Frankfurt FIS 2014: For Regs, Prep Early and Coordinate

To face the challenges and potential uncertainties posed by multiple levels of regulation, the panel said financial firms should focus on developing a clear overview of the different existing regulatory regimes, and identifying a key set of priorities.

One of the most pressing tasks facing firms is compliance with different requirements derived from new European and international regulations introduced in response to the financial crisis, the panel said, citing the "double work" that is sometimes needed to comply with the EU's European Market Infrastructure Regulation (EMIR) and the US Dodd-Frank Act.

"This makes our life quite complicated," said Gunnar Stangl, head of regulatory coordination at Commerzbank, adding that banks must identify "the right ranking of priorities" to overcome the possible complications deriving from duplicative regulatory demands.

Robert Rilk, executive director of group regulatory strategy and initiatives at UBS, also highlighted the challenges and uncertainties arising from duplication within the existing regulatory framework, noting that post-financial crisis, banks have had to adapt to new requirements in a very short timeframe.

While the panel said that collective efforts led by banks to tackle regulatory challenges and uncertainties could yield benefits, it also noted that there are few industry-driven compliance solutions. Hence, to meet complex regulatory regimes and serve best their clients, firms should also focus on developing internal coordination, panelists said.

"We try to use synergy effects," said Andreas Gehrke, country head of compliance at Frankfurt-based private bank Bethmann Bank, a subsidiary Dutch bank ABN Amro.

Panelists agreed that early implementation is key to meet the demands triggered by multiple levels of regulation, urging firms not to wait too long to start preparation ahead of upcoming regulatory deadlines. "Early implementation is of utmost importance," Gehrke said, adding that the responsibility for failing to comply with regulatory requirements will ultimately fall on banks.