This week, we’re seeing some major shifts in regulatory landscapes across important financial regions, tackling issues in credit markets, ESG oversight, AI governance, and beyond. With updated frameworks rolling out in Europe and proactive discussions happening in Asia-Pacific and the Americas, global regulators are actively redefining compliance standards. In this blog, we’ve put together a quick summary of the regulatory alerts from Week 19 of 2025, giving compliance professionals the timely, jurisdiction-specific insights they need to stay ahead.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | European Union | European Union | Insolvency Regulation amended to Strengthen Cross-Border Coordination | The European Union has updated Regulation (EU) 2015/848 on insolvency proceedings to enhance cross-border cooperation and streamline group insolvency management. The revised text reinforces the coordination between courts and insolvency practitioners, introduces procedures for group coordination across Member States, and simplifies creditor claim submissions through multilingual standard forms. It also improves access to insolvency register data and clarifies jurisdiction rules and applicable law for various insolvency scenarios. These changes aim to ensure more transparent, efficient, and equitable insolvency outcomes across the EU. |
United Kingdom | FCA | New Consumer Credit Regulatory Returns for Enhanced Oversight | The UK Financial Conduct Authority (FCA) has issued new rules requiring consumer credit firms involved in credit broking, debt adjusting, debt counselling, and credit information services to submit detailed regulatory returns. The new CCR009 return replaces older reporting forms and focuses on permissions usage, business models, revenue, marketing practices, and staffing. The changes aim to improve supervisory oversight, reduce ad hoc data requests, and better identify consumer risks. Firms must submit consolidated data for Appointed Representatives, and small firms may annualise data during initial reporting. The rules take effect from 7 May 2025. | |
United States | California | CPPA | The California Privacy Protection Agency (CPPA) launched a new comment period for updates to its proposed regulations under the CCPA. These cover cybersecurity audits, automated decisionmaking technology (ADMT), and risk assessments. Modifications include refined definitions for artificial intelligence, detailed rights for consumers to opt out of ADMT, and stricter rules for profiling and significant decisions. Businesses must ensure clear, symmetric user choices, avoid dark patterns, and disclose ADMT use transparently. Comments are open until June 2, 2025, reinforcing California’s leadership in AI and privacy governance. | ||
Banking | Australia | ASIC | New Regulatory Guidance to Support Buy Now Pay Later Industry | The Australian Securities and Investments Commission (ASIC) has issued Regulatory Guide 281, which outlines new requirements for low-cost credit contracts. From 10 June 2025, most Buy Now Pay Later (BNPL) arrangements will be regulated under the National Consumer Credit Protection Act 2009. Providers must hold an Australian credit licence and follow modified responsible lending obligations tailored for these contracts. These include mandatory affordability checks, capped fees, and a presumption of suitability for credit limits up to $2,000. The reforms aim to reduce consumer harm while preserving the flexibility of BNPL products. |
Chile | CMF | Chile’s Financial Market Commission (CMF) has opened a second public consultation to update reporting duties under the Fraud Law (Law No. 20.009). The proposal revises General Rule No. 487 to align with changes introduced by Law No. 21.673. It mandates enhanced data submission on fraud cases—such as theft, loss, and fraud—by card issuers, adjusts reporting frequency, and incorporates new fields to reflect claim procedures, suspensions, and legal actions. The update also clarifies requirements for issuers’ website disclosures and strengthens user protections by detailing how users can limit liability in fraud cases. | ||
European Union | European Union | Updated Technical Standards for Market Risk and Risk Factor Modellability | The European Commission has adopted Delegated Regulation (EU) 2025/878 to amend key technical standards on market risk, risk factor modellability, and treatment of FX and commodity risk in the non-trading book. The updates reflect Basel Committee standards and recent legal changes under Regulation (EU) 2024/1623. Key changes include refined classifications for trading desk performance (green, yellow, orange, red zones), clarified own funds calculations, and enhanced documentation requirements for use of third-party market data. Institutions must now identify translation risks and ensure consistent treatment of non-trading book exposures across consolidated entities. | |
European Union | EBA | The European Banking Authority (EBA) has adopted new Implementing Technical Standards (ITS) to streamline resolution planning under the Bank Recovery and Resolution Directive (BRRD). The updated ITS harmonise reporting templates, reduce redundant data points, and introduce a modular “core-plus-supplement” approach to ease compliance for smaller entities. They expand data requirements for resolution and liquidation entities, including granular liability data, critical function assessments, and service mapping. Reporting deadlines are split—liability data is due by 31 March, other reports by 30 April. The revised framework applies from 31 December 2025, aiming to support more efficient and consistent resolution planning across the EU. | ||
Malta | MFSA | The Malta Financial Services Authority (MFSA) has opened a consultation on the national transposition of CRD VI and the implementation of CRR III. These reforms aim to complete the EU’s Basel III rollout and introduce ESG risk management, enhanced supervision of third-country branches, and fit-and-proper rules for bank boards. The MFSA proposes using proportionality in applying rules and outlines its stance on national discretions, such as penalties, governance, and output floor exemptions. Stakeholders can submit comments until 6 June 2025. | ||
South Africa | Reserve Bank | The South African Reserve Bank (SARB) has released a draft guidance notice clarifying the bail-in process for Flac instruments under the Financial Sector Regulation Act. The notice outlines how statutory bail-in powers—such as share cancellation, liability write-downs, and debt-to-equity conversions—apply during resolution. It distinguishes between statutory and contractual bail-ins, mandates contractual recognition of SARB’s resolution powers, and details creditor hierarchy rules. Flac instruments must absorb losses before recapitalisation can occur, with their seniority positioned between unsecured creditors and regulatory capital instruments. | ||
United Kingdom | BOE | The Prudential Regulation Authority (PRA) has launched a consultation to withdraw SS20/15, which outlines expectations for building societies’ treasury and lending activities. The PRA argues the guidance is outdated, no longer aligns with current supervisory practices, and imposes stricter expectations on building societies than on banks. Removing SS20/15 aims to level the playing field, promote competition, and support sector growth. The PRA believes current risk management frameworks and supervisory tools are sufficient to ensure sound practices. The proposed change would take effect from 1 January 2026. | ||
United Kingdom | PSR | Decision to revoke Specific Direction 3 and consultation on revoking Specific Direction 2 | The Payment Systems Regulator (PSR) has revoked Specific Direction 3 (SD3), which mandated competitive procurement for Faster Payments infrastructure. The move follows the cancellation of the New Payments Architecture (NPA) programme and aims to align with the UK’s broader National Payments Vision. The decision removes legal obligations that could hinder flexible infrastructure development and opens space for future reforms. The PSR is also consulting on revoking Specific Direction 2 (SD2), which covers Bacs infrastructure. Feedback on SD2 is invited by 5 June 2025. | |
United Kingdom | FCA | Flexible Mortgage Reforms to Ease Switching and Reduce Repayment Burdens | The UK Financial Conduct Authority (FCA) has opened a consultation to simplify mortgage regulations and improve flexibility for consumers. The proposals aim to eliminate unnecessary advice requirements, such as removing the “interactive dialogue” trigger that mandates advice during customer engagement. The FCA also plans to ease affordability assessments for borrowers reducing their mortgage term or switching to a cheaper mortgage with a new lender. Additional proposals include retiring outdated guidance on interest-only mortgages and cost-of-living support, reinforcing reliance on the Consumer Duty. These changes are intended to foster competition, reduce consumer costs, and streamline compliance for firms. | |
Insurance | Mauritius | FSC | Consultation on Draft Captive Insurance Rules and Reporting Templates | The Financial Services Commission (FSC) of Mauritius has released draft amendments to the Captive Insurance Business Rules along with new return templates for public consultation. The proposal includes reporting formats for pure captive, multi-owner, and various classes of third-party captive insurance businesses. The FSC invites feedback by 19 May 2025. These changes aim to enhance transparency, regulatory clarity, and supervisory effectiveness in the captive insurance sector, supporting Mauritius’ ambition to strengthen its position as a global financial hub. |
Investment | European Union | European Commission | Exemption for Spot FX Benchmarks Under Benchmarks Regulation | The European Commission has launched a targeted consultation on whether to exempt certain spot foreign exchange (FX) benchmarks from Regulation (EU) 2016/1011. These benchmarks are critical for EU firms hedging currency risk, especially in markets with capital controls. If subject to full compliance, many non-EU administered benchmarks could become inaccessible, limiting hedging tools for EU banks and investors. The consultation seeks input on benchmarks that meet exemption criteria under Article 18a, focusing on their usage, availability of EU alternatives, and existing currency controls. Responses are due by 4 July 2025. |
European Union | European Commission | The European Commission has released a call for evidence to support its legislative plans for a Savings and Investments Union (SIU). The initiative aims to deepen EU capital markets, reduce market fragmentation, and create more efficient, scalable supervision. It targets barriers in trading infrastructure, fund distribution, and asset management operations. Proposed measures include harmonising supervision, removing national regulatory discrepancies, and enabling EU-level oversight of large cross-border entities. The Commission expects these reforms to lower compliance costs, boost liquidity, and enhance investor protection, making EU capital markets more competitive and accessible. | ||
European Union | ESMA | ESMA has issued its final technical advice to the European Commission under the Listing Act, proposing key changes to the Market Abuse Regulation (MAR) and MiFID II. The aim is to ease access to public markets for SMEs by simplifying disclosure obligations. New rules clarify how issuers must handle inside information in protracted processes, when delays in disclosure are permitted, and what constitutes a conflict with previous public announcements. For SME Growth Markets (SME GMs), ESMA suggests refining registration criteria, introducing clearer segmentation for MTFs, and aligning reporting standards with investor protection goals. These updates intend to reduce compliance burdens while enhancing transparency and supervision. | ||
Malaysia | Labuan FSA | Labuan Financial Services Authority (Labuan FSA) has released guidance to facilitate carbon credit trading within the Labuan International Business and Financial Centre (IBFC). The framework supports Malaysia’s sustainability agenda and aligns with global standards like the Paris Agreement. It promotes the use of Labuan-based financial structures for carbon trading, project financing, and risk management. The guidance also encourages digital innovation through tokenisation of carbon credits. Islamic digital entities engaging in qualifying activities may benefit from income tax exemptions until 2028. | ||
United Kingdom | FCA | The UK Financial Conduct Authority (FCA) has finalised rules allowing fund managers to pay for investment research using joint payments for research and execution services. This option now exists alongside traditional methods like firm resources or research payment accounts (RPAs). The new framework includes guardrails on cost allocation, disclosure, and research budget setting—now allowed at fund or strategy level. The rules aim to reduce operational burdens, especially for small fund managers, and enhance the UK’s global competitiveness by aligning with practices in other jurisdictions. |
Staying ahead in today’s ever-changing regulatory environment takes more than just keeping an eye on changes—it requires actionable insights. FinregE equips compliance teams with AI-powered regulatory horizon scanning, automated impact assessments, and seamless digital rulebook integration. With FinregE, companies can react more swiftly, cut down on compliance costs, and maintain ongoing alignment with the shifting global standards. Book a demo today
