The Broker Club’s Post

We've just published our regulatory outlook, setting out what we see as the key regulatory and supervisory trends for financial services in 2025. They include continuing supervisory focus on effective risk management, consumer protection and financial and operational resilience and whether Board and senior executives are fully on top of emerging risks, including those arising from AI adoption. These trends will play out against a background of significant political and economic uncertainty. We expect 2025 to be a particularly bumpy ride. So my advice – reflecting my usual risk-sensitive self – is to buckle up! But, as always, we can find some certainties, and even some opportunities. Debates about the role of regulation (or deregulation) in supporting governments' drives to boost growth will be ever-present. More prosaically, there's still work to be done complete the implementation of regulations started some time ago (e.g. on operational resilience) and preparing for new initiatives such as the transition to T+1 settlement.  And supervisory constants remain constant: the Consumer Duty, effective remediation of supervisory findings, risk management supported by a robust risk culture, data integrity and availability, counterparty credit risk management and much more besides. If you want to know what’s in store for you, this is the document for you. Suchitra Nair | Tom Spellman | Liam Girvan | Guillaume Legrand | Gabriel (Gav) Seitler https://lnkd.in/emJhvSVp

Regulatory outlook for Financial Services Our flagship publication is out for 2025! We have been doing this for over ten years and there are some notable shifts in the direction of travel of regulation. Globally, FS firms and regulators will face a demanding set of interrelated economic and geopolitical risks. A focus on growth and competition will influence policies around sustainability, innovation and regulatory reform more broadly. We don't expect significant deregulation but some policies are likely to be delayed further (Basel 3.1/FRTB is a case in point). Following significant weaknesses noted in supervisory reviews, regulators will expect firms to reinvest in core capabilities - risk management, governance and controls. Quality of data, risk data aggregation and reporting is in the spotlight. Our regulatory outlook explores the global regulatory shifts (co-written with our US and APAC centres) and EMEA trends. Sub-sectoral op-eds set out the strategic impact of regulatory developments on banks, capital markets, insurance and investment management firms. Three dedicated deep dives into AI, Sustainability, and Payments and digital assets explore the fast moving regulatory landscape and what it means for firms. As always, the RO is a team effort and synthesises our reg horizon scanning, analysis and expert views from across our team and the wider business. Thank you to all those who contributed. Liam Girvan; Guillaume Legrand; Gabriel (Gav) Seitler; Suresh Kanwar; Anthony Gaughan; Sean Smith; David Strachan; Rash Phullar; Jas Jhaj

One big topic that struck me from the 2025 Reg Outlook was Strong Governance and Sound Risk Culture from the ECB supervisory board. “One area I would like to highlight concerns strong governance and sound risk culture – the hallmark, I would even say the “North star” of a safe banking system. They are more important than ever, especially in the current risk environment, in which banks are facing economic, competitive and geopolitical headwinds.” More details below. Suchitra Nair

📍[Mazars launches Global financial services regulatory centre] Today’s regulatory challenges are putting a severe strain on financial services organisations that are simultaneously striving to meet shareholder demands and adapt to new business models. At Mazars, we understand that quality information and interpretation will be vital partners in helping clients comply with an ever-changing and more stringent regulatory environment. Our collaborative approach means we can combine our global knowledge to identify new trends and hot topics impacting the regulatory landscape. We can explain specific policy changes country-by-country and provide forward-looking opinions and insights from our centre of expertise to help keep your finger on the pulse of regulatory developments. How can we help? By contributing our knowledge, insights, publications, and research, our teams can assist senior-level leaders in making more informed choices. Our regulatory intelligence is disseminated in several ways, allowing you to cherry-pick information channels that suit your needs and requirements. Find out more: https://lnkd.in/ebHiJ3qV #financialregulation #financialservices #financialadvisory

👮2025 Global Financial Services Regulatory Outlook - A new report from EY provides insights into the key trends that firms should be aware of in 2025. The report is based on a survey of over 1,000 senior financial services executives from around the world. It provides a comprehensive overview of the regulatory landscape, including the key challenges and opportunities facing firms. The report identifies four key themes that will shape the regulatory landscape in 2025: ✅ Increased fragmentation of regulatory regimes: Policymakers are prioritizing their own countries' interests in response to global issues, instead of prioritizing international cooperation. This is leading to a proliferation of local standards.   ✅ More scrutiny of firms' operational and financial resilience: Regulators and supervisors will focus on contagion risks from dependencies on critical third parties, including technology providers.   ✅ Continued pressure to improve outcomes for retail customers: There will be a renewed focus in some regions on financial inclusion and protection against fraud.   ✅ Close examination of the alignment between risk management and governance frameworks: Supervisors remain focused on remediation of long-standing issues, risk culture and effective risk management and governance practices.    🔗 Access the report here 👉 https://lnkd.in/gcp5sk6D

The finalization of CRD6 includes requirements for the management of ESG risks and impacts. Read our summary here:

[#RegCentre] Breaking EU regulatory news of this week - Numerous important EU legislations have been voted this week (89 legislative texts + 7 resolutions coming). Financial institutions need to familiarise themselves rapidly with the final adoption of the following:   #BankingPackage: Final vote for #CRR3 and #CRD6 to finalise the implementation off #Basel III. Introduces a broad range of changes such as to the output floor on own funds, on credit risk and market risk rules, and on the calculation of operational risk. ESG risks is now also considered, as well as a new framework for third-country branches. Application remains from 1 Jan 2025. Regulation CRR3: https://lnkd.in/ejzYfU97    Directive CRD6: https://lnkd.in/e_tGCX99   #CSDDD (#CS3D): EU Parliament positive vote on the Corporate Sustainability Due Diligence Directive (next step: procedural sign-off with new law est. by June). This is an important step to foster sustainable and responsible corporate behaviour and to anchor human rights and environmental considerations in companies’ operations and corporate governance. While the financial sector is currently not significantly impacted, this is an area to watch for further developments. Also makes links to the #CSRD obligations. Directive CS3D: https://lnkd.in/eN3vpKZH     #AML / #CFT: Regulation for the establishment of the new European Anti Money Laundering Authority ("AMLA"), set up a Single EU Rulebook for AML/CFT, and updates the directive accordingly. Regulation on the purpose: https://lnkd.in/eU659S4r Regulation on the authority: https://lnkd.in/eX9e3Zkz Directive on the mechanisms: https://lnkd.in/ezAfquig   #CMDI: Directive on certain aspects of the MREL, aimed to ensure the effectiveness of the resolution framework for certain groups. Regulation SRMR3: https://lnkd.in/epgZ2pB3 Directive BRRD3: https://lnkd.in/eRqkuPhD Directive DGSD2: https://lnkd.in/ezAk_Dv8   #ESG rating: To enhance the quality of information about ESG ratings by improving transparency of ESG ratings characteristics and methodologies and by ensuring increased clarity on operations of ESG rating providers. Regulation : https://lnkd.in/esMHqqi4   #EMIR / #CCP: Final vote of the regulation and the directive to increase the safety and attractiveness of Union CCPs by improving their efficiency, encouraging clearing in the Union and enhancing the cross-border consideration of risks. Regulation: https://lnkd.in/ezxZfyWP Directive: https://lnkd.in/evJS_vBe Stay tuned for more and subscribe to our FS regulatory insights newsletter: http://maza.rs/6049YJhIx Learn more on our Global FS RegCentre page: https://lnkd.in/eMKMMsbA David Labella David CIOLFI Paul Hamalainen Meglena Grueva Sylvie Matherat Milena Marinova Matthieu Ribes Gregory Marchat Huseyin Sahin

This past year we’ve witnessed a convergence of risk factors that together make the regulatory outlook for 2025 particularly uncertain. Our Global financial services regulatory outlook delves into the significant shifts and emerging trends driving new priorities and has insights to help you prepare. https://lnkd.in/gJWMCK4T Four predictions for 2025: Domestic political agendas will increasingly shape regulation, prioritizing national interests over international coordination. Resilience will continue to be a priority. Expect increased scrutiny of third party-related risks and non-bank risk exposures. Pressure will continue to be placed on firms to support the well-being of all consumers, especially as technological adoption accelerates. Regulators will double their focus on timely remediation of known weaknesses and put greater pressure on boards to ensure effective oversight of firms’ risk management frameworks. To explore these insights further and hear more predictions for the next 12 months of regulation, we invite you to join our Global Regulatory Network panelists on a live webcast. You can find webcast details and links to attend, here: https://lnkd.in/gKrtQip3 We would be delighted to discuss the report in more detail and explore how these developments may impact your business.

This is a must read! Looking ahead to 2025, the regulatory environment is set to change. Businesses will need to enhance their financial resilience, handle third-party risks, fortify governance controls, and steer through market competition. While the future may seem complex, with the right foresight and preparation, these challenges can be transformed into opportunities. Discover the actions your company can take in 2025 by exploring the 'Ten Key Regulatory Challenges for 2025' from the KPMG Regulatory Insights team. #RegulatoryChallenges https://bit.ly/3VPEUal

🌟 Adapting to Regulatory Changes in the Financial Industry: Navigating Compliance 📜 In the dynamic landscape of finance, staying compliant with regulatory changes is crucial for maintaining trust, mitigating risks, and driving sustainable growth. Here’s how we navigate these challenges: Understanding Regulatory Landscape: 🌐 Keeping abreast of evolving regulations ensures proactive compliance and reduces the risk of penalties or reputational damage. Implementing Robust Compliance Frameworks: 🔒 Establishing comprehensive compliance policies and procedures safeguards against non-compliance, promoting transparency and accountability. Educating Stakeholders: 📚 Providing ongoing training and awareness programs empowers employees to adhere to regulatory standards, fostering a culture of compliance throughout the organization. Harnessing Technology: 🚀 Utilizing advanced tools and platforms for regulatory reporting and monitoring enhances efficiency and accuracy in compliance efforts. Collaborating with Regulatory Bodies: 🤝 Building constructive relationships with regulators facilitates open communication and helps navigate complex regulatory landscapes effectively. Adapting to Global Standards: 🌍 Aligning with international regulatory frameworks ensures consistency in compliance practices across jurisdictions, supporting global operations. Fun Fact: 💡 Adhering to regulatory changes not only mitigates risks but also enhances operational resilience and investor confidence in financial markets. Navigating regulatory changes requires vigilance, adaptability, and a commitment to ethical standards. Let’s embrace compliance as a cornerstone of sustainable financial practices! #RegulatoryCompliance #FinancialRegulations #ComplianceManagement #EthicalFinance #FutureOfFinance