This week’s regulatory roundup captures key developments shaping global financial markets across banking, investment, crypto, and fintech sectors. From refined AML and stablecoin frameworks to strategic shifts in capital adequacy, liquidity, and digital asset reporting, regulators are responding to evolving risks and market innovations. This edition distills insights from jurisdictions including the EU, Israel, the UK, US, and Asia-Pacific, offering compliance leaders a concise, global perspective to stay ahead of change.
Important Updates from Week 24
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Finland | FSA | Finland’s FIN-FSA has revised its AML guidelines to reflect regulatory changes impacting crypto-asset service providers. The updates, effective 1 July 2025, align with the EU’s Markets in Crypto-Assets Regulation. The scope now includes crypto-asset firms while removing outdated references to virtual currency providers. Regulatory powers were also updated to match amendments under the latest AML Act. Other technical changes include revised legal references and international standards. | |
Israel | GOV.IL | Department of Capital Market | The Israeli Capital Market Authority has opened a public consultation to shape a dedicated legal framework for stablecoin issuance and operations. This initiative follows the government’s decision to assign licensing, supervision, and regulatory powers to the Authority for entities engaged in issuing stablecoins. The proposed legislation aims to ensure financial stability and consumer protection by addressing key areas such as permissible reserve assets, mechanisms for maintaining value parity, and technological infrastructure. It also outlines strict requirements for disclosure obligations, redemption rights, and cybersecurity standards. The Authority seeks public feedback from academics, financial professionals, and industry stakeholders on technical, legal, and operational aspects. Responses are due by 18 June 2025. | ||
Israel | GOV.IL | Department of Capital Market | The Israeli Capital Market Authority has released a draft directive to strengthen borrower protections in the growing non-bank credit sector. The regulation introduces formal rules for BNPL (Buy Now Pay Later) loans, mandating clear borrower consent, cancellation rights, and prohibition of unfair fees. It also requires lenders to assess merchants’ financial reliability and disclose any incentives offered for loan facilitation. Additionally, the directive obliges lenders to provide borrowers with a secure online portal containing real-time loan data, including interest rates, repayment status, and contractual terms. These measures aim to boost transparency, fairness, and consumer trust across the sector. | ||
Philippines | SEC | The Philippine Securities and Exchange Commission (SEC) has issued new rules regulating crypto-asset service providers (CASPs), including registration, marketing, issuance, and trading of crypto-assets. Under SEC Memorandum Circulars Nos. 4 and 5 (Series of 2025), all CASPs must register as corporations with at least PHP 100 million in capital, maintain physical offices, file disclosure documents for crypto-asset offerings, and comply with anti-money laundering laws. The rules also impose supervision fees, mandatory operational reporting, and strict segregation of customer assets. Violations may result in penalties of up to five years’ imprisonment or fines up to PHP 10 million. | ||
Banking | European Union | European Union | The European Commission proposed a directive to harmonize national frameworks for recovery and resolution of financial institutions. It supplements the BRRD by establishing minimum requirements for early intervention, resolution planning, and cooperation between authorities. The initiative also promotes consistent triggers and procedures across Member States, ensuring cross-border resolution efficiency and financial stability. The proposal supports the Banking Union and protects taxpayer interests during bank crises through better-prepared and coordinated supervisory actions. | |
European Union | European Council | Permanent Liquidity Relief Measures for Banks to Support Market Functioning | The Council has approved permanent changes to EU liquidity rules under the Capital Requirements Regulation. These changes lock in lower required stable funding (RSF) factors for short-term securities financing transactions (SFTs) in the NSFR formula. The amendment prevents a scheduled rise in RSF factors on 28 June 2025, helping maintain financial market liquidity. EU banks gain a level playing field, as similar relief measures already exist in major non-EU jurisdictions. The updated rule supports the smooth functioning of sovereign bond and repo markets without compromising financial stability. The European Banking Authority will monitor its impact every five years. | |
European Union | European Commission | EU Postpones Market Risk Capital Rules to Preserve Global Competitiveness | The European Commission has delayed the binding application of the revised market risk capital rules (FRTB) to 1 January 2027. This move aims to maintain a level playing field for EU banks as key jurisdictions like the US and UK have not yet implemented the same Basel standards. Until then, banks must continue using the existing framework under CRR. The delay also affects related reporting, disclosure, and supervisory requirements. EU institutions will still report market risk metrics and maintain transparency based on current standards. | |
Hong Kong | HKMA | The Hong Kong Monetary Authority has issued revised reporting templates to support the Basel cryptoasset standards. These templates apply to liquidity, capital adequacy, market risk, stable funding, leverage, and large exposure returns. Explanatory notes and updated instructions accompany the templates to aid compliance. Banks must review and implement these changes as part of their system preparations. The Authority has requested feedback from the industry by 11 July 2025. | ||
United Kingdom | BOE | The Bank of England has released a feedback statement following its 2024 discussion paper on transitioning to a repo-led, demand-driven operating framework. Respondents broadly supported the recalibrated Indexed Long-Term Repo (ILTR) and praised the increased reserve availability and improved pricing structure. The Bank addressed concerns about predictability under stress, clarified that ILTR and other facilities should be used for routine liquidity management—not just emergencies—and committed to keeping the ILTR under regular review. It also lowered minimum bid sizes, confirmed future spread adjustments, and highlighted the role of bilateral tools like the Discount Window Facility. On collateral and settlement, the Bank pledged process improvements, potential flexibility in loan eligibility, and continued use of the Single Collateral Pool while remaining open to industry feedback. The statement reaffirms the Bank’s aim to provide stability, transparency, and resilience in UK monetary operations. | ||
Investment | Cyprus | CYSEC | The Cyprus Securities and Exchange Commission (CySEC) proposed amendments to the AIF Law to ease rules for limited partnerships without legal personality. The update removes the requirement for external managers to act as general partners. This reduces liability and cost burdens, making fund structures more attractive. It also clarifies related legal provisions and aligns roles of external managers and general partners. The changes aim to encourage greater use of limited partnerships while preserving investor protections and regulatory oversight. | |
European Union | European Union | Directive to Curb Over-Reliance on Credit Ratings in Fund Management | The European Commission proposed amendments to UCITS and AIFMD rules to limit excessive reliance on external credit ratings. Fund managers must now perform independent credit assessments and avoid solely using ratings when evaluating investment risk. These reforms aim to strengthen internal risk systems, align with Financial Stability Board principles, and reduce systemic vulnerabilities triggered by rating downgrades. The changes apply across all EU markets and promote more robust, independent portfolio management practices. | |
European Union | European Union | The European Commission introduced a regulation to revive securitisation markets by establishing a common EU framework for simple, transparent, and standardised (STS) securitisation. This aims to promote safer investments by differentiating high-quality securitisation products from complex and opaque instruments. The initiative supports the Capital Markets Union by helping banks offload risks and expand lending capacity. It also aligns risk retention and transparency obligations across sectors and requires due diligence from institutional investors. Ultimately, it seeks to bolster investor confidence while maintaining financial stability and reducing regulatory fragmentation across member states. | ||
European Union | European Union | EU Strengthens Oversight of Alternative Investment Fund Managers | The EU has implemented a unified regulatory framework for Alternative Investment Fund Managers (AIFMs). This directive sets consistent requirements for authorisation, supervision, and operation of AIFMs managing or marketing funds within the EU. It aims to enhance investor protection, mitigate systemic risk, and prevent market disruption. The framework also introduces strict rules for transparency, risk management, leverage limits, and depositary obligations. Non-EU AIFMs seeking access to EU markets must comply with equivalent standards to ensure a level playing field across jurisdictions. | |
European Union | ESMA | Finalised Amendments to Prospectus Disclosure Rules for Greater Transparency | ESMA has adopted revised Annexes under Commission Delegated Regulation (EU) 2019/980. These set clearer disclosure standards for prospectuses. Issuers must now follow updated formats for equity, non-equity, and ESG-linked securities. The changes also enhance requirements for asset-backed securities, pro forma data, and specialist issuers. These updates aim to improve investor understanding and cross-border consistency across EU capital markets. | |
European Union | ESMA | The European Securities and Markets Authority (ESMA) has submitted its final technical advice to the European Commission regarding civil prospectus liability under Article 11 of the Prospectus Regulation. ESMA advises against immediate reforms, citing that existing liability differences among Member States are not a significant barrier to cross-border offerings. Stakeholders highlighted other hurdles such as taxation and administrative burdens. However, ESMA suggests further discussion on two potential areas: introducing safe harbour rules for forward-looking statements and clarifying applicable law through private international law reforms. It emphasises that any future changes must be comprehensive to prevent regulatory fragmentation. | ||
European Union | European Commission | The European Commission adopted new technical standards under MiFIR to improve consolidated tape operations. The rules define data input/output formats, real-time transmission standards, and business clock synchronisation. They also set criteria for redistributing revenue to data contributors. These measures aim to increase transparency, reduce market fragmentation, and strengthen data quality across EU trading venues for shares and ETFs. | ||
Global | PRI Association | The Principles for Responsible Investment (PRI) has released a comprehensive technical guide aimed at advancing ESG integration in securitised debt investments. The 2025 publication addresses key challenges such as limited data transparency, multi-layered structures, and the complexity of collateral across instruments like RMBS, CMBS, ABS, and CLOs. It outlines practical tools for investment analysis, thematic investing, and engagement. The guide also explores how securitised products can channel capital into sustainable projects like green housing and EV financing. Asset owners are encouraged to assess managers’ ESG practices and consider proactive allocations to labelled securitised instruments. | ||
Guernsey | GFSC | The Guernsey Financial Services Commission has issued updated Prospectus Rules, effective 1 July 2025. Key revisions include exempting Professional Investors in Category 2 promotions and raising the non-Professional Investor threshold from 50 to 200. Listed Registered Collective Investment Schemes also benefit from material exemptions. These changes aim to simplify capital raising while aligning with global investor protection standards. | ||
Israel | GOV.IL | Department of Capital Market | Updated Pension Advisor Fee Regulations to Strengthen Oversight | The Israeli Ministry of Finance has published draft regulations revising the fee structure for pension advisors and marketers under the Financial Services Supervision Law. The proposal introduces updated application and annual license fees for individuals and firms, accounting for activity type and regulatory effort. The updated rates include reduced fees for new license holders to encourage market participation and increased fees for more complex services. It also sets examination and exemption fees for licensing exams, indexed annual adjustments based on the consumer price index, and penalties for late payments. These reforms aim to align the supervisory framework with current operational realities and ensure the Capital Market Authority has sufficient resources to enforce consumer protections in the pension advisory sector. | |
New Zealand | FMA | The Financial Markets Authority (FMA) of New Zealand is consulting on a proposed class exemption for listed issuers seeking to buy back their own quoted debt securities off-market. The proposal would exempt issuers from several requirements, such as a 30-day minimum offer period, restrictions on offer withdrawal, and detailed disclosure document formatting. However, conditions would remain to ensure market transparency, including a “cleansing notice” to the exchange, timely public announcements, and tailored disclosures about offer pricing and alternatives for investors. Feedback is being sought from stakeholders including debt holders, market operators, and financial institutions, with submissions due by 25 July 2025. | ||
United Kingdom | FCA | The UK Financial Conduct Authority has introduced rules for the PISCES sandbox—Private Intermittent Securities and Capital Exchange System. This innovative platform allows private companies to enable periodic trading of their shares in controlled, event-based windows. The rules aim to enhance flexibility, transparency, and investor access while maintaining proportionate safeguards. Companies can choose trading participants, set price parameters, and are subject to streamlined disclosure rules. Retail investor protections include risk warnings, cooling-off periods, and restricted investor categorisation. The sandbox, operational for five years, supports UK capital markets competitiveness and may become permanent after Treasury review. | ||
United States | IRS | Relief on Digital Asset Reporting and Withholding for Brokers | The U.S. Internal Revenue Service has extended transitional relief for brokers regarding digital asset reporting and backup withholding rules under Section 6045 of the Internal Revenue Code. Notice 2025-33 postpones enforcement of key obligations by one year, offering flexibility to brokers as they develop compliance systems. Brokers will not be required to perform backup withholding on digital asset sales through 2026. The relief also covers information return penalties and permits alternative methods for collecting taxpayer identification numbers (TINs) through the IRS TIN Matching Program. Further exemptions apply for certain preexisting non-U.S. customers and for digital asset-to-asset sales, where withholding will be based only on liquidated asset value. The update modifies the earlier Notice 2024-56 and provides more time to operationalize systems before full enforcement begins in 2027. | |
United States | MSRB | Withdrawal of One-Minute Trade Reporting Rule, Retains ‘As Soon As Practicable’ Standard | The Municipal Securities Rulemaking Board (MSRB) has proposed changes to withdraw a previously approved rule that would have required brokers and dealers to report municipal securities trades within one minute. Instead, the MSRB will retain the current 15-minute reporting window while introducing a new requirement that trades be reported “as soon as practicable.” The decision follows industry feedback that the one-minute mandate was operationally burdensome, especially for manual or complex trades. The revised approach aims to promote transparency without imposing excessive compliance costs. The MSRB also removed related exceptions, indicators, and trade flags tied to the one-minute rule, aligning reporting obligations more closely with those for other fixed income markets. The proposal emphasizes flexibility, cost-efficiency, and continued monitoring of trade reporting behaviour across the industry. |
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