Services

Bank Regulation

Keeping pace with regulatory change

The regulatory change agenda shows no sign of slowing, and financial services organisations continue to balance the obligation to comply with an increasingly complex and diverse set of prudential and conduct regulatory rules, with pressure to optimise costs whilst continuing to deliver on business and strategic objectives.

Divergence in the speed and content of regulatory rule-making in various jurisdictions presents an additional challenge for global and internationally active institutions.
 

Maintaining compliance with regulatory requirements

Against this backdrop, Boards and Senior Management need assurance over their compliance with regulatory requirements, to meet with regulators’ expectations and discharge their responsibilities under the Senior Managers and Certification Regime.

Our specialists help companies stay ahead of emerging prudential, CASS and conduct regulatory changes in the UK, EU and globally, assess the impact of forthcoming regulatory changes, and achieve optimal and efficient use of regulatory capital and liquidity resources.
 

New entrants and digital banking

Since the rise of digital technology and alternative banking solutions, we work with a range of market entrants throughout the end-to-end process to meet regulatory approval. We also help companies comply with regulatory requirements by leveraging technology and increasing process automation.
 

Bank Treasury Advisory

The purpose of Bank Treasury functions has evolved from funding the bank’s strategy to closely supporting its businesses and clients. We help Treasurers meet the needs of their three key stakeholder groups: business lines, capital markets and regulators.

The Prudential Regulation and Bank Treasury Advisory team

Our diverse team includes ex-regulators, industry practitioners, accountants, and treasury and capital markets professionals, collaborating to help companies achieve compliance across a range of prudential regulatory and Treasury-related areas.

We advise on the practical impact of regulatory change on Banking and Capital Markets companies, including:

  • Regulatory compliance – Achieving ongoing compliance with prudential and conduct rules, preparing for PRA and FCA supervisory reviews. 
  • Remediation work – Remediating issues for clients raised during PRA/FCA and ECB supervisory reviews.
  • Regulatory change and implementation support – Assisting clients to analyse the impact of upcoming regulatory changes and implement regulatory change programmes across business lines and functions. 
  • Major structural change – Assessing the regulatory and commercial impacts of structural change on clients’ businesses, including acquisitions, disposals and restructuring.
  • Recovery and resolution – Assessing and enhancing existing recovery plans, and supporting activities to enhance resolvability.
  • Securitisation – Advising on significant risk transfers, compliance with STS rules, performing investor due diligence, and optimising CLO risk retention and capital requirements.

Our core assurance offerings include:

Capital, Liquidity and Regulatory Reporting assurance

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

Recovery and Resolution Planning assurance

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.

Client Assets CASS assurance

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.

For more information, please click here

Conduct assurance

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

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.

Key contacts

Michael W Williams

Michael W Williams

Partner

Mike leads the Banking Regulation team in the London Banking & Capital Markets Group. Having founded the Deloitte regulatory practice in 1992, Mike has a wide ranging knowledge of UK Prudential Regula... More

Alastair Morley

Alastair Morley

Partner

A Partner within Deloitte’s Banking & Capital Markets practice in London with over 18 years experience in the retail and investment banking industry, performing both external audit and advisory roles.... More

Alex Brown

Alex Brown

Director

Alex has 16 years’ experience in prudential regulation. Prior to Deloitte, Alex spent 13 years in the regulator including leading the recovery and resolution team at the PRA and driving a lot of the i... More

Andrew Freeman

Andrew Freeman

Partner

Andrew is a chartered accountant with over 20 years experience in assurance and advisory services for FS clients. He co-leads our cross-service line Regulatory Reporting Assurance proposition, helping... More