United Kingdom

Regulatory Risk Management in the Financial Sector 

Regulation, and the impact of regulation, is front page news.

 

In the post-financial crisis environment, the regulatory landscape is inherently more complex, with supervision and enforcement more confrontational, intensive and intrusive. Regulators are making judgements both about the robustness of regulated firms’ business models, and the suitability of the products they are selling. They will intervene promptly if they see or anticipate problems.

 

How firms respond to and manage this will be crucial to their future success.

What's on your mind?

 

  • Ensuring businesses respond effectively and competitively to regulatory changes impacting their business and operating models as a result of international regulatory developments . governance and control functions meet emerging regulatory standards and requirements coming out of FSA directives and their ‘Intensive and Intrusive’ approach
  • Increased focus on customer and product controls and regulation e.g. treating customers fairly (TCF), retail mortgages, PPI and investments, and the Retail Distribution Review (RDR)
  • Managing regulatory relationships and Rresponding to regulatory interventions such as ARROW visits and FSMA s166 investigations, as well as emerging international standards such as US FATCA, Solvency 2 for insurers and Basel 3  for banks
  • Addressing extensive product and sales remediation  exercises covering KYC, anti-money laundering, TCF and other areas of compliance
  • Managing 'traditional' reputation and regulatory risks such as financial crime, anti-bribery and corruption, sanctions compliance, PEP's and data protection

 

Bringing you Peace of Mind

 

We can work with institutions in a wide range of areas:

 

  • Organisational design to help align governance, risk and control approaches in response to structural change, regulatory change or challenge identification of weaknesses
  • Regulatory advice to help firms on linking governance and control with capital adequacy (e.g. ICAAP), product distribution and the customer interface, TCF and overall governance
  • Proactive reviews, investigation response and remediation management to help institutions deal with enquiries around ARROW visits, s166 investigations, anti-money laundering, sanctions compliance,fraud, corruption, market abuse, data protection, and related risk areas.
  • Co-sourcing and secondment arrangements for our professionals to help oversee and implement important changes to the regulatory and compliance functions

 

What's in it for you?

 

  • Establish a healthy, positive relationship with your regulators and be prepared for their visits or requests, with the consequent commercial benefits that brings
  • Enhanced regulatory board-level strategies, management information and decision making
  • Greater assurance on capital and liquidity to help inform regulatory reporting and meet new, more challenging standards
  • Gain assurance regarding the management of conduct risk including customer treatment and product design
  • Respond quickly and decisively to new regulatory developments
  • Improve the effectiveness and efficiency of in-house regulatory and compliance teams

 

Why KPMG?

 

  • We integrate our financial and regulatory risk specialists with capital management experts, actuaries, forensic and technology specialists to cover a very wide range of different risk types (e.g. credit, operational, fraud, market, group, regulatory, IT).
  • We also work closely with operational strategy professionals to deliver business wide implementation of regulatory change projects
  • Our training and secondment experience within regulators gives us exceptional insight into their expectations and perspective
  • We have worked with many of the largest financial sector firms, which has included secondments within client risk, compliance and regulatory teams
  • Our ‘Financial Sector Risk and Regulatory Centre of Excellence ’ helps clients to keep their finger on the pulse of the changing environment.