UK - The cost of implementing upcoming regulations and reforms could prove overly burdensome, warned UK regulator the FSA in its Financial Risk Outlook 2004, its annual document outlining perceived upcoming risks.
In order to implement the EU Financial Services Action Plan and International Accounting Standards, firms will have to make substantial systems changes.
“This may increase cost pressures on firms, exacerbate operational risks and impinge on their ability to absorb and implement new regulatory requirements,” forewarned the report.
On hedge fund activity, the FSA sounded a note of caution over the intense competition between prime brokers, suggesting that credit risk management standards could suffer.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.