Asia Pacific Financial Services Regulatory Outlook 2019

Asia Pacific continues to be a dynamic growth region, marked by world-leading innovation in financial services, continued strong GDP growth, and rapidly increasing financial inclusion. In 2019, we expect that regulators in Asia Pacific will be keenly focused on locally implementing the final post-crisis reforms, embracing challenges to the status quo, and harnessing the dynamism of the Asia Pacific region to transform financial services.

This report explores nine themes that the Deloitte Centre for Regulatory Strategy expects to dominate the financial services regulatory agenda in the region over the coming year. Whilst the significance of each of these nine 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.

The “how and when” of locally implementing FRTB, IRBB, RRPs, and TLAC as well as finding benchmark replacements will bear watching in 2019. The results of the recent Australian Royal Commission and the follow-up to last year’s swath of personal accountability regimes will mean many regional supervisors expect firms to fully embrace managing culture and governance. Financial crime and cyber risk are areas where a holistic approach to risk governance will be critical, while Asia Pacific regulators are shifting towards a dynamic supervisory model. Finally, we expect both regulators and firms to see emerging technologies, new open banking models, robust privacy and cyber risk management less as challenges to be overcome but rather as a growing capacity to be harnessed to give the Asia Pacific region a competitive edge on the global stage.

Our 2019 Outlook takes stock of these developments, looking at what we see as the top nine 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.