Regulation: opportunities and challenges

Basel III, Solvency II and other regional legislations will have broad implications for the companies involved, their customers and investors. We look at how the regulatory landscape will change.

Basel III

In the wake of the financial crisis, Basel III will impose a tough set of rules designed to stop banks taking on excess risk. Banks must hold more capital against their assets, thereby decreasing the size of their balance sheets and their ability to invest with borrowed capital. The implications of these changes for both financial institutions and corporates are far-reaching.

Basel III – ramifications for the syndicated loan market

February 2012

The syndicated loan market is not yet pricing in impending regulation changes; one of the biggest of which is Basel III. However, the changes need to be analysed and planned for because the new rules have the potential to alter the way lenders and borrowers interact, according to RBS’s Richard Bartlett and Sean Malone.

The corporate hedging debate

September 2011

With Basel III regulations set to impose much higher capital requirements on banks, the knock-on effects on corporates and their hedging activities could be significant. Companies need to understand the changes and take the chance to work with legislators and regulators, explains RBS’s Richard Bartlett and Peter Ryan-Bell.

Basel III: Need to know

September 2011

Explaining the Basel III amendments and the timetable for their implementation.

Solvency II

The new solvency regime for the European insurance industry will likely trigger significant shifts in demand and pricing across asset classes. Understanding the market impact of the new regulations will be the key to successfully negotiating the changed financial landscape.

Surprise Solvency II pact paves way for EUR7 trillion insurance-assets shake-up

March 2012

European insurers have been stifled for years by fundamental disagreements over Solvency II. Now, thanks to a rare show of European unity, they have some clarity. A reallocation of up to EUR7 trillion of insurance assets may follow, creating significant market distortions as well as investor opportunities.

 

Solvency II: Need to know

October 2011

Explaining the key changes contained in Solvency II, who they affect and their potential market impact.

Managing assets and liabilities in a Solvency II world

September 2011

Insurers have an opportunity to do more than simply comply with new Solvency II regulations. They can take advantage of the rules to fine tune their overall risk management models and become more efficient with capital than ever before, explains RBS’s Simon Wenden and Robin Thompson.

The evolution of the prime broker model

The evolution of the prime broker model: a paradigm shift

September 2011

Perceptions of the financial world have changed significantly since 2008. Clients and regulators have demanded a major shift in prime broker models towards security and transparency. The spectacular failure of Lehman Brothers on 15 September 2008 and the more recent demise of MF Global was unexpected and for many the consequences were unforeseeable.