Prioritise climate risk management to protect your future: The impact of climate-driven regulatory initiatives on Swiss financial institutions
Swiss financial institutions will need to adhere to enhanced climate-risk disclosure obligations, in line with new ambitious targets for reducing domestic emissions of CO2. Companies operating in the financial services industry should take a proactive approach to understanding the implications of climate risk for their business and reporting requirements. They should also ensure that any reporting is assured by an independent third party to establish its reliability and gain the confidence of stakeholders.
Deloitte’s 2020 global survey on the OECD’s Base Erosion and Profit Shifting (BEPS) initiative shines a spotlight on the next wave of the Global Tax Reset. What are the key finding and impacts on the financial services industry?
The asset management industry has shown its resilience over the past decade and during the recent March sell-off. However, according to the joint committee report on risks and vulnerabilities in the EU financial system, published in September 20201, some sectors of the industry have struggled with redemption requests during the COVID-19 crisis. Bond fund outflows reached record highs during this period, amounting to 4% of the sector Net Asset Value (NAV). This follows prominent fallouts in previous years of various asset managers, and as a result fund liquidity has become a top priority for the entire fund industry.
In parallel, regulators across Switzerland and the EU have been tackling the liquidity issue by developing new regulatory requirements. In the EU, ESMA introduced a requirement having come into force at the end of September 2020 for asset managers to develop a comprehensive Liquidity Stress Testing (LST) framework for funds. In Switzerland, FINMA has carried out a consultation on a new financial institutions ordinance (FINIO-FINMA) requiring liquidity stress testing, currently expected to be adopted by end 2020.
Under Australian domestic law, eligible foreign pension funds deriving Australian source interest and dividend income are eligible for Australian withholding tax exemptions. The Australian government introduced new laws in early 2019 to amend the rules in respect of Australian withholding tax exemptions for foreign pension funds.
Why delivering enjoyable client experiences is still a challenge for many banks, and how to make it a success
Banks in Switzerland struggle to exploit the potential of digital client experience (CX) programs. We have identified two areas where failure with CX initiatives can be avoided by taking the right approach and understanding the typical pitfalls and mistakes.
The initial reporting of certain cross border arrangements under DAC6 was scheduled for the end of July 2020. Shortly before the DAC6 go-live date, the EU agreed on an optional six-month extension. Approximately one week after the EU agreement, some countries have communicated their position, others are silent, and at least one is not intending to provide an extension. We are here to help you keep an overview of the individual countries’ positions.
In our last blog, we focused on how wealth managers may enjoy a competitive advantage in the post-COVID 'next normal' through a more digitally-enabled front office. This article focuses on broader strategies for wealth management leaders and addresses the key question: ‘What has changed since COVID-19?’ Are the industry’s strategic imperatives still the same, or are there important changes that need to be considered?
Our Deloitte banking blog last week on Cost Transformation1 outlined the economic and regulatory market conditions for banks in Switzerland. It identified a save-to-transform approach as the appropriate cost management strategy for overhauling banking business and operating models in order to stay competitive in a changing and increasingly technology-dominated banking industry, while also adapting to new requirements in a post-COVID-19 environment.
In this second article, we discuss the cost levers for contributing to a sustainable overhaul of bank operating models, and explain where Swiss banks stand today in revising their approach to value creation in the longer term.
Designing for the post-COVID-19 era: FS firms that have been re-inventing over the past few months are responding to changing customer needs
Everyone is talking about the ‘new normal’, but no one really knows how changes in customer behaviour will be transformed into new products, services and experiences, to achieve growth in business. Some companies have been proactive in recent months, learning about the changing needs of customers and responding with new product and service offerings.