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Our blog explores the latest issues in financial services risk and regulation.

02 August 2018

Cash savings: is the FCA finally showing its competition teeth?

ince the FCA gained enhanced competition powers in April 2015, many in the industry have been waiting for the FCA to make a more radical competition intervention. Until now, it’s largely relied on demand-side remedies, such as improving disclosure and encouraging switching, to help consumers get a better deal. But that could be about to change

31 July 2018

IFRS 17: Global Webcast – Where are we 1 year on?

On the 27 June, three expert panel members and I took to the airwaves as part of PwC’s Global IFRS 17 Webcast, to discuss how IFRS 17 is developing one year on from the official announcement. In this blog, I will briefly summarise the keys points that were discussed.

24 July 2018

Vulnerable customers: why resilience still matters

Back in November last year, the FCA proposed a new approach to vulnerable customers. In its Approach to Consumers consultation document, it introduced the concept of ‘low resilience’ (low capacity to absorb financial shocks) and consulted on a new definition of vulnerable customers based on the concepts of resilience and capability rather than specifically customer circumstances.

20 July 2018

No model, no model risk

By Yousef Ghazi-Tabatabai As large banks extend model governance to cover a wider range of business areas, counterintuitive & counterproductive incentives can be created. The problem arises where pure expert judgement processes could be used as alternatives to models. In some business areas, notably Treasury, important metrics are often determined...

19 July 2018

Transforming the resilience of the financial sector

By Simon Chard & Conor MacManus Operational challenges are nothing new for financial institutions, but with a number of recent high profile examples of operational difficulties impacting customers, operational resilience is now at the top of the agenda for regulators. As is often the case, regulators in the UK are...

18 July 2018

InsurTech Trend Report: Beyond the boundaries of insurance

By Victoria Newton Download the full report here We’re now in our third year of working with Startupbootcamp InsurTech, and we’re seeing InsurTech mature and become an increasingly important part of the insurance industry. Last year we predicted increased collaboration between insurers and startups, with boundaries continuing to blur as...

13 July 2018

Is CSM starting to move centre stage for investors?

We have seen interest and focus on IFRS 17 by the investor and analyst community increase over the past year, with some publishing their own research and educational papers on its impact.

05 July 2018

IRRBB: 5 Top Challenges for large European banks

By Yousef Ghazi-Tabatabai While managing interest rate risk in the banking book (IRRBB) is not new to banks, the rigour required by the recent Basel standards (BCBS368) has presented challenges to the industry. Though the standards are yet to be written into European regulation, most major banks are working toward...

03 July 2018

What is the future of risk and regulation?

t is always a dangerous activity to try and predict the future. And particularly so with technology changing our lives at such a fast pace. It is a necessity though for risk and compliance leaders.

27 June 2018

Time to take note and action following the latest Dear CEO

On 31 May, the PRA released one of its strongest letters to date, raising serious concerns about the sustainability of some London Market insurers’ business models amidst one of the longest soft cycles faced by the market.

25 June 2018

IFRS 17: The Challenges of Reinsurance

We spend a lot of time travelling to many countries to meet with clients on IFRS 17 and one topic keeps coming - reinsurance. We hear again and again that this has been the forgotten area of the standard, but as companies get into the detail of what the standard actually says and how this interacts with their own reinsurance arrangements, or the data required, they are starting to realise this should be a priority.

22 June 2018

Keeping the data flowing: The business impact of Brexit on data sharing and protection

By Leigh Bates and Conor MacManus Every day, huge volumes of data, including vast amounts of personal data, flow between the UK and other EU countries. Thanks to common standards of data sharing and protection within the EU, international businesses can easily work across borders. But, as the Brexit deadline...

14 June 2018

FCA focus on vulnerable customers hits high-cost credit

By John Coley and Tessa Norman As part of its proposed new approach to consumers, the Financial Conduct Authority (FCA) wants to prioritise those who are most vulnerable, and have the lowest financial resilience. It consulted on this approach in November 2017, prompting questions about what this would mean in...

07 June 2018

IFRS 17: How can digital training help you?

Insurers are well aware by this stage in their IFRS 17 journeys that the standard is likely to cause significant changes throughout their organisations. One area our clients are starting to focus on is training; namely, how much training, to whom and at what point in the journey do they start?

23 May 2018

Brexit: regulatory developments: April-May 2018

Brexit is fundamentally affecting both UK and EU-27 financial services businesses from a regulatory and supervisory perspective. Anticipating a different relationship between the UK and EU-27 post-Brexit, regulators and other policy makers are expecting significant changes to their rules and processes. Developments are moving at a fast pace and firms need to understand the business implications as events unfold. Here, we summarise the most significant Brexit-related regulatory developments over the past month.

17 May 2018

Where are all the specialists needed to implement IFRS 17?

As I continue conversations about IFRS 17 implementation plans with companies across the globe, I can’t help but notice I am being asked the same question over and over: where are all the specialists needed to implement IFRS 17?

25 April 2018

Brexit regulatory round-up: March - April 2018

By Andrew Gray and Conor MacManus Brexit is fundamentally affecting both UK and EU-27 financial services businesses from a regulatory and supervisory perspective. Anticipating a different relationship between the UK and EU-27 post-Brexit, regulators and other policy makers are expecting significant changes to their rules and processes. Developments are moving...

16 April 2018

Halfway to Brexit: some progress, but risks remain

Last month marked a major step forward in the Brexit negotiations, with the UK and EU reaching political agreement on a 21-month transitional period. Now we’re halfway through the two-year Article 50 process, the picture for financial services is starting to become clearer. But despite the progress of recent months, significant risks remain. So what does all this mean for firms?

12 April 2018

IFRS 17: Is Asia ready?

By Alex Bertolotti As I mentioned in my last IFRS 17 blog post, I recently returned from a trip to Asia, where I got the chance to visit Japan, China and Hong Kong. During this trip I gained a better understanding of Asia’s general state of readiness for IFRS 17...

04 April 2018

What’s next for the FCA’s culture agenda?

By Sarah Isted and Tessa Norman The Financial Conduct Authority’s (FCA) recent discussion paper on culture is the regulator’s first tangible output on the topic for some time. With the Senior Managers & Certification Regime (SM&CR) due to be extended to all firms next year, now feels like the right...