United Kingdom

Issues faced by our clients - Embedding regulatory change 

Lloyds building and The Gherkin, London
The recent near-collapse of the world financial system and the global credit crisis that followed gave rise to far-reaching changes in the regulatory system.
  • The Dodd-Frank Wall Street Reform and Consumer Protection Act strengthens capital requirements for US banks and expands the federal government's role in the markets. 
  • The Basel III global regulatory standard also addresses capital adequacy. Most of its requirements go into effect in 2013. 
  • The Solvency II Directive, also scheduled to go into effect in 2013, imposes higher capital requirements for European Union insurers. 
  • The Retail Distribution Review, coming into force in the United Kingdom on 31 December 2012, will bring fundamental changes to the Independent Financial Adviser (IFA) and life insurance industry.

Meanwhile, compliance efforts continue apace for regulatory changes already approved, such as the transition to International Financial Reporting Standards (IFRS). Reform of regulations in key industries, such as healthcare in the United States, may take years to go into effect because of legal wrangling. And telecommunications and utility companies continue to face regulatory scrutiny.

For many organisations around the globe regulation is the number one cause of complexity, cited by 71 percent of respondents in recent KPMG research (PDF 1.1 MB)

We build on the deep Risk Consulting expertise across KPMG’s member firms to embed regulatory change into business processes. In supporting our Risk Consulting colleagues, we show clients how new regulations can be used as a catalyst to identify and focus on areas of the operation that are not working efficiently, and determine how technology can be adapted to drive regulatory change into the organisation . The combination of risk and management consulting skills enable clients to adapt quickly to new ways of working and achieve compliance.

Clients use our services to:

  • adapt processes and IT systems to support regulatory compliance 
  • initiate change management programs to foster ongoing compliance