Despite “reform fatigue” and squeezed profit margins, financial services firms are dealing with a continued flood of regulation. Some are turning to new technologies for compliance help.
In this article, written by the Economist Intelligence Unit and sponsored by Mazars, we explore regulatory change in the financial services sector and the impact that it has not only on global financial markets, but on costs to both financial services providers and their clients due to decreased liquidity, less risk taking and a flight to quality. Regulatory change is often thought of as driven by macro prudential and financial stability risks, in addition to geo-politics. Brexit negotiations, Europe’s altering political and economic landscape, Asia’s growing importance as a financial centre, and president Trump’s promises to remove regulatory rules may greatly change global financial regulations in coming years and create opportunities for regulatory arbitrage. However regulation is increasingly likely to be driven by the regulators trying to catch up with technological developments. This has already been seen with the development of ‘regtech’ – a sub-set of fintech that concentrates on how technology can assist in the delivery of regulatory requirements. We invite you to read more, as we ask: What will the global financial sector’s regulatory landscape may look like in 2030?
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