In October 2017, BNY Mellon presented an overview of new and pending regulatory initiatives. Eli Peterson of BNY Mellon’s Office of Public Policy and Regulatory Affairs discussed the current geopolitical environment and its impact on regulations affecting global financial markets.
Whilst U.S. legislative change has come slowly, there is potential for moderate changes through regulatory agencies exercising their discretion. As an institution, we do not believe that Dodd-Frank should be significantly altered. Instead, we are focusing on three key regulatory policy priorities that we think would benefit our clients and enhance our ability to serve them.
1. CCAR and Stress Testing
3. Single Counterparty Credit Limits
President Trump has issued an executive order directing Treasury Secretary Steve Mnuchin to lead a review of the entire regulatory framework put in place since the financial crisis to determine:
Last spring, the U.S. Treasury released its Banking Reform Report. The report included the priorities discussed above, among other reforms. Reports on asset management and capital markets were released this fall, a report on FinTech is expected in Q1 2018.
European regulators are proposing an intermediary holding company requirement for U.S. banks. This is in response to the Fed’s requirement that foreign banks create U.S. subsidiaries.
There is also a proposal to expand current “stay” requirements for all financial and deposit contacts in the context of a resolution proceeding.
We continue to be deeply engaged with respect to the UK’s departure from the European Union (Brexit); a decision voted for by the British public on June 23, 2016. The two-year timeline of negotiations is now underway, with the aim of arriving at a mutual agreement by March 29, 2019.
Some of the key issues being debated include trade agreements and tariffs, defense, labor mobility, and environmental agreements. In particular, the Financial Services industry is keeping a close watch on developments around issues such as passporting (access to the EU markets) and regulatory reform, both of which have a direct impact on stability in the financial markets.
Whatever the outcome of the Brexit negotiations, BNY Mellon is well positioned to continue providing our clients with the high levels of service they rightfully expect. We have a UK bank with a branch in Luxembourg, a U.S. institutional bank with branches in Brussels, Frankfurt and London, and a European Bank headquartered in Brussels with an extensive network of branches throughout the EU. This provides us with considerable stability and resilience, and offers our clients the choice they may need throughout the Brexit negotiations.
Over the past decade-plus, regulators in Asia have been a bit behind the U.S., focusing on capital markets-related items such as:
The financial services industry is facing a global regulatory landscape that is complex, unprecedented and rapidly changing. BNY Mellon distinctly understands the new regulatory environment and we have the expertise to help you make sense of the new regulatory changes and enable you to keep pace with compliance.
This content is part of BNY Mellon’s Focus on Regulation Readiness, a dedicated section on bnymellon.com that showcases regulatory and policy related content. BNY Mellon understands the regulatory realities and can help you keep pace with the changing environment.
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Office of Public Policy and Regulatory Affairs
Eli Peterson is a Managing Director within BNY Mellon's Office of Public Policy and Regulatory Affairs. He is principally focused on the company's global regulatory affairs and public policy engagements. In these regards, most of his practice addresses government reform initiatives since the financial crisis, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Basel III Accord, and numerous other global policy proposals affecting BNY Mellon.View Profile