Regulatory changes in the investment banking industry

| Point of View

The investment banking industry is still recovering from the aftermath of the financial crisis. The post-crisis period has witnessed a flurry of regulatory activity and regulations such as Dodd-Frank, Basel III, MiFiD, FATCA and EMIR contain provisions which will have an impact on one or more aspects of the investment banking industry.

The scope and geographical relevance of these regulations may differ, but all of them mandate the imposition of more stringent regulatory norms on financial institutions. All aspects of the investment banks’ business—capital, liquidity, systemic risk, supervision, governance, remuneration, traded market—are expected to be affected.

This whitepaper looks at the impact of evolving regulations on the investment banking industry and outlines high-level guiding principles for coping with the new regulatory environment.