“Supervision - an ever-evolving craft, blending hard-data, technical knowledge, business experience and cultural nous”, Director of Markets Supervision Gareth Murphy

• Firms that promote a culture which is client-focussed, fair and mindful of the wider financial services and economic environment are aligned with the mission of financial authorities.
• Technology has the potential to transform financial services but will pose risks to users of financial services and challenges to regulatory engagement.
• As regulatory engagement evolves in Europe, there will be an increasing focus on effective, efficient and convergent supervision.

Read the full speech

At the launch of the Duff and Phelps Global Regulatory Outlook today, Director of Markets Supervision, Gareth Murphy, spoke about the key areas highlighted in the report of culture, technology and cyber risk.  He also spoke about stress testing of investment vehicles, disclosure of investment fund fees and data driven supervision.

On culture Mr Murphy said: “it is no surprise that as rules on capital, liquidity, remuneration, resolution and so on are being laid down, the focus has shifted towards firms' culture and the need for greater personal accountability, especially at senior levels.”

On data, Mr Murphy said: "Good quality regulatory data can help supervisors to prioritise workflow and areas of focus based on key metrics and statistical filters.

“One of the biggest challenges is determining the nature and scale of the investment required to counter cyber risk”, Mr Murphy said. “Tackling this threat requires people, systems and vigilance.  This requires an ongoing commitment from both financial authorities and regulated entities as the threat adapts and evolves.  For sure, this will be an area of supervisory concern for years to come as technological change drives business change.”