Deloitte unveils 2016 regulatory outlook

Launching it's 2016 outlook report, the Deloitte Asia Pacific Centre for Regulatory Strategy has indicated that the challenge of regulatory policy development can be grouped into the themes of resilience, culture and conduct and technology for the coming year.

According to Kevin Nixon, lead partner of the centre, these critical themes will be hindered by the complex issue of implementation.

"APAC financial institutions will continue to face elevated implementation challenges within an ongoing policy environment that has significant strategic implications," Mr Nixon said.

“Our paper outlines the moving pieces in 2016, from substantial changes in how capital requirements are calculated, to the associated and ongoing reforms such as Total Loss Absorbing Capacity (TLAC) and recovery and resolution planning designed to end 'too-big-to-fail’, to the ever-constant pressure to improve and demonstrate good conduct and culture."

Whilst noting that the international developments will drive regulatory policy in Australia in 2016, Mr Nixon noted that there is a large body of local work to be dealt with.

“Across the entire APAC region regulators are increasingly worried about the risk posed by high degrees of reliance on technology systems, especially how high-profile cyber-attacks and market instability caused by faulty algorithms have exposed the risks that our reliance on technology can bring. We are seeing regulators impose specific risk management requirements for technology with respect to cyber-resiliency, outsourcing and the testing of trading algorithms.”