Regulatory advancements worldwide progressed rapidly during Week 21 of 2025. This blog provides a carefully selected summary of significant updates in financial services, investment management, banking, and crypto-asset oversight. It encompasses new legislative proposals, consultation documents, finalized regulations, and supervisory statements released by regulators across the EU, UK, Africa, Asia-Pacific, and the Middle East. From compliance requirements for international banks to ESG disclosures, these updates deliver insights into emerging risks, supervisory trends, and regulatory innovations that are influencing global financial governance.
Important Regulatory Updates from Week 21
Business Line | Country | Regulator | Regulatory Update | Summary |
All | European Union | European Union | Corporate Sustainability Due Diligence Rules for Large Companies | The European Union has adopted Directive (EU) 2024/1760 on corporate sustainability due diligence. It mandates large EU and non-EU companies to prevent and address adverse human rights and environmental impacts across their operations and supply chains. Covered companies must implement transition plans aligned with climate neutrality goals. They must also engage stakeholders, monitor effectiveness, and provide remediation when harms occur. Supervisory authorities will enforce compliance and impose penalties up to 5% of global turnover. |
European Union | European Union | The European Commission has proposed a regulation to ease regulatory burdens for small mid-cap companies (SMCs). It extends SME-targeted simplifications across key EU laws, including GDPR, trade defence, battery due diligence, and securities prospectus rules. The proposal exempts SMCs from certain reporting and registration duties, aligning them with SME exemptions. It defines SMCs as enterprises with under 750 employees and EUR 150 million turnover. The changes aim to support growth, innovation, and competitiveness while ensuring proportional compliance requirements. | ||
Nigeria | CBN | Draft AML Standards for Automated Solutions in Financial Sector | The Central Bank of Nigeria has released draft baseline standards for automated anti-money laundering (AML) solutions. These standards aim to improve compliance, accuracy, and integration across financial institutions. The framework mandates functionalities like AI-driven transaction monitoring, PEP screening, case management, data protection, and regulatory reporting. It also promotes alignment with FATF guidelines. Institutions have 12 months post-finalisation to comply and risk sanctions for non-adherence. | |
United Kingdom | FCA | Streamlined Complaints Reporting to Boost Market Transparency | The UK Financial Conduct Authority (FCA) has launched a consultation on simplifying how regulated firms report complaints data. The proposal consolidates five current returns into a single, streamlined return and introduces biannual reporting across all firm types. This aims to reduce administrative burden, eliminate group-level reporting, and improve data quality. Updated product and service categories, alongside inclusion of vulnerability and Consumer Duty indicators, are designed to better identify market trends and consumer harm. The FCA expects full implementation by end-2026 following a 12-month transition period after final rules are published later in 2025. | |
United Kingdom | PSR | Mandatory APP Scam Reimbursement for Faster Payments and CHAPS | The Payment Systems Regulator (PSR) has issued its final consolidated policy on reimbursing victims of authorised push payment (APP) scams. From 7 October 2024, sending payment service providers (PSPs) must reimburse eligible consumers within five business days. Receiving PSPs will share 50% of the reimbursement cost. Exceptions apply only for gross negligence or fraud, excluding vulnerable customers. A cap of £85,000 per claim is set. The rules aim to ensure consistent redress and stronger fraud detection across the UK payments ecosystem. | |
Banking | European Union | EBA | The European Banking Authority (EBA) has initiated onboarding for its new Pillar 3 Data Hub (P3DH). This platform will centralize public disclosure submissions from large and other institutions. Institutions must now follow a phased onboarding process to access the EUCLID platform, beginning with submission of contact details and user account setup. The EBA will onboard institutions in four groups, based on size and complexity, and complete the rollout by end of 2025. During transition, institutions may continue publishing disclosures on their own websites. | |
European Union | EBA | Consultation on ESG, Equity, and Shadow Banking Disclosure Amendments | The European Banking Authority (EBA) has released a consultation paper proposing updates to Pillar 3 disclosure standards. The amendments expand ESG disclosure requirements to all institutions, not just large, listed ones. They also introduce simplified, proportionate templates tailored to institution size and complexity. Additional updates clarify disclosure on equity exposures and require reporting of aggregate exposures to shadow banking entities. Transitional measures will apply until end-2026 to ease implementation burdens for institutions newly in scope. | |
New Zealand | RBNZ | The Reserve Bank of New Zealand issued a new standard requiring deposit takers to prepare digital systems for the Depositor Compensation Scheme (DCS). From 1 July 2025, account software must include a DCS depositor page to securely collect payment details and contact information from authorised individuals. Deposit takers must also deactivate regular account access tools upon direction. The Bank may approve alternate models. The rules ensure operational readiness ahead of DCS activation. | ||
South Africa | Reserve Bank | The South African Reserve Bank has issued a draft directive updating governance and measurement requirements for large exposures (LEX). Banks must form Board-appointed committees with defined independent and executive membership to approve exposures above 10% of Tier 1 capital. The directive aligns with revised Basel III market risk reforms and enhances credit concentration controls. It also outlines specific rules for intragroup, interbank, and foreign subsidiary exposures. Comments are due by 26 June 2025. | ||
Switzerland | FINMA | FINMA has issued new guidance to reinforce supervisory expectations in the Swiss mortgage market. Banks must validate valuation models annually, strengthen affordability checks, and manage high-risk exposures in income-producing and commercial real estate. Exceptions to lending policies (ETPs) must be transparently flagged and monitored. FINMA also urges stricter loan-to-value ratios and amortisation standards. These measures respond to systemic risks in real estate lending amid structural shifts and rising market vulnerabilities. | ||
United Kingdom | BOE | Updates to Pillar 2A Capital Framework to Reflect Basel 3.1 Standards | The UK’s Prudential Regulation Authority (PRA) has launched Phase 1 of its Pillar 2A review, proposing systematic methodologies to address credit risk gaps under the new Basel 3.1 standards. The changes aim to improve risk sensitivity and reduce reporting burdens by removing the outdated IRB benchmarking approach. Key proposals include setting minimum risk weights for exposures to foreign sovereigns and local authorities and increasing capital coverage for retail credit lines. The PRA also plans to clarify expectations for credit scenario analysis and streamline data submissions, fostering greater transparency and proportionality in supervision. | |
United Kingdom | BOE | The UK’s Prudential Regulation Authority (PRA) has issued near-final rules to offset the removal of SME and infrastructure support factors from Pillar 1. The new Pillar 2A lending adjustments ensure firms maintain stable capital requirements for these exposures under Basel 3.1. Adjustments apply to eligible exposures pre- and post-Basel 3.1 implementation. Calculations use firm-specific data and are integrated into the PRA’s capital adequacy framework. These measures aim to protect SME financing and infrastructure investment from unintended capital shocks. | ||
United Kingdom | BOE | Finalised Policy for Supervising International Banks and Branch Reporting | The UK Prudential Regulation Authority (PRA) has finalised updates to its SS5/21 supervisory framework for international banks and designated investment firms. Key changes include revised thresholds for branch risk appetite—uplifted by 30% to reflect inflation—and reduced transactional deposit reporting to ease regulatory burden. The PRA also clarified expectations on booking models, liquidity reporting, and HNWI classification. Implementation begins immediately, with revised branch reporting rules effective from March 2026. | |
Investment | European Union | ESMA | ESMA has issued a Call for Evidence to assess how regulatory and non-regulatory factors impact retail investor engagement in EU capital markets. It seeks input on whether MiFID II rules—like disclosure and suitability requirements—help or hinder investor understanding. The paper explores challenges such as product complexity, digital platforms, social media influence, and trust in service providers. Feedback will guide potential policy updates to enhance investor protection and foster broader retail market participation. | |
Germany | BaFin | BaFin has issued a general administrative order requiring German securities institutions to report high earners’ pay data. Institutions must submit information by 15 June 2025 for staff earning over EUR 1 million in 2024. The reporting obligation aligns with EBA guidelines and supports consolidated disclosures under the IFD and CRD frameworks. Reporting applies to both medium and large institutions and covers executives, directors, and key staff. BaFin will forward the aggregated data to the EBA for EU-wide publication. | ||
Luxembourg | CSSF | Luxembourg Enforces ESMA Guidelines for Crypto-Asset Portfolio Management | The CSSF has adopted ESMA’s guidelines on suitability requirements and reporting formats under the Markets in Crypto-Assets Regulation (MiCAR). Starting 25 May 2025, crypto-asset service providers in Luxembourg offering advice or portfolio management must comply. The rules harmonise supervisory expectations across Europe and standardise periodic reporting for managed crypto portfolios. This aims to improve investor protection and supervisory convergence in the EU crypto regulatory landscape. | |
Malta | MFSA | Consultation on Strengthening Sponsors’ Regime Under Capital Markets Rules | The Malta Financial Services Authority (MFSA) is consulting on changes to Chapter 2 of its Capital Markets Rules to enhance the Sponsors’ Regime. Proposed amendments include stricter eligibility and independence requirements, a two-person staffing minimum, and clearer expectations on listing reviews and record-keeping. Sponsors must also meet ongoing reporting duties. These reforms aim to raise governance standards and safeguard market integrity. Feedback is due by 20 June 2025. | |
Malta | MFSA | Proposed Legislative Framework pertaining to the Sponsors’ Regime | The Malta Financial Services Authority (MFSA) has launched a consultation on a draft legislative framework to regulate sponsors in capital markets. The proposal introduces formal registration, cancellation, and appeal processes under the Financial Markets Act. It also sets out conditions for sponsor eligibility, MFSA notifications, penalties, and the authority’s power to issue detailed rules. The framework includes a new fee structure applicable at registration and annually. Feedback is due by 20 June 2025. | |
Romania | ASF Romania | Alignment of Money Market Fund Stress Testing Rules with Updated ESMA Guidelines | Romania’s Financial Supervisory Authority (ASF) has issued a draft amendment to ASF Rule No. 13/2018 to reflect the latest ESMA guidelines. These updates standardise the stress testing scenarios for money market funds (MMFs) under Article 28 of the EU Money Market Funds Regulation (EU) 2017/1131. The revised annex specifies new calibration parameters and enhanced crisis simulation models to improve MMF resilience assessments. The rule will take effect upon publication in the Official Gazette. | |
Singapore | MAS | Higher Margin Exposure Limits for Capital Markets License Holders | The Monetary Authority of Singapore (MAS) has proposed raising the aggregate margin exposure limit for product financing from 300% to 500% of free financial resources. It also plans to remove the 100% cap on exposures tied to products not quoted on approved exchanges. These changes aim to enhance market vibrancy while managing leverage risk. Stakeholder feedback is invited until 21 June 2025. | |
UAE | VARA | Updated Rulebooks to Strengthen Oversight of Virtual Asset Activities | Dubai’s Virtual Assets Regulatory Authority (VARA) has issued Version 2.0 of its activity-based Rulebooks, enhancing regulatory clarity and market discipline. The updates tighten margin trading controls, refine token distribution rules, and clarify collateral wallet standards. These refinements apply to all licensed virtual asset activities, from custody to exchange services. VASPs must comply within 30 days, with VARA providing targeted supervision during the transition. |
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