Staying ahead in the dynamic world of financial services requires continuous monitoring of regulatory changes across jurisdictions and sectors. This blog brings together a curated summary of the key global regulatory updates from week 17 of 2025. Covering new consultations, finalized standards, amendments, and strategic initiatives, it offers valuable insights into emerging trends in banking, insurance, investment, sustainable finance, and data protection, helping professionals navigate an increasingly complex compliance environment.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | European Union | EBA | Finalized RTS to Include Crypto-Asset Service Providers under AML Supervision | The European Banking Authority (EBA) finalized updated Regulatory Technical Standards (RTS) to expand central contact point (CCP) requirements. The revised standards now apply to electronic money issuers, payment service providers, and crypto-asset service providers (CASPs) operating across EU borders. This aims to strengthen Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) compliance under Directive (EU) 2015/849. The RTS clarifies the criteria for appointing CCPs, aligning CASPs with existing rules for EMIs and PSPs. |
European Union | European Union | Amendments to EU Benchmark Regulation to Streamline Scope and Third Country Access | The Council adopted changes to Regulation (EU) 2016/1011, narrowing rules to focus on critical, significant, and climate-related benchmarks. It simplifies requirements for smaller benchmarks, eases third-country administrator access through permanent recognition, and updates reporting thresholds. The amendments also strengthen ESG disclosure requirements and improve oversight through enhanced roles for ESMA. These reforms aim to reduce regulatory burdens while safeguarding financial stability and supporting the EU’s climate goals. | |
European Union | European Union | The EEA Joint Committee published a list confirming that constitutional requirements under Article 103 of the EEA Agreement were fulfilled in 2024. These decisions span financial services, banking, insurance, investment, and related regulatory areas. Fulfilled decisions enable the entry into force of updates on capital requirements, PRIIPs disclosures, derivatives reporting, and AML regulations. This facilitates further regulatory alignment between the EU and EEA member states, ensuring consistency and legal certainty across key financial and consumer protection frameworks. | ||
European Union | European Union | Updated Rules for Managing Union Borrowing and Debt Under Diversified Funding Strategy | The European Commission revised the implementing decision to modernize the administration of EU borrowing, debt management, and related lending operations. The update introduces clearer frameworks for liquidity management, risk control, and reporting, ensuring robust oversight and financial stability. It also integrates new practices like auctions, syndications, and money market activities to optimize funding under changing market conditions. These rules strengthen operational flexibility while maintaining transparency, fiscal prudence, and adherence to EU financial regulations. | |
Global | UNEPFI | The UNEP Finance Initiative (UNEP FI) released a concept note emphasizing Indigenous Peoples’ leadership in halting nature loss. It promotes rights-based finance approaches that embed Indigenous governance, Free, Prior and Informed Consent (FPIC), and equitable benefit-sharing. COP16 marked historic advancements, including the formation of a permanent subsidiary body for Indigenous participation and launch of the Cali Fund. UNEP FI urges financial institutions to build “just partnerships” with Indigenous Peoples to achieve the Kunming-Montreal Global Biodiversity Framework targets by 2030. | ||
Global | UNEPFI | The UNEP Finance Initiative (UNEP FI) marked 2024 with major advances in responsible banking, sustainable insurance, and climate action. Key milestones included the launch of the Responsible Banking Blueprint, the Forum for Insurance Transition to Net Zero, and expanded ESG risk training programs. UNEP FI also emphasized nature-positive finance through new guidance at CBD COP16. Membership grew to over 550 institutions, demonstrating strong global support for sustainability integration across financial sectors. | ||
Honk Kong | HKMA | The Hong Kong Monetary Authority (HKMA) launched its Sustainable Finance Action Agenda to strengthen climate resilience and green finance leadership in Asia. The HKMA set ambitious targets: achieving net-zero operations by 2030 and net-zero investment portfolio emissions by 2050. Initiatives included enhancing the Hong Kong Taxonomy for Sustainable Finance, increasing sustainable investment allocations, and fostering sustainable banking practices. HKMA also deepened international collaborations, advanced climate stress testing, and supported inclusive green finance innovation. These actions reinforce Hong Kong’s positioning as Asia’s premier sustainable finance hub. | ||
Luxembourg | CSSF | Guidance on DORA Register of Information Submission for Financial Entities | The Commission de Surveillance du Secteur Financier (CSSF) published a guide to support financial entities with DORA Register of Information (RoI) submissions. The guide details validation rules, naming conventions, and common errors that can lead to rejection. It outlines requirements for Legal Entity Identifiers (LEI), file structure, mandatory fields, and foreign key dependencies. The CSSF emphasizes consulting the latest guidance before submission to ensure compliance and smooth reporting to European Supervisory Authorities under the DORA framework. | |
United States | California | CPPA | The California Privacy Protection Agency (CPPA) proposed new regulations to implement the Delete Act through the “Delete Request and Opt-Out Platform” (DROP). The DROP will allow consumers to request the deletion of personal data held by all registered data brokers with a single verified submission. Data brokers must create and maintain DROP accounts, process deletion requests within set timelines, and secure all related data. These rules aim to increase transparency, enhance consumer privacy rights, and improve business efficiencies across California’s data economy. | ||
Banking | Chile | CMF` | The Financial Market Commission (CMF) launched a public consultation on regulatory changes to ease restrictions for banks. These changes aim to support the development of repo, securitization, and credit insurance or derivatives markets. The proposal clarifies regulatory treatments, removes disincentives for self-securitization, and recognizes derivatives and credit insurance as risk mitigators. These updates align with Basel III standards and IMF recommendations. The CMF expects the changes to incentivize market growth with limited immediate impact on bank balance sheets. | |
European Union | EBA | ESG Dashboard to Track Climate Risk in EU/EEA Banking Sector | The European Banking Authority (EBA) has introduced an ESG dashboard to monitor climate-related risks in EU/EEA banks. The dashboard benchmarks green financing, transition risk, and physical climate risk, using banks’ Pillar 3 ESG disclosures. Data reveals banks hold significant exposure to high-carbon sectors, with over 70% linked to climate-contributing corporates. Physical risk exposures are lower, averaging under 30% in most countries. The Green Asset Ratio (GAR) remains below 3% on average, highlighting challenges in Taxonomy alignment during the ongoing economic transition. | |
European Union | European Union | EEA Joint Committee Amends Financial Services Annex to Align with EU Banking Package Updates | The EEA Joint Committee adopted Decision No 291/2024 to incorporate Regulation (EU) 2024/1623 into the EEA Agreement. This regulation amends key requirements under the EU Capital Requirements Regulation (CRR) regarding credit risk, operational risk, market risk, and the output floor. Specific adaptations apply for EFTA States, such as Liechtenstein. The amendments ensure continued alignment of EEA financial services regulations with the evolving EU banking framework while reflecting national legal adjustments for implementation. | |
European Union | European Commission | Standards for Identifying Extraordinary Market Circumstances in Banking Regulation | The European Commission finalized regulatory technical standards under the Capital Requirements Regulation (CRR) to define extraordinary circumstances. These standards guide the European Banking Authority (EBA) in assessing financial market stress or regime shifts that justify deviations from internal model requirements. Indicators like realized volatility, correlation shifts, and market disruption speed must be considered. This move ensures banks remain resilient and regulatory frameworks stay robust during severe market disruptions. | |
European Union | European Union | Framework for Cross-Border Effects and Reciprocity in Macroprudential Policy | The European Systemic Risk Board (ESRB) updated its recommendation on the assessment of cross-border impacts and voluntary reciprocity for macroprudential measures. Authorities must now systematically assess spillovers, regulatory arbitrage risks, and notify the ESRB about measures taken. Several systemic risk buffer and risk weight floors from countries like Belgium, Germany, and Sweden were also added for reciprocity. This promotes consistent application of macroprudential safeguards across the EU, enhancing financial stability. | |
Portugal | BDP | Updated Procedures for Authorisation of Management and Supervisory Roles | Banco de Portugal proposed amendments to Instruction No. 23/2018, streamlining the authorisation process for management and supervisory roles in financial institutions. The revised rules aim to speed up applications, improve clarity, and reduce the burden for reappointments without significant changes. Key updates include stricter timelines for submission (30 working days after appointment) and detailed requirements for suitability assessments, independence checks, and conflict-of-interest disclosures. The new instruction also aligns with European Supervisory Authorities’ guidelines on data sharing and supervisory cooperation to enhance regulatory efficiency. | |
Portugal | BDP | Banco de Portugal issued a circular clarifying the structure and use of Portuguese IBANs (IBAN PT) for payment accounts. The guidance establishes that only authorized institutions based in Portugal, such as banks, payment institutions, and e-money institutions, may issue IBAN PT. It defines the IBAN PT format, based on ISO 13616 standards, and emphasizes the correct construction and validation of national account identifiers. The updates aim to strengthen payment system efficiency and ensure regulatory compliance across Portuguese financial services. | ||
Slovakia | NBS | The National Bank of Slovakia (NBS) outlined its enhanced macroprudential strategy to maintain financial stability. The approach focuses on identifying systemic risks early, strengthening capital resilience, and ensuring credit and savings security during crises. Key tools include capital buffers, credit-related limits, and targeted risk weight adjustments. NBS emphasized transparency, regular effectiveness reviews, and strong cooperation with European and international bodies to address evolving risks and safeguard Slovakia’s financial system. | ||
United Kingdom | BOE | The Prudential Regulation Authority (PRA) published its final supervisory statement (SS1/25) outlining expectations for managing step-in risk. Firms must assess the likelihood of providing financial support to unconsolidated entities, even absent contractual obligations. The guidance covers indicators like sponsorship, liquidity risks, implicit guarantees, and reputational exposures. Firms are expected to integrate findings into stress testing, risk management frameworks, and regulatory consolidation assessments. This step strengthens safeguards against systemic risks linked to shadow banking and enhances resilience in crisis scenarios. | ||
United States | Federal Reserve Board of Governors | Withdrawal of Guidance for Banks Related to their Crypto-Asset | The Federal Reserve Board rescinded prior guidance requiring banks to notify it of crypto-asset and dollar token activities. Instead, crypto activities will be monitored through standard supervisory processes. The Board also withdrew from joint 2023 agency statements on crypto-asset risks, aligning with the FDIC and OCC. These changes aim to modernize oversight practices, support responsible innovation, and reflect the evolving risk landscape in banking. | |
Insurance | Bermuda | BMA | The Bermuda Monetary Authority (BMA) released draft Guidance Notes to support the Insurance (Prudential Standards) (Recovery Plan) Rules 2024. These notes explain BMA’s expectations for the structure and content of insurers’ recovery plans. Stakeholders have 170 days to provide feedback before the Authority finalizes the Guidance. Insurers must submit their comments by 30 September 2025 via the designated consultation email. The final Guidance will enhance recovery preparedness across Bermuda’s insurance sector. | |
Investment | European Union | ESMA | The European Securities and Markets Authority (ESMA) published its 2024 annual risk assessment of leveraged Alternative Investment Funds (AIFs) in the EU. While overall leverage remains limited, a small group of substantially leveraged funds increased their leverage sharply from 450% to 530%. Real estate funds face pressures from falling prices and outflows, while hedge funds show significant exposures to sovereign bonds, raising market stability concerns. Private equity funds exhibit low reported leverage, although true leverage may be underestimated. The findings emphasize the need for enhanced monitoring of systemic risks. | |
Spain | BOE | The Spanish CNMV issued Circular 2/2025 to adapt its financial reporting standards to the new EU Markets in Crypto-Assets Regulation (MiCAR). The updates modify existing requirements for investment service companies, asset managers, and introduce new obligations for crypto-asset service providers (CASPs). Changes include mandatory reporting formats for financial statements, enhanced anti-money laundering (AML) reporting, and new templates for tracking crypto-asset activities. The circular also streamlines administrative burdens for small firms and aligns supervisory practices with EU standards to foster better oversight of both traditional and crypto financial services. | ||
United Kingdom | FCA | Simplification of Regulatory Capital Rules for Investment Firms | The Financial Conduct Authority (FCA) launched a consultation (CP25/10) to redefine regulatory capital for FCA investment firms. The proposal aims to remove reliance on the UK Capital Requirements Regulation (UK CRR) and consolidate “own funds” rules within MIFIDPRU 3. It seeks to simplify the framework, reducing legal text by around 70%, lowering compliance costs, and improving accessibility without altering the quantity or quality of capital firms must hold. This move supports the broader strategy to tailor prudential regulation to investment firms’ business models while maintaining financial resilience and protecting market integrity. | |
United Kingdom | BOE | Consultation on Integrating MiFID Organisational Rules into UK Rulebook | The Prudential Regulation Authority (PRA) launched Consultation Paper CP9/25 to restate the MiFID Organisational Regulation within its Rulebook. The proposals aim to maintain existing organisational, outsourcing, recordkeeping, compliance, and risk management requirements for PRA-authorised firms after revoking assimilated EU law. No substantive policy changes are proposed, only technical transfers to improve clarity, regulatory coherence, and future flexibility. The initiative aligns with UK efforts to streamline post-Brexit financial regulation and enhance operational resilience across banks and investment firms. | |
United States | SEC | The Securities and Exchange Commission (SEC) extended the compliance relief for Security-Based Swap Reporting (SBSR) rules until November 5, 2029. This extension allows market participants more time to align reporting standards with updated Commodity Futures Trading Commission (CFTC) rules and international technical guidance. The SEC will continue reviewing potential amendments to further harmonize swap data reporting requirements, reducing unnecessary burdens while maintaining transparency and regulatory goals. |
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