The report also found that political and technological global complexities are affecting the regulatory compliance in the sector
NEW YORK – Duff & Phelps, the global advisor that protects, restores and maximizes value for clients, today released its seventh annual Global Regulatory Outlook (GRO) report. The report, which surveys senior professionals in financial institutions across the world, found that respondents perceive New York as the world's preeminent financial center, reclaiming the title from London as Brexit continues to cast a shadow of uncertainty over the UK economy.
52% of the respondents view New York as the world’s financial center, a 10% increase from 2018. 36% currently see London as the foremost global financial hub, a 17% decrease from last year. Looking ahead five years, respondents’ confidence in New York maintaining its place fell to 44% and only 21% of respondents said that London would be the world’s financial center. 12% of respondents said that Hong Kong would take the title by 2024, a significant increase from the 3% who held this opinion in 2018.
Ken Joseph, Managing Director and Head of the Disputes Consulting practice at Duff & Phelps, said, “Whether located in traditional financial centers or not, the finance executives responsible for governance, risk management and compliance are grappling with significant threats arising from increasing obligations relating to the anti-money laundering programs, data protection and privacy, cybersecurity defenses, whistleblowers and 'big data' and technology." Joseph continued, "These professionals confirmed in our survey that organizations are compelled to devote more and more resources to address compliance obligations and to navigate a regulatory environment that is complicated by a web of geo-political uncertainties, including trade tensions and Brexit."
The survey found that the most pressing issues facing the global financial community this year with respect to regulatory compliance continue to involve anti-money laundering (AML) and whistleblowing. Technology and budgeting have also emerged as factors affecting firms’ compliance functions.
Other insights from the GRO survey indicate that:
Cyber Security and Data Management
About Duff & Phelps
Duff & Phelps is the global advisor that protects, restores and maximizes value for clients in the areas of valuation, corporate finance, investigations, disputes, cyber security, compliance and regulatory matters, and other governance-related issues. We work with clients across diverse sectors, mitigating risk to assets, operations and people. With Kroll, a division of Duff & Phelps since 2018, our firm has nearly 3,500 professionals in 28 countries around the world. For more information, visit www.duffandphelps.com.
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