In an ever-evolving regulatory landscape, financial institutions must stay ahead of compliance updates to mitigate risks and ensure adherence to global standards. This week’s regulatory alerts cover critical developments across multiple jurisdictions, from financial crime prevention and digital operational resilience to sustainability disclosures and market competitiveness. These updates reflect the increasing regulatory scrutiny on financial services, emphasizing transparency, accountability, and technological advancements. Understanding these changes is vital for firms navigating complex compliance obligations and aligning with international best practices.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Australia | ASIC | Additional Relief for Licensees Under Reportable Situations Regime | The Australian Securities and Investments Commission (ASIC) has proposed further relief measures to assist financial services and credit licensees in complying with the reportable situations regime. The proposal aims to reduce the reporting burden while ensuring ASIC continues to receive reports of high regulatory value. The relief would exempt reporting of certain breaches related to misleading and deceptive conduct and civil penalties if they meet specific criteria, including rectification within 30 days, minimal consumer impact (affecting no more than five individuals), and financial loss not exceeding $500. Licensees must still maintain robust systems to identify, investigate, and rectify breaches as part of their obligations. ASIC is seeking industry feedback on the proposal by March 11, 2025. This initiative aligns with ASIC’s broader efforts to enhance the effectiveness of the reportable situations regime, which plays a crucial role in strengthening industry standards and consumer protections. |
British Virgin Islands | BVIFSC | The British Virgin Islands Financial Services Commission (FSC) has published its updated 2025 AML/CFT/CPF Policy and 2025-2027 AML/CFT/CPF Strategy, reinforcing its commitment to combating money laundering (ML), terrorist financing (TF), and proliferation financing (PF). This new framework builds upon the 2020 AML/CFT Policy and Strategy, introducing enhanced measures across supervision, enforcement, cooperation, and stakeholder awareness to mitigate financial crime risks. The 2025 Policy separately addresses AML, CFT, and CPF threats, outlining key vulnerabilities and strategic objectives to strengthen regulatory oversight. The three-year 2025 Strategy provides a structured action plan to improve compliance, align with international standards, and fortify the integrity of the Territory’s financial services sector. | ||
European Union | EBA | The European Supervisory Authorities (EBA, EIOPA, and ESMA) have outlined their roadmap for the designation and oversight of Critical ICT Third-Party Providers (CTPPs) under the Digital Operational Resilience Act (DORA), which came into effect on January 17, 2025. Financial regulators must submit Registers of Information on ICT third-party arrangements by April 30, 2025, after which the ESAs will assess and notify designated providers by July 2025. A final designation will follow a six-week objection period, marking the beginning of formal oversight engagement. To ensure an integrated and consistent approach, the ESAs have set up a joint DORA oversight function, operational since October 2024. Additionally, an online workshop for ICT third-party providers will be held in Q2 2025 to provide further clarity on the process. This initiative strengthens cyber resilience and regulatory alignment across the EU financial sector. | ||
Global | UNEPFI | The United Nations Environment Programme Finance Initiative (UNEP FI) is accelerating efforts to align global financial flows with nature-positive outcomes in support of the Kunming-Montreal Global Biodiversity Framework (GBF). With a biodiversity financing gap of $20 billion annually by 2025 and $30 billion by 2030, UNEP FI has launched two strategic initiatives: capacity-building for stock exchanges in partnership with the UN Sustainable Stock Exchanges (UN SSE) initiative and preparing financial institutions and real economy actors for nature-related disclosures aligned with the Taskforce on Nature-related Financial Disclosures (TNFD). Backed by the International Climate Initiative (IKI), these initiatives emphasize market clarity, risk mitigation, and local-global financial coordination, ensuring emerging markets play a key role in biodiversity conservation efforts. | ||
Global | UNEPFI | Accountability for Nature Report on Nature-Related Disclosures | The United Nations Environment Programme Finance Initiative (UNEP FI) and the UNEP World Conservation Monitoring Centre (UNEP-WCMC) have released the 2025 update of the “Accountability for Nature” report, which compares key nature-related assessment and disclosure frameworks. This latest edition includes an addendum on pollution, highlighting how leading reporting standards incorporate pollution-related disclosures. The report reviews frameworks such as the Taskforce on Nature-related Financial Disclosures (TNFD), European Sustainability Reporting Standards (ESRS), Global Reporting Initiative (GRI), and Science Based Targets Network (SBTN), emphasizing alignment trends, interoperability efforts, and evolving regulatory landscapes. As global sustainability regulations move towards mandatory nature-related disclosures, the report provides insights for financial institutions, businesses, and policymakers to enhance nature-positive financial reporting and risk assessment. | |
Luxembourg | CSSF | The Commission de Surveillance du Secteur Financier (CSSF) has issued a user guide detailing the submission process for the AML/CFT Financial Crime Questionnaire. The guide outlines how financial institutions must submit their responses via the eDesk portal or through an S3-based submission method. The AML/CFT Responsible—either a compliance officer or a management body member—is accountable for the questionnaire’s accuracy and submission. Institutions can pre-fill data using S3 before finalizing the submission on eDesk. The guide also includes validation rules, error messages, and compliance requirements. Financial institutions are encouraged to review the process to ensure timely and correct submissions. | ||
Banking | Hon Kong | HKMA | The Hong Kong Monetary Authority (HKMA) has released an Adoption Practice Guide on Greentech in the Banking Sector, aiming to support banks in integrating green technology into their operations and financed emissions. As part of the “Fintech 2025” strategy and the “All banks go Fintech” initiative, the guide outlines how Greentech can help financial institutions transition to net-zero and mitigate climate-related risks. It builds on insights from the FiNETech 3 collaboration in November 2024 and provides practical guidance on leveraging sustainable technology solutions. Banks are encouraged to review the guide and assess how Greentech can enhance their environmental strategies. | |
United Kingdom | BOE | UK Prudential Regulation Authority Updates Approach to Policy Implementation | The Prudential Regulation Authority (PRA) has published Policy Statement PS3/25, outlining its updated approach to policymaking under the Financial Services and Markets Act 2023 (FSMA 2023). The revisions reflect the PRA’s expanded rule-making responsibilities and its commitment to international competitiveness and growth. Key updates include enhanced stakeholder engagement, a more disclosure-based regulatory framework, and a streamlined approach to implementing international standards. The PRA has also introduced new cost-benefit analysis (CBA) measures and aims for greater transparency in regulatory decision-making. The final version of the updated policy approach is now in effect, reinforcing the PRA’s objective to maintain financial stability while fostering a dynamic regulatory environment. | |
Insurance | Canada | FCNB | Amendments to Insurance Intermediaries Licensing Rule INS-001 | The Financial and Consumer Services Commission of New Brunswick has published proposed amendments to Rule INS-001: Insurance Intermediaries Licensing and Obligations, seeking public comments until April 18, 2025. The amendments aim to clarify supervision and oversight requirements for general insurance agents, streamline licensing for travel insurance agents when they hold other insurance licenses, and implement housekeeping updates. Notable changes include updated definitions for general insurance agent levels, adjustments to supervision waivers, and expanded licensing provisions for travel and pet insurance. Additionally, new privacy and cybersecurity obligations require intermediaries to notify the Superintendent of any cyberattacks or privacy breaches. The Commission encourages stakeholders to submit feedback before the finalization of the amendments. |
European Union | EIOPA | Supervisory Statement on Deduction of Foreseeable Dividends Under Solvency II | The European Insurance and Occupational Pensions Authority (EIOPA) has published a Supervisory Statement on the deduction of foreseeable dividends from own funds under Solvency II to ensure consistency in supervisory practices across the EU. The statement clarifies that insurers and reinsurers must deduct foreseeable dividends from own funds, aligning with Article 70(1)(b) of Commission Delegated Regulation (EU) 2015/35. EIOPA outlines three main approaches: annual full deduction, quarterly accrued deduction, and deduction after board approval, emphasizing the importance of accurate financial reporting and market stability. While EIOPA does not prioritize supervisory actions against firms using the quarterly accrued approach, it considers the annual full deduction suitable for firms with stable dividend histories. The guidance aims to enhance supervisory convergence ahead of upcoming changes to Solvency II regulations. | |
Investment | European Union | ESMA | Guidelines for Introducing New Securities to Base Prospectuses | The European Securities and Markets Authority (ESMA) has launched a consultation on draft guidelines to clarify when a supplement introduces a new type of security not already described in a base prospectus under the Prospectus Regulation. This initiative aims to harmonize supervisory practices across EU jurisdictions, reducing inconsistencies that have led to varying regulatory interpretations. The guidelines outline criteria for assessing when a supplement merely updates existing securities versus when it introduces new securities, requiring a new base prospectus. ESMA seeks feedback from issuers, advisors, and financial market participants by May 19, 2025, before finalizing the guidelines in Q4 2025. This move is expected to enhance regulatory convergence and improve market efficiency. |
European Union | ESMA | Guidelines on Knowledge and Competence Requirements Under MiCA | The European Securities and Markets Authority (ESMA) has published a consultation paper on guidelines for assessing knowledge and competence under the Markets in Crypto-Assets Regulation (MiCA). The proposed guidelines aim to ensure that crypto-asset service providers employ qualified and competent staff to provide advice or information on crypto-assets. ESMA outlines minimum qualification and experience requirements, including mandatory professional training and continuous development. These measures are intended to enhance investor protection and promote consistency in crypto markets across the EU. Stakeholders, including crypto-asset firms and financial entities, are invited to submit feedback by April 22, 2025, with the final guidelines expected in Q3 2025. | |
France | AMF | The Autorité des Marchés Financiers (AMF) has released a SPOT review on the monitoring of investment fund ratios, focusing on UCITS and AIFs, their governance, compliance, and investor protections. The review assesses how asset management companies track investment ratio breaches, process related claims and compensations, and ensure regulatory compliance. Key findings highlight gaps in governance, monitoring processes, and internal controls, with recommendations for improving reporting accuracy, investor disclosures, and proactive risk management. The AMF urges asset managers to strengthen compliance frameworks to align with best practices and regulatory expectations. | ||
Hong Kong | HKMA | SFC Launches 2024 Asset and Wealth Management Activities Survey | The Securities and Futures Commission (SFC) of Hong Kong has initiated the Asset and Wealth Management Activities Survey (AWMAS) 2024, inviting all registered institutions to participate. The survey aims to gather data on asset and wealth management activities in Hong Kong for regulatory and market facilitation purposes. Institutions are required to complete and submit the questionnaire by 22 April 2025 through the SFC’s online submission system. Even institutions that did not engage in relevant activities must provide general information. The SFC assures strict confidentiality of individual responses, sharing data only in an aggregated statistical format. | |
Hong Kong | HKMA | The Securities and Futures Commission (SFC) of Hong Kong has released two circulars regarding listed closed-ended alternative asset funds and listed structured funds. The first circular outlines authorization requirements for listing closed-ended alternative asset funds on the Stock Exchange of Hong Kong (SEHK) and intermediary obligations, including investor knowledge assessments and risk disclosures. The second circular sets out additional requirements for authorizing structured funds, such as leveraged and inverse products (L&I Products) and Defined Outcome Listed Structured Funds. Registered institutions distributing these funds must ensure compliance with the SFC Code of Conduct, implement appropriate policies and staff training, and meet all applicable regulatory obligations. | ||
Malta | MFSA | Amendments to Capital Markets Rules to Align with New Financial Markets Fees Regulations | The Malta Financial Services Authority (MFSA) has amended Chapter 1 of the Capital Markets Rules, specifically Rule 1.2 and Appendix 1.3, to align with the Financial Markets (Fees) Regulations, 2024 (Subsidiary Legislation 345.28), which came into effect on 1 January 2025. The amendment requires issuers applying for prospectus approval or admissibility to listing on a local regulated market to pay the fees outlined in the Third Schedule of the Regulations. Additionally, debt securities assigned an International Securities Identification Number (ISIN) will also be subject to fees under Regulation 8. The updated Capital Markets Rules, effective immediately, reflect these changes, and Appendix 1.3, which contained outdated fee schedules, has been removed. | |
Romania | ASF Romania | The Romanian Financial Supervisory Authority (ASF) has introduced amendments to Regulation No. 10/2015, governing the management of alternative investment funds (AIFs). The changes align the regulation with EU directives, including Regulation (EU) 2019/2088 on sustainability-related disclosures and Regulation (EU) 2020/852 on sustainable investments. Key amendments include new registration and authorization requirements for AIF managers, stricter compliance and reporting obligations, and enhanced risk management procedures. Additionally, ASF now mandates monthly supervision fees from authorized fund managers. The new regulations apply immediately, with a 90-day compliance period for affected entities to update their documentation and operations accordingly. | ||
Singapore | MAS | First Set of Measures to Strengthen Equities Market Competitiveness | The Monetary Authority of Singapore (MAS) has introduced the first set of measures from the Equities Market Review Group to enhance the competitiveness of Singapore’s equities market. The measures focus on increasing investor interest, attracting quality listings, and streamlining the regulatory framework. Key initiatives include the S$5 billion Equity Market Development Programme (EQDP) to support local fund managers, tax incentives for fund managers and corporate listings, and adjustments to the Global Investor Programme (GIP) to encourage capital inflows into Singapore-listed equities. Additionally, MAS is shifting towards a more disclosure-based listing regime, simplifying listing processes, and enhancing investor recourse. These reforms aim to revitalize trading liquidity, attract institutional participation, and reinforce Singapore’s position as a leading financial hub. |
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