The American financial regulatory system has long been envied as one of the most effective and best models in the world. But while some international regulatory systems appear to focus on attracting and competing for business in the global marketplace, concerns are brewing that America’s reputation may not hold true forever.
These new concerns—that the US system will not always enable innovation or be as attractive in the global marketplace—have people talking about the need for change. Two recent events foreshadow fundamental changes for financial players. In March 2008, the US Treasury announced a blueprint for a new regulatory framework and, at the same time, the Securities and Exchange Commission (SEC) presented plans to move forward with a mutual-recognition concept.
Executives of financial services firms should prepare now for the tide of changes on the horizon.
