2015-10-07-德勤-监管改革_16页_1mb

Overview

The report outlines the ongoing international regulatory reform agenda driven by the financial crisis, emphasizing its impact on financial services firms in the Asia Pacific region. Key areas include enhancing resilience of financial institutions, ending too-big-to-fail scenarios, regulating OTC derivatives, transforming shadow banking, improving conduct, and addressing wholesale markets. Despite progress, reforms are not fully implemented, and regional variations in implementation timelines and challenges create complexities for businesses.

International Regulatory Reform Agenda

The Financial Stability Board (FSB) spearheads reforms to address systemic risks:

• Building Resilient Financial Institutions: Includes Basel III and IV capital standards (e.g., Net Stable Funding Ratio, Liquidity Coverage Ratio), recalibration of existing rules, and higher loss absorbency for Global Systemically Important Institutions (G-SIIs).
• Ending Too-Big-to-Fail: Focuses on increasing loss absorbency, resolution planning, and cross-border supervision to ensure orderly failure of large institutions.
• OTC Derivatives Regulation: Aims for central clearing, exchange trading, and margin requirements, with G20 commitments to be fully implemented by 2016 or later.
• Transforming Shadow Banking: Reduces reliance on unregulated intermediation and promotes market-based financing through reforms like those for money market funds.
• Conduct and Wholesale Markets: Addresses poor conduct, with benchmarks reformed (e.g., FX and interest rate benchmarks) to enhance transparency and fairness. Also includes work on fair and effective markets for wholesale activities.

Asia Pacific State of Play

The Asia Pacific region prioritizes timely implementation of international standards:

• Basel Standards: Region-wide adoption of Basel III ahead of other major economies, with Basel IV under development for recalibrated capital rules.
• Regulatory Implementation: Varies by jurisdiction; countries like Hong Kong, Japan, and Australia have specific timelines for OTC derivatives, reporting, and clearing, with full implementation expected by mid-2016 or later.
• Regional Challenges: Inconsistent global reforms and extra-territorial application complicate harmonization, though Asia Pacific jurisdictions are aligned with FSB goals.
• Ongoing Issues: Concerns include regional variations in policy applicability and the need for further harmonization of trade reporting and cross-border mutual recognition.

Conclusion

International regulatory reforms remain a key strategic driver, with no signs of slowing. Organisations face challenges in managing multiple frameworks across jurisdictions; integrating regulatory insights into strategy is crucial for sustainable business operations.