Global Regulatory Landscape

• Economic Outlook: The IMF projects stable but
  underwhelming global GDP growth around 3%, with advanced economies growing at 1.7-1.8% and Asia's developing economies at 4.5% until 2029.
• Regulatory Changes: Countries will prioritise economic growth, competitiveness, and economic security, influencing FS deregulation.
• Strategic Transformation: FS firms need to balance immediate challenges with long-term opportunities, focusing on strategic choices amidst regulatory uncertainties.
   

EMEA Perspective

• Sector-Specific Issues: Retail and commercial banking, investment banking, insurance, and investment management face unique regulatory and supervisory challenges.
• Sustainability and Innovation: Emphasis on sustainable finance, payments, and digital assets regulation.
• Artificial Intelligence and Data: Increasing focus on AI governance, data quality, and regulatory compliance.

Operational Resilience

• Cybersecurity and Financial Crime: Maintaining
  resilient cybersecurity and effective risk management is crucial.
• Third-Party Risk Management: Enhanced scrutiny
  on third-party providers and operational resilience frameworks.

Sustainable Finance

• Regulatory Focus: Policymakers will steer sustainability-linked innovation and investment, balancing economic growth with environmental risks.
• Corporate Sustainability Reporting: Implementation of CSRD and other sustainability disclosure standards will be critical.

Consumer Protection

• Conduct Regulation: The FCA's Consumer Duty will drive
  improvements in product oversight, governance, and customer outcomes.
• Value for Money: Firms must ensure fair value and good
  customer outcomes, particularly for vulnerable customers.

Strategic Recommendations

Conclusion

FS firms must proactively adapt to the evolving regulatory landscape, balancing immediate challenges with long-term strategic opportunities. By investing in data, technology, and risk management, firms can navigate uncertainties and drive sustainable growth.