Financial resilience

Maintaining financial resilience is at the heart of Financial Services (FS) regulation. With continuing economic uncertainty — including inflationary and liquidity pressures — regulators are looking ahead to emerging and escalating risks. FS firms are expected to maintain appropriate levels of capital and liquidity in the face of deteriorating economic conditions, and to prioritise high quality data, risk management and governance.

Banks and insurers have seen an overhaul of their prudential regimes following the 2008 global financial crisis — and the pace of change is set to continue as Basel and Solvency frameworks are reviewed to adjust to post-Brexit and international developments. Resolution frameworks also continue to evolve.

With revised prudential requirements for most MiFID investment firms in both the UK and the EU (for wholesale brokers, asset managers, and distributors), supervisory expectations are being refined and firms should continue to monitor clarifications and amendments.

KPMG firms have a wealth of experience across financial services and the skills and expertise to help deliver regulatory change and regulatory-driven transformation across organisations.

For our most recent thought leadership relating to financial resilience, and to access our Basel 4 and Solvency hubs and annual Risk and ICARA industry benchmarking survey, see below.