Global financial centers are facing fierce competition, and size is no longer a convincing unique selling point. Consistent financial regulation with up-to-date transparency and compliance requirements have become of paramount importance. Various factors play a decisive role in this regard, including the general political and regulatory environment of a country, the structure and efficiency of corporate governance, the scope and quality of services provided by financial institutions, and the security of banking institutions and their regulation, as well as strict requirements to effectively fight corruption, money laundering, and terrorist financing. However, the associated reputational gains of an efficiently regulated financial center are also offset by considerable costs, as financial institutions are forced to significantly expand their risk management and compliance capacities. 

"The Global Financial Regulation, Transparency, and Compliance Index [GFRTCI]—as the index is called—provides a meaningful analysis of the strengths and weaknesses of various countries in terms of their regulatory standards, and allows direct comparison with the current regulatory framework of the Swiss financial center," explains Swiss Finance Institute Adjunct Professor Alfred Mettler of the University of Miami. He is part of the core team of the index’s architects together with Swiss Finance Institute professors Steven Ongena and Christoph Basten from the University of Zurich.

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