Financial Markets Regulatory Outlook 2022

New strategies for a changing world
Financial Markets Regulatory Outlook 2022

Our annual assessment from Deloitte’s EMEA Centre for Regulatory Strategy explores how major regulatory trends will affect the financial services industry across EMEA in the year ahead, and how leaders can anticipate and respond to them effectively.

The 2022 edition of the Financial Markets Regulatory Outlook identifies ten cross-sector themes of strategic significance, and takes an in-depth look at three related spotlight topics - credit risk, regulatory divergence and the future of regulation.

Watch the video or click on the boxes below to learn more about the key themes, or download the full report.

Transition to a sustainable economy

Transition to a sustainable economy

Regulatory focus will turn to scrutinising transition plans that will deliver firms’ climate pledges. Regulators will continue to develop ESG disclosures and increase scrutiny of greenwashing and liability risk management.
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Climate-related risk management

Climate-related risk management

Banks and insurers will need to deepen their climate-related risk management capabilities, including scenario analysis. Supervisory focus will broaden beyond climate to capture nature-related risk.
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Innovation

Innovation

Regulators will focus on addressing risks stemming from digital and business model innovation. Cryptoassets and digital payment firms must prepare for more intrusive supervision of their risks and control frameworks.
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Operational resilience

Operational resilience

Policy needs to be put into practice as firms implement regulatory requirements and address operational vulnerabilities. International firms need to look for synergies across multiple regulatory requirements to drive consistency and efficiency regarding compliance.
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Revising the capital framework

Revising the capital framework

Regulators will make significant decisions in 2022 on the future of the prudential frameworks for banks and insurers. Firms need to prepare for diverging implementation of Basel 3.1 and Solvency II.
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Market structure

Market structure

Regulatory reform is changing the structure of European capital markets. Firms need to prepare for revisions to MiFID/MiFIR and possible reform to Money Market Funds, and make progress on IPU implementation.
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Value for money

Value for money

Firms will increasingly need to justify the value of their products and services as regulators focus on how much customers are paying and whether this is commensurate with the value being delivered.
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Financial crime

Financial crime

Regulatory patience with weaknesses in banks' AML/CTF processes is wearing thin and we expect more enforcement action. Scrutiny of digital payments and cryptoassets firms will intensify.
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Governance

Governance

Firms need to revisit their governance frameworks as they tackle the challenges of overseeing a more complex business environment and address heightened regulatory and social expectations in areas such as operational resilience, climate and diversity and inclusion.
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They think it’s all over… it isn’t yet

They think it’s all over… it isn’t yet

As attention turns to tackling global issues such as climate change, firms must remain focused on ongoing regulatory initiatives - including LIBOR and resolvability - and address re-emerging concerns such as regulatory reporting.
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In the spotlight:

Credit risk

With an increase in customer defaults expected, supervisors are expressing concerns over banks’ impairment processes and increased volumes of leveraged lending.
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Regulatory divergence

UK-EU regulatory divergence will increase over time. Firms will have to choose between a single, unified compliance approach or two (or more) different approaches to deal with local particularities.
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The future of regulation

The scope of financial services regulation will expand. In the coming years, a growing number of unregulated products, technologies and firms will be brought into the regulatory perimeter.
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Access our interactive timeline tool for a high-level view of recent and upcoming regulatory milestones for the financial services industry.

Download the report

Download the report

The full findings of the report including all the additional information.

Regulated Radio podcast

Regulated Radio podcast

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Key contacts

David Strachan

Partner, Head of EMEA Centre for Regulatory Strategy

Suchitra Nair

Partner, EMEA Centre for Regulatory Strategy