The times, they are chaging. The regulatory changes since 2008 impact the functioning of the financial system in all its aspects; EMIR, Dodd Frank Act, BaselII and CRDIV, and even FTT. So how do we manage this? To drive an efficient regulatory change agenda, it is important for firms to identify as early as possible the regulations that will be impacting them. In this slideshare, we provide a strategy that adresses both compliance obligations and opportunities. Firms need to determine how their business will be impacted, how their clients' businesses will be impacted and effectively map a regulatory change pathway through the governance, operations and technology requirements.

1. How to adapt to
changing regulations
in the financial markets
worldwide
Projective’s approach to Global Regulatory Change

2. The times,
they are a-changin’...

3. Regulatory changes in the market
2009: G20 SUMMIT PITTSBURGH
“We meet in the midst of a critical transition from crisis to
recovery to turn the page on an era of irresponsibility and to
adopt a set of policies, regulations and reforms to meet the
needs of the 21st century global economy”
(G20 leader statement, Pittsburgh, 2009)

4. 2009: G20 SUMMIT PITTSBURGH
Regulatory changes in the market
Clear commitments to further strengthen the international Financial
Regulatory system
Regulatory change impacts:
1. Markets
New market structures and tighter rules
2. Financial institutions
New bank structures and new capital and liquidity rules
3. Tax Treatment
New global standard to increase tax transparency and fight tax invasion

5. Regulatory changes in the market
1 NEW MARKET STRUCTURES AND TIGHTER RULES

6. Regulatory changes in the market
1 NEW MARKET STRUCTURES AND TIGHTER RULES
AIM:
Improve transparency in the derivatives markets
Mitigate systemic risk
Protect against market abuse
¨¨ Establish regulation for financial instruments and products to
improve transparency and reduce risk

7. Regulatory changes in the market
A LOT OF REGULATION HAS BEEN PUT IN PLACE SO FAR
Regulating OTC derivative markets:
Dodd Frank Act - Title VII
European Market Infrastructure Regulation (EMIR)
Asia, Latin America, Middle East ¨ Drafting and implementing own legislation

8. Regulatory changes in the market
2 NEW BANK STRUCTURES AND CAPITAL LIQUIDITY RULES

9. Regulatory changes in the market
2 NEW BANK STRUCTURES AND CAPITAL LIQUIDITY RULES
AIM:
Improve both the quantity and quality of bank capital
Discourage excessive leverage
Reduce incentives for banks to take excessive risks
¨¨ Structural reforms designed to address new regulations
to protect customers and taxpayers
¨¨ Strengthen bank capital requirements and increase bank
liquidity reserves to drive down systemic risk

10. Regulatory changes in the market
COMMISSIONS WERE PUT IN PLACE AND MEASURES WERE TAKEN
Dodd Frank Act Art Commission
Dodd Frank Act Volcker Rule: prohibiting trading and investments in certain private
equity funds and hedge funds
Independent Commission on Banking
UK Banking Reform: ring-fencing of retail banking
Liikanen Commission: advising on separation of high risk trading, tougher capital
requirements, stronger bank governance
Commission Proposal on Banking Structural Reform
Basel Committee on Banking Supervision: stronger bank capital requirements,
increased bank liquidity reserves
“Basel III” comprehensive set of reform measures, developed to strengthen the
regulation, supervision and risk management of the banking sector.

11. Regulatory changes in the market
3 NEW GLOBAL TAX STANDARDS

12. Regulatory changes in the market
3 NEW GLOBAL TAX STANDARDS
AIM:
Increase tax transparancy
Fight tax evasion
¨¨ Exchange of information between tax authorities and requests to
financial institutions to cooperate to address tax avoidance

13. Regulatory changes in the market
FIGHT TAX EVASION AND GAIN MORE INSIGHT
Foreign Account Tax Compliance Act (FATCA)
Prevent US individuals and entities from using companies and financial structure outside
the US to avoid US taxation
Crown Dependencies and Overseas Territories Regulations
Automatic tax information exchange agreements
Standard for Automatic Exchange of Financial Account Information in Tax Matters
Detailed account information and annual exchange
Financial Transaction Tax (FTT)
Enhanced cooperation between 11 EU member states in the area of financial
transaction tax

14. Regulatory changes in the market
OUTLOOK ON REGULATORY COMPLIANCE
1 Structural Reform
of the Banking Sector 2 Restructuring the Rest
3 Capital and Liquidity
of the Financial System Next Phase
8
9
10
4
Wholesale Conduct
TOP 10
Risk REGULATORY
5
CHANGES
FOR 2014
6
7
Individual
Accountability
Competition
Extraterritorial
Regulatory Change
The Banking
Union
Operational
Risk
Customer Compliance
Pu‡ing Customers First

15. Managing regulatory change
Sounds great!
How do we manage this?

16. Managing regulatory change
Effectively Managing
Regulatory Change
through a defined lifecycle

17. Managing regulatory change
APPROACH TO REGULATORY CHANGE
Regulatory Change Lifecycle

18. Managing regulatory change
1 PERFORM A DETAILED REGULATORY ANALYSIS AND DESIGN

19. Managing regulatory change
BUILD A REGULATORY ROADMAP
¨¨ Identify the regulations that are impacting you as a business
¨¨ Follow the regulatory process
¨¨ Align with the global political agenda
especially of the US and EU with a close eye on Asia

20. Managing regulatory change
APPROACH TO REGULATORY CHANGE
Regulatory Change Lifecycle - Regulatory Analysis and Design

21. Managing regulatory change
APPROACH TO REGULATORY CHANGE
Regulatory Change Lifecycle - Regulatory Analysis and Design

22. Managing regulatory change
AVOID ‘DIGGING UP THE ROAD’ MULTIPLE TIMES
IDENTIFY CROSS DEPENDENCIES
¨¨ Look for overlap in key areas of the regulations
¨¨ Don’t look at impacts independently
¨¨ Ensure a more cost-effective implementation

23. Managing regulatory change
APPROACH TO REGULATORY CHANGE
Regulatory Change Lifecycle - Regulatory Analysis and Design

24. Managing regulatory change
APPLY A THEMATIC APPROACH
¨¨ Ensure compliance by focusing on overarching regulatory themes
¨¨ Group individual regulation in specific themes
¨¨ Structure teams so that the subject matter experts are always focusing
on their particular area of expertise
¨¨ Look at the outlook of this analysis to decide on how to structure your
Regulatory Change programs

25. Managing regulatory change
2 NOW IMPLEMENT REGULATORY

26. Managing regulatory change
IMPLEMENT REGULATORY CHANGE
¨¨ Deep Dive
Detailed impact assessment, overlay regulation with business models
¨¨ Implementation plan
Triggering next stage in the implementation lifecycle
Example OTC reform implementation EU EMIR, US DF Title VII and other jurisdictions

27. Managing regulatory change
IMPLEMENT REGULATORY CHANGE
¨¨ Execution compliance and business strategy
Changes of operating models, creation of new operating models,
business processes and IT changes

28. Managing regulatory change
3 ENSURE THAT YOU REMAIN COMPLIANT POST IMPLEMENTATION

29. Managing regulatory change
COMPLIANCE SUSTAINABILITY
¨¨ Management of controlled transitions
from regulatory implementation activities in BAU
¨¨ Ongoing compliance monitoring and assurance
CONTINUOUS
STAFF
TRAINING
CONTROLLED
TRANSITION
INTO BAU
REGULATORY
CONTROL
AND SUPPORT
ASSURANCE
FRAMEWORK

30. Projective’s expertise in this
It looks good,
but can I get some help?

31. Projective’s expertise in this
How Projective can help you
with the overall management
regulatory change

32. Projective’s expertise in this
PROJECTIVE’S SERVICES FOR YOU
“Projective is the leading independent provider of programme and project
management services to the financial services institutions across Europe”
¨¨ Work with you to build your regulatory roadmap and determine the impacts on your current
change programs
¨¨ Assist you to define the best holistic, thematic approach towards regulatory change
¨¨ Help you prioritize your new regulatory change initiatives and subsequent planning and
budgeting
¨¨ Work with you to deliver regulatory change - Implement an effective, risk based change
program
¨¨ Ensure a regulatory control framework is in place post implementation to ensure regulatory
compliance
For more info, visit www.projective.biz