The impact of Basel II, EU directives and International Financial Reporting Standards is forcing financial services organizations to overhaul their information and disclosure strategies and processes.
Much of the attention has understandably focused on the scale and complexity of implementation. Yet just as importantly, these reforms are also intensifying the market's scrutiny of financial services companies in the areas of governance and risk management, mergers and acquisitions and regulation and compliance. As the pace of reform and market demand for information increases, the need for flexible and durable systems capable of anticipating and adapting to change is likely to become even more pressing.
This is clearly a challenge. However, regulatory reform and heightened investor scepticism may be the catalyst required to drive financial services companies toward more open and useful disclosure. For companies that embrace this challenge, the prize is the opportunity to highlight their organizational strengths and enhance their market credibility at a time when companies are increasingly competing globally for investors' attention. Opaque reporting, on the other hand, is likely to be penalised by an ever higher cost of capital.
How PwC can help you
PricewaterhouseCoopers has a local, regional and global network of specialists who can help companies develop effective and sustainable frameworks for meeting new market reporting requirements including Basel II, EU directives and International Financial Reporting Standards. We can also help organizations meet stakeholder demands for more credible and transparent disclosure.
