Business Line/ Sector | Country | Regulator | Rule/Regulation | Summary |
All | European Union | ACER | ACER consults on the European market rules on gas transmission capacity allocation | ACER has launched a public consultation to gather proposals from stakeholders for updating the European rules on gas transmission capacity allocation. The consultation aims to revise the Capacity Allocation Mechanisms Network Code (CAM NC) established in 2017, which standardizes how Transmission System Operators (TSOs) offer and allocate gas transmission pipeline capacity. In light of Europe’s decarbonization goals and the changing gas market, the network code requires an update. ACER’s next steps involve preparing a policy paper on the revision, followed by a public consultation from May 8 to June 14, 2024, and a workshop on July 9, 2024. ACER plans to draft a recommendation to the Commission on amending the network code by the end of 2024. |
Africa Union | Africa Union | The African Union Commission (AUC) is hosting a series of online multistakeholder consultations from April 19 to April 24, 2024, to develop a comprehensive Continental Strategy on Artificial Intelligence (AI). The objective is to facilitate wide engagement and contribution to the draft AU AI Strategy, identify key strategic elements, broaden understanding of African AI needs, and deepen awareness of AI risks in Africa. The consultations will cover four major themes: Seizing AI opportunities for Social, Economic, and Cultural Development in Africa; Addressing and Mitigating AI Risks to Africa; Creating Foundations and Capabilities for Harnessing the Potential of AI and Mitigating its Risks to Africa; and Fostering Intra-Africa coordination and Shaping International Cooperation on AI. Each theme will include a five-minute introduction, reflections by three to four panellists, a thirty-minute panel discussion, a one-hour stakeholders’ Q&A and reflection session, and a ten-minute consolidation and closing. The stakeholders can provide written input for each theme through the online forms provided, with the deadline for submission set for April 25. | ||
France | AMF | The Minister of Economy, Finance, and Digital Sovereignty has approved modifications to the General Regulation of the French Financial Markets Authority (AMF) on March 27, 2024. The changes, which are attached to this decree, primarily pertain to the amendment of Article 411-6, Article 411-10, Article 411-85-1, Article 411-101, Article 411-104, Article 422-7, Article 422-11, Article 423-25, and Article 424-2. These modifications aim to refine the rules governing financial markets in France, particularly focusing on various procedures and notifications to financial management companies. Notable changes include refining the notification process to management companies, such as removing the requirement for additional information forms, and clarifying the process of notifying in writing. The amendments aim to enhance the efficiency and clarity of financial regulations in France, thereby ensuring transparency and compliance within the financial sector. | ||
European Union | EDPB | EDPB sets out priorities for 2024-2027 and clarifies implementation DPF redress mechanisms | The European Data Protection Board (EDPB) recently announced its strategy for 2024-2027, cantered around four pillars. The strategy aims to enhance harmonization, promote compliance, reinforce a common enforcement culture, and contribute to the global dialogue on data protection. EDPB Chair Anu Talus emphasized the importance of the strategy in responding to evolving data protection needs in the digital landscape. Over the next four years, the EDPB will focus on promoting compliance with data protection laws, enhancing enforcement cooperation, and addressing challenges posed by new digital laws, such as the DMA and DSA, and emerging technologies like AI. Furthermore, the EDPB clarified the implementation of redress mechanisms under the EU-US Data Privacy Framework (DPF), introducing Rules of Procedure, a public information note, and template complaint forms to handle complaints by EU individuals concerning national security or commercial purposes, and only for data transmitted after 10 July 2023. | |
European Union | EIOPA | EIOPA, EBA and ECB set up joint governance framework for collaboration on the DPM 2.0 standard | The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Central Bank (ECB) have established a Data Point Model (DPM) alliance, creating a common governance framework for collaboration on the DPM 2.0 Standard. With the establishment of a Joint Bank Reporting Committee (JBRC) between the EBA and ECB, this alliance marks another significant step toward building an integrated reporting system. The alliance aims to facilitate the definition and exchange of regulatory data within the financial sector, increase efficiency, avoid duplication of efforts, promote more efficient processes for defining and communicating reporting requirements, and facilitate good practices in the definition and exchange of regulatory reporting data and information. This cooperation is governed by a Memorandum of Understanding signed by the EBA, ECB, and EIOPA, paving the way for a smoother transition to the new standard for all stakeholders involved in regulatory processes. | |
European Union | ESRB | ESRB publishes report on operational policy tools for cyber resilience
| The European Systemic Risk Board (ESRB) has released a report on operational policy tools aimed at enhancing cyber resilience system-wide. The report focuses on three key areas: gathering, sharing, and managing information; coordination tools for effective joint response; and emergency and backup systems for the continuity of critical economic functions. Private and public institutions are advised to improve information management and sharing, align crisis management and coordination practices, and weigh the pros and cons of system-wide contingency options and backup arrangements. This report builds upon the ESRB’s prior work, including the conceptual foundation for a macroprudential response to systemic cyber risk and the definition of systemic impact tolerance objectives (SITO). The ESRB will continue developing a comprehensive macroprudential cyber strategy, in line with the implementation of the Digital Operational Resilience Act (DORA), piloting the SITO approach and reviewing cyber resilience scenario testing (CyRST), and analysing the synergies from combining operational and financial policy tools. | |
European Union | European Union | European Commission has issued a corrigendum to the Commission Delegated Regulation (EU) 2023/2772, which supplements Directive 2013/34/EU concerning sustainability reporting standards. This update specifically addresses minor errors and makes textual corrections to the original regulation to ensure clarity and precision in the language used. These corrections include adjustments in terminology, such as refining the term “potential financial effects” to “anticipated financial effects,” and correcting erroneous paragraph references throughout the document. The corrigendum is essential for ensuring that the sustainability reporting standards are communicated accurately and unambiguously, facilitating better compliance, and understanding among European entities required to adhere to these standards. These standards are crucial for ensuring that companies report on environmental and social impacts in a manner that is transparent and consistent, thereby supporting informed decision-making by investors, consumers, and other stakeholders. | ||
Isle Of Man | GOV.IM | The Isle of Man Financial Services Authority, in conjunction with the Department of Home Affairs and the Isle of Man Treasury, has opened a consultation on proposed amendments to the AML/CFT framework legislation. The amendments aim to ensure consistency and improve usability between Schedule 1 to the Designated Businesses (Registration and Oversight) Act 2015 (DBROA15) and Schedule 4 to the Proceeds of Crime Act 2008 (POCA08), aligning terminology with international standards where necessary. The consultation includes the addition of a new designated business activity, “Administering or managing money on behalf of another person,” which may bring new businesses into scope of the DBROA15. Feedback is welcomed until April 15, 2024, and can be submitted online, via email, or by post. | ||
UK | GOV.UK | The Financial Services and Markets Act 2000 (Disapplication or Modification of Financial Regulator Rules in Individual Cases) Regulations 2024, set to come into force on June 30, 2024, apply to rules made by the Prudential Regulation Authority, except for specific exclusions. These regulations enable the regulator to grant firms permission to disapply or apply with modifications the regulator’s rules, providing a procedural framework for such permissions. They also establish procedures for giving, varying, or revoking permission under section 138BA of the Financial Services and Markets Act 2000. There is no significant impact on the private, voluntary, or public sector foreseen, and a full impact assessment has not been produced. A de minimis impact assessment of the effect of these Regulations is available from HM Treasury. | ||
Malta | MFSA | The Malta Financial Services Authority (MFSA) has issued a circular on the upcoming ‘Dry-Run’ 2024 ad hoc Exercise on the Data Collection of Registers of Information (RoI) in relation to Regulation (EU) 2022/2554 on Digital Operational Resilience for the Financial Sector. Following the publication of the DORA Regulation in January 2023, financial entities are required to maintain an RoI, containing information on all arrangements with ICT Third-Party Service Providers (ICT TPPs). A ‘Preparatory Exercise’ will be launched in mid-2024 to facilitate industry preparation for the RoI, encouraging voluntary participation from financial entities to ensure compliance with the DORA Regulation by its applicability date. Interested parties are invited to a virtual introductory workshop on 30 April 2024, with participation requested by sending an email to the Supervisory ICT Risk and Cybersecurity (‘SIRC’) function within the Authority by 3 May 2024. | ||
Malta | MFSA | The Malta Financial Services Authority (MFSA) has issued a circular detailing amendments to the Virtual Financial Assets (VFA) Act in preparation for the Markets in Crypto-Assets (MiCA) Regulation, which is set to become applicable to issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs) as of 30 June 2024 and to crypto-asset service providers as of 30 December 2024. The amendments involve the removal of the role of the VFA Agent, transferring their requirements to VFA Service Providers (VFASPs) and Issuers of VFAs, and the introduction of transitory provisions to facilitate MiCA implementation. Financial entities are required to submit their applications for the provision of VFA services by 1 August 2024. Further updates and developments on the VFA Framework will be available on the MFSA website. | ||
Denmark | Nationalbanken | Danmarks Nationalbank appreciates the opportunity to respond to the European Banking Authority’s (EBA’s) consultation on draft Guidelines on the management of Environmental, Social and Governance (ESG) risks. They find the focus on environmental risks, particularly climate-related risks, to be appropriate. They emphasize the importance for credit institutions to identify, measure, and manage climate-related risks in line with other risks. Danmarks Nationalbank welcomes a common European framework for managing climate-related risks and agrees with the guidelines’ focus on the identification and management of financial risks due to climate change and the green transition. They stress the concept of double materiality, emphasizing that credit institutions should consider both financial materiality and environmental materiality. Furthermore, they suggest further clarification on how and to what extent the institutions’ impact on environmental factors can entail a financial risk. Danmarks Nationalbank finds it appropriate that the micro prudential minimum capital requirement remains risk-based in accordance with the EBA’s recommendations on the inclusion of climate-related risks. They look forward to future pan-European guidance from the EBA on the inclusion of climate-related risks in the supervisory authorities’ Supervisory Review and Evaluation Process and in the institutions’ stress tests and scenario analyses. | ||
UK | PSR | CP 24/3: The FPS APP scams reimbursement requirement: compliance and monitoring | The Payment Systems Regulator (PSR) consultation paper CP24/3 outlines a comprehensive compliance and monitoring strategy for the reimbursement of authorized push payment (APP) scams within the Faster Payments Scheme. The document sets forth specific obligations for payment service providers (PSPs), emphasizing the necessity for robust data reporting standards to ensure effective compliance monitoring by Pay.UK. The PSR emphasizes the critical nature of these measures in bolstering consumer protections, ensuring victims of APP scams are swiftly reimbursed, and maintaining confidence in the UK payment ecosystem. Notably, the consultation seeks feedback on proposed regulatory instruments and reporting guidelines, underscoring a collaborative approach to refining and implementing the compliance framework. This initiative is part of a broader effort to enhance fraud prevention and operationalize the Pay.UK monitoring regime by October 7, 2024, with final compliance requirements phased in by May 1, 2025.
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New Zealand | RBNZ | The Reserve Bank of New Zealand – Te Pūtea Matua has initiated a consultation on the introduction of a central bank digital currency, termed “digital cash.” This digital cash would represent a new form of money alongside banknotes, coins, and electronic money in bank accounts. Ian Woolford, Director of Money, and Cash, stated that digital cash would ensure central bank money is available to all New Zealanders and accessible digitally, fostering an innovative, competitive money and payments system, contributing to the development of New Zealand’s digital economy. The digital currency would be backed by the government, available to the public, and would not require a commercial bank account. The consultation is open from April 17 until July 26, 2024, inviting feedback on the challenges, benefits, and concerns regarding the proposed digital cash.
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Banking | Malaysia | BNM | Bank Negara Malaysia introduced an enhanced framework for Electronic Know-Your-Customer (e-KYC) processes applicable to various financial institutions including banks, investment entities, and insurance companies. This revised policy mandates comprehensive measures for customer identification and verification through digital channels, aiming to bolster anti-money laundering and counter-terrorism financing efforts. Key elements include expanded applicability to both individuals and legal entities, rigorous verification methods, and stringent reporting requirements to ensure ongoing compliance and oversight. The document underscores the necessity for financial institutions to integrate advanced technological solutions and maintain robust internal controls to manage and mitigate potential risks associated with e-KYC practices. | |
Hong Kong | HKMA | Supervisory Policy Manual TM-E-1, “Risk Management of E-banking V.3” | HKMA issued Supervisory Policy Manual TM-E-1, “Risk Management of E-banking V.3,” on April 19, 2024, which provides comprehensive guidelines for managing the risks associated with electronic banking (e-banking). It replaces previous versions and associated circulars, applying to all Authorized Institutions (AIs). The manual emphasizes a holistic approach to risk governance, stressing the importance of board and senior management oversight in ensuring robust risk management practices across various e-banking services. Key updates include enhanced controls over customer authentication, increased measures against cyber threats, and the importance of maintaining robust incident response strategies. Additionally, the manual outlines specific security protocols for different e-banking channels, such as mobile and social media platforms, to safeguard against evolving security threats and ensure the integrity and confidentiality of customer data.
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Japan | FSA | On April 19, 2024, the Financial Services Agency (FSA) announced the publication of the Basel Committee on Banking Supervision’s discussion paper titled “The role of climate scenario analysis in strengthening the management and supervision of climate-related financial risks.” This discussion paper, part of the Basel Committee’s ongoing review in connection with the “Principles for the effective management and supervision of climate-related financial risks” published by the Basel Committee in June 2022, seeks input from a wide range of stakeholders on the role and challenges of climate scenario analysis. Comments on this discussion paper are invited to be submitted to the Basel Committee in English by July 15, 2024. For further details, please refer to the discussion paper “The role of climate scenario analysis in strengthening the management and supervision of climate-related financial risks.”
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Insurance | UK | BOE | Solvency II Review – Matching adjustment reform implementation considerations for 30 June 2024 | The Prudential Regulation Authority (PRA) has provided an update to address clarifications requested by firms in response to its consultation paper ‘Review of Solvency II: Reform of the Matching Adjustment’. The PRA aims to assist insurance firms in preparing for the implementation of matching adjustment (MA) reforms efficiently, maximizing new investment opportunities. The proposed reforms, outlined in CP19/23, are on track to be finalized in early June. The PRA has clarified that existing approvals of firms related to Part 4 of the Solvency II Regulations 2015, including existing MA approvals, will remain valid under the reformed regime. The PRA also provided further details regarding the treatment of existing fixed assets under the new regime and the implementation of new requirements. Feedback is being considered, and the PRA will communicate the date(s) on which new requirements will take effect. The general implementation date is set for 30 June 2024, with the PRA providing guidance and materials on the MA application process in advance of this date.
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Global | FSB | Liquidity Preparedness for Margin and Collateral Calls: Consultation report | The Financial Stability Board (FSB) has released a consultation report aiming to enhance liquidity preparedness of non-bank market participants for margin and collateral calls in derivatives and securities markets, building upon the recommendations of the 2022 BCBS-CPMI-IOSCO review. The report proposes eight policy recommendations focusing on liquidity risk management and governance, stress testing and scenario design, and collateral management practices. The FSB’s analysis identified liquidity risk management and governance weaknesses in some market participants as key causes of inadequate liquidity preparedness for margin and collateral calls, prompting the need for policy adjustments to address liquidity strains. The recommendations are intended to apply to a broad range of non-bank market participants and to be applied proportionately to the underlying risks. These recommendations cover both centrally and non-centrally cleared derivatives and securities markets, aiming to ensure the adequacy and reliability of liquidity and collateral. The consultation report invites comments on the proposed policy recommendations until June 18, 2024. | |
Canada | FSRA | The Financial Services Regulatory Authority of Ontario (FSRA) has released a new Corporate Governance Guidance for Ontario-incorporated Insurance Companies and Reciprocal Insurance Exchanges. This guidance outlines FSRA’s interpretation of corporate governance requirements as mandated by various Ontario regulations and the Corporations Act, aiming to ensure that insurers operate with effective governance frameworks that protect stakeholders’ interests. It emphasizes the necessity of robust corporate governance practices to maintain public confidence and ensure sustainable business performance. Key elements include detailed expectations for board independence, oversight structures, and reporting integrity, which are critical for managing risks and ensuring compliance with regulatory obligations. The guidance also integrates principles that dictate the responsibilities of boards in overseeing management and operational functions, ensuring that these entities adhere to a high standard of business conduct and consumer protection. | ||
Canada | FSRA | Financial Services Regulatory Authority of Ontario (FSRA) outlines new operational risk and resilience guidelines for Ontario-incorporated insurance companies and reciprocal insurance exchanges. This guidance aims to bolster the operational risk management frameworks within these organizations, enhancing their capacity to monitor current environments and predict future challenges. Key provisions include the development of comprehensive strategies for understanding, managing, and reporting operational risks, which are crucial for maintaining financial stability and resilience against various types of disruptions. This document emphasizes the need for robust governance structures, thorough risk identification and assessment, and the proactive management of potential operational disruptions to ensure continuous compliance and operational effectiveness. | ||
Canada | FSRA | Ontario’s financial services regulator (FSRA) has finalized the Commercial Lending Guidance, aimed at promoting prudent credit union lending practices to businesses and other commercial operations to ensure members are protected. Following a consultation with the sector, FSRA has developed this guidance, establishing outcomes credit unions must achieve to manage and mitigate risks associated with commercial lending. The guidance outlines the requirements of a credit union’s Board and Senior Management, including the development and maintenance of policies, standards, and procedures for commercial lending activities, managing and protecting the systems and technology required for the activities, and effectively managing and mitigating associated risks. FSRA has concluded the consultation on this guidance and wishes to thank all those who submitted their feedback. | ||
Investment | Luxembourg | CSSF | CSSF has updated its benchmark regulation questionnaire. The purpose of this questionnaire is to gather information from respondents regarding the use of benchmark(s) as defined by Regulation (EU) 2016/1011 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014. | |
US | Federal Register | The Securities and Exchange Commission (SEC) has adopted amendments to a rule under the Securities Exchange Act of 1934 regarding disclosures for order executions in national market system (NMS) stocks. These amendments expand the scope of reporting entities subject to the rule, modify the definition of “covered order” to include certain orders submitted outside of regular trading hours and with stop prices, and change the information required to be reported. Specifically, the amendments modify how orders are categorized by size and type, capture execution quality information for fractional share orders and non-marketable limit orders (NMLOs) and require more detailed reporting on time-to-execution and realized spread. Additionally, the amendments enhance the accessibility of reported execution quality statistics by requiring all reporting entities to make a summary report available. The final rules are effective June 14, 2024, with compliance details provided in the document |
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