BoE - insights for climate-related financial risks
On 17 April 2024, the Bank of England (BoE) published an article with useful insights for financial institutions on using scenario analysis to measure climate-related financial risks.
Thought Leadership
Financial Services thought leadership and articles
The FCA’s review into insurers' vehicles valuation
The Financial Conduct Authority (FCA) conducted a review of claims-handling processes for valuing vehicles which have been stolen or written off (‘total-loss’ claims).
Succession planning for listed businesses
Robust succession plans can enable a Board to ensure their organisation remains in good hands for years to come, address any potential skills gaps, and reap the benefits of increased diversity.
Impact of the banking surcharge rate change
Recent modifications to the banking surcharge rules and the UK corporation tax main rate mean larger banks now face a combined tax rate of 28%, while many moderately sized banks may drop out of banking surcharge due to the increased £100m surcharge allowance available from 1 April 2023.
Introduction of Corporate Income Tax in Bermuda
On 8 August 2023, the Premier announced Bermuda's intention to implement a corporate income tax (CIT) for periods commencing on or after 1 January 2025. The decision to implement the CIT comes in response to the OECD’s Pillar 2 initiative to ensure large multinationals (>€750m consolidated group revenue) are paying a minimum of 15% tax in each jurisdiction in which they operate, and on this basis...
Liquidity risk management of equity funds
Subsequent to a recent review across asset management firms, the Financial Conduct Authority (FCA) has observed varying degrees of liquidity risk management standards across firms and has issued a warning to Authorised Fund Managers (AFMs) to better risk-manage their liquidity to avoid investor harm.
Strong and Simple – Does this apply to your firm?
The Strong and Simple regime could present potential advantages to firms, including cost reductions and increased competitiveness due to more proportionate regulatory requirements. This article aims to provide a clear understanding of which firms could be eligible for the new regime following PRA consultation (as of Q2 2023).
Country by country reporting is changing
The Country by Country Report is on a journey from being a fiscal authority filing cabinet filler, to public reporting and a core component of Pillar 2 – Globe with many countries taking slightly different approaches.
Asset managers and ESG implementation
ESG-related regulatory requirements, and scrutiny, show no signs of abating.
GloBE – February 2023 significant changes
The OECD issues amendments to the operation of the Global Anti-Avoidance Base Erosion (“GloBE”) Model Rules (Pillar 2) and additional clarification of some areas.
Our top ten risks for firms in 2023
Overall, firms weathered the initial turmoil of the Covid-19 pandemic reasonably well thanks to a combination of deployment of technology to provide flexibility in remote working, and, in the case of banks, balance sheets which have been substantially bolstered in the aftermath of the financial crisis.
GloBE information return – what you need to know
The Global Anti-Base Erosion (GloBE) initiative seeks to reduce incentives for governments to offer tax incentives to drive economic growth. The initiative proposes a 15% global minimum tax. Progress continues to be made to implementation in 2023 most likely with effect for periods beginning on or after 1 January 2024. The rules will apply to multinational groups with consolidated accounting revenue...
GloBE - OECD announces major updates
In time honoured tradition, we have been given a festive present for the holiday period. The Organisation for Economic Co-operation and Development (OECD) has released its guidance on the Country-by-Country Reporting (CbCR) safe harbour mechanism the Global Anti-Base Erosion Model Rules (GloBE) information return and dispute prevention/resolution.
Pillar 2: December 2022 update
The political momentum behind Pillar 2 remains strong. It very much looks like it will happen and what is now important is exactly when each measure comes in, the reporting requirements and readiness for those obligations.
Legislation day 2022
On Wednesday 20 July 2022, the government released draft legislation for the Finance Bill for 2022 and the results of consultations. We were expecting more draft legislation but there are some HMRC recommendations that cannot currently be signed off by ministers until we have a more stable government.
Financial Services – OECD Pillar 2 (GloBE) Update
On 14 March 2022 the Organisation for Economic Co-operation and Development (OECD) published a comprehensive commentary and illustrative examples of what the implementation of the Global Anti-Base Erosion Model (GloBE) Rules could look like.
OECD Pillar 2 (GloBE) rules
In December 2021 the OECD issued their model rules setting out how the global 15% minimum tax rules could look. Countries adopting the rules are likely to follow these rules in their local legislation with a target for the first stage of legislation in 2022 and implantation from 2023.
Insurance - making digital adoption a reality
The UK hosts the fourth largest insurance market in the world, and the largest in Europe, with a total premium volume of just under $283 billion[1] recorded in 2017.
Interest deductions for foreign banks
08 December 2021 This article delves into the interest deductions for foreign banks operating in the UK, outlining the background of the Capital Attribution Tax Adjustment, the five critical steps involved, and some helpful FAQs.
Autumn Tax Administration and Maintenance Day
30 November 2021 For the second time in the same year, the UK Government has broken with longstanding tradition, where we would have had the UK Budget and tax consultations released simultaneously.
How much UK tax will banks pay on their profits?
Peering into the crystal ball, we wonder - how much corporate tax banks in the UK are going to have to pay after 1 April 2023? On that day, marking the first rate rise since 1974, the corporation tax rate goes up, from its current rate of 19% to the new rate of 25%.
FCA guidance on treatment of vulnerable customers
The FCA wants more resources devoted to empowering customers, preventing harm and safeguarding rather than dealing with redress and remediation later down the line, and has updated their guidance by issuing four pillars to help firms with vulnerable customers.
Civil Liability Act - FCA reporting
Certain insurers will be subject to additional reporting to the Financial Conduct Authority (FCA) from 2023. Whilst the first reporting date seems far away, the return must cover data from 2020 onwards, meaning that firms need to prepare to make sure they can provide accurate data in the right format.
Mazars’ Insurance Broker M&A Outlook 2021
The UK Insurance Broking M&A outlook for 2021 is fascinating, especially following the obvious challenges of 2020.
Safeguarding quality of risk and regulatory data
High quality data is critical in supporting decision making, reporting and risk management activities, and even more key for getting the most out of advanced analytics and predictive modelling.
FCA Brexit webinar - November 2020
With six weeks to go before the end of the EU exit transition period, the FCA set out what firms need to be aware of in preparation for 1 January 2021. Discussions were against the backdrop of the ongoing EU Exit negotiations where the outcome is uncertain, and thus any agreements may not mitigate the risks that firms are facing, and the question of equivalence.
Risk and Regulatory Data - Impact of Covid-19
With the current Covid-19 pandemic and its widespread effects, banks must rely more than ever on data driven insights to monitor their changing risk profile, support quick decision making and respond to impacts on their customers and operating models.
How ESG is reshaping global financial Services
The time has come to take the business of sustainability seriously. Governments and businesses can no longer afford to focus on short-term gains to the detriment of longer-term sustainability.
Tackling climate change: the Role of Bank
Mazars and the Official Monetary and Financial Institutions Forum (OMFIF) are proud to have come together to produce a global report providing unique insight on current and upcoming financial regulatory evolutions aimed at tackling climate change.
Responsible banking practices study 2020
With Environmental, Social and Governance factors, and responsible banking practices more broadly becoming an essential focus for the banking industry, Mazars has assessed how banks are embedding sustainability into their commercial practices.
Banks’ response to climate change risks
With sustainable finance expecting to be a crucial factor in the economic recovery in response to Covid-19 and regulators still encouraging banks to actively embed climate-related risks in their business operations and risk management frameworks, Mazars has analysed how 30 of the largest banks worldwide have been handling climate-related financial risks.
Brexit Watch #4: How regulators are reacting
Brexit preparation is one of the largest undertakings that regulators and market participants have ever done, considering the uncertainty and the impact it carries.
Brexit Watch #5: Brexit extension
During a meeting of the Special European Council on the 10 April 2019, EU leaders agreed to a flexible Brexit extension until 31 October 2019, to allow for the ratification of a withdrawal agreement.
Updated EU anti-money laundering framework
What are the changes and what can you do to ensure your firm is compliant?
Mazars Insurance Broker M&A Outlook 2019
Following a survey of over 150 insurance brokers across the UK, our Insurance M&A experts report on the sentiment of the market and look ahead to 2019.
Climate change and banking
One day ahead of the UN Climate Action Summit in New York, 22 September 2019 – The United Nations launched the Principles for Responsible Banking with the sign up of 130 international banks, collectively holding more than USD 47 trillion in assets.
Climate change - The BoEs commitments
In 2018, the Bank of England (the “BoE”) set up a project called “Future of Finance” aimed at anticipating the upcoming changes in financial services for the next decade, and the impact of these changes for market participants, customers and regulators.
Future-proofing financial services report
Effective leadership is the critical success factor for financial services companies facing regulatory and societal change. Read our special report to find out how it will affect your company.