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

22 January 2020

What does the regulatory revolution on data collection mean for firms?

We are going through a revolution in the way financial services firms use data. The quantity and complexity of the data available to firms is unprecedented. This brings unique opportunities to better tailor the services provided to customers but also significant regulatory, operational and even ethical challenges.

New year’s resolutions (and pre-emptive recovery plans) for insurers

Recovery and resolution (R&R) planning appears to have arrived in insurance, following multiple false dawns.

21 January 2020

IFRS 17: Have you considered the impact on customers?

Most of us have some form of insurance. Life, cars, gadgets, body parts, you name it, it can be covered. But, do you understand how insurance works? And do you know that it’s changing?

16 January 2020

Should EU banks be able to use capital and liquidity waivers?

With European bank profitability low and coming under constant pressure, cross-border banking groups have been arguing for the ability to move capital and liquidity across borders more easily, in order to improve their efficiency in funding economic growth.

19 December 2019

A clearer path on Brexit, but what next for financial services?

The Conservative Party’s resounding victory in the general election means the EU Withdrawal Agreement is now almost certain to be passed in the House of Commons, with the UK leaving the EU on 31 January 2020. The impact of the UK leaving the EU without a deal in January would have been damaging for the financial services sector, despite the huge amount of work that has gone into preparing since June 2016.

18 December 2019

IFRS 17: Year in review

Alex Bertolotti shares his personal IFRS 17 highlights from 2019 and looks ahead to the new year. This year so much has been accomplished by our clients, technology vendors and PwC alike.

12 December 2019

Assessment of value - time to be brave

The Financial Conduct Authority’s (FCA) new assessment of value rules require asset management firms to conduct a root and branch review of their UK funds, and then report their findings to investors. With the first reporting deadline fast approaching in January 2020, now is the time for firms to be brave and stand behind their offering to investors?

10 December 2019

Vendor 3.1: Our latest IFRS 17 vendor analysis

By Richard Hart Background Over the past three years, PwC has undertaken an Insurance Finance & Risk vendor review. Our review considers both the traditional and modernized capabilities required by an insurers finance and risk function, alongside an assessment of the functionality required for IFRS 17. We’re delighted to announce...

06 December 2019

What do the PRA’s changing credit risk rules mean for firms?

By Stefanie Aspden and Mete Feridun Efforts to reduce the unwarranted variability in credit risk-weighted assets (RWAs), stemming from differences in modelling practices across firms, continue to be high on the regulatory agenda in the EU. Despite the political uncertainty surrounding Brexit, the Prudential Regulation Authority (PRA) continues to apply...

04 December 2019

Final remarks on risk appetite statements

By Sian Herbert The risk appetite statement should not be considered in isolation but should be considered in the context of the broader financial crime risk management framework. The risk appetite statement informs policies and procedures which should be designed to ensure that the controls are in place to mitigate...

FRC Client Assets Standard 2019

By Kim Stainfield The FRC released the revised FRC Client Assets (“CASS”) Assurance Standard on 25 November 2019. This Standard is effective for reports to the FCA with respect to Client Assets for periods commencing on or after 1 January 2020. From our experience, we consider that the Standard has...

03 December 2019

A journey towards responsible AI in financial services

By Leigh Bates and Maria Axente The topic of ethical and responsible Artificial Intelligence (AI) in financial services has risen in popularity over recent years, partly due to media attention regarding bias and discrimination inherent in AI models, but also because it is a topic gaining increasing focus from regulators...

29 November 2019

How do I use a risk appetite statement?

By Sian Herbert In the fourth blog of this series I consider how a risk appetite statement can be used to manage and monitor risk within an organisation. The risk appetite should drive key business decisions such as business acquisitions, disposals, client on-boarding/exiting and the deployment of resources. The inherent...

28 November 2019

Operational Resilience - A view from beyond the wall

By Stuart Birnie. Operational resilience continues to be a hot topic in the Financial Services industry where firms now run operations on a truly global basis. Therefore, collaboration between global teams and those operating in various UK locations is critical if progress is to be made with operational resilience.

25 November 2019

Highlights of PwC’s 2019 with-profits survey

By Philippe Guijarro, Rebecca Macdonald and Kris Overlunde With-profits may be in decline but remains firmly in the spotlight, whether that be due to acquisitions, restructuring or the FCA’s recent thematic review of the fair treatment of with-profits customers (TR19/3). PwC’s recent survey including 14 of the largest with-profits providers...

Keeping up with regulatory expectations in banking

By Stephanie Henderson-Begg There is a scene in Lewis Carroll’s Through the Looking Glass where Alice in an encounter with the Red Queen has to run fast just to remain in one place. Biologists use this Red Queen analogy to describe arms races in evolution, but for me if often...

20 November 2019

What is a ‘Risk Appetite Statement’ and why do I need one?

By Sian Herbert ‘Financial crime is illegal and I have zero appetite and/or zero tolerance for it’. Over the years I have heard this or similar statements from many clients of various seniority within financial services organisations – it is a fair and understandable statement. However, as set out in...

Sustainable investing: rooting out conduct risk and why MiFID II matters

By Lucas Penfold & Leo Donnachie The appetite for sustainable investing shows no sign of letting up anytime soon. The asset management industry clearly recognises this, with a wide range of products launched in recent years to accommodate investor demand. Even for funds without a specific Environmental, Social and Governance...

15 November 2019

Turning the SM&CR into an opportunity for solo regulated firms

By Grant Lee and Ann-Marie Stone In less than a month’s time, on 9 December 2019, the Senior Managers & Certification Regime (SM&CR) comes into effect for all remaining financial services firms. This completes the process following the banks and insurers which are already in the regime. How ready are...

14 November 2019

What generates financial crime risk?

By Sian Herbert A financial services organisation generates financial crime risk (‘inherent risk’) through its business activities: by being in business it is exposed to the risk of being used in the furtherance of financial crime either through its clients’ activities (e.g. money laundering, fraud) or through its own and...