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Global Regulatory Outlook 2018

Global Regulatory Outlook 2018

The regulatory burden increases inexorably, but promises of regulatory harmonisation never seem to deliver. Perhaps that’s a good thing. On Brexit, negotiations continue with financial services regulation and access remaining among the many sticking points. In the United States, we are beginning to get a sense of the priorities of new Securities and Exchange Commission.

Chairman Jay Clayton, but it remains early days.

It is clear, though, that there will be little let-up for financial services firms. In the EU, firms began the year with implementation of Markets in Financial Instruments Directive (MiFID) II and imminently face introduction of General Data Protection Regulation (GDPR) in May (where almost half in our survey are not confident they are on track to comply).

Struggles with the Senior Managers and Certification Regime (SM&CR) in the United Kingdom also continue. In the United States, meanwhile, it is fair to say that, whatever else, the campaign pledges of the Trump administration to dismantle the Dodd-Frank Act remain mostly unfulfilled. At any rate, few expect the regulatory burden and impact to ease: 95% say regulations will increase their costs this year, and almost a quarter (24%) in our survey said they would be spending more than 5% of their annual revenue on compliance by 2023. In fact, a tenth (11%) felt they would spend more than 10% on it by that year.