What Are The Likely Consequences Of Covid-19 For Financial Institutions in 2021?
While the world wrestles with the day-to-day realities of the pandemic, 2021 will bring further challenges. With the memory of the litigious and regulatory aftermath of the global financial crisis still fresh, what should be on your radar?
The Covid-19 pandemic has given rise to significant risks for financial institutions. These range from disputes relating to financial products, insurance and insolvency to corporate governance and regulatory issues.
Sarah McAtominey and Naomi Miles wrote about this in our Emerging Themes in Financial Regulation 2021 publication, explaining what you need to be aware of in respect of the following key risk areas:
- Disputed margin calls and close-outs
- Distressed and insolvent counterparties
- Competition damages actions from insolvent companies
- Inadequate disclosure claims
- Preserving business today at the expense of tomorrow
- Significant increase in white collar crime
- Employment disputes
- Rise in (re)insurance disputes
- Data security threats
- Health and safety
- Compliance with new laws and regulatory scrutiny
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This document provides a general summary and is for information/educational purposes only. It is not intended to be comprehensive, nor does it constitute legal advice. Specific legal advice should always be sought before taking or refraining from taking any action.