In Week 26 of 2025, we saw a wave of regulatory changes sweeping through the banking, insurance, and investment sectors. This blog post highlights some of the most important global updates from financial regulators, touching on topics like ESG stress testing, new crypto liquidity rules, credit union reforms, and much more. Each update showcases how different regions are adapting their oversight to keep pace with emerging risks, technological advancements, and sustainability standards.
Important Updates from Week 26
Business Line | Country | Regulator | Regulatory Update | Summary |
All | European Union | EBA | Guidelines to Standardise ESG Stress Testing Across EU Supervisors | The European Supervisory Authorities (EBA, ESMA, EIOPA) issued draft joint guidelines to harmonise how ESG risks are integrated into supervisory stress testing. The guidelines aim to improve consistency, data quality, and long-term risk assessment across sectors. Competent authorities must define ESG stress testing objectives, apply materiality-based approaches, and gradually expand coverage from climate to broader ESG factors. The framework encourages collaboration across jurisdictions, proportionality in implementation, and eventual integration into broader supervisory reviews. |
European Union | European Commission | Correction of AML References in CCP Risk Mitigation Regulation | The European Commission issued a corrigendum to Regulation (EU) 2024/2987, correcting references to anti-money laundering laws. The revised text now accurately cites Article 9 of Directive (EU) 2015/849, replacing earlier incorrect references to Regulation (EU) 2024/1624. These changes clarify the legal basis for identifying high-risk third countries when assessing exposures to non-EU central counterparties, improving consistency across EU regulatory texts. | |
Global | IFRS | The ISSB has released a proposed methodology for consistent climate-related transition plan disclosures. It builds on IFRS S2 standards. The guidance helps companies align transition plans with decarbonization goals and national targets. It emphasizes disclosures on governance, strategic ambition, and execution capacity. ISSB encourages early adoption and alignment with global sustainability frameworks. Stakeholders can submit comments until August 2025. The guidance aims to boost transparency, comparability, and accountability in climate transition planning. | ||
United Kingdom | FCA | Removal of Legacy Reporting Requirements to Ease Firm Burdens | The UK FCA has removed three reporting obligations—FSA039, RMA-F, and Form G—to streamline compliance for over 16,000 firms. This move reduces annual industry costs by £1.3 million and supports the FCA’s data-driven regulatory strategy. The changes take effect from 27 June 2025, with updates to RegData and Handbook entries. The regulator acknowledged concerns around compliance reminders but emphasized firms’ duty to maintain transparency via SUP 15 notifications. | |
United Kingdom | FCA | The FCA has launched a discussion on expanding digital regulatory reporting through DP25/2. This aims to improve efficiency, reduce manual processes, and support more frequent data sharing. It seeks views on the use of APIs, standardized taxonomies, and modular reporting architecture. Stakeholders are encouraged to respond by 16 September 2025. The FCA intends to reshape data collection in collaboration with industry, aligning with its Transforming Data Collection programme. | ||
Banking | Brazil | BCB | The Central Bank of Brazil has launched a public consultation on draft resolutions for accounting virtual assets and utility tokens. The rules will apply to financial and authorized institutions, establishing criteria for recognition, valuation, and disclosure. The proposal covers fair value measurement, write-off triggers, and special treatment for NFTs and group-issued assets. Institutions must disclose these assets’ financial impacts clearly in explanatory notes. The regulation aims to boost transparency and align with global accounting standards. Contributions to the public consultation can be made until August 24, 2025 and the implementation is set for January 2026. | |
Chile | CMF | Chile’s Financial Market Commission (CMF) has opened consultation on a modernized regulatory framework for supervised Credit Unions (CACs). The proposal introduces two key tools—RAN CACs and MSI CACs—to organize current rules and integrate tailored guidelines. This aligns with the Financial Resilience Law (Law No. 21.641), which shifted CAC oversight to the CMF. The reform adopts a proportional supervision model, addressing each cooperative’s risk and scale. It aims to boost operational strength, protect financial stability, and promote inclusion by preserving cooperatives’ identity and flexibility. | ||
European Union | EBA | Final Guidelines on Risk Weights for ADC Exposures to Residential Property | The European Banking Authority (EBA) has issued final guidelines detailing conditions under which Acquisition, Development, and Construction (ADC) exposures to residential property can receive a reduced 100% risk weight instead of the standard 150% under Article 126a of CRR. The guidelines set thresholds for substantial cash deposits, equivalent financing, obligor equity contribution (minimum 25%), and contract pre-sale/lease ratios (minimum 50%). They also introduce adjustments for public housing projects, including a lower 20% equity threshold and eligibility based on tenant demand. These measures aim to harmonize treatment across the EU and support Basel III implementation. | |
Hong Kong | HKMA | The HKMA has published updated TLAC templates for resolution entities and material subsidiaries. These updates reflect LAC Rules compliance. The templates provide granular data on internal and external loss-absorbing capacity. Reporting must follow fixed formats and be submitted semi-annually. Banks must explain changes and include resolution strategies. Adjustments account for regulatory and non-capital instruments. This aims to enhance transparency and support orderly resolution planning. | ||
Hong Kong | HKMA | Update on Regulatory Disclosures for Hong Kong Authorized Institutions | The Hong Kong Monetary Authority (HKMA) has revised disclosure requirements for authorized institutions. The updated framework mandates fixed-format templates across key risk categories—credit, market, operational, and crypto asset risks. Institutions must now provide quarterly, semi-annual, or annual disclosures depending on the template. New templates specifically address crypto asset exposures, liquidity risks, and linkages between accounting and regulatory capital. These enhancements aim to improve transparency, standardize disclosures, and align local practices with global Basel III standards. | |
United Kingdom | BOE | Rules to Support Credit Union Investments in Service Organisations | The PRA is consulting on new rules to allow credit unions to invest in Credit Union Service Organisations (CUSOs). These shared-service entities help credit unions access affordable, high-quality services. The proposed framework permits such investments, subject to risk management expectations. Credit unions must limit exposure to 5% of capital and conduct due diligence. This aims to strengthen operational resilience and support mutual sector growth. The consultation closes on 24 October 2025. | |
United States | OCC | The OCC’s Spring 2025 Risk Perspective highlights increasing commercial credit and compliance risks across the federal banking system. Key drivers include sustained high interest rates, cyber threats, and fintech-related complexities. Credit risks rise in sectors like commercial real estate and venture lending. Operational risks remain high due to legacy systems, fraud, and third-party dependencies. The OCC urges stronger risk governance and resilience, especially in fintech partnerships and crypto-asset services. | ||
United States | FDIC | The U.S. banking agencies have finalized rule changes to the enhanced Supplementary Leverage Ratio (eSLR) for global systemically important banks (G-SIBs). The rule removes the 2% eSLR capital buffer and allows bank holding companies to use 50% of their G-SIB surcharge to meet leverage requirements. For insured depository institutions, the rule introduces a leverage buffer set at 50% of the G-SIB surcharge. These changes aim to better align leverage and risk-based capital standards. | ||
Insurance | Argentina | Ministry of Insurance | Argentina’s National Insurance Superintendency (SSN) introduced interactive dashboards to enhance access to insurance market statistics. These tools offer dynamic, intuitive insights tailored for citizens, policyholders, and stakeholders. Notable dashboards include “Your Insurance Dashboard,” which visualizes financial indicators from a user-focused perspective. Other dashboards support analysis of production, investments, geographic data, reinsurance, and more. Users can personalize data views using filters for entity, region, and activity type. This digital initiative strengthens transparency, regulatory oversight, and informed decision-making across the insurance sector. | |
Global | UNEPFI | The UNEP Finance Initiative released new guidance to help insurers assess nature-related risks. The report introduces the DIRO framework—Dependencies, Impacts, Risks, and Opportunities. It aims to tailor nature-focused assessments for underwriting portfolios across non-life and life & health insurance lines. The report links biodiversity loss to systemic insurance risks. It also supports alignment with global biodiversity goals, including the Kunming-Montreal Framework. The guidance stresses integrating ecosystem dependencies into insurance decisions to improve risk management and resilience. | ||
Investment | European Union | European Commission | The European Commission has adopted new technical standards requiring issuers of asset-referenced and e-money tokens to maintain robust liquidity management frameworks. Issuers must define clear procedures for identifying and mitigating liquidity risks and conduct regular stress tests. Contingency plans, early warning systems, and over collateralisation safeguards are also mandated. The regulation ensures that liquidity policies are asset-specific and separate from other business operations. | |
European Union | ESMA | Consultation on Margin Transparency Rules for Clearing Services | ESMA launched a consultation to improve transparency around initial margin models under Article 38(6) of EMIR. The proposed guidelines aim to ensure CCPs provide detailed and accessible margin information to clearing members and clients. ESMA suggests standardized disclosures for margin methodologies, simulation tools, and historical margin ranges. The changes seek to reduce costs, support comparability, and enhance clients’ risk assessments. | |
European Union | ESMA | ESMA launched a consultation to define how clearing service providers (CSPs) must disclose clearing fees under EMIR Article 7c(4). The proposed draft RTS requires CSPs to detail onboarding, fixed, transaction, and other fees for each CCP. CSPs must also distinguish between own charges and pass-on costs, ensuring disclosures support comparability and client decision-making. These disclosures, although confidential, aim to foster fair competition and enhance transparency across the EU clearing landscape. | ||
Luxembourg | CSSF | Luxembourg’s CSSF has issued Circular 25/894, outlining new reporting requirements for investment funds not authorised by the CSSF. The circular mandates specific documentation—such as initial/update forms, AIFM registration, financial reports, and liquidation deeds—depending on the nature of the notification (e.g., fund creation, sub-fund addition, management cessation). Submissions must be made via eDesk using CSSF-provided templates in PDF format. This initiative aims to enhance transparency and regulatory oversight of non-authorised AIFs operating under Luxembourg jurisdiction. | ||
United States | SEC | Delay in Daily Reserve Requirement Compliance for Large Broker-Dealers | The SEC has extended the compliance date for daily reserve computations under Rule 15c3-3 from December 31, 2025, to June 30, 2026. The delay applies to broker-dealers with average total credits of $500 million or more. These firms must calculate and deposit customer and proprietary account reserve funds daily instead of weekly. The extension gives firms additional time to develop systems, policies, and staffing necessary to comply with the requirement. | |
United States | FINRA | The Financial Industry Regulatory Authority (FINRA) proposed amendments to Rule 6897 to implement a revised Consolidated Audit Trail (CAT) funding fee—CAT Fee 2025-2. This new fee applies to transactions from July 1 to December 31, 2025. It lowers the rate to $0.000009 per executed equivalent share, replacing the earlier CAT Fee 2025-1 rate of $0.000022. The reduction reflects a surplus reserve of over $54 million, resulting from higher than expected trading volumes and cost optimizations. Monthly invoices will begin in August 2025, with charges based on July transactions. The goal is to recover approximately half of the total CAT costs for 2025 while maintaining a 25% budget reserve threshold. |
Keeping up with the ever-changing global regulations is essential for compliance leaders. FinregE’s AI-driven platform makes it easier to scan for new developments and monitor rules. Our tools provide real-time insights, automated impact assessments, and simplify the management of regulatory changes—helping firms maintain compliance with less hassle.
