Bank Regulation

Given the continued regulatory scrutiny on the quality of bank regulatory reporting/stress testing data and the importance placed by markets and analysts on capital ratios, there is a need to build confidence in the processes, controls and governance surrounding production of regulatory ratios and related information.

The areas in which we can support clients on regulatory reporting assurance include:

• Design, implementation, review and benchmarking of regulatory reporting frameworks, processes and controls
• Independent assurance over regulatory rule compliance, calculation of core regulatory ratios (e.g. capital and liquidity) and regulatory reporting processes and controls

In recent years, the regulators have increased the importance and raised the standards for companies’ preparedness for a severe stress and even their own failure. This includes making structural changes such as ring fencing certain activities to support these objectives. Our specialist team supports all aspects of recovery and resolution planning, and brings extensive experience of supporting clients and leading thinking in this area since the financial crisis. Support provided to clients includes:

• Major structural change – Assessing the regulatory and commercial impacts of structural change, and supporting clients in addressing regulators’ priorities for ring fenced and non-ring fenced entities going forward.
• Recovery – Assessing and enhancing existing recovery plans, supporting the creation of playbooks and helping companies prepare and undertake fire drills.
• Resolution – Supporting activities to enhance resolvability, examples include resolvability assessments, playbooks and work on Operational Continuity, MREL, Valuations, Funding and FMI access.

There is increasing pressure on financial institutions from both internal and external stakeholders to put client assets protection at the heart of their business objectives. We support management teams in achieving this goal using our broad range of professional services solutions, underpinned with deep industry experience of our Client Assets CASS regulatory knowledge.

We work with a wide range of financial institutions from the incumbents in the capital markets, retail and wealth management sectors, to the FinTech disruptors such as crowdfunding and peer-to-peer platforms, offering design and implementation solutions through to monitoring and remediation.

Our services include operating model design and validation, Internal Controls Assurance and CASS audit, and CASS regulatory interpretation and insights.

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Since the Financial Crisis the level of regulatory scrutiny on financial institutions’ conduct has increased significantly, with regulations focussed on protecting clients, increasing market transparency and facilitating competition in the market.

We help our clients to achieve regulatory compliance by providing advice and support on how to address conduct related regulatory requirements, respond to regulatory change, remediate issues and implement major structural changes to their businesses.

Bank Treasury functions continually face challenges of evolving regulations, capital market volatility, and changing political landscapes. We support them to navigate these challenges and their interactions with their key stakeholders (business lines, capital markets and regulators).

Some key areas in which we can support Treasury clients include:

• Securitisation - Advising on governance arrangements for significant risk transfers, ensuring operational readiness and supporting attestation requirements for STS rules, advising on and performing investor due diligence, and optimising CLO risk retention and capital requirements.
• Treasury Operating Model - Benchmarking and developing treasury operating models that support our client’s strategy by designing and implementing effective governance arrangements and risk management frameworks. Also, reviewing, drafting and automating treasury policies and procedures to strengthen the controls environment.
• Balance Sheet Management/Optimisation – Reviewing, developing, and implementing FTP systems that enhance business performance, optimise capital mix, and improve balance sheet efficiency.
• Stress Testing – Supporting Treasury functions’ role in internal and regulatory stress testing exercises, considering how outputs can be factored into strategic decision making, and proposing management actions.