Regulatory landscapes continue to evolve, impacting financial institutions, investment firms, and compliance teams worldwide. This week’s regulatory updates bring significant changes across multiple jurisdictions, including updates on supervisory effectiveness, AI governance, capital market reforms, ESG disclosure guidelines, and operational risk frameworks. Regulators from around the world have introduced key regulatory adjustments aimed at enhancing transparency, strengthening investor protection, refining prudential requirements, and improving compliance efficiency. This roundup provides a concise summary of these crucial developments to help financial professionals stay informed and ahead of regulatory shifts.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Romania | ASF | The Autoritatea de Supraveghere Financiară (ASF) of Romania has proposed amendments to Norm No. 4/2018, which governs operational risk management for IT systems used by regulated financial entities. The updated rules expand the scope of application to include insurance and reinsurance companies, intermediaries, investment funds, pension fund administrators, and financial market operators. Additionally, entities will now be categorized into major, important, and low-risk groups based on their assets under management or deposits. The amendments also introduce annual risk re-evaluations, stricter compliance requirements, and new penalties for non-compliance. The revised norm is set to be published in the Official Gazette and will take effect upon publication. | |
United Kingdom | FCA | The UK Financial Conduct Authority (FCA) and Information Commissioner’s Office (ICO) have issued a joint letter reaffirming their commitment to supporting AI adoption and innovation in financial services while ensuring regulatory clarity. Recognizing industry concerns about data protection regulations and Consumer Duty constraints on AI deployment, the regulators will host a roundtable with industry leaders on 9 May 2025 to discuss regulatory challenges, areas of uncertainty, and ways to enhance regulatory cooperation. The initiative aligns with the UK government’s economic growth strategy and builds on previous FCA-ICO collaboration, including TechSprints and joint statements on digital regulation. The FCA and ICO invite financial firms to provide feedback on regulatory challenges to shape future guidance and AI-related policies. | ||
Banking | Global | BIS | The Basel Committee on Banking Supervision (BCBS) met virtually on 12-13 March 2025 to discuss key initiatives aimed at enhancing supervisory effectiveness in response to the 2023 banking turmoil. The Committee is developing practical tools to strengthen liquidity and interest rate risk supervision, assess banks’ business models, and reinforce supervisory judgment, with findings set for publication by mid-2025. Additionally, the BCBS has launched an analytical review of global practices in information and communication technology (ICT) risk management, addressing the increasing prevalence of cyber threats and IT disruptions, with a comprehensive report expected in 2026. In the non-bank financial intermediation (NBFI) sector, the Committee will conduct an in-depth investigation into synthetic risk transfers (SRTs), which have evolved as tools for transferring credit risk from banks to NBFIs. Lastly, the BCBS has reviewed and approved Türkiye’s implementation of the Net Stable Funding Ratio and large exposures framework, with the assessment reports scheduled for publication next month. | |
Dubai | DFSA | New Capital Requirements for Operational Risk Under Basel III | The Dubai Financial Services Authority (DFSA) has issued Consultation Paper 164, proposing to implement the Standardised Approach for Operational Risk under Basel III. This reform will replace the current Basel II-based framework and aims to enhance risk sensitivity and financial stability in the DIFC. Key changes include the adoption of a Business Indicator (BI) approach, which measures operational risk based on interest, lease, and dividend income; service fees; and trading book activities. The Marginal Coefficient applied to the BI will determine the risk-weighted assets (RWA), with higher risk firms facing increased capital charges. Additionally, the DFSA proposes not to implement the Internal Loss Multiplier (ILM), ensuring that past operational losses do not disproportionately impact capital requirements. The revised framework is set to take effect on July 1, 2026, with a public consultation open until May 12, 2025. | |
Insurance | Portugal | ASF | Regulatory Framework for Insurance and Pension Fund Fees in Portugal | The Autoridade de Supervisão de Seguros e Fundos de Pensões (ASF) has released a draft regulatory standard updating the fees and contributions framework for the insurance, reinsurance, pension funds, and insurance mediation sectors. The amendments revise Norma Regulamentar No. 6/2013-R to reflect legislative and regulatory changes, including updates following the restructuring of the Autoridade Nacional de Emergência e Proteção Civil (ANEPC) under Decree-Law No. 46/2021. The ASF will no longer oversee the collection of insurance-related revenues for ANEPC. Additionally, the update aligns the contributions to the Motor Guarantee Fund with the Legal Framework for Insurance and Reinsurance Activities (RJASR – Law No. 147/2015). The new regulation will take effect the first working day after its publication, ensuring greater clarity and alignment with current legal frameworks. |
Puerto Rico | OCS | Puerto Rico Adopts Rule 111 for Licensing Third-Party Administrators | The Office of the Commissioner of Insurance (OCS) of Puerto Rico has issued Normative Letter CN-2025-369-SR, announcing the adoption of Rule 111, which regulates the licensing process for Third-Party Administrators (TPAs) under the Puerto Rico Insurance Code. This follows the enactment of Law 169-2024, which established Chapter 54 of the Insurance Code, requiring TPAs to register and obtain a license from the OCS. TPAs must submit a Uniform Application, pay an annual licensing fee of $2,500, and comply with documentation requirements. Entities operating in Puerto Rico without a license after March 14, 2025, may face sanctions unless exempt under Law 169-2024. Health insurers and service organizations are also responsible for ensuring that TPAs they engage are properly licensed. The regulation aims to increase oversight and accountability in Puerto Rico’s healthcare administration sector. | |
Investment | Australia | APRA | Superannuation Data Reporting Requirements for RSE Licensees | The Australian Prudential Regulation Authority (APRA) has released updated Frequently Asked Questions (FAQs) on its Superannuation Data Transformation (SDT) initiative, providing further clarity for Registrable Superannuation Entity (RSE) licensees on reporting requirements. The latest FAQs cover updates to reporting forms and transitional provisions for Phase 2 reporting standards, including insurance reporting (SRS 251.0), asset allocation (SRS 550.0), and RSE structure (SRS 605.0). Key changes include the introduction of new reporting forms (e.g., SRF 251.4, SRF 550.3, SRF 605.1), amendments to existing forms, and additional guidance on attestation, investment reporting, and trustee risk reserves. The updates aim to improve data accuracy, transparency, and regulatory compliance. The first reporting period under the revised framework is set for 30 June 2025, with the initial submissions due by 15 December 2025. RSE licensees are expected to implement new reporting structures and submission processes in line with these updates to ensure compliance with APRA’s evolving regulatory expectations. |
European Union | EBA | Consultation on CSDR Threshold and Risk Management Requirements for Credit Institutions | The European Banking Authority (EBA) has launched a consultation paper on the draft Regulatory Technical Standards (RTS) for determining the threshold under Article 54(5) of the Central Securities Depositories Regulation (CSDR). This threshold affects credit institutions and designated CSDs providing banking-type ancillary services for securities settlement systems. The consultation outlines a revised formula-based threshold that considers factors like currency liquidity, settlement agent diversification, and creditworthiness. Additionally, the proposal includes risk management and prudential requirements to mitigate financial stability risks. The absolute threshold is proposed to increase from EUR 2.5 billion to EUR 6.25 billion, with graduated prudential requirements based on risk exposure levels. The consultation remains open for feedback until 16 June 2025, after which the EBA will finalize its RTS for submission to the European Commission. | |
European Union | ESMA | Guidelines for Regulatory Classification of Crypto Assets Under MiCA | The European Supervisory Authorities (ESAs) have issued Guidelines on templates for explanations and opinions, and the standardised test for crypto-assets under Article 97(1) of the Markets in Crypto-Assets Regulation (MiCA). These guidelines provide a structured approach for offerors, trading platforms, and credit institutions to classify crypto assets, ensuring compliance with MiCA’s regulatory framework. Key aspects include templates for legal opinions required under Articles 8, 17, and 18 of MiCA, a standardised test to determine whether a digital asset qualifies as a crypto asset under EU law, and specific exclusion criteria for financial instruments, deposits, and insurance products. The guidelines aim to enhance regulatory clarity, investor protection, and market integrity in the EU’s crypto-assets sector. The guidelines will apply from 12 May 2025, and competent authorities must confirm their compliance with the ESAs within two months of publication. | |
Global | UNEPFI | Harmonized Sustainable Finance Taxonomies | The ASEAN Taxonomy Board (ATB) has released a comparative analysis of sustainable finance taxonomies across ASEAN member states, highlighting increasing harmonization in environmental objectives, assessment approaches, and sector classifications. The ASEAN Taxonomy for Sustainable Finance, first introduced in 2021 and updated in December 2024 (Version 3), serves as a common classification framework for sustainable economic activities in the region. While five ASEAN nations—Indonesia, Malaysia, the Philippines, Singapore, and Thailand—have implemented their own national taxonomies, the study reveals growing alignment in defining climate change mitigation, adaptation, biodiversity protection, and circular economy as key environmental goals. Additionally, all taxonomies adopt a traffic-light system for categorization, though definitions vary across countries. Future developments are expected to focus on cross-border interoperability, aligning taxonomies with global sustainability standards and enhancing green finance investment flows. | |
Hong Kong | HKMA | The Hong Kong Monetary Authority (HKMA) has issued an updated circular consolidating regulatory requirements on the selling of accumulators, decumulators, and similar products, with no new obligations introduced. The circular clarifies exemptions for Institutional and Qualified Corporate Professional Investors and provides additional guidance for Authorized Institutions (AIs) dealing with Sophisticated Professional Investors (SPIs). Key updates allow AIs to offer alternative investment products and document investment rationales through the Product Category Information Statement and adopt the expected exposure framework instead of the full notional approach for foreign exchange (FX) accumulators, easing compliance thresholds for SPIs. Effective immediately, this circular supersedes previous HKMA circulars listed in Annex 2, ensuring streamlined compliance while requiring AIs to maintain strong internal policies, controls, and staff training. | ||
Israel | BOI | Bank of Israel Advances Securitization Market with New Legislation | The Bank of Israel has released an update on the development of the securitization market, following the completion of legislation aimed at creating a clear legal framework for securitization transactions. Securitization, which enables financial institutions to convert non-liquid assets such as mortgages, consumer loans, and commercial debts into tradable securities, is a key tool for enhancing credit liquidity and market efficiency. While the U.S. and European markets have well-established securitization frameworks, Israel has lacked a comprehensive legal structure, limiting market growth and non-bank credit accessibility. The new securitization law, inspired by the EU Securitization Regulation (SECR 2017), aims to reduce regulatory uncertainty, improve credit allocation, and foster competition in the financial sector. The legislation introduces standardized risk management measures, investor protections, and transparency requirements to align with global best practices. The Bank of Israel highlights the potential of a well-regulated securitization market to support economic growth, improve funding options for SMEs and households, and strengthen Israel’s financial ecosystem. | |
Japan | JFSA | The Financial Services Agency of Japan (FSA) has released draft Cabinet Orders and Cabinet Office Ordinances related to the 2024 amendments to the Financial Instruments and Exchange Act and the Act on Investment Trusts and Investment Corporations. The amendments introduce key revisions to the Tender Offer System, including modifications to the scope of transactions subject to tender offers, flexibility in tender offer procedures, and updated reporting requirements. Additionally, the Large Shareholding Reporting System will be revised to enhance transparency, introduce rules for cash-settled equity derivatives, and clarify the criteria for joint holders. These changes aim to improve market oversight, facilitate corporate-investor dialogue, and enhance disclosure standards. A public comment period is open until April 13, 2025, after which the amendments will undergo final approval procedures before implementation. | ||
Japan | JFSA | Results of Public Comments on Amendments to Financial Instruments and Exchange Business Regulations | The Financial Services Agency of Japan (FSA) has published the results of public comments received on proposed amendments to the Cabinet Office Ordinance on Financial Instruments and Exchange Business. Between December 20, 2024, and January 21, 2025, the FSA received 51 comments from 11 individuals and organizations. The amendments aim to enhance transparency in financial services by requiring financial institutions to disclose potential conflicts of interest to customers, aligning with recommendations from the Customer-Oriented Task Force of the Market System Working Group. The revised ordinance and related supervisory guidelines will come into effect on December 1, 2025. The amendments primarily focus on expanding disclosure obligations, improving customer protection measures, and clarifying reporting requirements for financial institutions. | |
Mauritius | FSC | The Financial Services Commission (FSC) of Mauritius has released new disclosure and reporting guidelines for Environmental, Social, and Governance (ESG) funds, effective 24 March 2025. These guidelines apply to Collective Investment Schemes and Closed-End Funds with at least two-thirds of their net asset value dedicated to ESG investments. Key requirements include enhanced disclosure in offering documents, annual sustainability reporting, and website transparency regarding ESG methodologies, risks, and performance benchmarks. Additionally, funds must provide third-party or self-certification confirming alignment with UN Sustainable Development Goals (SDGs) or other recognized ESG frameworks. Non-compliance may result in de-registration from the FSC’s ESG Scheme Register. Existing ESG funds must submit revised offering documents by 1 August 2025 to maintain compliance. | ||
Netherlands | DNB | De Nederlandsche Bank (DNB) has issued a policy rule confirming the application of the Supervisory Review and Evaluation Process (SREP) guidelines to fund managers overseeing investment institutions and collective investment schemes. The policy extends the European Banking Authority (EBA) and European Securities and Markets Authority (ESMA) SREP guidelines, which were previously applicable only to investment firms, to fund managers subject to internal capital and risk assessment requirements (ICARAP). This means that fund managers must conduct internal capital (ICAAP) and liquidity (ILAAP) adequacy assessments for their entire operations, ensuring alignment with prudential supervision requirements under the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD). The new policy replaces the previous ICAAP policy for investment firms (2015) and aims to enhance transparency and ensure consistent oversight between investment firms and fund managers. | ||
Romania | ASF | Romania Amends Capital Market Law to Strengthen Investor Protection and Market Efficiency | Romania has promulgated amendments to Law No. 24/2017 on issuers of financial instruments and market operations, with the changes published in the Official Gazette on March 5, 2025. The updated law aims to enhance investor protection, improve transparency, and facilitate capital market access for companies. Key reforms include shortening the exercise period for pre-emptive rights in share capital increases from 30 to 14 days, accelerating regulatory approvals, and strengthening enforcement mechanisms for court rulings on capital increases. The new provisions also extend the deadline for quarterly financial reports from 45 to 60 days, while maintaining transparency requirements for investors. The law enters into force 10 days after publication, with the Financial Supervisory Authority (ASF) set to issue secondary regulations to ensure effective implementation. | |
Spain | BOE | CNMV Updates Regulations for Investment Funds and Capital Markets | The Comisión Nacional del Mercado de Valores (CNMV) has issued Circular 1/2025, introducing amendments to Circulars 6/2008, 11/2008, and 4/2016 to enhance supervisory practices and reporting requirements for investment funds and capital markets. Key changes include aligning fund performance fees with ESMA guidelines, new reporting obligations for long-term European investment funds (ELTIFs), and mandating digital submission of audit reports for venture capital firms. Additionally, depositaries must now submit their annual monitoring reports electronically to the CNMV. These amendments aim to increase transparency, improve regulatory oversight, and standardize reporting procedures across different financial entities. The Circular takes effect 20 days after its publication in the Official Gazette, with certain reporting requirements applying from December 31, 2025. | |
Dubai | DFSA | Amendments to Financial Services Regulations Effective January 2026 | The Dubai Financial Services Authority (DFSA) has approved multiple amendments to its Rulebook, with updates set to take effect on January 1, 2026. These revisions impact key regulatory frameworks, including the Conduct of Business (COB) Rules, Auditor (AUD) Module, General (GEN) Module, Collective Investment Rules (CIR), Market Rules (MKT), and Glossary (GLO) Module. Key changes include enhanced client asset protection, stricter auditor reporting standards, new disclosure requirements for market participants, and improved governance for collective investment funds. Additionally, the amendments introduce updated risk management and compliance requirements for financial firms, with a particular focus on custody, money services, and crypto-related activities. The revised rulebooks will be available on the DFSA website upon enforcement, replacing prior versions. | |
United States | SEC | SEC Extends Compliance Deadline for Investment Company Names Rule | The U.S. Securities and Exchange Commission (SEC) has extended the compliance deadlines for amendments to Rule 35d-1 under the Investment Company Act of 1940, which aims to prevent misleading fund names. Originally set for December 2025, the compliance dates are now June 11, 2026, for fund groups with $1 billion or more in net assets, and December 11, 2026, for smaller fund groups. The rule requires funds to invest at least 80% of their assets in line with the focus suggested by their names and mandates enhanced disclosure and reporting obligations. The extension follows industry concerns over compliance complexity, operational readiness, and reporting alignment with fiscal year-ends. The SEC aims to provide funds additional time to update policies, technology, and compliance frameworks while maintaining investor protection. |
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