Financial Services Risk and Regulation Unravelled Podcast

How are firms and consumers responding to the fluctuations of the cost-of-living crisis? A lot has happened over the last few months, and after short breaks in the sun, taking time to ready the new Consumer Duty final rules of course, David Morrey and Gavin Stewart are back to discuss the latest regulatory developments including: the prime minister, the cost-of-living crisis, 'mortgage prisoners', pension schemes, and more, sharing insight on how firms and consumers can prepare for the changes and challenges ahead. Note: as this podcast was recorded earlier in October, sudden changes in the government means there is reference to Liz Truss temporarily as Prime Minister.

Joanne Johnson and David Young discuss the challenges of meeting operational resilience expectations, including understanding processes, mapping business processes to technology and suppliers, and managing audit trails. They also provide tips for organizations struggling to meet these expectations, such as reading and understanding regulations and networking with industry peers. The guests highlight the changing regulatory requirements and the focus on cyber resilience.

The podcast discusses the new Consumer Duty rules and their impact on financial services firms. It explores the concept of reasonableness in consumer conduct regulation and the challenges firms face in implementing it. The importance of providing accurate information to prospective and existing customers is emphasized. The complexity and importance of transparency and oversight in the distribution chain is also discussed. The podcast highlights the upcoming governance reviews and how boards are preparing for consumer duty dashboards.

Regulatory experts David Morrey and Gavin Stewart discuss the impact of leadership changes in government and at the FCA. Topics include FCA leadership changes, the cost-of-living crisis, crypto-regulation, and their summer holiday regulatory reading list.

Recent regulatory moves are being made to relieve the cost-of-living crisis. Topics covered include the cost-of-living crisis, Regulatory Initiatives Grid, Buy Now Pay Later, technology innovation, sandboxes and sprints, government efforts to make mortgage borrowing easier, removal of an affordability test, resource allocation challenges, political response to the crisis, timing of regulatory changes, regulator's digital unified intelligence environment, data strategy, regulation of critical third parties, new regulatory powers, operational resilience, challenges supervisors face, climate stress test scenario, suspension of HSBC's head of sustainable investment, skepticism towards ESG, importance of social responsibility, skepticism regarding political priorities, and regulators' concerns about asset values and market stability.

Financial services' role in driving climate change action now includes delivering the ESG agenda. Biodiversity is another environmental risk and increasing focus for sustainable investing, and the regulators are likely to increase regulation and reporting requirements in this area, putting pressure on firms to assess the impact of their actions on nature. But, it also brings opportunities. In this episode our regular host Irina Velkova is joined by Amanda O'Toole, Senior Portfolio Manager at AXA Investment Management and Equity, and Dr Simon Zadek, Chair of Finance for Biodiversity, to discuss the challenges and opportunities that biodiversity brings to the financial services industry.

On 5th May 2022, the Bank of England (BoE) announced the latest base rate of 1%, increasing from 0.25%, with potential continued small rises to inflation and prices. The latest Regulatory Initiatives Grid (RIG) also references the cost of living crisis: "we will have a pivotal role in supporting consumers, particularly those in vulnerable circumstances. We stand ready…" and warns there could be changes to the RIG as a result. In our latest regulatory update, David Morrey and Gavin Stewart discuss the latest developments including: the cost of living crisis, the Prudential Regulation Authority Business Plan (PRA) 2022/23, Regulatory Initiatives Grid, and speeches from the regulators covering topics of cryptocurrency – sharing insight on how firms can prepare for the changes ahead. 

Navigating 2022 requires resilience, preparation, and adaptation. Capital markets have encountered the immediate impacts of geopolitical fragility, with markets reflecting the increased risk as well as the pressure on inflation, energy prices, and supply chains. The sector also faces continuing challenges from post-LIBOR era and post-Brexit regulatory requirements, and ESG net-zero targets. In this episode, Irina Velkova is joined by Harps Sidhu, Partner and Head of Capital Markets, to round up how firms can adapt to key trends in capital markets. 

The podcast discusses the Financial Conduct Authority's Business Plan for 2022/23, focusing on reducing harm, higher standards, and promoting competition. The hosts analyze the plan's structure and express concerns about its impact on firms and consumers. They also explore the cost benefit analysis, key aspects of the plan, diversity rules, and the FCA's role in political discourse.

The podcast discusses the challenges and trends in the banking sector for 2022, including geopolitics, ESG, cyber risk, and talent shortage. It emphasizes the importance of processes, governance, and agility for banks to adapt effectively. The chapters cover topics such as defense measures against cyber warfare, governance and talent hurdles, and the significance of reputation and leadership in the industry.