Financial markets are constantly evolving and the financial decisions that firms, regulators and governments make are of growing importance and complexity. Our team of financial and regulatory finance economists apply the latest economic thinking and analytical tools to ensure that our clients make the right calls on these decisions.
We also work closely with our colleagues in corporate finance, deals and the regulatory economics team, to provide leading insights and knowledge from across the PwC network.
Our team has expertise in:
Growing media scrutiny has increased the importance of achieving the appropriate balance between risk and reward in regulated industries. Our team has extensive experience in working alongside regulators to develop regulatory frameworks in aviation, energy, telecommunications and water.
We can help you to answer important questions such as:
Regulators
Companies
We also partner with regulated companies to help them prepare for price controls. We can help you to answer important questions such as:
Modest growth, negative interest rates and ESG implications are all important themes to consider when allocating capital in today’s global economy. Our understanding of financial markets and expertise in developing global capital market assumptions, can help you to optimise your investment and asset allocation decisions.
We can help you to answer important questions such as:
In response to the global financial crisis, there has been a significant increase in the monitoring and regulation of financial markets. Using our rigorous and objective approach, our team can help you to assess these financial and non-financial risks and their respective impacts on market participants. We also advise clients on how financial markets should be structured to create the right incentives for market participants.
We can help you to answer important questions such as:
Bespoke financial advice
Applying financial economics within a company is essential to optimising decision-making. For instance, using the wrong cost of capital estimate in financial modelling can lead to a company pursuing value destroying acquisitions, or rejecting investment projects that will add value.
We can help you to answer important questions such as:
Legal disputes
We regularly support our clients by providing expert witness advice on financial compensation and damages cases. Our evidence and data-driven approach can often help to tip the balance of a case.
We can help you to answer important questions such as:
Our client, an investment firm based in Asia, asked us to develop an evidence pack on capital market assumptions (CMAs) covering 17 economies including large global economies and smaller Asian economies, such as Cambodia. They were interested in 14 different long-term investment assumptions including returns and volatilities for government and corporate bonds, equities and alternative assets. Rather than forming a single point estimate, the client wanted the evidence pack to provide a range of points developed using different approaches.
Our work suggests the long-term return outlook across asset classes remains subdued which will put pressure on the long-term savings industry.
Following publication of the RIIO-2 Sector Specific methodology consultation, the network companies were required to develop their responses to this framework before submitting their formal Business Plans to Ofgem in December 2019. Our work primarily focused on providing strategic advice to the client on how to conduct their financeability assessment and position their financing plan with Ofgem. Specific tasks included:
