Global financial regulations and developments to watch 2024

As we step into 2024, the world of finance stands at the precipice of significant change. Global financial regulations are evolving at an unprecedented pace, driven by a combination of technological advancements, socio-economic changes, and lessons learned from past financial crises. These developments present both challenges and opportunities for businesses, governments, and individuals alike. 

The year ahead promises to bring a host of new regulations and developments that could reshape the financial landscape. From stricter data privacy laws to sweeping reforms in banking regulations, these changes aim to create a more resilient, transparent, and inclusive financial system. They reflect the shifting priorities of regulators around the world, who are increasingly focusing on issues such as climate change, digital currencies, and financial inclusion. 

In this context, staying abreast of these changes is more crucial than ever. Whether you're a business leader looking to navigate regulatory complexities, a policymaker keen on understanding the implications of these developments, or an individual investor trying to make sense of the changing financial markets, here we have provided a comprehensive overview of the key global financial regulations and developments to watch in 2024.

According to a report by HSBC's Markets and Securities Services, one of the most significant areas of focus this year is greenwashing and climate risk management. With the rising demand for sustainable investment products, regulators are keen on maintaining the integrity of the ESG investment market. Businesses will have to ensure they operate transparently and sustainably to avoid allegations of greenwashing. They need to align their practices with their claims about environmental, social, and governance factors.

The competitive landscape within the financial services sector is also shifting. Consumers are demanding better experiences, prompting a push towards increasing back-office efficiency through seamless integration. A more digitalised approach towards legislations like making tax submission digital proves to be more efficient. These trends indicate a shift towards a more customer-centric approach in financial services. Companies will need to prioritise efficiency and user experience to stay competitive in this evolving landscape.

The Global Financial Services Regulatory Outlook for 2023 from EY emphasises the increasing threat of cybersecurity in the financial sector. Digital transactions, now the norm, have heightened the necessity of system security. In this digital era, a single security breach can lead to significant financial losses, damage to reputation, and potential legal liabilities. 

Financial institutions have become prime targets for cyber-attacks, leading to an urgent need for collaboration within the global community to protect the financial system. Large-scale power outages, recent natural disasters, and an increase in cyber threats have underscored the need for robust security measures. Companies must not only invest heavily in strong cybersecurity measures but also focus on educating their employees and customers about potential cyber threats. Recognizing and addressing these cybersecurity threats can provide companies with a competitive edge in the market, while ensuring their own and their customers' protection.

Resilience, vigilance, and adaptability have been underscored as crucial facets in the Thomson Reuters' 2023 Financial Markets Regulatory Outlook. The rapidly evolving financial landscape necessitates a resilient approach, extending beyond mere survival to anticipating, withstanding, recovering from, and evolving amid potential threats. This includes having robust risk management frameworks, prudent financial practices, a strong corporate governance structure, and an effective crisis management strategy. 

According to a 2023 survey by Gartner, finance transformation tops the list of priorities for finance leaders. This involves redesigning finance processes to enhance efficiency, reduce costs, and align with business strategy. Other significant areas of focus include change management, technology strategy, and enhancing the employee experience. As businesses adapt to evolving market dynamics and technological advancements, these priorities highlight the strategic efforts needed to drive growth and resilience in the finance sector.

In the rapidly evolving financial landscape, keeping up with ongoing changes in legislation is crucial. Older software solutions often fall short in this regard, failing to incorporate these updates and developments. This failure not only hampers efficiency but also makes maintaining compliance a painstakingly manual task, fraught with risks of oversight and errors. 

Outdated accounting systems can cause delays in reporting, produce inaccurate data analysis, and result in numerous financial errors. They may also lack the critical features needed to streamline processes, such as automated data entry, reconciliation, and financial planning. Furthermore, system weaknesses inherent in older software can lead to deficiencies in an organisation's internal controls, increasing the risk of transactions being incorrectly recorded and reported. 

This is where Advanced Financials steps in. Designed with the future in mind, Advanced Financials offers a robust solution to help businesses stay abreast of the latest updates and developments in global financial legislation. By automating complex processes and incorporating real-time legislative updates, it empowers businesses to maintain compliance effortlessly and accurately.