Businesses and financial institutions must stay up to date on global financial compliance changes in a constantly shifting regulatory environment. Significant changes in governance frameworks, AML/CFT rules, digital finance monitoring, and sustainability initiatives are highlighted in this week’s regulatory alerts, which include important developments in banking, insurance, investing, and environmental finance. These revisions highlight the growing regulatory expectations influencing the financial sector, from increased capital requirements and leverage ratio adjustments to biodiversity finance strategies and improved financial reporting transparency. By offering a thorough summary of the most recent modifications, this blog enables organisations in anticipating changes in regulations and adjusting their compliance plans appropriately.
Business line | Country | Regulator | Regulatory Update | Summary |
All | Australia | APRA | Proposed changes to strengthen and streamline governance and fit and proper requirements | The Australian Prudential Regulation Authority (APRA) has introduced eight proposals aimed at enhancing the governance framework for banks, insurers, and superannuation trustees. These reforms, the first major update in over a decade, are designed to reflect modern best practices and strengthen oversight. Key changes include stricter board competency requirements, enhanced conflict of interest management, and a mandatory 10-year tenure limit for non-executive directors. APRA also plans to consolidate governance rules into a single prudential standard, ensuring uniformity across regulated entities. A three-month consultation period has been launched, with final prudential standards expected by 2027 and implementation by 2028. These changes are intended to bolster financial stability and risk management, addressing areas where governance weaknesses have led to regulatory interventions. |
Australia | ACCC | Guidance on Merger Reform Transition Ahead of 2026 Implementation | The Australian Competition and Consumer Commission (ACCC) has released guidance on the transitional process for businesses ahead of Australia’s new mandatory merger control regime, which takes effect on 1 January 2026. Under the new framework, all acquisitions exceeding prescribed thresholds must be notified to the ACCC, with a suspensory review process before completion. To assist businesses in adapting, the ACCC will allow voluntary use of the new regime starting 1 July 2025. Businesses seeking informal merger clearance after this date are encouraged to engage early to avoid delays. The ACCC has also outlined how previously cleared acquisitions will be treated under the new system and emphasized that any anti-competitive acquisitions made during the transition period could face enforcement action. This shift aims to enhance scrutiny and transparency in merger reviews while providing businesses with a structured process for compliance. | |
European Union | European Union | Council Adopts Decision to Amend Annex IX (Financial Services) of the EEA Agreement | The Council of the European Union has adopted Council Decision (EU) 2025/380, outlining the EU’s position within the EEA Joint Committee regarding amendments to Annex IX (Financial Services) of the EEA Agreement. The amendment incorporates Regulation (EU) 2023/1114, which governs markets in crypto-assets (MiCA) and updates existing financial regulations, including provisions related to asset-referenced tokens, e-money tokens, and crypto-asset service providers. The decision ensures regulatory alignment between the EU and EEA states, requiring EFTA authorities to coordinate with EU regulators such as ESMA, EBA, and the ECB. Additionally, EFTA states must consider the EU list of non-cooperative tax jurisdictions when defining their national frameworks. The decision takes effect upon its adoption on February 18, 2025. | |
European Union | EBA | Consultation on New AMLA Mandates: Proposed Regulatory Technical Standards | The European Banking Authority (EBA) has published a consultation paper responding to the European Commission’s Call for Advice on new Anti-Money Laundering Authority (AMLA) mandates, proposing Regulatory Technical Standards (RTS) to enhance AML/CFT supervision across the EU. The draft RTS covers the assessment of financial institutions’ risk profiles, customer due diligence (CDD) requirements, criteria for selecting entities under AMLA’s direct supervision, and pecuniary sanctions and enforcement measures. These proposals aim to harmonize AML regulations, improve risk-based supervision, and ensure effective enforcement across EU financial institutions. Stakeholders can submit feedback until June 6, 2025, with the final EBA response due by October 31, 2025. | |
Global | UNEPFI | Global Strategy to Finance Biodiversity: Implications for Financial Institutions | At the COP16 negotiations in Rome on February 27, 2025, governments adopted the first-ever global strategy to finance biodiversity, aiming to bridge the $700 billion annual biodiversity funding gap. This historic agreement under the Convention on Biological Diversity (CBD) supports the Kunming-Montreal Global Biodiversity Framework (GBF) through increased investments, subsidy reforms, and enhanced financial mechanisms. It sets ambitious targets, including $20 billion in biodiversity-related financial flows to developing countries by 2025, rising to $30 billion by 2030, and the mobilization of $200 billion annually for biodiversity conservation. Financial institutions are expected to align their investments with biodiversity goals, scale up nature-positive financing, and integrate biodiversity risks into decision-making. The strategy also highlights the role of biodiversity credits, blended finance, and enhanced transparency in tracking conservation funding. This milestone precedes key 2025 environmental negotiations, such as UNFCCC COP30 and the treaty on plastic pollution, reinforcing the growing financial sector responsibility in global biodiversity efforts. | |
Guernsey | GFSC | The Guernsey Financial Services Commission (GFSC) has released an updated Handbook on Countering Financial Crime (AML/CFT/CPF), effective March 3, 2025. The revised handbook provides enhanced regulatory guidance on corporate governance, risk-based approaches, customer due diligence (CDD), transaction monitoring, sanctions compliance, and virtual assets. Key updates include expanded requirements for risk assessments, enhanced customer due diligence for high-risk relationships, and new provisions for financial institutions handling virtual assets and digital transactions. Additionally, the updated handbook aligns Guernsey’s framework with international standards set by the Financial Action Task Force (FATF) and the European Supervisory Authorities (ESAs). Financial institutions operating within the Bailiwick of Guernsey must implement the revised compliance measures to mitigate money laundering (ML), terrorist financing (TF), and proliferation financing (PF) risks effectively. | ||
Japan | JFSA | The Financial Services Agency of Japan (FSA) has published the results of its public consultation on proposed amendments to the Comprehensive Supervisory Guidelines for Regional and Small Financial Institutions. The key revision allows financial institutions to report business modifications after implementation, provided the changes are not significant. This aims to streamline regulatory procedures and enhance operational flexibility for banks. The amendments also clarify reporting requirements, ensuring institutions properly assess the scope of business changes to determine if prior approval is necessary. The updated guidelines took effect on March 7, 2025. | ||
Japan | JFSA | The Financial Services Agency of Japan (FSA) has introduced significant regulatory updates across the insurance, digital finance, and trust sectors to enhance consumer protection, financial stability, and market transparency. The amendments to the Insurance Business Act strengthen compliance obligations for large insurance agencies, expand insurer oversight of intermediaries, and prohibit excessive inducements to prevent conflicts of interest. The Payment Services Act revisions improve digital finance oversight by requiring crypto asset exchanges to hold assets domestically, regulating crypto brokerage services, and expanding oversight of cross-border payment intermediaries while allowing stablecoin issuers to diversify reserve assets. Additionally, updates to the Trust Business Act exempt public interest trusts from licensing requirements, encouraging greater participation from nonprofit organizations and individuals while maintaining regulatory oversight. These reforms collectively aim to modernize Japan’s financial regulatory framework, foster innovation, and ensure market integrity across key financial sectors. | ||
Romania | ASF Romania | The Romanian Financial Supervisory Authority (ASF) has proposed amendments to Norm No. 13/2019, introducing new audit and sustainability reporting requirements for entities under its supervision. The changes include a mandatory ASF approval process for audit firms, expanded auditor responsibilities in sustainability reporting, and enhanced reporting obligations for financial entities. The revised framework also clarifies auditor independence rules, strengthens internal audit committee functions, and introduces new disclosure requirements for financial statements and sustainability reports. Additionally, auditors must notify ASF within 15 days of signing audit contracts and report significant financial risks affecting audited entities. These updates align Romania’s financial audit regulations with EU standards, ensuring greater market transparency and regulatory compliance. | ||
UAE | Dubai FSA | Changes to Authorised Individuals Regime to Strengthen Accountability | The Dubai Financial Services Authority (DFSA) has launched a consultation on proposed amendments to its Licensed Functions and Authorised Individuals regime, aiming to enhance accountability and governance in financial firms operating in the Dubai International Financial Centre (DIFC). The key proposal removes the requirement for prior DFSA approval for appointing Compliance Officers, Finance Officers, and Senior Managers, reclassifying them as Designated Functions and shifting accountability to firms. This move aligns with global regulatory trends seen in Australia, Hong Kong, Singapore, and the UK. Additionally, DFSA proposes new fitness and propriety assessments, expanded conduct principles to all relevant employees, and mandatory annual attestations on individual suitability. Stakeholders are invited to submit comments by May 5, 2025, with the new rules expected to take effect from September 1, 2025. | |
United Kingdom | FCA | Firms’ treatment of customers in vulnerable circumstances – review | The UK Financial Conduct Authority (FCA) has conducted a review of how firms are supporting customers in vulnerable circumstances, assessing their adherence to FG21/1: Guidance for the fair treatment of vulnerable customers. The findings highlight positive progress in firms’ engagement, driven by the Consumer Duty, but also reveal areas requiring improvement, particularly in product design, data monitoring, and tailored support for complex vulnerabilities. The review found that vulnerable consumers still report poorer financial outcomes compared to others, necessitating stronger oversight and intervention strategies. While firms and industry experts affirm that the existing FCA Guidance remains relevant, stakeholders have called for additional case studies, enhanced data-monitoring methods, and clearer approaches to undisclosed vulnerabilities. The FCA will continue monitoring consumer outcomes and working with firms to ensure consistent improvements in customer treatment but will not revise its current guidance at this stage. | |
Banking | Singapore | MAS | Governance and Risk Management Expectations for Commodity Financing | The Monetary Authority of Singapore (MAS) has published an Information Paper on Commodity Financing, outlining supervisory expectations for banks engaged in commodity trade finance. The paper follows thematic inspections conducted in 2024, which assessed governance structures, risk appetite frameworks, credit risk management, and transactional controls. MAS found that while banks have established oversight frameworks, there is room for improvement in fraud risk assessment, customer-level credit monitoring, and post-transaction reviews. The paper emphasizes strengthening due diligence on borrowers, ensuring transparency in trade flows, and leveraging technology for risk detection. Banks are expected to benchmark their practices against these recommendations and implement stronger governance, monitoring, and compliance controls to mitigate risks in commodity financing. |
South Africa | Reserve Bank | Directive on Threshold Amounts for Credit and Liquidity Risk Frameworks | The South African Prudential Authority (PA) has issued a Proposed Directive outlining updated threshold amounts for banks under the revised Standardised Approach (STA) and Internal Ratings-Based (IRB) approach for credit risk, as well as the Liquidity Risk and Interest Rate Risk in the Banking Book (IRRBB) frameworks. The directive, aligned with Basel III post-crisis reforms, introduces new credit exposure classifications, capital and reserve fund calculations, and liquidity risk parameters. Key updates include setting the retail SME classification threshold at R12.5 million, applying corporate SME firm-size adjustments for businesses with turnover between R60 million and R600 million, and raising the AIRB corporate modelling cut-off to R15 billion in revenues. The directive is open for public consultation until March 31, 2025, before final implementation. | |
United Kingdom | BOE | CP2/25 – Leverage Ratio: changes to the retail deposits threshold for application of the requirement | The Bank of England’s Prudential Regulation Authority (PRA) has published a consultation paper (CP2/25) proposing to raise the retail deposits threshold for the application of the UK leverage ratio requirement from £50 billion to £70 billion. This change aims to maintain proportionality in regulatory requirements by adjusting for UK GDP growth since 2016, preventing unintended regulatory tightening. The leverage ratio serves as a backstop measure to ensure firms maintain sufficient capital. The proposal would allow mid-sized banks and building societies more room to grow before becoming subject to leverage ratio constraints, reducing potential capital burdens. Stakeholders can provide feedback until June 5, 2025, with implementation planned for January 1, 2026. | |
Insurance | Bermuda | BMA | The Bermuda Monetary Authority (BMA) has updated Rule 14 of its Insurance Account Rules to align with IFRS 17 – Insurance Contracts, effective 26 February 2025. This amendment allows commercial insurers filing under IFRS accounting principles to submit Condensed General Purpose Financial Statements using revised schedules for the 2024 year-end reporting and beyond, eliminating the need for prior approval. The change only affects IFRS filers, while insurers using Generally Accepted Accounting Principles (GAAP) or submitting full financial statements remain unaffected. The revised reporting framework aims to streamline financial disclosures and enhance compliance with international accounting standards. The updated financial statement templates and notes are now available on the BMA website. | |
Germany | BaFin | General Administrative Act on Pension Data Reporting to EIOPA | The German Federal Financial Supervisory Authority (BaFin) has issued a General Administrative Act requiring pension funds and pension schemes under its supervision to submit detailed financial and operational data in response to an information request from EIOPA (European Insurance and Occupational Pensions Authority). This follows EIOPA Decision BoS-23/030, which mandates the regular collection of pension data for supervisory and risk assessment purposes across the EU. The reporting requirements apply to pension funds with a balance sheet exceeding €100 million, with quarterly and annual reporting obligations. The data submission must comply with XBRL taxonomy and be transmitted via BaFin’s MVP Portal. The new reporting framework comes into effect for reporting periods beginning after December 31, 2024. | |
Malta | MFSA | Consultation on Proposed Amendments to Insurance and Distribution Rules | The Malta Financial Services Authority (MFSA) has launched a consultation on proposed amendments to the Insurance Rules and Insurance Distribution Rules, aiming to strengthen consumer protection, governance, and regulatory compliance. Key changes include requiring motor vehicle liability insurers operating in other EU member states to contribute to the Protection and Compensation Fund, clarifying governance structures for insurance firms, and ensuring audit committee independence. The amendments also refine insurance distribution regulations, aligning them with recent European Court of Justice (ECJ) rulings on group insurance policies and adjusting financial reporting requirements for intermediaries. Additionally, the proposal extends the deadline for depositing insurance monies and revises fidelity bond calculations for brokers. Stakeholders have until March 26, 2025, to provide feedback before the final regulatory framework is implemented. | |
Portugal | ASF | The Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF) has introduced amendments to Regulatory Standard No. 13/2020-R, aligning Portugal’s insurance and reinsurance distribution framework with EU regulations. Key changes include raising the minimum coverage for professional liability insurance for ancillary insurance intermediaries to €751,016 per claim and €1,126,522 annually, in accordance with EU Delegated Regulation 2024/896. The amendments also clarify governance requirements, particularly regarding complaint handling procedures, financial disclosures, and intermediary reporting obligations. Additionally, new rules refine insurance portfolio diversification limits for brokers and update the ASF’s whistleblowing mechanisms for regulatory infractions. The revised regulatory framework will take effect 30 days after its official publication. | ||
Investment | Canada | OSC | The Ontario Securities Commission (OSC) has introduced amendments to OSC Rule 13-502 Fees, affecting the fee structure for prospectus and disclosure filings related to investment funds, mutual funds, and exchange-traded funds (ETFs). The updates specifically modify Appendix F by expanding the scope of “Prospectus Filings” to include Fund Facts and ETF Facts Filings. Changes to Row A4 include revised terminology and additional details on fee calculations for different fund types. The new fee structure sets a base prospectus fee of $3,800, with additional fees ranging from $400 per mutual fund to $650 per ETF or investment fund. These amendments, aimed at aligning fees with updated disclosure requirements, will come into effect on March 3, 2025. | |
Canada | OSC | Changes to Companion Policy 81-101 Mutual Fund Prospectus Disclosure | The Ontario Securities Commission (OSC) has introduced changes to Companion Policy 81-101 Mutual Fund Prospectus Disclosure, aimed at improving the clarity and accessibility of amendments to simplified prospectuses and fund facts documents. The update provides guidance on when amendments should be filed as “slip sheet amendments” versus “amended and restated simplified prospectuses”, ensuring investors can easily understand the modifications. Factors such as the number of impacted funds, the extent of changes, and prior amendments must be considered when determining the appropriate filing format. Additionally, a new section (4.1.6) clarifies the requirements for filing fund facts documents without a prospectus, specifying the elements that can be updated without triggering a full filing. These changes will take effect on March 3, 2025. | |
Canada | OSC | Changes to Companion Policy 41-101 General Prospectus Requirements | The Ontario Securities Commission (OSC) has announced changes to Companion Policy 41-101 General Prospectus Requirements, clarifying the filing requirements for ETF facts documents and prospectus amendments. A newly added section (5A.6) outlines when an ETF facts document can be filed without a prospectus, specifying that only certain updates—such as total fund value, MER, pricing information, and past performance—can be made without triggering a full prospectus filing. Additionally, section 5A.7 provides guidance on amendments to ETF prospectuses or ETF facts documents, emphasizing that disclosures should be easily understandable for investors. The update advises issuers to determine whether to file a “slip sheet amendment” or an “amended and restated prospectus” based on the extent of changes. Substantial modifications should be consolidated into a restated prospectus to improve clarity for investors. These changes will take effect on March 3, 2025. | |
European Union | EBA | The European Banking Authority (EBA) has launched a consultation on a delegated act concerning the calculation and payment of fees for financial and non-financial counterparties requiring validation of pro forma models under the European Market Infrastructure Regulation (EMIR 3). The proposed framework sets out the methodology for determining fees based on the monthly average outstanding notional amount of non-centrally cleared OTC derivatives. The EBA’s role as a central validator aims to ensure uniformity in Initial Margin (IM) model validation while introducing a cost-recovery system. The discussion paper outlines fee structures, calculation methods, and payment modalities, with a consultation deadline of April 7, 2025. The final technical advice will be submitted to the European Commission by June 30, 2025. |
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