Looking through the regulatory crystal ball….
The first two weeks of 2018 have seen the introduction of two of the biggest pieces of regulation since Basel 3 – MiFID II and PSD2. Both regulations have the potential to radically change the shape of wholesale and retail financial markets respectively, and there is likely to be a long tail of implementation clean-up.
Whilst uncertainty is the norm in the financial world – unless one has a very accurate crystal ball – regulatory change can significantly exacerbate this uncertainty. For financial institutions in the UK and Europe, 2018 will be dominated by uncertainty from a more political source – Brexit.
There are still some more regulatory changes to come this year, though and whilst they may not be of the same scale as MiFID II, the operational impacts are still likely to be significant.
If you would like to read more of my thoughts on the regulatory outlook for 2018, please complete your details to download the full document.