Regulatory complexity and uncertainty: the CRD IV

Vincent O’Sullivan, PwC; Dr Stephen Kinsella, University of Limerick.

Regulation is the most important factor influencing strategic change at financial institutions and is the second largest threat – after economic uncertainty – to growth prospects, according to PwC’s Annual Global CEO Survey.[1] The survey, which is in its 15th consecutive year, canvassed CEOs at over 250 financial institutions in 42 countries late last year, and provides a good barometer on market sentiment. The significance of regulation as a change driver in the financial sector has grown steadily since the financial crisis. Based on PwC’s face-to-face interviews with CEOs of financial institutions, it is clear, though, that it is not simply regulatory change, but regulatory complexity and uncertainty, that are really dampening their confidence in growth.