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

18 January 2017

Asset Management Market Study: Active or passive? Or just transparent and appropriately priced?

By Amanda Rowland and John Newsome The Financial Conduct Authority’s (FCA) focus on performance in active asset management is nothing new. But last month’s asset management market study interim report (MS) further underlined its focus. While active funds generally outperform their benchmark gross of fees, the MS identified that this...

17 January 2017

The underlying impact of REP-CRIM…

The FCA financial crime return (‘REP-CRIM’) came into effect on 31 December 2016. Firms need to be looking at their Management Information (MI) reporting and asking how this can be used and tailored to respond to the 35 REP-CRIM questions on financial crime risk and controls.

Packaged Bank Accounts: Time to Act

By Mark Gossington and Stephen Carr Alarmists were quick to label packaged bank accounts (PBAs) as ‘the new PPI’. While this remains to be seen, PBAs are the second most complained about product after PPI (the Financial Ombudsman received 44,244 complaints last year), prompting the Financial Conduct Authority (FCA) to...

04 January 2017

Soft power: Trusting to culture, governance and risk management

By Andrea Wintermantel As your organisation looks at how to master the new regulatory landscape and its commercial impact, the yardstick for success can’t just be straight compliance. Rather the ultimate aim should be sharpening competitive advantage, given how much has been invested and how much the business still needs...

15 December 2016

Under Construction: Prudential regime for investment firms

The European Banking Authority’s (EBA) discussion paper on proposed capital requirements intends to re-classify the population of investment firms and then redesign the minimum regulatory capital requirements

14 December 2016

10 ways financial services organisations are preparing for the GDPR

Read our GDPR summary for banks, insurers and asset managers

09 December 2016

Asset Management Market Study: Clarity of charges – but a transfer of risk?

By Amanda Rowland and Matthew Bence Even before the Financial Conduct Authority’s (FCA) recent asset management market study there was much debate about the communication of charges to investors. The FCA's 2014 Clarity of Fund Charges review drove a focus on the ongoing charges figure (OCF) as a single charge...

05 December 2016

What would it take for you to ‘be fearless’?

By George Stylianides With RiskMinds just around the corner, this feels like a good time to step back and consider the current state of risk management in Financial Services. The more I look at the financial services (FS) sector, the more I begin to wonder if we’ve forgotten what FS...

30 November 2016

Solvency II narrative reporting: The Story of Goldilocks and the Fire Drill

Pillar 3 often feels like the forgotten Pillar of Solvency II. The stark realisation of how the size, complexity and speed of reporting will impact companies and how quickly the first external public disclosure is coming around.

29 November 2016

Reforming EU banking capital and liquidity requirements, with a flavour of post-Brexit regulation

The European Commission publishes its first proposals for revised rules to calibrate capital and liquidity requirements – in the form of a Regulation and a Directive (CRR II and CRD V), as well as additional amendments to the bank recovery and resolution Directive (BRRD), to implement global standards for total loss absorbing capital (TLAC)..

28 November 2016

Social media and financial services: Time to innovate

Many financial services companies are looking to innovate in the social media sphere; no longer is it just about using social media purely as a communications and marketing tool, it also provides opportunities to deliver services in a completely different way and respond to customer demand.

21 November 2016

Financial crime risk: Time for a rethink

The world of financial crime is extremely active, innovative and dynamic. A threat can come from anywhere – within or outside your organisation. And by definition, the people behind the crimes don’t play by the rules – they just try something and see if it works.

11 November 2016

5 ways to respond to margin compression for UK Retail Banks

By Yousef Ghazi-Tabatabai Despite the recent steepening of the UK gilt curve and increasing inflation expectations, the “lower for longer” interest rate environment remains a concern for UK retail banks. The Bank of England’s November inflation report raises inflation expectations “largely as a result of the depreciation of sterling”, seeing...

02 November 2016

Financial Conduct Authority gives investment and corporate banks a (mostly) clean bill of health

By Andrew Strange and Dominic Muller In keeping with the saying that ‘no news is good news’, the banking industry will welcome the FCA’s final conclusions to its investment and corporate banking market study last month. Despite the review’s wide scope that threatened dramatic regulatory intervention into the prevalent ‘cross-subsidisation’...

31 October 2016

The Reporting Revolution

PRA CEO Sam Woods considers whether firms should publically disclose their regulatory reporting, revolutionising the relationship between firms and their stakeholders.

The 2016 Low Carbon Economy Index shows that climate risks are here to stay, so managing the credit implications is simply common (financial) sense

Climate change presents risks that are being felt today, and as this year’s Low Carbon Economy Index shows, will continue to generate both physical impact risks and low carbon transition risks that could impact companies’ financial performance. As the providers of financial services and capital to companies exposed to such climate risks, financial institutions including banks, asset managers, and insurers are increasingly trying to come to terms with how such risks could transfer to them

28 October 2016

Reading between the lines of the FCA Mission

By Sarah Isted The Financial Conduct Authority (FCA) Mission Statement is an important development in the regulatory landscape in the UK. Three years after FCA came into being, with enhanced powers including an entirely new competition mandate, now is the right time for the FCA to consider the 'how'. With...

25 October 2016

The PRA’s rules on buy-out awards – what do they mean in practice?

By Katy Bennett On 28 September the Prudential Regulation Authority (PRA) finalised new rules on buy-outs for – the recruitment payments made to an individual to ‘buy-out’ awards that they would lose on leaving their old employer. These new rules leave a wealth of practical questions unanswered. The rules come...

17 October 2016

Machine Learning and the opportunity for making better decisions, faster

Financial Services organisations make predictions all the time, in all parts of their business. Increased prediction awareness and the emergence of more accessible machine learning technology are set to make the difference.

Brexit and financial services: The cost to Europe

What will be the cost to Europe if financial services become split up in the aftermath of Brexit? Our latest study looks to assess the direct and indirect implications for Europe’s economy of curbing financial services trade flow between the UK and the rest of Europe and between Europe and the rest of the world.