Globally, banks are wrestling with the new capital adequacy and liquidity standards mandated under Basel III and G20 proposals for ‘living wills/recovery and resolution plans’. Entities with US interests confront a more difficult regulatory environment, including the Foreign Account Tax Compliance Act and Dodd-Frank.
In Australia, recent regulatory initiatives have included:
- the Future of Financial Advice (FoFA) initiative
- tighter anti-money laundering rules
- stronger privacy protections
- stronger governance around superannuation.
New regulation involves uncertainty and complexity. It often obliges banking and finance entities to modify their internal structures, IT systems and reporting mechanisms. In making these changes, the traditional emphasis is on achieving acceptable levels of compliance, controlling costs and meeting external deadlines.
Yet shrewd organisations are starting to recognise that an integrated firm wide approach to regulatory change can trigger a broader business transformation, including:
- enhancing operational efficiency and effectiveness
- reducing costs and eliminating marginal activities
- improving customer value propositions.
Organisations that use regulatory change to leverage business innovation are making a virtue of necessity.
KPMG works with financial services entities in banking, insurance and superannuation to help them manage regulatory change initiatives. We assist them to find business improvement and efficiency opportunities as well as navigating regulatory complexity and satisfying their compliance obligations.
We keep clients ahead of the regulatory curve through our knowledge and understanding of the local and global regulatory landscape.
We show them how to turn the cost of regulatory compliance into an investment in better business performance.