- NPSO confirms the representation of its newly-created Participant Advisory Council
- FCA proposes actions to improve competition in the investment platform market
- Equifax research reveals a lack of awareness of banking options among Brits
- Nationwide puts weight behind major campaign to improve financial capability-Open Banking for Good aims to close financial capability gap in the UK
- ESMA issues first set of technical standards under the Securitisation Regulation(SR) containing both draft regulatory and implementing standards (RTS/ITS)
- Scope Ratings says there are limited impacts from the ECB’s latest bad-loan initiative
- IPC wins the highest rankings by the financial markets industry in the 2018 Waters Rankings expired
- JP Morgan reports record results in second quarter expired
- Metro Bank launches developer portal expired
- Arrow Global working with Xactium platform expired
- Bezant a key sponsor at the Beyond Blocks Summit in Seoul expired
- Hyperwallet to facilitate mass payment distribution for Wordapp.com expired
11th August 2017
Ten years on from the financial crisis, MathWorks considers regulatory progress
On the 10th anniversary of the start of the financial crisis, Steve Wilcockson, Financial Services Industry Lead at MathWorks, commented on the regulatory progress that has been made in the sector as well as what needs to be done in the future to prevent another economic crash. He said:
“Hindsight is a great thing. Ten years ago, BNP Paribas was the first major bank to acknowledge the risk of exposure to the sub-prime mortgage market, and looking back we can attribute the financial crisis in part to model complexity and systemic obfuscation in the usually valuable derivatives and credit markets.
“A decade on, regulators and banks have tackled those problems well, but the industry now heads into a new bubble of artificial intelligence, even bigger data, crypto-currencies, robo-advisors and a proliferating patchwork of confusing, unsourced and often poorly-supported computer languages, putting the international population at risk of experiencing new global financial and economic crises.
“To maintain the industry’s public good of wealth creation, liquidity provision and sound money management, financial services must look to how ‘high integrity’ medical and automotive industries address model governance. While model and data governance have been elevated in regulations such as TRIM, BCBS 239, Solvency II and the PRA Stress Test guidance, regulators and all industry participants on sell- and buy-sides must work harder to drive thorough model governance standards Financial risk management can and should lead the industry in this regard."