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Financial Services Regulation in 2020, and beyond….

Compliance 2020

Since the financial markets’ global crisis of a decade ago, the new normal in Financial Services has been significantly increased Regulation, Compliance & Corporate Governance. To ensure that we protect and maintain a robust and sustainable Financial Services Sector, regulator scrutiny, adherence to best practices and thorough engagement between businesses and regulators nationally and globally has been a major turning point since the financial crisis and continues to be central to the healthy functioning of the Financial Sector.

With ever increasing digitisation and the continuing emergence of FinTech, Regulation is every bit as important to the sector in the post financial crisis period and this is set to continue into the next decade.

As we enter 2020, there are a number of themes developing which will shape the landscape of Regulation and Compliance in 2020 and into the next decade.

 

1. The 3 big C’s: Culture, Cyber Security & Corporate Governance.

2. Preparing for Senior Executive Accountability Regime (SEAR).

This new legislation that will ensure clarity with regard to responsibility and accountability, by placing obligations on firms and senior management to set out clearly how decision-making responsibilities are distributed within their businesses.

3. Adhering to the Consumer Protection Risk Assessment (CPRA) model.

CPRA is the CBI’s enhanced model for assessing and recognising conduct risk within a businesses framework, and therefore reducing the potential risk to customers in turn. The expectation is that all financial services firms will operate risk management structures aligned with the CPRA model in the future.

4. Compliance in the Age of Digitisation & oversight in this new environment.

With digitization and ever increasing FinTech, the nature of compliance is changing rapidly and there are questions around how the roles and responsibilities of the risk and compliance function will evolve and adapt. Cybersecurity risks are on everyone’s mind now, meaning compliance officers increasingly need to have IT and data analytics expertise to keep track of changes in threats to the business.

5. Looking ahead to PSD2 & how #OpenBanking is going to ‘change the game’.

PSD refers common rules across the EU in relation to certain types of electronic payments (credit transfers, direct debits, card payments, mobile/ online payments). PSD2 is an extension of PSD. PSD makes it possible for EU market in-payment services to be expanded, meaning various new payment services will now be available to businesses and their consumers.

Open Banking will offer customers greater control over their data. It allows individuals to securely share account information and make direct transfers via Third Party Providers (TPPs). It is being introduced in the hopes of encouraging competition and innovation in the banking sector.

With 2020 on the horizon, and some major structural change underway for the Financial Services sector (e.g. FinTech), businesses will need to adapt appropriately and stay on top of the fast-evolving nature of risk.

 

How can we help?

FK International has an outstanding track record in sourcing the very best Risk & Compliance specialists and we take great pride in partnering with our clients to source the best available talent in an evolving marketplace. Our professionals have seen the full cycle in 20 years of service, and we are at the forefront of knowledge in this area.

If you have a role in mind you would like to discuss, or would like to have a confidential discussion with one of our experts, please reach out to us:

Ger Buckley (COO, FK International)

gbuckley@fkinternational.com

info@fkinternational.com

01 668 8060

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