Financial services regulatory practice |
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The evolving challenges of compliance and regulatory risk management are providing significant hurdles for financial services organisations. They have, however, become as much of a competitive as a compliance imperative, playing an important role in moving performance forward by strengthening processes and protecting the reputation of the company.
In the UK, we have a dedicated team of over 100 regulatory compliance specialists offering pro-active regulatory advice on areas such as obtaining regulatory authorisation, interpretation of regulatory rules, developing codes of conduct, understanding prudential supervision, Skilled Person reports and meeting regulators' requirements.
Our multi-skilled specialists, who are part of a global team of over 350 people, also engage with the wider network of experts within PricewaterhouseCoopers to provide support on all compliance and regulatory issues facing the financial services industry. Some of the issues on which we are currently working with clients include:
MiFID, which comes into force in November 2007, is the cornerstone of the EU’s strategy to create pan-European capital markets. In replacing the Investment Services Directive, MiFID will not only introduce changes to the existing regulatory environment across the EU, but also encompass products and asset classes that have not been subject to regulation before including derivatives.
MiFID’s 73 articles cover a wide range of systems, information and client relationship provisions including best execution, investment advice, client suitability, information about financial instruments and safeguards against conflicts of interest. In practice, compliance is likely to require a thorough review and upgrade of systems, training, record keeping, marketing materials and agreements with customers.
On a strategic level, MiFID will enable investment businesses to operate across different European jurisdictions while being governed by a single home regulator. The directive will also make it easier and more cost-effective for larger organisations or groups of companies to conduct proprietary trades outside exchanges. For investors, MiFID offers greater transparency, more choice of markets, consistent protection around Europe and potentially lower margins.
How PwC can help
PwC has the expertise to help companies implement MiFID and embed its requirements into information systems and customer relationship management. It can also help companies to address the business opportunities and challenges of MiFID in areas such as governance, process improvement and business model review/re-orientation.
Of further interest
MiFID: It’s going to change the business landscape (153K PDF) UK Financial Services Regulatory Focus
Contact: Andrew Gray or Graham O'Connell
Capital - Basel II/Solvency II and individual and group capital requirements
The revised Basel Capital Framework (Basel II), which was issued in June 2004, is to be implemented in the EU through the Capital Requirements Directive in January 2007 or soon afterwards. Many financial institutions have been working on the necessary systems and process changes, however for many there is still a long way to go before the transition is complete.
Please click on the link for related publications and for further details of the issues surrounding Basel II.
In the UK, the FSA has recently rewritten its capital rules at entity level and has introduced the individual capital assessment regime for the insurance industry. At the same time the FSA has implemented EU Directives on group solvency which apply across the FS sectors though a new directive on solvency and prudential supervision is coming soon. Firms need to ensure compliance with these new and complex rules and to consider efficient capital structures.
Please click on the links below for more information about capital issues
Contact:
Basel: Richard Smith
Solvency II and individual/group capital requirements: Melanie McLaren
Treating customers fairly
From designing new products and services to the construction of contract terms and conditions, the treating customers fairly (TCF) initiative is having an impact on your business. Embedding TCF practices can have a positive commercial impact and business benefits can be achieved.
The key issue is how businesses respond to the TCF challenge, ensuring compliance whilst identifying and measuring benefits and performance improvements for the business. Firms that seize the TCF opportunity will gain competitive advantage in the marketplace by achieving long term reductions in the costs of compliance and will retain customers by delivering exceptional customer service.
Please click on the links below for more information:
Contact: David Taylor, Graham O'Connell or Roger Turner
Following the introduction of mortgage and general insurance regulation by the FSA in 2004/2005, a large number of firms are operating in a new regulatory arena and facing up to the challenges of embedding the new regulatory regime, as well as managing a new relationship with FSA and responding to the regulator's requirements and expectations. We have significant experience of providing assistance to such firms.
Please click on the links below for more information:
Contact: Paul Clarke or David Morey.
© 2008 PricewaterhouseCoopers. All rights reserved. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.
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