As the financial industry undergoes rapid transformation, modernising core banking systems is no longer optional -  it’s a necessity. With many banks still operating on legacy systems, some of which were implemented 30 to 40 years ago, these aging platforms, often heavily customised, struggle to keep pace with the demands of digital banking, real-time transactions, and seamless integration with fintech partners.

Several months following its publication, this paper examines ESMA’s 31 July opinion issued to National Competent Authorities (NCAs) and considers the impacts it is having on those seeking to operate within the parameters of Europe’s Markets in Crypto Assets Regulation (MiCAR). We assess how ESMA's guidance is reshaping the landscape for broker-dealer models, and how best execution requirements will require firms to make operational changes in a rapidly evolving regulatory environment.

In today's rapidly evolving geopolitical landscape, the banking sector faces an unprecedented increase in the risk of money laundering and financial crime. As the first line of defence against these threats, banks must confront the harsh reality that their existing KYC (Know Your Customer) and AML (Anti-Money Laundering) processes are being tested like never before. The heightened risk environment necessitates an urgent call to action. Now is the time to invest in innovative technology and develop a fit-for-purpose operating model. To reinforce defences to ensure they stay ahead of emerging threats as well as be a pioneer for further essential business growth.

Realising the future CFO office to drive continuous improvement is a key vector for unlocking outsized value creation and increasing market competitiveness.

As the importance of technology in business operations deepens, the CFO and finance function should be attributed remits across controlling the tech. spend agenda, owning financial / operational data, and acting as a facility for insights – evolving into a more complex role within businesses as the strategic engine room.

SEPA Instant was introduced as a key component of the Single Euro Payments Area initiative, addressing the need for a pan-European Euro instant payment solution. It represents a significant evolution in European Banking, aimed at enabling real-time, cross-border Euro transactions. This system significantly enhances the efficiency of transactions, offering a faster, more streamlined payment process across Europe with enhanced data capabilities – crucial in the modern financial ecosystem.

CRD VI is anticipated to come into effect Jan 2027, meaning third country banks can no longer provide in-scope cross-border banking services to EU clients. The current near-final text; i) increases regulatory scrutiny across capital requirements, facilitating further oversight from national competent authorities (NCAs) of third country banks, and ii) introduces a mandatory subsidiarisation criteria of third country branches (TCBs). 

For third country banks, building a a robust response to CRD VI requires evaluation and design across entity structures, technology platforms and, operating model – with key consideration of broader regulatory / compliance impact resulting from changes in operating structure.

The PRA published the supervisory statement SS 2/24 in March 2024 where it set out the new rules and expectations for non-systemic banks and building societies. The proposed Solvent Exit exercise expects the firms in scope to make preparations for ‘Solvent Exit’ as part of their BAU activities. The crux of the regulation is: orderly wind down after returning or transferring deposits and cancellation of the Part 4A PRA permission.

Financial Services firms face global economic pressures, including fluctuating interest rates, geopolitical tensions, and stringent regulatory requirements. Rapid technological advancements like Blockchain and Generative Artificial Intelligence (Gen Al) add to the complexity of the landscape. To thrive, firms must set ambitious strategic goals, building on a foundation of operational excellence to innovate and remain competitive. It has never been more difficult for those in charge of operations to know where to place their bets. With this whitepaper we aim to simplify all of that.

Valentia Partners evaluates the challenges associated with implementing the Trading Activity Wind Down (TWD) requirements outlined in the PRA’s Supervisory Statement SS1/22 of May 2022, with a focus on meeting the regulation deadline of March 2025. We also explore enhancements for any potential post-implementation Book of Work (BoW); and suggest areas where regulatory forbearance from the PRA could be sought.

The FCA’s new Consumer Duty regulation has had a profound impact on the financial services market since it’s go-live in July-23. Valentia Partners takes a look at some of the challenges firms have faced since Day 1, what is required to implement effective monitoring and reporting processes, and how firms can future-proof procedures to ensure they act in the interests of their consumers in the future.

Explore our latest spotlight in The Scotsman, where we delve into Valentia's dedication to the burgeoning Scottish market. Discover how we prioritise sustainable excellence and value delivery to our local clientele.

Valentia Partners takes a closer look at recent sustainability requirements that may have implications for Financial Services businesses and their clients. On the 28th of November 2023, the UK Financial Conduct Authority (FCA) published the Sustainability Disclosure Requirements (SDR). This policy aims to address risks of ‘greenwashing’ and enhance transparency across sustainable investments.

Entry Strategies for Traditional Firms.

Three tokenization solutions attracting investment.

Approaching the Consultation Packages.

Six indicators that signal the direction of digital asset adoption.

Environment, Social and Governance are a sometimes-uncomfortable juxtaposition of ideas. Collectively they speak to sustainability and catalyse change across the operating models of Financial Services business. Here we discuss how to engage, prioritise and deliver ESG-inspired change in Financial Services.

Financial Services customers will each have their own ideas as to how ESG should be factored into the service they receive. Standard customer journeys cannot accommodate this. We address what needs to change.

ESG is an industry changing opportunity to embrace sustainability and access new, long-term value pools. It’s also an enormous challenge for Data and Analytics capabilities.

Upcoming UK ESG regulation may be the most important shift yet for authentically sustainable finance.