Investor & Consumer Protection Regulations in Financial Services

| Point de vue

A look at evolving regulations around investor and consumer protection, and the business and technology implications for global financial services institutions

The recent financial crisis exposed a number of key weaknesses in the global regulatory system, which set the stage for significant losses for investors and consumers. Investors and consumers bore the brunt of a number of practices such as misselling, aggressive practices, and non-disclosure of conflicts of interest, which led to their loss of trust in the functioning of the financial markets. With the aim of restoring confidence in the financial system and enhancing protection for investors and consumers, regulators aim to reform current practice.

Though regulators around the world have reached consensus on the key areas of regulatory design that need to be reformed, the near-term focus varies from region to region. In the U.S., the core focus has been on reforming the retail banking model around mortgages and credit cards. In Europe, the focus is on reforming the distribution of banking, insurance, and investment products. in this paper, we explore the key areas emerging for regulatory reform and explore the resulting changes required for banks.

This paper is part of Capgemini’s What You Need to Know series dedicated to Financial Services Regulations.