Financial Regulatory Issuer
Meeting more stringent regulations requires banks globally to spend billions of dollars. Yet with the right long-term strategy, they could realize even bigger annual savings.
October 2013 | by John Olivier, Chief Investment Officer
With the introduction of a number of legislative and regulatory reforms in the financial services markets, it is becoming increasingly challenging to stay on top of the developments. And for those operating across regions and having a global network of offices, to understand how these regulatory changes will impact your operations are essential. Our Financial Regulatory Group is made up of dedicated financial services practitioners based in London, Frankfurt, New York, Hong Kong, Sydney and other key financial centers. We advise clients around the world on a range of financial services regulatory issues affecting their business.
Committee on Foreign Investment in the United States (CFIUS)
Our professionals have been involved in some of the largest and most complex transactions reviewed and approved by before the Committee on Foreign Investment in the United States (CFIUS). We have a variety of entities (both public and private) before CFIUS, including purchasers, sellers and minority investors. We provide counsel on structuring, negotiating and documenting transactions to address regulatory issues. The firm’s experience with the CFIUS review process has given us a unique understanding of the arrangements necessary to resolve United States government security concerns presented by proposed transactions. We work in this area includes negotiation of national security agreements, network security agreements, proxy agreements, special security agreements and administrative services agreements. In addition, we have worked on congressional hearings regarding particular transactions and proposed reforms of CFIUS reviews.
Euro Economic Reform: Omnibus II and III Directive
With the introduction of the Omnibus II directive, the insurance industry faces a more stringent capital regime and an entirely new set of requirements on risk governance and disclosure. This new legislation, coupled with a highly volatile and generally adverse macroeconomic scenario, has profound consequences on the viability of many insurance products and on the sustainability of some business models in the industry.
We have analyzed the impact of Omnibus II on four areas: capital management/optimization, investment strategy, product portfolio and in-force optimization, and overall risk governance. We have developed tools and measures to help clients assess their preparedness, optimize capital consumption, increase profitability, rethink risk governance, and develop fit-for-purpose solutions to implement Own Risk and Solvency Assessment. For example, we have analyzed Basel III’s impact on the global banking industry through outside-in assessments of the changes in required capital, liquidity, and funding needs. In two major global economies, we assisted the largest ten banks, respectively, with a Basel III benchmarking effort and generated insights into the right calibration of the rules.