Global Trustee and Fiduciary Services News and Views Issue 50

Prime, Futures and Securities Services | XXXXXX 72 The Global Financial Crisis 10 Years On . . . WHERE NEXT FOR FINANCIAL SERVICES REGULATION? The last 10 years have seen banks pay hefty fines — including others, the FIGURE is likely to be higher USD326 BILLION IN BANK FINES ALONE GLOBAL MARKET INITIATIVES These have created stability and architecture via EU financial reform and US Dodd-Frank SO WHERE ARE WE AT PRESENT? HAVE ALL REGULATIONS MET G20 AIMS? ARE THEY TOO LITTLE, TOO MUCH OR JUST RIGHT? For regulators pondering all this, a point of INFLECTION has been reached to... Evaluate the effectiveness and the impact of reform Prepare to adjust and fine-tune regulations where necessary Ensure that regulation is SMART WHERE ARE WE HEADED THEN? ARE THERE TRENDS POINTING THE WAY? ...and moving toward uncertainty, macroprudential risk monitoring, sustainability, growth, pensions, use of behavioural insights and changing tech EU Commission Its call for evidence, output, REFIT and review… China Its structuring of financial regulation… CFTC and SEC Their Project KISS and Guiding Principles, respectively… Smart money indicates that the emphasis is pivoting away from new policy initiatives... * Historical lows from www.macrotrends.net/1319/dow-jones-100-year-historical-chart are illustrative. THE CRISIS OF 2007/08 was the worst financial crisis since the Great Depression of the 1930s 2008 Low 1932 Low In response, G20 post-crisis reforms laid the foundations for an open resilient system built on four pillars... FI TBTF OTC NBFI Ending too-big-to-fail institutional issues More robust financial institutions Resilient market-based non-bank financial intermediation Safer over-the-counter derivatives markets