Financial Crime World

Canada Unveils Framework for Consumer-Driven Banking

In a surprise move, Canada’s Minister of Finance has announced a long-awaited framework and timeline for implementing Consumer-Driven Banking in the country. The plan aims to introduce legislation and establish a governance framework by 2025.

Regulatory Technology Association Weighs In

As a Board member with the Canadian Regulatory Technology Association (CRTA), our mission is to foster a neutral setting for key participants in the financial services ecosystem to learn, collaborate, raise standards, and promote growth and innovation. With 2024 marking our sixth year of operations, we believe that meaningful collaboration amongst RegTechs, FinTechs, regulatory supervisors, financial institutions, and professional services providers has never been more crucial.

Several emerging trends are expected to significantly impact the regulatory landscape in 2024 and beyond. These include:

  • Intensified Regulatory Enforcement: The CFTC’s Division of Enforcement has issued an advisory urging stricter penalties for repeat offenders, which is likely to lead to a surge in enforcement actions.
  • Resource Allocation Towards Historical Data Correction and Modification: Firms will need to ensure accuracy and compliance in reporting for active historical trades, leading to a significant allocation of resources towards managing and correcting historical data.
  • Further Rule Finalization by the SEC: The Securities and Exchange Commission is expected to finalize several more rules and propose new ones, building on its momentum from 2023.

Transaction Reporting Landscape Set for Substantial Change

The trade and transaction reporting landscape is set to undergo substantial changes in 2024, marked by a series of comprehensive Refits and Rewrites globally. Key changes include:

  • Adoption of harmonized data fields
  • Implementation of standardized message formats through ISO 20022 XML
  • Inclusion of essential reference data

Data Quality Challenge Set to Increase

As firms navigate this complex regulatory environment, they will need to prioritize strengthening their regulatory governance frameworks and increasing reliance on automation and assurance testing. The data quality challenge is set to increase, with the need for accurate and compliant reporting more crucial than ever.

Author’s Note

This article provides general information only and should not be taken as legal advice or specific guidance on regulations. For expert insights into emerging trends in the financial sector, follow our blog for regular updates and analysis from industry experts.

About the Author

Trudy Namer is Executive Director, Marketing at S&P Global Market Intelligence Cappitech, leading the global marketing strategy for Cappitech. With over 15 years of experience in B2B and financial services marketing, Trudy specializes in branding, lead generation, digital marketing, public relations, thought leadership positioning, and content creation.