deloitte’s EMEA Centre for Regulatory Strategy explores trends, specific regulatory themes and the impact of the COVID-19 pandemic that will shape the financial services industry for the rest of 2020 and beyond.

Our mid-year assessment of the outlook for financial services regulation takes stock of the disruption caused by COVID-19, and sets out our view of what is in store for the rest of the year. The report revisits the analysis published at the turn of the year in light of recent events, and ranges across topics including IBOR reform, Brexit, climate change and sustainability, digitisation and beyond. It also explores what the ongoing economic turmoil may mean for the immediate future of financial services regulation and supervision.

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What the COVID-19 pandemic means for financial services regulation

The COVID-19 pandemic has caused severe disruption to the global economy, the financial services industry and financial markets worldwide. In this interim update to our 2020 Regulatory Outlook, we highlight five major themes that cut across the insurance, capital markets, banking and investment management sectors:

 

First, though some regulatory priorities have changed, it remains full steam ahead on a number of major regulatory initiatives, notably Brexit and IBOR reform.

Second, while still exploring the supervisory tools available to respond to the pandemic as necessary, the near-term supervisory focus is shifting from an immediate crisis response to securing financial resilience in the medium term.

Third, firms and regulators will have to adapt to new operational risks to ensure operational resilience in financial services in the new normal.

Fourth, regulators will continue to focus on achieving good customer outcomes, as temporary customer relief measures come to an end.

Lastly, COVID-19 has underscored the need for the digitisation of financial services to meet demand and save costs.

 

The pandemic provides a stress test of the financial regulatory system that has been built over the last decade, and the resilience of the current financial regulatory framework, along with industry responses to the changing circumstances, will influence the regulatory framework in the years to come.

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

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 AmericasAsia 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.

Contacts

 

Laurent Berliner
Partner – EMEA FSI Risk Advisory
Leader
Tel: +352 45145 2328
lberliner@deloitte.lu

Jean-Philippe Peters
Partner – Risk Advisory Leader, Regulatory Watch
services co-Leader
Tel: +352 45145 2276
jppeters@deloitte.lu

Pascal Martino
Partner – Banking Industry Leader
Tel: +352 45145 2119
pamartino@deloitte.lu

Vincent Gouverneur
Partner – IM Industry Leader
Tel: +352 45145 2451
vgouverneur@deloitte.lu

Martin Flaunet
Partner – Banking Audit Leader
Tel: +352 45145 2334
mflaunet@deloitte.lu

 Simon Ramos
Partner – IM Advisory & Consulting Leader, Regulatory
Watch services co-Leader
Tel: +352 45145 2702
siramos@deloitte.lu

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