Our Global FSR Outlook 2023 has been published. In the Outlook, our Financial Services Regulatory (FSR) team surveys the regulatory landscape for 2023 and considers the challenges confronting firms and regulators.
Firms now face a maelstrom of risks as 2023 comes into view. Economic and geopolitical uncertainty has aggravated already rising interest rates and inflation, causing supply chain issues and increased volatility in the commodities and financial markets. There is turmoil in the crypto markets, cyber risks proliferate, and the impacts of climate change continue to be felt across the globe.
In this year's Outlook, we explore nine key themes that will impact the financial services sector globally over the next 12 months and beyond, focusing on scams, crypto, ESG, financial stability, digitisation, operational resilience, artificial intelligence and changing regulatory approaches. This includes:
- Regulators clampdown on scams as enforcement actions rise: much of the billions shoveled out in governments' Covid-19 relief efforts has been diverted by fraudsters – and regulators' efforts to recover funds and penalize malefactors will implicate financial institutions in some jurisdictions.
- Crypto winter emboldens regulators to greater intervention: as the crypto industry's troubles deepen, regulators around the world have been given political license to strengthen rulemaking and enforcement action.
- Regulating E(S)G – a growing commitment: regulatory scrutiny is widening to include an array of new concerns as watchdogs extend environmental and governance standards.
- The ESG Agenda – financing a fair future: as awareness of environmental, social and human rights issues grow, we explore how firms will need to respond to a changing ethical landscape.
- Financial Stability – gathering storms – business and regulators brace as economic outlook darkens: energy shocks, high inflation and persistent geopolitical tensions put central banks' focus squarely on securing macroeconomic and financial stability.
- Wrestling giants – regulators ramp up efforts to monitor Big Tech: as technology reshapes business, watchdogs are modernising to better detect and act on bad behaviour.
- Turning point – third-party providers under growing scrutiny: regulators are set to take a more muscular approach to technology providers as operational resilience frameworks mature.
- Get ready for the quantum leap: quantum computing is set to reshape financial services. We explore the risks and opportunities inherent in this cutting-edge technology.
- New toolkits and closer proactive regulatory engagement: high volatility resulting from unpredictable global events is pushing regulators to focus on market stability, operational resilience and vulnerable consumers.
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