This edition of our weekly regulatory roundup captures critical developments shaping the global financial regulatory landscape. From Asia-Pacific to Europe and the Americas, regulators have issued impactful consultations, finalized guidance, and introduced reforms spanning banking, insurance, investments, and broader financial markets. The updates cover supervisory initiatives, risk management enhancements, and strategic shifts designed to align with evolving technology, climate goals, and cross-border financial practices. Whether you’re a compliance officer, risk manager, or policy strategist, these updates offer actionable insights into regulatory change and direction.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Australia | ACCC | Conditional Approval for ASFI Sustainable Finance Collaboration | The Australian Competition and Consumer Commission (ACCC) has issued a draft determination supporting a five-year conditional authorisation for the Australian Sustainable Finance Institute (ASFI) and industry stakeholders. This approval allows collaboration on sustainable finance initiatives, such as integrating natural capital data, designing investment structures, and proposing regulatory reforms. The ACCC aims to balance environmental investment benefits with competition safeguards. Proposed conditions limit anti-competitive risks by ensuring oversight and restricting information sharing. Stakeholders can submit feedback on the draft by 2 May 2025 before the ACCC finalises its decision. |
Bermuda | BMA | The Bermuda Monetary Authority (BMA) has released a discussion paper outlining plans to overhaul its regulatory framework for Payment Service Providers (PSPs). The proposal seeks to replace the existing Money Service Business Act 2016 with a new Payment Services Act, introducing a tiered licensing regime and clearer definitions for providers such as digital wallet providers, payment-handling entities, and payment technology firms. The framework aims to align with global standards, support innovation, and strengthen financial crime prevention and consumer protection. Stakeholder feedback is open until 15 May 2025. | ||
Romania | ASF Romania | Multiple Regulatory and Supervisory Measures Across Financial Sectors | The Financial Supervisory Authority (ASF) of Romania has adopted new regulatory measures and authorisations impacting insurance, capital markets, and private pensions. Key decisions include aligning with ESMA guidance on ICT incident cost estimation under DORA, and several updates to financial reporting norms for insurers and pension entities. ASF also approved multiple board appointments and structural changes across financial firms, including insurers and investment services companies. A notable move includes final approval for BT Pensii to take over the BRD Medio Optional Pension Fund. | |
South Korea | KFTC | Revision to Subcontracting Guidelines for Overseas Transactions | South Korea’s Fair-Trade Commission (KFTC) has announced proposed amendments to its Subcontracting Transaction Fairness Guidelines to clarify the application of the Subcontracting Act to overseas corporate structures. The revision outlines criteria under which domestic firms using foreign subsidiaries for subcontracting may still fall under Korean law, if the relationship reflects a de facto domestic subcontracting arrangement. This aims to improve legal clarity, reduce regulatory uncertainty, and enhance protections for Korean subcontractors abroad. The public consultation is open until 8 May 2025. | |
United Kingdom | FCA | Proposal to Eliminate Legacy Regulatory Returns to Ease Compliance Burden | The Financial Conduct Authority (FCA) has published CP25/8, proposing the removal of outdated data collection forms and notifications from its Handbook. The initiative aims to reduce regulatory costs for nearly 16,000 firms, especially smaller intermediaries and investment firms. Key returns proposed for decommissioning include FSA039, RMAR Section F, and Form G. This marks the first in a series of data streamlining efforts under the joint FCA-Bank of England Transforming Data Collection (TDC) programme. Feedback is open until 14 May 2025. | |
Banking | Austria | FMA | Austria Amends CRR Accompanying Regulation to Align with EU Supervisory Framework | Austria’s Financial Market Authority (FMA) proposed amendments to the CRR-Begleitverordnung 2021 to align with recent changes to EU Regulation 575/2013. Key updates include integrating EU Implementing Regulation 2024/3117, adjusting real estate valuation methods for covered bonds, and extending the use of ECAI credit ratings assuming implicit state support until July 2026. These transitional measures target institutions not directly supervised by the ECB and aim to harmonize with upcoming EU supervisory standards. The updated provisions will mostly enter into force on 28 June 2025. |
Chile | CMF | Chile’s Comisión para el Mercado Financiero (CMF) has launched a public consultation on operational standards for the new Consolidated Debt Registry (REDEC), established under Law No. 21.680. REDEC will centralise and enhance the quality of credit data, increasing the number of reporting entities and adding more detailed debt records. It aims to improve data accuracy, strengthen debtor rights, and support credit risk assessment by requiring consent-based data access and clear reporting timelines. The initiative promotes financial transparency and supports the development of Chile’s credit market. | ||
Global | UNEPFI | The Net-Zero Banking Alliance (NZBA) has published Version 3 of its “Guidance for Climate Target Setting for Banks.” The update enhances expectations for how banks should set, disclose, and govern science-based emissions targets in line with the Paris Agreement. Key recommendations include setting 2030 and 2050 targets, covering Scope 3 financed emissions across high-emitting sectors, and developing transparent transition plans. Banks must also report annually, apply credible scenarios, review targets every five years, and prioritize real economy impact over portfolio shifts. | ||
Hong Kong | HKMA | The Hong Kong Monetary Authority (HKMA) has released updated guidance to help authorized institutions (AIs) strengthen their defences against increasingly complex Distributed Denial-of-Service (DDoS) attacks. The advisory outlines key lessons from recent global and local incidents, urging banks to prepare for network effects, adopt multi-layered defence strategies, and avoid missteps in customer communication. HKMA also encourages institutions to use its enhanced Cyber Intelligence Sharing Platform for real-time threat intelligence exchange across financial sectors. | ||
Insurance | Malta | MFSA | Finalised Amendments to Insurance Rules and Distribution Requirements | The Malta Financial Services Authority (MFSA) has published a feedback statement following its March 2025 consultation on amendments to the Insurance Rules and Insurance Distribution Rules. Updates include clarifications on compensation fund contributions, audit committee requirements for captive insurers, SFCR audit exemptions for Protected Cell Companies, and the regulatory treatment of group insurance policies. The MFSA also addressed the application of the ECJ’s C-633/20 ruling and exemptions under the Insurance Distribution (Exemption) Regulations. A circular outlining the effective changes accompanies the feedback document. |
Romania | ASF Romania | Romania has adopted an Emergency Ordinance introducing sweeping reforms to its private pension system, aligning with OECD standards. The changes allow broader investment flexibility, including exposure to OECD markets and risk-based pension fund choices. Fund managers may now invest up to 10–15% in securities issued by collective investment undertakings, supporting capital market growth. The law also simplifies access to voluntary pensions and boosts ASF’s supervisory powers. These reforms mark a key milestone in Romania’s strategic objective of OECD membership. | ||
Investment | European Union | European Commission | Disclosure Standards for Sustainable and Sustainability-Linked Bonds | The European Commission has issued a Delegated Regulation supplementing Regulation (EU) 2023/2631 to establish disclosure templates for environmentally sustainable and sustainability-linked bonds. This regulation specifies the content, methodology, and format for voluntary post-issuance disclosures by bond issuers. The aim is to enhance transparency, ensure comparability, and promote investor confidence in the sustainability claims of green financial instruments. These templates will support consistent market practices across the EU and aid stakeholders in evaluating environmental performance and impact. |
European Union | European Commission | Consultation on Removing Barriers to Capital Markets Integration | The European Commission has opened a targeted consultation as part of its Savings and Investments Union (SIU) strategy to deepen integration of EU capital markets. The initiative aims to eliminate regulatory fragmentation, improve cross-border fund distribution, streamline supervisory convergence, and unlock new technological opportunities such as DLT and tokenisation. The Commission plans to propose legislative measures by Q4 2025 to boost competitiveness, modernise infrastructure, and enable more efficient supervision across the EU. Stakeholder responses are due by 10 June 2025. | |
European Union | ESMA | The European Securities and Markets Authority (ESMA) has issued its final guidelines on the use of Liquidity Management Tools (LMTs) by UCITS and open-ended AIFs. These guidelines aim to ensure consistent application across the EU, enhancing investor protection and financial stability. They cover the selection, activation, and calibration of tools such as redemption gates, swing pricing, and side pockets. ESMA emphasises that fund managers retain full responsibility for liquidity risk management. The guidelines will take effect following the application of related Regulatory Technical Standards (RTS), with a 12-month transition for existing funds. | ||
European Union | ESMA | ESMA has finalised its draft Regulatory Technical Standards (RTS) on Liquidity Management Tools (LMTs) for UCITS and AIFs under the revised AIFMD and UCITS directives. These standards harmonise the characteristics of tools like swing pricing, redemption gates, anti-dilution levies, and side pockets. The goal is to enhance investor protection, ensure fair treatment, and strengthen financial stability. ESMA has built in flexibility for different fund types and market conditions, addressing concerns raised during consultation. The draft RTS are now submitted to the European Commission for adoption. | ||
Hong Kong | HKMA | Consultation on Updated Clearing List for OTC Derivatives Market | The Hong Kong Monetary Authority (HKMA) and Securities and Futures Commission (SFC) have launched a consultation on the 2026 update to the list of Financial Services Providers (FSPs) under the OTC Derivatives Clearing Rules. The proposal includes adding Morgan Stanley Bank, N.A. due to its new clearing membership in an IRS central counterparty. The update maintains entities from previous years unless their group no longer qualifies, or a formal withdrawal is submitted. Stakeholders can submit comments by 16 May 2025. | |
Luxembourg | CSSF | The CSSF has issued Circular 25/884 confirming the application of EBA Guidelines on sound remuneration policies under Directive (EU) 2019/2034 to investment firms in Luxembourg. Class 2 investment firms must fully comply, while Class 3 (small and non-interconnected firms) continue under existing CSSF rules. The circular also emphasizes gender-neutral pay, governance standards, proportionality in applying variable pay rules, and maintaining a sound capital base. It aims to ensure consistency with EU-wide practices and risk-aligned remuneration structures. | ||
United Kingdom | FCA | The UK’s Financial Conduct Authority (FCA) has released CP25/9, advancing its new Consumer Composite Investments (CCI) regime. This consultation sets out proposals for simplifying cost disclosures, aligning MiFID rules, and replacing PRIIPs and UCITS disclosure frameworks. Key changes include the removal of implicit transaction cost disclosures, transitional guidance for firms, and simplified complaints procedures for unauthorised firms. The CCI regime aims to provide consumers with clearer, more useful information and reduce the regulatory burden on firms, enhancing investor confidence and market transparency. | ||
United States | FINRA | Launch of “FINRA Forward” to Modernize Regulation and Bolster Market Resilience | FINRA has introduced “FINRA Forward,” a strategic initiative aimed at enhancing regulatory effectiveness, compliance support, and market protection. The program focuses on modernizing FINRA rules to align with evolving capital markets, empowering member firm compliance through practical resources and feedback loops and expanding cybersecurity and fraud prevention measures. Key features include rule reviews under Regulatory Notice 25-04, the launch of a Financial Intelligence Fusion Centre, and efforts to reduce unnecessary regulatory burdens. These initiatives reinforce FINRA’s mission to safeguard investors and maintain market integrity amid technological and economic transformation. | |
United States | SEC | Delay of Form N-PORT Amendments Amid Legal and Policy Review | The U.S. Securities and Exchange Commission (SEC) has extended the effective and compliance dates for its 2024 amendments to Form N-PORT, which require more frequent and detailed portfolio holdings disclosures by investment funds. Larger funds now have until November 17, 2027, and smaller ones until May 18, 2028, to comply. The delay follows a presidential directive for regulatory review, litigation filed by the Registered Funds Association, and industry concerns over implementation burdens and potential investor harm. Meanwhile, Form N-CEN amendments proceed on schedule for November 17, 2025. |
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