Switzerland

The KPMG Compliance Cube 

The “KPMG Compliance Cube" represents the framework to perform impact assessments of new regulations as well as on a financial institution as a whole.
KPMG Compliance Cube

The first dimension (top-down) of the Cube illustrates the organizational structure of a bank. The second dimension (left to right) represents the value-chain from a compliance point of view. The existing and upcoming subject areas build the third dimension (front to back) and complete the cube.

 

This third dimension can and should be extended by an “added-value” surface. Within this surface, potential added-value for your customers is identified, that can be realized together with the implementation of the given regulations. An example for such an potential added-value is e.g. the flagging of stocks that are involved in the production of so called “cluster bombs” or are considered “green stocks” when sales restrictions in relation with product suitability are introduced in the banks’ IT-systems.

 

Using these flags, the financial institution can potentially offer new products (no cluster bombs, only green stocks, etc) to its clients by implementing “sales restrictions” for a specific client group.

How can KPMG support you?

KPMG can support you in all dimensions of the cube as well as performing an overall impact analysis for your organization. The analysis includes the identification of all requirements applicable to your current business model, the related implementation costs by market or costumer type as well as the income generated.

 

The result of the impact analysis provides a strong basis to handle relevant issues like:

  • Adjusting or amending the business model for the implementation of the regulatory requirements (cost-income analysis of the target market and client)
  • Flexibility and sustainability of the target business model with respect to the regulatory and market-driven changes
  • In-depth analysis on the effects of the regulations on processes and services
  • Understanding complexity of a multitude of reciprocally influential regulations
  • Costs for implementation and continuation of the Compliance Framework
  • Costs for changing IT systems, processes, training of employees, legal departments
  • Stabilization of earnings through offering of new services (e.g. tax reporting, tax returns for offshore clients)
  • Definition of governance structures

Michael Schneebeli

Michael Schneebeli

Partner, Head of Regulatory Services, Audit Financial Services

+41 58 249 41 06

Micha Bitterli

Micha Bitterli

Partner, Audit Financial Services

+41 58 249 36 95

Road to compliance

Teaser Road to Compliance
The financial market is characterized by transparency and regulations which restrict financial institutions within narrow confines.