Regulatory change Management (RCM) has never been easy for financial institutions, and its complexity is increasing in 2022. This year is poised to be the year of significant regulatory change at the federal and state level. As reported by Reuters, 2022 will be a ‘’turning point’’ for the current administration’s financial approach. Financial regulators are releasing white papers, FAQs, and calls for feedback to prepare the system for the regulatory changes that are about to come.
Why 2022 Will Be the Year of Regulatory Change
There is usually no major upheaval in regulatory frameworks when government leadership changes – there are minor changes, but a significant overhaul is generally not expected.
The disruptions caused by the pandemic were (and still are) so disruptive that the federal and state governments spent most of their time and resources trying to manage the economy as the global supply chain came to a crawl. Instead of implementing big changes, they had to introduce further leniencies in the regulatory framework (such as increasing reporting times and reducing audits) because the government understood how precarious the pandemic was for businesses.
While the Biden administration may not have implemented any significant changes so far, it has not been sitting idle either. The past year was spent creating new regulatory roles, appointing new regulatory and climate experts, and discussing the upcoming regulatory changes. This means that as 2022 starts, the administration is ready to introduce the changes it has always planned. The White House announced the people it would be nominating to lead financial regulatory agencies in September 2021. 2022 will be the start of most of these changes, the ramifications of some of which will be felt for many decades. Read more: https://bit.ly/3KG5taE