Skip to content

Legal & Regulatory Risk Note

Welcome to the October 2020 edition of the Risk Note, our global risk management briefing on key legal and regulatory issues in the finance sector.

Much has been written about the transformative effect of Covid-19 over the past few months. And many more words are likely to be written.

While questions about the likely effects of the pandemic on the fundamentals of day-to-day life, management of the global economy, regulation of the financial system, and the role of the state, will remain; it is clear that financial services have been faced with their greatest test since 2008-2009. 

Navigating through the pandemic and managing its aftermath are just some of a number of converging challenges that test resilience. Other changes - such as IBOR transition, climate risk and sustainability, digitalisation, Brexit and heightened political volatility - are continuing to accelerate and converge. But that is not an intrinsically bad thing as all of these catalysts bring opportunity for financial institutions that are well prepared, agile and willing to embrace change.

Many institutions are already addressing these challenges. The need to harness digitalisation as a means of driving efficiency, protecting margins and competing with new market entrants is well understood. Managing the risks arising from climate change, the culture and conduct of the organisation and other issues relating to good governance are becoming more widely recognised as strategic and operational imperatives, that must not be ignored or relegated as challenges for the future.

Put simply, the impact of Covid-19, although it is undoubtedly a significant priority for the financial services sector, should not be allowed to eclipse these other important issues. Planning effectively for the long term by making informed judgements, based on understanding the risks and opportunities that lie ahead in relation to all of these forces of change, will be a significant factor in deciding the winners and losers when we eventually begin to emerge from the pandemic.

It is in light of this wider context that we have compiled the articles featured in this edition of the Risk Note. I hope they provide food for thought, and we look forward to discussing some or all the topics with you.

Download the Legal & Regulatory Risk Note

Read our specially selected insights into key legal and regulatory issues in the finance sector.

Featured Risk Note articles

Fintech M&A: The future of dealmaking post Covid-19 coronavirus

After a run of high-value deals at the start of the year, fintech M&A has dramatically slowed. What will dealmaking look like in the future?

Read more

Beyond Covid-19: Conduct risk and the regulatory reckoning awaiting the UK’s financial institutions

The economic impact of the Covid-19 crisis is resonating across the UK’s financial institutions and their employees.

Read more

Beyond Covid-19: How will the shifting balances of power in the commercial real estate sector in England and Wales affect financial institutions?

As the economic ramifications of Covid-19 are felt across society it is clear that the implications for financial institutions as lenders and investors in commercial real estate are significant.

Read more

Will climate change go up the boardroom agenda following Covid-19?

We believe that the global Covid-19 pandemic will lead to society at large taking climate change much more seriously.

Read more

Floods, fires and financial markets: the emerging lexicon of climate change risks

The Commodity Futures Trading Commission’s (CFTC) Climate-Related Market Risk Subcommittee of the Market Risk Advisory Committee (MRAC) released a report in September 2020 entitled ‘Managing Climate Risk in the U.S. Financial System’.

Read more

First German decision holding credit rating agency liable to investors

In a series of recent decisions, the Berlin Regional Court has developed criteria under which credit rating agencies may be held liable for bond ratings under German domestic law.

Read more