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The Trump Effect On Financial Regulation

How can banks prepare in the face of uncertainty?

Preparing for regulatory change always presents challenges, especially in highly regulated industries such as financial services. With President Trump’s recent executive order promising an unprecedented rollback of regulation, the administration has shown a clear desire to reduce the regulatory burden across the board. Exactly how regulations will change – and to what extent – remains to be seen.

Given this uncertainty, financial institutions need a strategic approach to evaluate their options and chart their paths forward. Rather than trying to forecast the future with certainty, we recommend a strategic approach to planning for uncertainty. As such, Capco’s experts in financial regulation and strategy have developed a scenario-planning framework to evaluate the spectrum of potential change across key levers of U.S. financial regulation including: regulatory agencies, the Volcker rule, capital requirements, regulatory reporting requirements, the DOL fiduciary rule, and antimoney laundering and know your customer requirements. Looking at different scenarios, ranging from no change to complete repeal (and everything in between), Capco is able to help financial institutions understand their strategic choices and move ahead.