As we embark on 2024, the financial services industry faces a dynamic and challenging regulatory landscape. This year is pivotal for compliance officers and firms in the UK, with significant developments expected across various domains. In this blog post, we delve into the key themes and trends anticipated to shape the industry in 2024, guiding you through what should be on your compliance roadmap.

Edinburgh Reforms Implementation Heats Up

‍The year 2023 laid the groundwork for the Edinburgh Reforms. In 2024, expect a wave of clarity on the specifics of these reforms. Firms must stay abreast of the legislative changes and their implications to ensure smooth adaptation and compliance.

Cryptoassets Regulation Gains Substance

‍Last year confirmed the inevitability of cryptoassets regulation. This year, the focus shifts to the specifics of these regulations. While international harmonisation remains distant, understanding the unique regulatory landscape for cryptoassets in the UK will be crucial.

Post-Brexit Equivalence Prospects Remain Bleak

‍Despite some developments in EU-UK relations post-Brexit, the likelihood of the EU granting positive equivalence to the UK in financial services appears slim in 2024. Firms must navigate this uncertainty and prepare for a more fragmented regulatory environment.

Consumer Duty Enforcement in Focus

‍With the Consumer Duty in effect for five months, 2024 will be critical in shaping its supervisory and enforcement landscape. Firms must extend their procedures to closed products and services by July 31, 2024, ensuring compliance in this new era.

Financial Services and Generative AI: A Complex Relationship

‍Generative AI was a buzzword in 2023, and its application in financial services is expected to grow. However, integrating this technology in customer-related processes poses challenges in sustainability, compliance, and reliability.

Surge in Financial Services M&A Activity

‍Driven by various factors like interest rate stabilisation and portfolio investment exits, the financial services sector is set to witness a surge in M&A activities. Staying informed about these trends is vital for strategic positioning and compliance.

Spotlight on Fraud

‍With fraud constituting a significant portion of crime, 2024 will see enhanced efforts to tackle and mitigate fraud, especially in transactional banking and payments. Firms must focus on fraud prevention strategies and align with new regulatory initiatives.

Conclusion

‍The landscape of financial services in 2024 is poised for transformative changes. Staying ahead of these trends is not just about compliance; it’s about seizing opportunities and mitigating risks in a rapidly evolving market. We are here to guide you through these changes.