This week’s global regulatory round-up brings a broad spectrum of developments across financial services—from reforms in investment and insurance regulation to evolving standards in ICT risk, AML/CFT frameworks, and sustainability-related disclosures. The updates reflect growing regulatory attention on climate-related risks, digital assets, and operational resilience, offering valuable insights for firms navigating compliance in dynamic market conditions.
Business line | Country | Regulator | Regulatory Update | Summary |
All | Australia | ASIC | Consultation on Publishing Firm-Level Breach and Dispute Resolution Data | The Australian Securities and Investments Commission (ASIC) has launched Consultation Paper 383, outlining its proposal to publish firm-level data on reportable situations (RS) and internal dispute resolution (IDR) submissions. This initiative aims to boost transparency and accountability in the financial sector. The proposed publication will present RS and IDR data via interactive dashboards, allowing firms and consumers to benchmark performance and identify systemic issues. ASIC intends to publish data on breaches of core obligations, complaint volumes, root causes, and remediation efforts. The dashboards will not include individual-level data but will name firms and present aggregated insights. ASIC invites stakeholder feedback by 14 May 2025, with the first dashboard release expected between September and December 2025. |
Brazil | BCB | Consultation on Accounting Rules for Sustainability Assets and Liabilities | The Central Bank of Brazil (BC) has launched a public consultation proposing amendments to BCB Resolution No. 2/2020 to introduce standardized accounting treatment for sustainability-related assets and liabilities. The initiative aims to enhance transparency and comparability in financial statements by requiring institutions to separately disclose these items in their balance sheets. The proposal defines key concepts, classification criteria, measurement methods, and disclosure requirements, aligning with OCPC Guideline 10 on carbon credits and similar instruments. Stakeholders can submit feedback via the BC website or Participa + Brasil portal until May 31, 2025. | |
Germany | BaFin | Integrity Regulation to Strengthen Supervisor Ethics in Crypto and Finance | Germany’s Federal Ministry of Finance has enacted the BaFin Integrity Regulation (BIV), effective from 1 April 2025, to ensure ethical conduct among employees of the Federal Financial Supervisory Authority (BaFin). The regulation introduces strict rules on private financial transactions, particularly targeting crypto assets. BaFin staff are broadly prohibited from trading crypto issued by EU-based financial corporations, Russian entities, or assets lacking a central issuer. It also imposes a 90-day waiting period on offsetting trades and bans trading during official hours or using BaFin equipment. The BIV mandates transparency, notification obligations, and prior approvals for certain investments, aiming to prevent conflicts of interest and reinforce public trust in financial supervision. | |
Japan | JFSA | The Financial Services Agency (FSA) of Japan has officially designated the applicable rules under Article 32, Paragraph 7 of the Cabinet Office Ordinance concerning electronic payment instruments. Following a public consultation held from 27 February to 28 March 2025, which generated one comment, the FSA confirmed that the rules of the Japan Crypto Asset Trading Association (JCATA)—a certified fund settlement business association under the Payment Services Act—will serve as the designated regulatory framework. The adopted rules cover credit transactions involving electronic payment instruments. The designation took effect upon its publication in the Official Gazette. | ||
Luxembourg | CSSF | Luxembourg Amends ICT Risk Guidelines to Reflect DORA Implementation | The Commission de Surveillance du Secteur Financier (CSSF) has issued Circular 25/881, amending Circular 20/750 to align national ICT and security risk management requirements with the EU’s Digital Operational Resilience Act (DORA). The changes reduce overlap with DORA by narrowing the scope of Circular 20/750 to financial entities not covered by DORA, such as third-country branches and POST Luxembourg. Provisions specific to payment service providers (PSPs), including ICT assessments and user relationship management, have been removed and relocated to a new Circular 25/880. The update reflects harmonised European standards while maintaining robust oversight for non-DORA entities. | |
Luxembourg | CSSF | Outsourcing Rules to Align with DORA and Improve Risk Oversight | The Commission de Surveillance du Secteur Financier (CSSF) has amended Circular CSSF 22/806 through Circular 25/883 to strengthen governance and supervisory expectations around outsourcing arrangements. The updated rules now align more closely with the EU’s Digital Operational Resilience Act (DORA), especially regarding ICT outsourcing, cloud computing, and critical third-party risk. New provisions clarify due diligence obligations, internal governance roles, and exit strategies, while reinforcing that management accountability cannot be outsourced. Key updates apply to all supervised entities in Luxembourg, including credit institutions, investment firms, and certain management companies. The amendments aim to harmonize national supervision with European standards and reduce operational risk exposure. | |
Singapore | MAS | Consultation Paper on Proposed Amendments to AML/CFT Notices and | The Monetary Authority of Singapore (MAS) has released a consultation paper proposing amendments to its AML/CFT Notices and Guidelines across all financial sectors, aiming for compliance with revised FATF standards. Key updates include explicitly incorporating proliferation financing (PF) risks into money laundering (ML) definitions and requiring financial institutions and variable capital companies (VCCs) to conduct PF risk assessments. MAS also plans to amend trust-related rules under Notice TCA-N03 to broaden the definition of “trust relevant party” and align with changes to the Trustees Act 1967. Other proposed changes include stricter suspicious transaction reporting (STR) timelines—within 5 business days of identifying suspicion, or 1 day for cases involving sanctioned entities—and enhanced due diligence expectations around customer risk profiles, source of funds, and shell company indicators. The consultation is open until 8 May 2025. | |
United Kingdom | BOE | The Prudential Regulation Authority (PRA) has released its Business Plan for 2025/26, highlighting continued efforts to balance financial stability with support for competitiveness and growth. Key priorities include implementing Basel 3.1 standards and finalising the simplified capital regime for small domestic banks, reinforcing Solvency UK reforms to boost insurer investment capacity, and enhancing the UK’s operational and cyber resilience frameworks. The PRA also plans to consult on rules for crypto asset exposures, streamline regulatory data collection, and implement reforms to the Senior Managers and Certification Regime. Stress tests for banks and insurers, updated liquidity and model risk management expectations, and a review of the mutuals sector are among the regulatory deliverables. Operationally, the PRA aims to improve authorisation efficiency, embed technological innovation, and bolster diversity, equity and inclusion. | ||
United Kingdom | GOV.UK | HM Treasury has issued updated guidance for public sector bodies on aligning their annual reports with the Task Force on Climate-related Financial Disclosures (TCFD) framework. The new guidance mandates disclosures under the Governance, Risk Management, and Scope 1 & 2 GHG emissions categories for in-scope central government entities, with a “comply or explain” approach for Strategy and other Metrics and Targets. The framework promotes materiality-based reporting and climate scenario analysis, including reference periods to 2050 and 2100. It also introduces public-sector specific adaptations and encourages integration with other reporting regimes. The goal is to enhance climate risk transparency and consistency across government reporting. | ||
United Kingdom | FCA | The Financial Conduct Authority (FCA) has issued Consultation Paper CP25/7 outlining its proposed regulated fees and levies for the 2025/26 financial year. The FCA’s Annual Funding Requirement (AFR) will increase to £783.5 million, driven by rising operational costs and two new exceptional projects: the development of a regulatory regime for ESG ratings providers (£3m) and a motor finance complaints review (£6.9m). The paper proposes staged increases to minimum fees for certain consumer credit firms and introduces a new fee-block (CC4) for motor finance lenders with discretionary commission arrangements. It also updates periodic fees, application and transaction fees, and general levies, including those for the Financial Ombudsman Service and government departments. Stakeholders can respond to the consultation until 13 May 2025. | ||
Banking | European Union | EBA | Peer Review Finds Mixed Performance in Stress Tests by EU Deposit Guarantee Schemes | The European Banking Authority (EBA) has published a peer review assessing how EU Deposit Guarantee Schemes (DGSs) conduct stress tests under the revised EBA Guidelines. The review, covering 34 DGSs across the EU, Norway, and Liechtenstein, evaluated adherence to mandatory testing requirements and assessed five key benchmarks: planning, execution, cooperation, scenario severity, and identification of system improvements. While all DGSs performed depositor repayment tests, 11 failed to meet all mandatory requirements, with shortcomings most prevalent in cross-border repayment and contribution to resolution scenarios. Only one DGS fully met all benchmarks. The report highlights areas for improvement, including the need for more severe and complex scenarios, broader stakeholder involvement, and formalised follow-up actions. A follow-up review is planned in two years to track implementation. |
United Kingdom | BOE | Modification by consent of the Liquidity Coverage Ratio part of the PRA Rulebook | The Prudential Regulation Authority (PRA) has issued a modification by consent (MBC) allowing CRR firms to treat certain non-UK covered bonds as Level 2A high-quality liquid assets (HQLA) under Article 11 of the PRA’s Liquidity Coverage Ratio (CRR) Part. This direction applies only to specific bonds held and reported as liquid assets by the firm as of 31 January 2025. Recognised bonds must meet equivalent supervisory standards to those in the UK and be subject to public supervision protecting bondholders. Recognition is capped at the value reported on that date and excludes any new or replacement bonds acquired thereafter. This temporary allowance supports liquidity management while maintaining prudential standards. | |
Insurance | Bermuda | BMA | The Bermuda Monetary Authority (BMA) has published new guidance outlining its expectations for insurer recovery planning under the Insurance (Prudential Standards) (Recovery Plan) Rules 2024. The Guidance Note, issued on 11 April 2025, reinforces the need for insurers operating in Bermuda—particularly those considered systemically significant or economically important—to develop structured and credible Recovery Plans. These plans must address severe stress scenarios, include specific recovery triggers and actions, and align with international standards from the IAIS and FSB. The BMA expects Recovery Plans to be integrated with insurers’ enterprise risk management frameworks and regularly tested for effectiveness. A proportional approach will apply, with requirements tailored to the scale and complexity of each insurer. | |
Philippines | Insurance Commission | The Insurance Commission of the Philippines has released Circular Letter No. 2025-09, consolidating and updating the investment rules for insurers, reinsurers, and mutual benefit associations (MBAs). This new “Omnibus Guidelines on Investments” aims to increase flexibility and responsiveness to changing market conditions while upholding prudent risk management. It introduces new allowable asset classes—such as structured products and supranational debt securities—that no longer require prior approval, provided they meet credit rating or exchange listing standards. The Circular also lifts approval requirements for certain PHP and foreign currency investments that adhere to recognized market benchmarks. The reform streamlines 15 previous circulars, enhancing efficiency and decision-making for Insurance Commission-regulated entities. | ||
Portugal | ASF | Updates AML/CFT Measures Following February 2025 FATF Plenary Meeting | Portugal’s Insurance and Pension Funds Supervisory Authority (ASF) has issued Circular No. 4/2025, aligning national anti-money laundering and counter-terrorism financing (AML/CFT) procedures with the latest outcomes of the FATF Plenary held from 19–21 February 2025. The circular reiterates the need for enhanced due diligence and countermeasures against high-risk jurisdictions—North Korea, Iran, and Myanmar—highlighted on the FATF “blacklist.” It also lists 25 countries under increased monitoring, including South Africa, Nigeria, and Venezuela. Financial entities, particularly life insurers and pension fund managers, must apply strengthened identification and monitoring measures, especially where customers are linked to high-risk jurisdictions. The directive underscores immediate reporting duties for suspicious transactions under Portugal’s AML law. | |
United Kingdom | BOE | Matching Adjustment Investment Accelerator to Boost Insurer Investments | The Prudential Regulation Authority (PRA) has launched a consultation on the Matching Adjustment Investment Accelerator (MAIA), a proposed framework that would enable UK insurers to invest in new asset types more quickly and with capital efficiency. Under MAIA, insurers with existing Matching Adjustment (MA) permissions could include certain self-assessed MA-eligible assets in their MA portfolios without prior PRA approval. These “MAIA assets” would be subject to exposure limits, contingency planning, and reporting requirements. Firms must apply to regularise these assets within 24 months. The initiative aims to unlock timely investment in UK productive assets, support the transition to net zero, and strengthen the insurance sector’s role in long-term capital provision. The consultation closes on 4 June 2025. | |
Investment | European Union | ESMA | The European Securities and Markets Authority (ESMA) has released a consultation paper proposing amendments to the clearing threshold regime under EMIR 3. The revisions aim to refine how financial and non-financial counterparties calculate their exposures to over the counter (OTC) derivatives for clearing obligations. EMIR 3 introduces separate methodologies: financial counterparties (FCs) must calculate both aggregate and uncleared positions, while non-financial counterparties (NFCs) will only consider uncleared trades. ESMA proposes revised thresholds across asset classes, including EUR 1.8 billion for uncleared interest rate derivatives and EUR 3 billion for FX and commodity derivatives. It also considers retaining existing aggregate thresholds for IRDs and credit derivatives, while delaying more granular thresholds for ESG-linked or crypto-related derivatives. Stakeholders can submit feedback until 16 June 2025. | |
European Union | European Union | Reforms to Simplify Capital Market Access for SMEs and Issuers | The European Parliament and Council have adopted amendments to key financial regulations—EU 2017/1129 (Prospectus Regulation), EU 596/2014 (Market Abuse Regulation), and EU 600/2014 (MiFIR)—aimed at making EU public capital markets more attractive, particularly for small and medium-sized enterprises (SMEs). The reforms introduce two new prospectus regimes: the EU Follow-on Prospectus for seasoned issuers and the EU Growth Issuance Prospectus tailored for SMEs, both featuring reduced disclosure requirements and page limits to ease regulatory burdens. Other major changes include simplified rules for secondary issuances, updated exemption thresholds, streamlined market sounding and insider trading provisions, and enhanced ESG disclosure standards. These updates support the broader Capital Markets Union goals by improving funding access, reducing costs, and strengthening legal clarity for market participants across the EU. | |
European Union | ESMA | Consults on Technical Standards for European Green Bond Regulation | The European Securities and Markets Authority (ESMA) has opened a consultation on a second package of draft technical standards under the European Green Bond Regulation (EU) 2023/2631. The proposals aim to strengthen oversight of external reviewers by defining criteria for their systems, resources, compliance functions, internal procedures, and information quality. It also outlines application and reporting requirements for third-country recognition and updates to registration. These measures are designed to enhance the transparency, credibility, and consistency of external reviews in the European Green Bond market. Stakeholders can submit comments until 30 May 2025, with final standards due for submission to the European Commission by 21 December 2025. | |
France | AMF | France Bans Portfolio Transaction Commissions in AMF Rulebook Update | France’s Ministry of Economy has approved amendments to the General Regulation of the Autorité des marchés financiers (AMF), reinforcing investor protection and fee transparency in portfolio management. Effective from January 2027 for new mandates—and January 2028 for existing ones—investment service providers can no longer receive movement commissions or other transaction-related fees when managing portfolios on behalf of clients. The changes also ban subscription and redemption fees for in-house fund purchases unless acquired by the fund itself. The updated rules extend to foreign investment funds, aiming to align fee practices with principles of fairness, professionalism, and client interest. | |
Japan | JFSA | Administrative Guidelines for Crypto Exchanges with Focus on Professional Token Sales | The Financial Services Agency (FSA) of Japan has amended its Administrative Guidelines (Volume 3: Financial Companies) pertaining to cryptocurrency exchange service providers, effective April 9, 2025. The revision clarifies compliance expectations for professional token sales targeted at qualified institutional investors. Key updates include stricter due diligence on the suitability of tokens, enhanced disclosure requirements, and mandatory “transfer restriction measures” to prevent token resale to retail investors. The FSA also responded to five public comments, revising terminology and confirming that technical and contractual restrictions must be in place to ensure investor protection. The changes aim to improve market discipline and align sales practices with investor risk profiles. | |
United Kingdom | GOV.UK | Alternative Investment Fund Managers Regulations consultation | HM Treasury has launched a consultation on reforming the UK’s Alternative Investment Fund Managers (AIFM) regime, seeking to replace retained EU law with a proportionate and flexible framework aligned to UK market needs. The proposals include removing legislative thresholds that define “small” AIFMs, enabling the FCA to apply a three-tiered regulatory model based on firm size and activity. Managers of unauthorised property funds and internally managed investment companies would be required to seek FCA authorisation. While listed closed-ended investment companies will remain in scope for AIFM regulation, the FCA may simplify overlapping rules. Other proposals address marketing notifications, private equity disclosures, and external valuer liability. The consultation closes on 9 June 2025. |
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