Rising Regulatory Pressures and Data-Driven Approach to Oversight Top Key Concerns for Financial Organizations Next Year

  Rising Regulatory Pressures and Data-Driven Approach to Oversight Top Key
  Concerns for Financial Organizations Next Year

   Wolters Kluwer Financial Services’ Experts Say Proactive Efforts Around
Compliance, Risk, Finance and Audit Critical to Organizations’ Success in 2013

Business Wire

MINNEAPOLIS -- December 06, 2012

Financial organizations across the globe encountered increased regulatory
pressure in 2012 as more visibility and scrutiny were placed on the areas of
compliance, risk, finance and audit. According to the experts at Wolters
Kluwer Financial Services, that pressure is only likely to build in 2013.

Following U.S. President Barack Obama’s re-election in November, it’s clear
the Dodd-Frank Act will remain in place and the Consumer Financial Protection
Bureau (CFPB) will intensify its rulemaking and oversight efforts. And Basel
III, Solvency II and global International Financial Reporting Standards (IFRS)
continue to be in the spotlight for financial organizations operating in the
U.K., Europe and the Asia-Pacific region.

But now, the question for many companies is, “How do we meet these obligations
and regulators’ heightened expectations?” The answer according to regulators
worldwide often lies within the quality and availability of an organization’s
data. Regulators in nearly every country are taking a data-driven approach to
supervision, demanding organizations provide more information than ever before
to help ensure they are meeting compliance requirements, protecting consumers
and effectively managing risk.

A number of Wolters Kluwer Financial Services’ experts have weighed in on
these issues, among others, to help financial institutions reflect on 2012 and
anticipate what lies ahead for 2013:

Global Regulations, Risk Management and Finance

Selwyn Blair-Ford, Head of Global Regulatory Policy
“Basel III has been the source of much transformation over 2012 as the
industry has been preparing for the changes in capital requirements that are
due to start from January 2013. Rules related to liquidity ratios, leverage
ratios and capital buffers have also been finalized…[more].”

Jeroen Van Doorsselaere, Subject Matter Expert – Finance
“Over 2012, in the Asia-Pacific region, there has been a strong focus on the
automation and implementation of the current IAS 39: Recognition and standard
for financial instruments, which released by the International Accounting
Standards Board (IASB). This will continue to be a focus in 2013…[more].”

Wolfgang Prinz, Vice President of Product Management
“The integration of risk and finance has continued apace during 2012, mainly
as a result of the demand of the regulatory authorities. Not only must firms
implement the headline Basel III measures relating to capital and liquidity,
but the regulators themselves are asking deeper and more probing

Nancy Masschelein, Head of Product Strategy
“The benefits of integrating risk and finance have become all too apparent in
the aftermath of the financial crisis as the two functions are inextricably
linked. The evolution of finance and risk regulation has not always followed
the same path in the past…[more].”

Joost Roelin, Director of Product Management
“The delay on the deadline for FinRep reporting requirements has had an impact
on the industry over the last year as a lot of projects were underway in order
to prepare. Some of these projects have been delayed into 2013 due to the
later reporting date which means all projects will run into 2013 as the
requirements are not yet final…[more].”

Nico Deprez, Manager, Product Management – IFRS
“If we look back on 2012, a number of important projects were completed this
year in order to get ready for new or revised International Financial
Reporting Standards (IFRS). One such standard has been IFRS 13, which sets out
a definition of ‘fair value’ and is applicable for all standards referring to

Mike MacDonagh, Director of ERM Content Strategy
“Many of the enterprise risk management (ERM) issues for 2012 will extend into
2013, such as increasing regulation and maintaining effective risk management
in a cost-cutting environment, but as the fall-out from the financial crisis
resolves from a mess of initiatives and regulations into specific projects and
a focus on key risks, we expect to see the industry focus on some key

U.S. Regulations and Risk Management

Timothy R. Burniston, Vice President and Senior Director, Regulatory
Consulting Practice
“2013 will bring continued concern about the daunting challenges posed by
regulatory change for U.S. financial institutions. Of the nearly 400 rules
required by the Dodd-Frank Act, only about one-third have been finalized, and
another third have yet to be proposed. The new requirements are likely to
trickle out for years to come…[more].”

David Thetford, Securities Compliance Principal Analyst
“In this election year, and especially in the months leading up to the U.S.
presidential election, legislation and regulation within the financial
services industry have nearly ground to a halt. Legislators have taken a
wait-and-see approach to changes on their agenda, while regulators continue to
digest the Dodd-Frank Act and process the multitude of changes it requires.
The pace never stops completely, though…[more].”

Michael Fuchs, Director of Commercial Lending
“Commercial lending has quickly emerged as one of the few business lines in
which U.S. banks and credit unions have an opportunity to significantly grow
revenue. In fact, aside from automobile lending, it’s the only business area
where financial institutions’ aggregate balances are growing…[more].”

Kathy Donovan, Senior Compliance Counsel – Insurance
“In terms of regulatory changes and enforcement actions, the life and health
lines of business certainly felt the most impact within the U.S. insurance
industry in 2012…[more].”

Art Tyszka, Director of Default Services
“Default management across all lending areas will be a major concern for U.S.
financial institutions in 2013 as regulators increase their focus on loan
servicing practices. The home loan foreclosure crisis has been an elephant in
the room for the past several years within the financial services industry.
But a number of other consumer default concerns are about to take center

U.K./European Regulations and Risk Management

Ed Kennedy, U.K. Solvency II Manager
“The delays in the introduction of Solvency II have been the source of much
discussion in the insurance industry over 2012, with many claiming that the
postponements could hinder preparation. However, there is a very compelling
case that demonstrates that the investment to date does not have to lie

Kieran Leahy, Vice President - U.K., Ireland & MEA
“The implementation of Solvency II has been delayed as the Omnibus II vote in
the European Parliament is now set for March 2013. The new date has been set
to allow time for EIOPA to conduct further impact assessments for Long Term
Guarantees and its terms of reference for the European Parliament…[more].”

About Wolters Kluwer Financial Services
Whether complying with regulatory requirements, addressing a single key risk,
or working toward a holistic risk management strategy, more than 15,000
customers worldwide count on Wolters Kluwer Financial Services for a
comprehensive and dynamic view of risk management and compliance. Wolters
Kluwer Financial Services provides audit, risk, finance and compliance
solutions that help financial organizations improve efficiency and
effectiveness across their enterprise. With more than 30 offices in 20
countries, the company’s prominent brands include: FRSGlobal, FinArch, ARC
Logics for Financial Services, Bankers Systems, VMP® Mortgage Solutions,
AppOne®, GainsKeeper®, Capital Changes, NILS, AuthenticWeb™ and Uniform
Forms™. Wolters Kluwer Financial Services is part of Wolters Kluwer, a leading
global information services and solutions provider with annual revenues of
(2011) €3.4 billion ($4.7 billion) and approximately 19,000 employees
worldwide. Please visit our website for more information.


Wolters Kluwer Financial Services
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