Financial Services Risk and Regulation Unravelled Podcast

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.

Kickstarting a new series, Irina Velkova is joined by David Morrey, Grant Thornton’s Partner, Head of Investment Management, to discuss the focus areas in the sector this year. Key themes include the Investment Firm Prudential Regime (IFPR), ESG, consolidation of the market and the ongoing pressure on margins and the re-discovery of political risk. Important questions arise around how the sector prepares for these changes, the challenges organisations will most likely face in responding to them, and how recent developments will effect investment management firms in 2022.

In this podcast, the Financial Conduct Authority's response to various external events is discussed, including UK sanctions relating to Russia, cost of living increases, global action on cryptocurrencies, and a potential strike vote from its own staff. The podcast also covers topics such as the future regulatory framework, challenges surrounding the consumer duty, confusion and competition during program implementation, liquidity requirements for investment firms, and assessing liquidity requirements and sustainable finance disclosures.

In this podcast, experts explore the hot topics for the financial services industry in 2022, including ESG, cyber security, data, consumer duty, and inclusion and diversity. They discuss the impact of current global economic challenges and the importance of boards prioritizing urgent tasks. Navigating unclear regulations, meeting changing obligations, and the challenges and opportunities faced by financial institutions in a changing landscape are also explored.

Regulators are shifting their focus in response to external events like rising inflation and cost of living. The podcast discusses the challenges of regulating small firms and individuals, skepticism towards regulations, redress for British Steel Pension Scheme transfers, bridging perspectives, regulators' approach to criteria-setting, and the need for alternative approaches to disclosure.