Volatility in Markets and Politics Roiling the Future of Financial Regulation, New Report Shows

Topics: Financial Crime, Fraud, Government, Government Regulation, Regulation & Compliance, Regulatory Intelligence, Reports & White Papers, Risk Management, Thomson Reuters

State of Regulatory Reform

A newly released annual report, State of Regulatory Reform 2019: The Future of Financial Regulation, published by Thomson Reuters Regulatory Intelligence, covers the outlook for the pace of regulatory reform, predicts what developments could shape financial regulation during the coming year, and analyzes how your organization can best manage any regulatory change.

As the report points out, volatility in stock markets and global politics is shaping a new era for professionals in the corporate governance, risk, and compliance areas, as a decade of post-financial crisis reform fades into the distance. It has been more than 10 years since the financial crisis triggered a global shockwave that fueled new regulations and restrictions on financial markets as governments sought to enhance stability and curtail any financial misconduct.

While the global recovery was steady but slow, volatility has returned over the past year, presenting regulators, financial firms, and markets with new challenges. These challenges, as outlined in the report, include renewed attempts to fix failings in banking culture, maintaining competing international privacy standards, and addressing cracks in bank stress-testing regimes which might lead to an increase in systemic risk.

You can download your copy of the State of Regulatory Reform 2019: The Future of Financial Regulation here.

Further, as the report notes, regulators and firms still have hurdles to clear to best address money laundering and corruption, especially after scandals at Goldman Sachs/1MDB and Danske Bank exposed major gaps in the institutions’ systems and controls, as well as in the ethics and behavior of senior banking staff.

The equally volatile political situations in two major Western democracies, the United Kingdom and the United States, bring into this mix potentially explosive possibilities as UK Prime Minister Theresa May struggles to secure Britain’s increasingly messy exit from the European Union, and the US President Donald Trump faces looming battles with multiple investigations into his Administration and the Democrats now in control of the US House of Representatives.

Add to this the continuing developments in technology that will further challenge global regulators and compliance professionals, as they are expected to rapidly respond to efforts to bolster privacy, fight cyber-crime, govern digital currencies, and manage their companies’ online communications.

No surprise then that 2019 promises to be a busy year for compliance professionals, with unforeseen circumstances and pitfalls marking a post-financial crisis transition. In this climate, no one can afford to drop their guard, and quality information and analysis is going to be at a premium.

You can also download copies of the previous years’ reports here: