Globally, more than 200 regulations applicable to financial institutions are issued every day. The enormity of the challenge this creates cannot be underestimated. At the same time, many banks and financial services corporations are struggling to find innovative solutions to remain competitive while also exploring ways to optimize their tax structures. Baker McKenzie’s Jeremy Pitts, Gavin Raftery, and Steven Sieker provide effective solutions to balance priorities in terms of regulatory change, innovation and tax.
The most important way to figure out which rules apply and how to remain compliant with changing regulations will be internally driven – that is, by adopting a culture of compliance rather than one that emphasizes profit maximization. Across Asia, many banks and other financial institutions continue to expand compliance functions to ensure compliance and avoid unnecessary and costly enforcement actions.
Having access to the latest information and updates on legal regimes and trade regulations across markets – and even more so in Asia Pacific where each market has its own unique set of rules – is crucial to remaining compliant and staying out of court. Financial institutions should search out resources and experts with a deep knowledge of Asia’s markets and an understanding of regulators and the topics being discussed today.
KNOWLEDGE IS POWER
HAVE A VOICE: TAKE PART IN REGULATORY CHANGE
Many regulators in Asia Pacific have established committees to facilitate a dialogue on new laws and requirements before they are enforced. Financial institutions should think about who they have representing them on these committees so they have a voice in decisions being made. At the very least, such representation will help them stay informed on the latest decisions being made so they can take appropriate action in compliance or their corporate strategies.
ADOPT A CULTURE OF COMPLIANCE
LEAD THE CHARGE
Investing in innovation gives financial institutions a seat at the table on how the industry will be shaped. However, one of the biggest changes that traditional financial institutions need to make is to their corporate culture. Today, industry leaders are the ones who adopt that start-up mentality and experiment with new ideas. They’re making mistakes, but correcting course quickly and moving forward until they reach a satisfactory solution.
HAVE A TAX TEAM
Developing an effective tax strategy and optimizing tax structures, despite the ease of doing business and sophisticated structures in some of Asia’s markets (Hong Kong and Singapore, for example), requires more than just planning. The real success comes from implementation, and having the right team to execute this plan.
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Financial Institutions STEPS FOR SUCCESS: A balancing act
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