Jennifer Achilles was a contributing author in the Financial Regulation 2017 Annual Review.
Authors: Jennifer L. AchillesRene Arce Lozano, Hogan Lovells, Mexico; Rhodri Thomas, Freshfields Bruckhaus Deringer LLP, United Kingdom; Paul O'Connor, KPMG, Ireland; Gilles Kolifrath, Kramer Levin Naftalis & Frankel LLP, France; Beata Balas-Noszczyk, Hogan Lovells, Poland; Muzammil Patel, Deloitte, India; Kent Wong, VCI Legal, Vietnam; Sean Thomas Boyce, Jones Day, United Arab Emirates
Given the burgeoning level of regulation in the financial services industry, banks and other FIs must be aware of their compliance obligations at all times. They must also keep their ear to the ground regarding new, incoming regulations.
In the US, given the political upheaval brought about by the 2016 presidential election, the level of regulatory scrutiny FIs face may be decreasing after years of particularly stringent regulatory oversight. The new administration's drive to roll back regulations including the Doff-Frank Wall Street Reform and Consumer Protection Act, for example, could be sea-change. However, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission are not expected to go quietly into the night, meaning enforcement activity may remain strong in the years to come.
In Europe, the implementation of the General Data Protection Regulation (GDPR), Payment Services Directive II and National Information Security Directive, as well as MiFID II in 2018, will have serious consequences throughout the financial services sector.
Going forward, financial institutions will be forced to reevaluate the way they handle data, and therefore must priorities investment in compliance functions. This will require institutions to adopt a joined-up approach to compliance, allowing different departments to combine their knowledge and create a more holistic approach.
Keeping up to speed with the ever-changing regulatory landscape is a difficult task for all financial service firms, and communicating those changes throughout an organisation requires strong and clear communications channels.
