Regulation as new standalone business line

Article

Regulation as new standalone business line

Executive Summary

Almost five years ago, Deloitte Luxembourg launched a regulatory watch service called Kaleidoscope RegWatch. Now that the service has been up and running for a while, it is time to look back and learn some lessons from the main trends concerning regulatory publications. We conducted research over the last two years (2017 and 2016) to try to learn about the various regulatory trends, and, in this short document, we will try to outline some of the intriguing highlights.

There are four main takeaways: the first is the number of publications applicable to a typical financial institution (for example a commercial, investment or private bank). The RegWatch assesses regulations from a wide array of sources, and we usually identify on average between 300 and 400 applicable publications per month. Not all are necessarily game changers, implying major strategic shifts—some are just for information—but all are shaping the future of financial organizations. Secondly, there are, as we expected, identifiable regulatory cycles during a year, which are usually repeated on an annual basis. Thirdly, and perhaps unsurprisingly, three areas that dominate publications are anti-money laundering/combating the financing of terrorism (AML/CFT), financial supervision, and capital requirements. The fourth takeaway is that with this flux of regulations, they became a core component in the strategy of any business organization or financial institution, and we can talk about the need of a regulatory strategy with its specific missions and contribution to the overall strategy of a firm.

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Performance magazine issue 27, September 2018

Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.

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