Survey finds stark contrast in European and US financial regulation readiness

There is a stark contrast between European and US financial regulation readiness, according to S&P Global Market Intelligence Cappitech’s Global Regulatory Reporting Survey.

The survey, which was collected during August and September 2022, polled 89 respondents, of which 51% worked for banks, 18% asset managers and 9% brokers. 31% were from global tier 1 organisations.

Geographically, it was divided with 37% based in Europe, 31% in the UK, 7% in North America and 25% in Asia Pacific.

- Advertisement -

The survey found that 99% of respondents had reporting obligations in at least two jurisdictions and many were taking a more proactive approach.

However, regions are moving at different paces.  Take the European Market Infrastructure Regulation (Emir) which is expected to go live in the first half of 2024. Around 38% are confident that they will be ready or have made significant progress.

The wheels are turning slower for the Commodity Futures Trading Commission (CFTC) Rewrite where more than half are not ready for the implementation date in December.

“The survey results indicate that more than a year ahead of implementation, those firms with EMIR Refit reporting requirements are taking a proactive approach to regulatory readiness,” says Igor Kaplun, head of Cappitech business development, S&P Global Market Intelligence,

He adds, “As with any large-scale regulatory change, it pays to prepare early to stay ahead of the next wave of changes on the horizon.”

Ronen Kertis, head of Cappitech, S&P Global Market Intelligence, also notes, “The industry has matured significantly over the past decade and there is a realisation that reporting requirements will continue to change and evolve, and firms need to plan ahead, not only for new regulations, but in terms of how best to benefit from improved technology and global solutions

In some regions, we are starting to see a genuine shift in the way in which firms consider and plan for their regulatory reporting requirements, while there are other regions where work still needs to be done.”

The survey found though that progress is being made with over half making changes in 2022 to enhance existing processes or prepare for new regulations, which is almost double the 26% who made amends.

The most common was an increased use of automation to prevent and manage errors and inefficiencies in regulatory reporting.

It also showed there was growth in a combination of in-house and vendor reporting, particularly among tier 1 firms, with 64% using a hybrid approach.

Looking ahead, managed services for regulatory reporting is expected to increase over the next few years, with 60% identifying them as a tool being considered in their future plans.

©Markets Media Europe 2022

 

Geopolitical risks and inflation flagged as top risks to financial industry

Perhaps unsurprisingly, geopolitical risks, trade tensions, inflation and cyber risk were flagged as the...

Institutional investors sharpen their focus on belt tightening

Saving money is a key priority when pension funds, insurers and corporates are assessing...

BIS warns of $80 trillion of hidden FX swap debt

Pension funds and other non-bank financial firms currently have over $80 trillion of hidden,...

Geopolitical risks and inflation flagged as top risks to financial industry

Perhaps unsurprisingly, geopolitical risks, trade tensions, inflation and cyber risk were flagged as the...

Institutional investors sharpen their focus on belt tightening

Saving money is a key priority when pension funds, insurers and corporates are assessing...

BIS warns of $80 trillion of hidden FX swap debt

Pension funds and other non-bank financial firms currently have over $80 trillion of hidden,...