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We are delighted to share the fourth issue for 2016 of Capco's Regulatory Monitoring Newsletter, developed by industry experts in our European Regulatory Monitoring Team.
The wealth management industry is at a crossroads. Evolving client needs, disruptive technology and general cost, revenue and regulatory pressures are putting a strain on overall profitability. Firms continue to invest in obsolete, complex and rigid platforms that are decades old and cobbled together from mergers and acquisitions. Data has become siloed, making it more difficult to unwind manual processes and technology. The cost of investments to maintain the status quo continues to hamper the bottom line. As a result, wealth management firms continue to operate a suboptimal business model that prohibits growth. Firms must take steps now in order to transform the way they do business to manage a changing and challenging landscape.
The Department of Labor’s (DoL’s) Revised Fiduciary Standard is poised to strike the core DNA of how investment firms and wealth managers will operate going forward. A complete overhaul of ERISA, the Revised Fiduciary Standard puts pressure on Wealth Managers to keep the best interest of the client: investment advice is a fiduciary contract which opens up advisors to legal recourse for non-compliance.
A successful, efficient onboarding experience is paramount to building a strong foundation for the client relationship. The onboarding process is the first experience that a client will have with your firm, is integral to driving time to revenue for your firm, and with the unprecedented change in industry regulation, firms are rapidly outgrowing legacy client onboarding capabilities. As individuals become more dependent on the conveniences of the digital world, and banks strive to remain ahead of the curve, client onboarding becomes a natural candidate for improvement.
The transition from a T+3 to T+2 settlement cycle continues to be an ongoing industry-wide initiative with a target go-live date of September 5, 2017. Many firms have performed assessments of their preparedness for the necessary operations and technologies, and are well on their way to completing the design and development phase. As organizations modify and reshape the day-to-day processes and infrastructure necessary for a successful migration, the need for robust end-to-end testing is paramount. Conducting thorough testing will be a critical step in the journey and will serve as the validation point for readiness.
Russia is an important market for Swiss wealth management providers, which despite sanctions and pressure on the Russian economy has great potential: Russia holds approximately one third of the Eastern Europe private wealth. Switzerland provides a reliable and efficient banking system for Russian clients, and a safe-haven from the structural imbalances in the Russian economy and the political situation. Switzerland, together with the UK and Monaco, is one of the countries where some wealthy Russians have moved or are moving their tax residency in response to the “puzzle” posed by the Russian de-offshorization laws.
We are delighted to share the third issue for 2016 of Capco's Regulatory Monitoring Newsletter, developed by industry experts in our European Regulatory Monitoring Team.
The Payment Services Directive 2 – PSD2 – builds on the 2007 Directive, offering Access to Accounts – XS2A. This promises major disruption of the status quo in the European payments services industry. The big question now is: Do banks react to this development exclusively as a threat to ”old” lines of business, or do they recognize and exploit it for the true digital innovation opportunity it really is?
We are delighted to share the second issue for 2016 of Capco's Regulatory Monitoring Newsletter, developed by industry experts in our European Regulatory Monitoring Team.
We are delighted to share the first issue of our 2016 edition of Capco's monthly Regulatory Monitoring Newsletter, developed by industry experts in our European Regulatory Monitoring Team.
For over 20 years, the U.S. securities industry has operated under a T+3 settlement cycle. Not since 1995 when the Securities & Exchange Commission (SEC) Rule 15c6-1 changed the cycle from T+5 to T+3, has the industry undergone settlement cycle reform.
The financial industry's appetite for pooled Utility models clearly exists. What are the drivers for growing their uptake? Where are the obstacles? What, today, do financial institutions see as most useful from Utilities? And what should they look to achieve with the Utility model tomorrow? The results of the latest global survey by Capco and Finextra offer fresh insight.
Welcome to Capco’s 5th Anniversary No Sleep Survey!
For the fifth consecutive year, Capco polled senior executives across the Benelux financial industry to uncover the issues that are keeping them awake at night.
We are delighted to share the ninth and final issue of our 2015 edition of Capco's monthly Regulatory Monitoring Newsletter, developed by industry experts in our European Regulatory Monitoring Team.
We are delighted to share the December 2015 edition of Capco's monthly Regulatory Monitoring Newsletter, developed by industry experts in our European Regulatory Monitoring Team.
Millennial wealth. What is it? Why is it important now and why does it continue to receive a central spot on the agendas of wealth management executives as they discuss and decide on the future of their businesses?
The fact is that the millennials create an interesting conundrum for big banks. Presently, at just about $1 trillion in assets under management, millennials are not a lot to talk about. But when you start to look at the $30 trillion in assets that will transfer from baby boomers to millennials over the next 30 years in the U.S. alone, it becomes a whole new conversation.1 How will wealth managers position themselves for the biggest wealth transfer in history?
The European post-trade infrastructure is undergoing significant changes, brought about through the implementation of TARGET2-Securities (T2S) by the European Central Bank (ECB). The T2S securities settlement platform, through which all domestic and cross-border settlement of Euro-denominated securities transactions will take place (covering both the primary and the secondary markets), has a go-live schedule made up of four subsequent waves. Once full migration is achieved in 2017, an overall settlement fee reduction is envisioned, down to levels closer to those prevailing in the US. The aim is that cross-border settlement will become as efficient as domestic settlement. The services provided by the new technology platform will be governed by a set of rules defined in the equally new pan-European Central Securities Depository Regulation (CSDR).
Post financial crisis regulation is reshaping the financial services industry to address fundamental market and regulatory shortcomings. MiFID II and MiFIR are aiming to form a single rulebook for the provision of financial services in the European Economic Area (EEA) and/ or to EEA-domiciled clients. MiFID II and MiFIR will significantly impact the entire value chain across different business lines of a financial services institution from acquisition of new clients to post-trade client reporting and trade transparency. In addition, recent regulatory development in Switzerland indicates high congruence of upcoming investor protection rules outlined by FIDLEG (Finanzdienstleistungsgesetz) with MiFID II requirements.
BreakingEdge, Capco’s Quarterly Thought Leadership magazine, is an exciting walk through the vastly changing landscape that is the modern financial services industry. From sweeping regulatory reforms, to the advent of blockchain technologies and on into the future of biometrics and cybersecurity, BreakingEdge will take you on a magical journey into the future of financial services. Join us quarterly for fun and fascinating stories, as we ride the wave of emerging technology and shifting business models in - BreakingEdge.