Promontory: Asian Financial Firms Must Prioritize Consumers Over Margins in Tighter Regulatory Environment
Promontory Financial Group warns Asian financial companies face hidden regulatory pitfalls. Firms are urged to ensure clients purchase the right products amid increasing scrutiny.
HONG KONG – Promontory Financial Group (PFG) has cautioned Asian financial firms about navigating a landscape of hidden regulatory risks in an increasingly stringent environment. The consultancy's experts are advising the financial services industry to place client interests above profit margins, particularly when introducing new products.
Ronald Gould, Managing Director of PFG in Greater China, highlighted that the era of "buyer beware" is over in Asian financial markets. Recent punitive actions by Hong Kong and Singapore regulators against "minibond" sellers exemplify this shift. Legislators and regulators are closely monitoring how companies protect consumers when launching new financial products.
Multinational corporations seeking to expand in Asia must also be aware of hidden risks. Frederic Lau, another Managing Director at PFG, stated that U.S. and European regulators are increasingly scrutinizing the actions of locally domiciled companies overseas, especially concerning corruption. Companies may be held liable for past criminal activities of acquired subsidiaries, making thorough due diligence essential.
The winter edition of 'Promontory Sightlines' also covers topics such as the U.S. regulatory landscape, cybersecurity risk management for banks, and new compliance requirements for insurance companies. The publication is available on Promontory's website.