Regulatory Compliance for 2023 – The EU Impact
The many C’s of Regulatory Compliance – consumer protection, climate risk management, cryptocurrency, CRA regulatory modernization, and cybersecurity – all call for competent change management. The best suggestion is to prepare banks' change-management processes for whatever happens because unpredictability is the norm.
What is the current level of risk appetite for your institution?
The first order of business will be to undertake a thorough risk assessment, keep it current, and use it to ensure that the risk assessment considers cybersecurity, BSA/AML, UDAAP, the entire product life cycle, and Fair Lending and Third Party Risk. The next logical step is to calculate inherent risk accurately in light of strategic choices and economic variables. One way to effectively answer the question around the level of risk appetite is when a BFSI institution streamlines its regulatory reporting by automating it.
The EU Impact
The European Banking Authority (EBA) will actively begin preparing to be able to carry out the new oversight responsibilities it will receive, along with the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA), in light of the political agreements reached in 2022 on the Digital Operational Resilience Act (DORA) and Markets in Crypto-Assets (MiCA) legislations (ESMA).
Making the Mindset shift
Digital transformation is a continuum. Due to necessity, financial services companies have had to implement technological solutions in recent years quickly. While there are several advantages to be obtained from the successful application of technology, there are also hurdles that must be managed. To shift the mindset, FIs must see the changing regulatory compliance as an opportunity and not an onerous burden.
A Sneak Peek - Maveric’s Comprehensive RegTech Study
As banks increasingly rely on digital assets for greater oversight and clarity in the regulatory fragmentation geopolitical setup, Maveric’s report empowers C-Suite with a powerful tool to navigate a climate focused on economic recovery and customer impact.
The 2023 Maveric RegTech report provides banking leaders with a comprehensive view of significant regulatory changes across regions, platforms, and tools.
A Sneak Peek - Maveric’s Comprehensive RegTech Study
As banks increasingly rely on digital assets for greater oversight and clarity in the regulatory fragmentation geopolitical setup, Maveric’s report empowers C-Suite with a powerful tool to navigate a climate focused on economic recovery and customer impact.
The Way Forward
The Russian invasion of Ukraine required swift adaptation of Europe's ambitious agenda for financial services policy, causing new upheaval to global markets. Nonetheless, the conflict and its economic repercussions have increased the significance of crucial European policy goals, including achieving strategic autonomy, switching to green energy, and reducing regulatory fragmentation.
2023 is a crucial year for European financial regulation as the policy-making process accelerates and significant regulatory reforms start to take effect, in addition to the ongoing geopolitical and macroeconomic instability.
