Over the past year, much of the world’s attention has been consumed by the persistent COVID-19 pandemic, the controversies surrounding the US Presidential elections, and the late stage finalization of Brexit trade negotiations. In the meantime, the transition away from LIBOR rates continued across all impacted currencies, and Phases 5 & 6 of the Uncleared Margin Rules (UMR) are targeted for completion in 2021 and 2022, respectively. The COVID-19 pandemic has highlighted the need to improve the overall strength of the global financial system. Both international governing bodies and US regulators have issued Operational Resilience guidance and are moving quickly towards final regulations on this topic. Similarly, the global impact of climate risks has emerged as an industry hot-topic and is likely to prompt further regulatory guidance for financial institutions in coming months. Lastly, the emergence of virtual forums that target specific market positions in a coordinated fashion (i.e. GameStop short-squeeze) has triggered calls for regulatory action, including renewed focus on accelerating the implementation of the SEC’s Consolidated Audit Trail (CAT) system. It is all but certain that impactful regulatory changes are on the horizon and many of them are seeking to address non-traditional risks that will challenge bank executives’ problem solving skills.
As consultants, our ability to exchange knowledge and bring different perspectives gives us the ability to pose different scenarios to our clients. As we continue to support our clients on their regulatory initiatives, we look forward to identifying solutions that leverage our world class capabilities at the intersection of Financial Services Advisory, Change Management and Digital Transformation.
For the latest news, insights, and transition timelines, please visit our Regulatory Advisory page to stay on top of the latest requirements through expert advice and support. You can also download the full 2021 Regulatory Update here.