Telum caught up with Hume Brophy's Managing Director, David Cook who leads the international financial services practice across London, Brussels, Asia and the US. He shares more about his new role, emerging technologies transforming financial services and his approach to conflict resolution.

You were formerly lead negotiator for the UK Government on EU financial service regulation - how has the transition to Hume Brophy been like for you?
I spent a lot of time representing the United Kingdom in international negotiations. I considered it a privilege to represent my country, and it was fascinating working through issues, finding common ground and agreement when, at the outset, nothing seemed possible. But I wanted to better understand how the outcome of these processes mattered for businesses and challenge myself in a new sector.

This is exactly what I have found at Hume Brophy. We have an amazing range of clients across many sectors and jurisdictions. Every day brings a new challenge and something new to learn. I have also enjoyed bridging the gap between policymakers and businesses - helping our clients understand what is driving new regulation and policymakers ascertain the impact of their work on the industry.

What are you most excited about in the international finance space?
The obvious thing is how new technologies will change the shape of financial services, such as with FinTech, RegTech, and other technology-enabled services like digital banking and buy now pay later (BNPL) programmes. Although I think change might happen more slowly than many in the FinTech community might like, the impact is likely to be very profound indeed.

I am also fascinated by how global regulatory frameworks will adjust following Brexit. Of course, the European Union and the United Kingdom will find a way to co-exist. However, there could be some serious changes at a global level as the UK gets closer to other jurisdictions like the United States and partners in Asia.

Also, the importance of global standard setters such as the International Organisation of Securities Commissions (IOSCO) or Basel is likely to increase and could reshape how regulation gets made internationally. This is likely to create new challenges and opportunities for the industry.

Regulations are evolving in response to trade conflicts. How do you advise your clients when dealing with complex situation?
In terms of trying to work with regulators, I would always advise our clients to understand the aims of, and pressures on, policymakers. It is impossible to completely separate regulation from politics and this can make regulation seem illogical economically.

I would advise clients to always start by understanding what policymakers are trying to do and why. Then design options that would help achieve these objectives, whether regulatory or political, in a way compatible with business models. Also, the world is becoming much more complicated and, in aiming to influence regulatory processes, it is important to look beyond simply meeting the relevant politician, regulator or official.

We are always looking to create an environment where the objectives of our clients are likely to be attractive to policymakers. This could be done through a wide variety of other channels such as thought leadership, media and social or digital channels to name a few.

Where do you get the latest financial and business trends and developments news from?
I try to keep abreast of many sources of news, from traditional and social media, conferences and talking to old friends and colleagues. However, some of our clients have been incredibly generous in terms of sharing with us at Hume Brophy how their businesses and industries are developing and what this means for today and the future.

What’s your advice to anyone starting out in public affairs for financial services?
Really try and understand why things happen and what regulations or products are for. All too often people do not understand why regulation exists, what the market failures that justify it are or what the political drivers are.

Similarly, people lose track of what the financial system is for and what needs the particular products are meeting. This lack of understanding can lead to financial services being disconnected from the real world (or even, as my old boss and former Chairman of the Financial Services Authority Adair Turner famously said, socially useless) and regulation being ineffective and missing its aims. Better understanding the purpose of regulation, business and products will ensure that your messages resonate with your audience and, ultimately, help you achieve your goals.