Regulation continues to be a key driver of the strategic agenda for Financial Services firms, however the ground is shifting.
Persistent geopolitical and economic uncertainty, government-led growth initiatives, rapid digital innovation and an increasingly complex threat landscape are all influencing regulatory developments.
After more than a decade of sustained regulatory pressure, policymakers are increasingly focused on more proportionate, risk-based approaches to rulemaking and supervision, and are considering opportunities for simplification to reduce the burden on firms and promote growth. The pace of change – particularly in areas such as AI, digital assets and cyber risk – is unprecedented, and regulators continue to monitor emerging risks that may ultimately have systemic impacts. At the same time, national agendas are increasingly shaping regulation, reducing prospects for global harmonisation.
We do not expect to see major packages of new rules in 2026, however reviews of and updates to existing requirements will continue to require significant attention. As firms look to transform their operations to take advantage of opportunities presented by new technologies, products and ways of working, there will be significant upside for those who embed regulatory requirements thoughtfully rather than taking a ‘tick-box’ approach. Well-governed, well risk-managed businesses will be better positioned to innovate successfully. Read more in our 2026 Financial Services regulatory priorities article.
The KPMG EMA Financial Services Regulatory Insight Centre is part of a global network monitoring and providing expert insights on regulatory developments. Bookmark this page to stay informed on the key themes shaping the future of Financial Services regulation. We’re here to help you navigate the complexity.
