by Helen Sanders, Editor, TMI
Understanding and complying with evolving financial regulations is one of the most challenging aspects of treasurers’ role, particularly for organisations operating internationally. Local, regional and global regulations may conflict or overlap, but an added difficulty is that treasurers are often affected by rules that are not directly targeted at them. As Andrej Ankerst, Head of Cash Management Germany and Austria, BNP Paribas explains,
“Since the global financial crisis in particular, corporate treasurers have had to deal with a diverse range of regulatory developments. Some of these, such as SEPA and EMIR, have a direct impact on processes, systems and reporting. However, just as important are regulations that are not targeted at corporations specifically, but which have indirect implications, particularly banking regulations such as Basel III. Treasurers may be less aware of the detail of these regulations as compliance is not an issue in the way as ‘direct’ regulations would be, but the impact may be at least as significant.”
Furthermore, regulatory change does not happen in isolation, but alongside other developments that may reduce or exacerbate the impact, particularly the effect of low or negative interest rates. The key for treasurers is to keep up to date with regulatory developments, engage with banks, technology partners and treasury associations, and anticipate the implications for their business. As this edition of TMI is being launched at Schwabe, Ley & Greiner’s annual Finanzsymposium event, this article highlights the priorities and experiences of treasurers in Germany, but these are just as relevant to treasurers in other countries and regions.