Insights

Preparing for regulatory developments in Securities Services

Margaret_Harwood-JonesOur industry is among the world’s most tightly regulated, due to the importance of financial services to individual wealth and collective economic growth. The scope of regulation continues to expand, with almost 400 implementations in progress during 20201. Post-2008 reforms aimed at systemic stability and consumer protection are almost complete and subject to review. But it doesn’t stop there. The regulatory agenda continues to expand as the digital technology revolution presents opportunities such as open banking and risks such as new cyber-security threats. Coupled with the growing need to disclose, measure and report the non-financial impacts of investments on our societies and environment, and the continual evolution of AML/KYC requirements, regulatory preparedness will remain critical to long-term success. We hope this Regulatory Readiness series will help securities services clients stay abreast of, adapt to and accommodate these regulatory developments. As the scope of regulation widens, complex change management projects are becoming the norm. To operate effectively and safely within an evolving regulatory framework, firms need to understand the spirit as well as the letter of the law, and its impacts all along the transaction chain:
  • What is the underlying objective for the new regulatory requirement?
  • What change in behaviour or process is required?
  • What need or threat does it address?
  • Do you need to discuss changes with your clients or suppliers, or potentially even develop new relationships?
Our Regulatory Readiness series provides the context behind the new rules to help clients understand the potential breadth of their impact and to prepare for it. As well as being highly regulated, financial services is also one of the oldest industries in the world. It delivers value to clients based on timeless principles which cannot be outmoded by changes in taste or technology. Trust, custody and safekeeping, for example, are as fundamental to the provision of securities services today as they have ever been. Custody has always meant more than the literal safekeeping of client assets. To us, it also means protecting clients’ investments in the much protecting clients’ investments in the much broader sense by keeping them apprised of emerging and evolving risks, responsibilities and opportunities. To this end, our first three primers in this series highlight the potential for open banking to support new services, as well as the due diligence implications of new asset safety rules and operational changes needed to comply with CSDR. By regularly sharing our insights on the wider implications of regulatory developments with you, our clients, we aim to better safekeep your assets and safeguard your interests in a your assets and safeguard your interests in a holistic manner as our industry continues to grow in complexity. Across the diverse regulatory themes covered in these individual primers, safety and efficiency are among the most resounding, for both you, our clients, and your own downstream clients. As custodians, we at Standard Chartered look forward to sharing our expertise and experience, supporting you to innovate and thrive within the context of an ever-changing regulatory environment. By Margaret Harwood-Jones, Co-head, Financing & Securities Services, Financial Markets, Standard Chartered © 2020 funds global asia

Industry comments

Investing in tomorrow’s world

investmentAt times like these, HSBC Asset Management easily pivots towards emerging markets.

The spotlight on growth markets and the need to be nimble and dynamic is ever-sharper, given the difficulty in predicting monetary policy in the world’s major nations.

Sponsored feature: Navigating the complexities of FX execution and currency risk

A comprehensive, cost-effective, and transparent currency overlay hedging solution is crucial to mitigate FX exposure risks in the complex landscapes of Japan and China's FX markets, explains Hans Jacob Feder, PhD, global head of FX services at MUFG Investor Services.

Opinion

Transitioning to an era of scarcity

The world is transitioning from an era of commodity abundance to one of undersupply. Ben Ross and Tyler Rosenlicht of Cohen & Steers believe this shift may result in significant returns for commodities and resource producers over the next decade.

Asia credit: An outsized winner in the region’s energy transition?

Ross Dilkes, fixed income portfolio manager at Wellington Management, examines the opportunities and risks for bond investors presented by the region’s decarbonisation agenda.

A quiet revolution in Japan’s corporate governance

revolution, Japan, corporate governance, Shareholders, corporate, governance, standards, improvement, Tetsuro Takase, SuMi TrustShareholders in Japan no longer accept below-par corporate governance standards. Changes are taking place, but there are still areas for improvement, says Tetsuro Takase at SuMi Trust.

Why rising demand for healthcare is creating investment opportunities in China

rising demand, healthcare, investment, opportunities, China, Robert St Clair, Investment Strategy, Fullerton Fund ManagementRobert St Clair, head of investment strategy at Fullerton Fund Management, explores the reasons investors should be paying attention to the rising demand for healthcare in China.

Executive Interviews

Executive interview: PGIM CEO on where the ESG flowers should bloom

Sep 27, 2021

David Hunt, president and chief executive of PGIM, tells Romil Patel about leading a top 10 global asset manager in times where “empowering and encouraging the kind of investment decisions as...

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...

Roundtables

India: An “obvious choice for global investors”

Jun 22, 2023

Funds Europe, the sister publication of Funds Global Asia, hosted an India investment discussion with two seasoned experts and asked if India is the ‘last one standing’ from the Brics phenomenon. We also hear that for India, the inclusion of Indian bonds in a major index may not be the desired...

Roundtable: Singapore comes of age as an Asian ESG hub

Dec 01, 2021

Strong ESG credentials strengthen the case for Singapore as a leader in Asia of the post-Covid recovery. Our panel discusses the risks and opportunities.