This could be a good thing for clients, depending on who the company is partnering with and what both parties bring to the table – such as exposure to a different asset class or more sophisticated systems.
Companies should also look at their range of services separately, considering if it is appropriate to have exposure to a wider service model in different entities.
If a company has not already made an application with an overseas regulator for that golden ticket and does not have assurance or authorisation at this stage, then it is a case of hedging your bets.
Exemptions will provide temporary relief to such an unprecedented regulatory headache, but it is not a long-term fix.
Here, looking well beyond March 30 will inform a longer-term approach to compliance risk.
Linda Gibson is director of regulatory change and compliance risk at BNY Mellon’s Pershing
