About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Thomson Reuters Releases State of Regulatory Reform 2018 Report

Subscribe to our newsletter

Thomson Reuters has released a State of Regulatory Reform 2018 Special Report highlighting a rise in international divergence in regulatory reform and financial firms racing to apply digital technology. On a geographic basis, the report, now in its eighth annual edition, describes major regulations taking effect in the European Union and Asia Pacific, and the pull back of regulation in the US, where President Trump’s administration plans a deregulatory agenda.

Considering go live of the EU’s Markets in Financial Instruments Directive II (MiFID II) on January 3, 2018, the report notes that it will be some while before regulators take any action over non-compliance as ‘a last minute mini-flood of waivers, extensions and consultations was announced to offset many of the looming pressure points’.

Similarly, firms waiting for the European Securities and Markets Authority (ESMA) to use its product-banning powers straight out of the gate must await the outcome of yet another consultation on contracts for difference and binary options to see if ESMA is willing to walk the walk on investor protection. Likewise, the six-month ‘breathing space’ granted at the eleventh hour for issuers who had failed to get a Legal Entity Identifier (LEI) has pushed back any supervisory investigations on transaction reporting until at least Q3 2018.

The report also touches on the EU’s General Data Protection Regulation (GDPR) and discusses Brexit and a world without passporting. Challenges in Europe include digital market abuse emerging from the dark web and the risks of high-end money laundering.

Turning to the US, the report says Trump’s early vow to dismantle financial regulations hindering the economy has been translated into a blueprint for action promising more relaxed banking regulations, including the Volcker rule’s ban on proprietary trading, stress testing and the supervisory process. Regulators are also aiming to ease oversight of capital standards, both among smaller banks and insurers.

Congressional efforts to win a broad repeal of the 2010 Dodd-Frank Act face political obstacles, leaving real change to be delivered by the executive branch, which is wielding bureaucratic tools to carry out its agenda within existing law.

Looking at Asia Pacific, the report notes a shifting enforcement landscape including a Financial Action Task Force (FATF) investigation in Hong Kong, a focus on OTC markets and reform as a result of Basel III implementation.

From a technology perspective, the report says 2018 will be characterised by regulators and the financial services industry racing to keep pace with the rapid development of digital technology. Most urgent will be the stability and money-laundering risks presented by cryptocurrencies, the transformative potential of blockchain, and threats to cyber security.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Regulatory change management – challenges, solutions and case studies

Regulatory change has become part of the fabric of capital markets. It has also become increasingly complex as more regulations are introduced, significant amendments are made frequently, and small changes are made on a rolling basis – the whole made more difficult by jurisdictional interpretation and the UK’s amended regulatory regime post Brexit. If keeping...

BLOG

IHS Markit Automates Fund Onboarding While Ensuring KYC/AML Compliance

IHS Markit has launched Investor Onboarding, which allows fund administrators and investment managers to automate and centralise their client onboarding while meeting AML, KYC and tax-related compliance obligations. The fully hosted platform – an industry first according to IHS Markit – digitises and streamlines collection and creation of subscription, AML, KYC and tax documents for...

EVENT

RegTech Summit Virtual (Redirected)

The highly successful RegTech Summit Virtual was held in November 2020 and explored how business and operating models are adapting post COVID and how RegTech can provide agile and enhanced compliance for managing an evolving risk and compliance landscape. The event featured daily live keynotes, panel discussions, presentations, fireside chats and Q&A sessions with content available on demand over five days.

GUIDE

Regulatory Data Handbook 2021/2022 – Ninth Edition

Welcome to the ninth edition of A-Team Group’s Regulatory Data Handbook, a publication dedicated to helping you gain a full understanding of regulations related to your organisation from the details of requirements to best practice implementation. This edition of the handbook includes a focus on regulations being rolled out to bring order and standardisation to...