FMR Advisory Services


Regulation

The process of planning for change is rarely straightforward. Taking a strategic view on the layers of potential impact on market structure and your own business model is often overlooked in the rush to arrange compliance within the accelerated time frames available. Regulators are typically under intense political pressure to bring the new laws to market, and what would have been considered a normal period of market consultation prior to implementation a few years ago, is now a luxury. Lack of clarity is common both in the detail of the implementation and the timing of impact and potential sanctions. Where the compliance department was sometimes seen as a minor adjunct to the core business, it is now a central driver of operations.

Development of Financial Markets

Financial markets are a series of complex mechanisms that have developed over time to meet the needs of a variety of participants. Whilst the underlying needs boil down to simply borrowing and lending money or changing one currency for another; the different requirements from numerous types of institution and corporation are hugely complex. Whether matching an exact risk or looking across a number of episodic risks over a long time period, there is now a vast choice of execution methods to ensure that the end client arrives at a solution to match their needs. The instruments used to achieve these outcomes are varied and each has its own idiosyncrasies. FMR Advisory can help in the process of developing elements of the financial markets, whether it is the trading infrastructure, regulation of markets, education of participants or building of secondary trading participation. 

 
For each sector above the core approach is similar in execution. The primary work is to ensure a strong definition of outcomes and expectations, with a concrete series of steps to achieve the required outcome. 

Strategic planning

Typically over a day or two the board or similar senior management will review the longer term impacts of regulatory (or other) change and set out the strategic goals depending on the shared opinion of future market structure. Given the heightened personal accountability at board level, this step is vital to ensure that the board fully understand the implications and support the planned approach.

Implementation planning

Having taken a strategic view on the future business model and related appropriate regulatory approach, a gap analysis is undertaken to define the current state against the desired set of outcomes, with suggested workstreams to achieve those outcomes. This element of the wider project is absolutely crucial to ensure that an organisation is completely in line with what is to be achieved - and the work involved in meeting those goals. 

Implementation

The relevant stakeholders need to be defined. The stakeholders define teams, accountabilities and decision rights. The planning team has set out implementation goals and over a phase of many months the systems and surrounding processes will be put in place to conform to the new requirements - regulatory or otherwise.

Management

Finally the development has finished and the changes have been implemented. Compliance and Operations manage the day to day processes.


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