Navigating regulatory risk
& banking regulations
Negotiating the intricate global regulatory landscape poses increasing challenges for the financial industry. In today’s interconnected and fast-paced environment, understanding and adhering to regulatory frameworks are not merely compliance measures but integral components of strategic business resilience.
How BNY can help
At BNY, we're committed to supporting our clients in navigating today's unpredictable market. For over 240 years, we've successfully utilized an enterprise-wide risk management framework, ensuring we stay on top of new developments and their impact on our clients and assets. As a global financial institution at the center of the capital markets, BNY adheres to the highest standards of regulation, supervision and examination and works every day to earn the trust of our clients and shareholders. Explore our programs and discover how our innovative, client-centric approach can work for you.
Consumer Duty
Per the Financial Conduct Authority’s (FCA) rules and guidance on the Consumer Duty that went into effect on July 31, 2023, firms are required to ensure they consistently deliver good outcomes for retail clients, including increased market transparency and higher and clearer standards of consumer protection across the financial services industry.
T+1 Accelerated Settlement Program
T+1 settlement is now live in markets across the U.S., Canada, Mexico, Jamaica and Argentina.
ISO 20022
As the ISO 20022 standard gains traction across payment and messaging market infrastructures, financial institutions must prepare to adopt the new standard to access the improvements it will bring.
Central Securities Depositories Regulation (CSDR)
CSDR’s primary purpose is to enhance the safety and efficiency of securities settlement across the European Union (EU).
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Trends | Payments
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Views | Clearing & Settlement
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Brian Ruane at BNY says the T+1 move has positioned U.S. markets to reduce risk and improve settlement efficiency.
Understanding banking regulations and regulatory risk
Understanding and managing regulatory risk is crucial for banks to ensure adherence to evolving standards, maintain operational stability and minimize reputational pitfalls.
Risk and Resiliency
The role of compliance in banking
Compliance plays a fundamental role in managing regulatory risk by ensuring financial institutions adhere to laws, regulations and industry standards. The primary purpose of compliance is to establish and maintain procedures and practices that align with the legal and regulatory framework governing the financial sector.
Culture of compliance
Through education and training, organizations can build a culture of compliance that can serve to raise awareness of concerns and help reduce incidences of regulatory breaches.
Developing policy
It is important to develop and update appropriate policies and procedures to reflect changes in regulations. These policies serve as guardrails ensuring that activities align with evolving regulatory and legal requirements.
Risk assessment
By conducting regular risk assessments, potential areas for non-compliance can be more readily identified. Knowledge of the regulatory landscape enables both adequate evaluation of potential impacts to organizations and proactive management of associated risks.
Regulation adherence
Through robust monitoring and interpretation of applicable national and international laws and regulations, financial organizations can ensure policies and practices align with complex regulatory requirements.
Monitoring and reporting
Implementing regular audits and systems to detect and address regulatory deviations, and proper reporting for regulatory authorities is necessary to maintain a commitment to the adherence of high standards.
Crisis management
Crisis management plans are key to deploy in the event of a regulatory breach or investigation. Such a plan should account for steps to promptly address the issue, liaise with regulatory bodies and implement corrective actions to prevent recurrence. Effectively managing regulatory risk through compliance not only helps financial institutions avoid legal consequences and financial losses but also contributes to maintaining trust with customers, investors and regulatory authorities. This serves to enhance the overall stability and reputation of the institution within the industry and the capital markets upon which they depend.
REGULATORY UPDATES
Expert Insights: ISO 20022
With market-leading global payments, liquidity and trade services, we can help speed your conversion to digital payments.
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Treasury Services
With market-leading global payments, liquidity and trade services, we can help speed your conversion to digital payments.
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T+1: FAQs
Learn more about T+1 and the key changes that are happening in the markets, including answers to many common questions our clients and counterparties are asking.
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