Financial Services Regulatory Outlook 2018

With the finalisation of Basel III, the regulatory agenda in Asia Pacific will now become firmly focused on the future. This paper sets out the top ten regulatory themes that the Deloitte Centre for Regulatory Strategy expects to dominate the financial services regulatory agenda in Asia Pacific over the coming year. Whilst the significance of each of these ten themes will vary across different jurisdictions, industry sectors and institutions, we consider all areas identified to be relevant to financial services firms operating in Asia Pacific to some degree.

Uncertainty and the potential for divergence in global regulation will challenge firms in 2018. Improving culture and conduct will continue to be a regulatory priority, with individual accountability, industry codes and embedding customer centricity being particular focal points during the year. Innovation, digital disruption, and cyber resilience will likewise remain top of the Asia Pacific regulatory agenda. Firms will face pressures around their data security, infrastructure, and governance while also meeting open-data expectations. A shifting landscape arising from technology disruption and forays from e-commerce giants will provide both strategic and regulatory challenges. Looking further ahead we expect increased supervisory interest in management of risks associated with climate change and ageing populations.

Our 2018 Outlook takes stock of these developments, looking at what we see as the top ten issues over the next year, going beyond the detail to provide context, implications, and insights into managing these risks.

The Deloitte Centre for Regulatory Strategy is a source of critical insights and advice, designed to assist the world’s largest financial institutions manage the strategic and aggregate impact of regional and international regulatory policy.

With regional hubs in the Americas, Asia Pacific and EMEA, the Centre combines the strength of Deloitte’s 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. Click here for more information on the Centre.