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Ernst & Young and JWG-IT announce the industry's priorities as set at THE FORUM


Ernst & Young and JWG-IT announce the industry's priorities as set at THE FORUM

 

Regulatory and business interests will converge as the European trading environment becomes more open

 

London, 23 April 2008: Ernst & Young and JWG-IT Group, the independent think-tank, have today completed their analysis of the first FORUM. Held last week, the event was an open dialogue for nearly 200 participants from the financial community, their suppliers and the regulators to debate the 2012 regulatory agenda and priorities. Attendees included David Wright, Deputy Director General of DG Internal Market and Services of the European Commission and Roseanne Harford, Manager in the Strategy & Risk Division of the FSA.

Practitioners from over 30 financial institutions, including ABN AMRO, Bank of America, BidRoute, Barclays, Chi-X Europe, Barings, Citi, Calyon, Credit Suisse, Gartmore, Goldman Sachs, HSBC, Lehman, Morgan Stanley, SocGen, UBS, and WestLB, debated the need for a better, more transparent and flexible 2012 regulatory environment by:

 

>      Shifting to ‘principles-based’ enforcement based on evidence of outcomes

 

>     Increasing convergence of more detailed global regulatory requirements

 

>      Moving beyond ‘de minimis’ solutions towards real capabilities that support innovation, transparency and better treatment of customers.

 

Experts concurred that cost-efficient back-offices are the new battleground on which to improve trading margins whilst competing for customers. Breakout presentations and panel discussions, supplemented by interactive voting, helped participants to define today’s top compliance challenges:

 

1)       Define and publish common interpretation of regulations and guidance and their relative importance across jurisdictions and regimes

2)       Develop a relative view of the risks and priorities based on customer and market objectives and desired outcomes through industry collaboration

3)       Establish cross-functional management teams to be accountable for developing and maintaining business requirements with the right sponsorship, training and skill-development programmes

4)       Improve collaboration between market participants, vendors and utility organisations to develop technology and information standards for sharing common identifiers and ‘non-competitive’ information

5)       Develop holistic architectures and standards to foster greater re-use of technology and processes across functional silos to lower the overall transaction costs and allow better monitoring of regulatory and market risks.

 

A common view among participants was that market agility will be needed to meet regulatory expectations and to seize emerging opportunities and this will need to be supported by robust data acquisition and management capabilities. Likely winners are already taking a number of actions.

 

It is now more apparent than ever that collaboration is required to synthesise all the regulatory principles into workable business requirements.

PJ Di Giammarino, CEO of JWG-IT, commented “The FSAP raises the record keeping bar to a whole new level. The FORUM results indicate that 70% of investment firms recognise that there are new hurdles to overcome to prove record keeping compliance to their boards. Moving recording keeping up the board’s agenda is seen as a top priority by the majority. These results reflect the more detailed survey findings published in our April whitepaper ‘How high should you jump?’ which is available to registrants on www.jwg-it.eu.”

 

John Liver, Partner in the Regulatory and Risk Management unit of Ernst & Young's UK Financial Services Advisory Practice, added “"There is clear evidence that the increased market efficiency promised by MiFID will soon become a reality. The opportunity for differentiation is real, but needs to be supported by a step change in data handling."

 

The next FORUM will be held in Frankfurt on 16 June 2008.

 

 

ENDS

 

For more information please contact:

 

• Clare Rice, Ernst & Young media relations, on 020 7951 7019 or crice@uk.ey.com

 

• PJ Di Giammarino, JWG-IT, on +44(0) 7811 430 503 or pj@jwg-it.eu

 

About JWG-IT

JWG-IT is an independent think-tank which helps financial institutions define workable solutions to the challenges posed by EU regulatory change.

 

Founded in January 2006, JWG-IT was setup in the belief that most EU regulation could be implemented quicker, cheaper and better through collaboration across the technology value chain. It works with trusted technical experts from its membership to identify practical options which facilitate the adoption of appropriate, affordable and advanced IT solutions to changes driven by regulation in Financial Services. For more detail on the EU regulatory agenda, the challenges of implementation and publicly available resources and whitepapers for implementers, see www.jwg-it.eu and www.mifidgroup.com.

 

About Ernst & Young

Ernst & Young is a global leader in assurance, tax, transaction and advisory services.

 

The UK firm employs 10,000 people, with 6,000 staff and Partners in the London office – making it the largest Ernst & Young office globally. For the financial year ending June 30 2007, revenues were £1.23 billion.

 

Worldwide, our 130,000 people are united by our shared values and an unwavering commitment to quality. We make a difference by helping our people, our clients and our wider communities achieve potential. Worldwide revenues for year to 30 June 2007 were US$21.1 billion.

 

For more information about Ernst & Young, contact a member of the UK media team on +44 (0) 20 7951 8837 or visit our website: www.ey.com/global/content.nsf/UK/Media



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