ACE drives regulatory change in financial institutions such as:
- Insurance companies
- Assets managers
- Pension funds
- Regulatory and supervisory bodies
Each organization has its own specificity. ACE adapts to the culture and personalities they work with. However, regulatory change always comes with a number of similar challenges:
- The CRO needs a clear picture of progress on regulatory programs;
- The CFO needs consistent and reliable data feeds, including from Risk, to report to supervisors and other stakeholders;
- The CIO needs clear data definitions and regular data deliveries to supply Finance and Risk with trustworthy data;
- All activities require coordination between areas as each will not succeed without the other;
- The regulatory context requires knowledge of both the business at hand as well as the latest regulations.
Continuously changing laws and regulations
The laws and regulations that financial institutions must adhere to has changed considerably during recent years. Financial institutions face increasing pressure as a result of changes in financial laws and regulations. This pressure can be observed in several trends.
First, there is a strong societal drive to curtail the undesired effects of the financial sector. This has resulted in stricter standards for risks and more stringent capital requirements when compared to the parameters of the pre-crisis financial sector. Furthermore, the sheer number of (sometimes conflicting) rules and regulations has increased substantially.
Second, considerable changes can be observed in the way that regulatory bodies translate societal pressure into rules and regulations when we compare the situation pre-and post-crisis. National and European legislators have introduced concrete and detailed requirements that have direct, important and widely applicable implications for business models, strategies and operations.
Finally, supervisory bodies are less understanding and patient when it comes to the operational and strategic impact inherent in regulatory change rules and regulations than before the crisis. This is partly due to the fact that supervisory bodies are themselves under more political and societal pressure to guarantee and safeguard the stability of the financial sector.
ACE Company can help your organisation to implement regulatory change, not only navigating the stringent and ever-changing laws and regulations but also by identifying how to take advantage of the strategic opportunities inherent in them.
Coming to grips with regulatory change
The challenges of regulatory change place fundamental demands on your organisation, people, processes, data and IT. Organising and mobilising the capabilities of people and tools in the most efficient and effective way is necessary in order to comply with the legislation.
Subsequently, we believe that this legislation and its implementation offer strategic opportunities. Indeed, the implementation of principle-based legislation allows you to differentiate yourself from the competition. Furthermore, decisive orchestration will free up executory manpower and management attention that can then be used to focus on the opportunities created by regulatory change. However, insight into and knowledge of these opportunities is essential in fully exploiting their potential – one of our areas of expertise.