THE CHANGING REGULATORY HORIZON - 2021 EXPECTATIONS FOR RISK AND COMPLIANCE MANAGERS
R&C: How would you describe the current regulatory landscape and the extent to which it is subject to change? What should risk and compliance managers expect as 2021 unfolds?
Johns: Coronavirus (COVID-19) upended regulatory plans and programmes in 2020 as pandemic relief for companies and their customers took precedence. However, regulators were still working on their programmes and supervisory priorities, so we expect an active regulatory environment in 2021 fuelled by the complexities of legislation post Brexit. In the UK, the topics we are watching in the regulatory landscape include the following. First, Brexit legislation requirements and the future stipulations for trading with the European Union (EU). Many organisations will need to address policies and processes to align with UK and European legislation. Second, imminent UK Sarbanes-Oxley Act (SOX) legislation and Sir Donald Brydon’s review of reshaping the audit profession. As the UK exits the EU, financial reporting will also need to align. Many key FTSE 100 organisations are already addressing their risk and control framework and, as a result, the governance risk and compliance (GRC)/integrated risk management (IRM) market thrives with new SOX initiatives. Third, rollout of the Financial Conduct Authority’s (FCA’s) Senior Managers and Certification Regime (SM&CR) and the completion for solo-regulated firms in March 2021.
Apr-Jun 2021 Issue
SAI Global