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Trust as the Cornerstone of New Financial Regulatory Compliance

Header image of the post author and Custodia Head of Regulatory Affairs & Compliance, Nathalie Aubry-Stacey. The headline reads: Are you operationally resilient. And can you demonstrate it?

Ensuring institutions have sufficient operational resilience to maintain the stability of the financial system has become a key concern for regulators globally. Outsourcing and vendor management are of particular focus.

The lingering impact of the pandemic, rising inflation and interest rates, slowing economies have put even more pressure on financial services firms to maintain operational uptime. Even the shortest period of services being rendered unavailable can seriously threaten market integrity and damage the reputation and viability of a brand.


Regulators are more aware of how firms in the financial services sectors have become increasingly dependent on technology and how it affects market integrity. But rather than focusing solely on business continuity and incident managing, the emphasis is now on ensuring the resilience of critical business services and their impact on the market.

As regulations evolve to encompass new security and operational resilience requirements, trust becomes not just an asset but a fundamental necessity.

Over the coming years, as financial services and insurance sectors brace for a wave of regulatory changes, the importance of trust will be increasingly emphasised.

These changes also extend to third-party service providers management who are integral to financial operations, underscoring the need for comprehensive readiness across all facets of the industry.

For executives, this regulatory shift carries important implications:

  • Customer-centric focus: Executives must prioritise investments to strengthen and enhance these services, aligning their strategies accordingly.

  • Board responsibility: Executives must work closely with the board to ensure resilience is embedded in the organisation’s priorities and investments.

  • Holistic perspective: Executives should adopt a holistic view of operational resilience mapping assets, vulnerabilities, and dependencies across critical business services.

While the compliance responsibility for these rules ultimately falls on the regulated firms, outsourcing providers that can demonstrate they are ready to meet the regulators’ requirements – by being SOC2 ready, for example – will be in a much stronger competitive position to win and retain that business. Demonstrable resilience, and a partnership approach to alleviate client concerns, will be fundamental selection criteria in this new world order.

A Global Overview of Financial Regulatory Changes

The EU Flag

European Union: The Digital Operational Resilience Act (DORA) marks a significant shift in regulatory expectations across the EU, establishing a unified framework for managing IT, data, and digital operational risks. A notable aspect of DORA is the accountability it places on the boards of directors, emphasising that cybersecurity is not just a technical issue but a central business concern. The cross-sector DORA will come into effect on 17 January 2025, it aims to combat technology and cyber risk by demanding all firms can withstand, respond to and recover from operational disruptions and threats caused by cyber security and ICT issues.

The UK Flag

United Kingdom: By March 2025, UK financial firms are mandated to implement a Board Level Operational Resilience Policy. This involves detailing crucial business services, establishing impact tolerances, and conducting extensive scenario testing, ensuring that the firms are prepared to handle disruptions without affecting critical services.

The US Flag

United States: The SEC’s recent regulations aim to enhance transparency and standardization in how financial entities disclose cybersecurity risks and manage incidents. These rules, which are gradually coming into effect with full compliance expected by the end of 2024, reflect a broader global trend toward stringent regulatory demands, similar to developments in Australia and Canada.

The Imperative of Trust

The finance sector's transition to digital platforms has heightened exposure to cyber threats, potentially leading to economic disruption and significant financial losses. Beyond the immediate risks, the underlying challenge is maintaining consumer trust. Whether it's a simple bank transaction or a complex corporate finance operation, trust ensures that deposited money can be retrieved, insurance claims will be honoured, and sensitive regulatory data remains secure.


The path to compliance with new financial regulations may seem daunting, but it offers a strategic opportunity to reinforce trust and ensure long-term resilience. Financial institutions must develop proactive approaches that not only meet regulatory demands but also enhance service reliability and secure customer data. In doing so, they can maintain and build on the trust that is so crucial to their continued success.


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