Our blog provides a detailed exploration of the latest shifts in the global financial regulatory landscape. We analyse recent publications from authorities worldwide, highlighting major updates and consultations across banking, insurance, and investment sectors. These regulatory changes aim to strengthen effectiveness, compliance, and transparency. Our goal is to offer organizations practical insights to navigate these dynamic developments, ensuring they can adapt, comply, and thrive in an evolving regulatory environment.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | European Union | ESMA | Final Report on Guidelines for Enforcement of Sustainability Information | The European Securities and Markets Authority (ESMA) has published its Final Report on the Guidelines for Enforcement of Sustainability Information (GLESI). This initiative stems from the Corporate Sustainability Reporting Directive (CSRD), which mandates the adoption of European Sustainability Reporting Standards to ensure comprehensive and convergent supervision of sustainability reporting across the EU. The guidelines align closely with ESMA’s existing framework for financial information enforcement, aiming to harmonize supervisory practices and enhance the quality and comparability of sustainability information. Following extensive consultation, ESMA has incorporated feedback from various stakeholders, including the European Environment Agency and the Fundamental Rights Agency, to finalize the guidelines. These guidelines will be translated into all official EU languages and published, triggering a two-month compliance notification period for national competent authorities. |
European Union | ESMA | The European Securities and Markets Authority (ESMA) has published the Final Report on Draft Technical Standards specifying certain requirements of the Markets in Crypto Assets Regulation (MiCA) – second package. This comprehensive document, released on July 3, 2024, addresses the need for regulatory technical standards (RTS) and implementing technical standards (ITS) mandated by MiCA. The report encapsulates ESMA’s responses to stakeholder feedback received during a consultation period ending on December 14, 2023, and incorporates advice from the Securities and Markets Stakeholder Group (SMSG). Key areas covered include sustainability indicators, business continuity measures for crypto-asset service providers (CASPs), pre-and post-trade transparency, record-keeping obligations, machine readability of white papers, and the technical means for public disclosure of inside information. ESMA’s final guidelines aim to ensure clarity, comparability, and investor protection in the rapidly evolving crypto-asset market, fostering a harmonized regulatory environment across the European Union. | ||
European Union | European Union | The European Union enacted Directive (EU) 2024/1760, a significant legislative act focusing on corporate sustainability due diligence. This directive mandates that companies operating within the EU, including third-country companies with substantial operations in the EU, implement comprehensive due diligence processes to identify, prevent, and mitigate adverse human rights and environmental impacts throughout their value chains. The directive emphasizes a high level of protection for human rights and the environment, requiring companies to integrate due diligence into their policies, assess risks, and ensure compliance across subsidiaries and business partners. It aligns with international frameworks such as the UN Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises, aiming to foster a sustainable and responsible corporate sector in the EU. | ||
Luxembourg | CSSF | Public Consultation on Cybersecurity Risk Management Measures Under NIS2 Directive | The Commission de Surveillance du Secteur Financier (CSSF) has announced the public consultation and feedback period for the Draft Implementing Regulation related to the NIS2 Directive, which addresses technical and methodological requirements for cybersecurity risk management measures and specifies cases of significant incidents. The European Commission has released this draft, alongside its annex, for public feedback until July 25, 2024. The regulation pertains to entities providing trust services under Regulation (EU) No 910/2014 and entities in the digital infrastructure and ICT service management sectors, such as cloud service providers and managed service providers, who are likely to fall under the NIS2 Directive as essential or important entities. | |
Luxembourg | CSSF | The Commission de Surveillance du Secteur Financier (CSSF) has issued an updated version (1.7, July 2024) of the AIFM Reporting Technical Guidance. This update includes several critical amendments to align with the latest ESMA rules applicable from November 2023. Notable changes include the introduction of new transmission channels, such as the e-Desk platform, and updated error codes and validation rules for XML file submissions. Furthermore, the deactivation of previous transmission methods and the activation of specific controls have been outlined to ensure compliance with the CSSF’s requirements. The guidance details the necessary specifications for reporting files, including the structure and content requirements, and provides comprehensive instructions for registration and file submission procedures. Entities involved in AIFM reporting must adhere to these guidelines to ensure accurate and timely submission of reports to the CSSF. | ||
United Kingdom | ICO | The Information Commissioner’s Office (ICO) provides detailed guidance on the implications of AI within the framework of UK GDPR. This guidance addresses accountability, governance, transparency, lawfulness, accuracy, fairness, and individual rights in AI systems. It highlights the need for comprehensive data protection impact assessments, the importance of transparency, and methods to ensure algorithmic fairness and mitigate bias. Additionally, it offers a risk toolkit and glossary to navigate AI-related data protection concerns, emphasizing the necessity of clear governance frameworks and robust security measures. | ||
United States | California | CPPA | Notice of Proposed Regulatory Action for Data Broker Registration | The California Privacy Protection Agency (CPPA) initiated the formal rulemaking process to adopt regulations for data broker registration as authorized by SB 362, also known as the Delete Act. These regulations aim to clarify the registration process, including detailing the registration fee, defining key terms, and outlining requirements for registration updates and website disclosures. The public comment period is open until August 20, 2024, with a virtual hearing on the same day. Stakeholders are encouraged to review the proposed regulations and submit comments via the CPPA website. | |
United States | Federal Register | The Financial Crimes Enforcement Network (FinCEN) issued a Notice of Proposed Rulemaking (NPRM) on July 3, 2024, aiming to enhance and modernize anti-money laundering (AML) and countering the financing of terrorism (CFT) programs. The proposal introduces revised guidelines for risk assessments, improved customer due diligence processes, and enhanced reporting obligations for financial institutions. It seeks to integrate advanced technologies and updated compliance requirements to bolster the effectiveness of AML/CFT efforts. This regulatory update underscores the US commitment to maintaining robust financial safeguards and aligns with international standards set by organizations such as the Financial Action Task Force (FATF). Public comments on the proposal are invited. | ||
Banking | Global | BIS | Basel Committee Updates Standards for Banks’ Crypto asset Exposures and IRRBB | The Basel Committee on Banking Supervision has approved several significant updates during its virtual meeting on July 2-3, 2024. These updates include a finalized disclosure framework for banks’ crypto asset exposures, which features standardized public tables and templates to enhance market discipline. Additionally, targeted revisions to the crypto asset prudential standard were approved, particularly refining the criteria for stablecoins to receive preferential regulatory treatment. Both the disclosure framework and the revised standard will be implemented on January 1, 2026. The Committee also addressed interest rate risk in the banking book (IRRBB), approving adjustments to the specified interest rate shocks and the methodology for their calculation to better reflect periods of near-zero interest rates. These changes aim to enhance transparency, financial stability, and effective risk management in the banking sector. |
Global | FSB | Evaluation of G20 Financial Regulatory Reforms on Securitisation | The Financial Stability Board (FSB) has released a consultation report on July 2, 2024, evaluating the effects of the G20 financial regulatory reforms on securitisation. The report aims to assess whether the reforms have achieved their financial stability objectives and examine their broader impacts on the securitisation markets and the real economy. Focusing on key reforms such as the IOSCO minimum retention recommendations and the Basel Committee’s revisions to prudential requirements, the evaluation uses a range of data sources and analytical approaches to draw preliminary conclusions. The report invites public comments and additional insights to refine the final analysis, which is expected to be published by the end of 2024. | |
Hong Kong | HKMA | Self-Assessment of Compliance with SPM TB-1 on Trust Business | the Hong Kong Monetary Authority (HKMA) issued a circular summarizing the results of a self-assessment on compliance with the Supervisory Policy Manual Module TB-1 (SPM TB-1) for the period from June 1, 2023, to December 31, 2023. Authorized Institutions (AIs) and their subsidiaries involved in trust business participated in the self-assessment, which was conducted by their internal audit, compliance departments, or equivalent units. The assessment covered 84 provisions, including the Code of Practice for Trust Business. Overall, the compliance status was satisfactory with no instances of non-compliance reported. However, there were 12 instances of partial compliance, primarily related to corporate governance and internal controls, such as oversight of delegated functions, investment monitoring, risk assessments, and complaint handling. Remedial actions for most issues are expected to be completed by Q3 2024. The HKMA emphasizes the importance of maintaining robust systems and controls to ensure adherence to SPM TB-1 and prompt reporting of any material non-compliance. | |
Italy | BancadItalia | On July 5, 2024, the Committee for Macroprudential Policies held its first meeting at the Bank of Italy in Rome, following its establishment under Legislative Decree No. 207 of December 7, 2023. The meeting, chaired by Governor Fabio Panetta, included senior officials from Consob, Ivass, Covip, and the Treasury. Key discussions focused on the draft internal regulations, national and international economic risks, real estate market trends, and Italian household investments in certificates. The Committee found current financial stability risks to be contained but highlighted vulnerabilities related to geopolitical conflicts, economic performance, and investor risk perceptions. Updates on recent macroprudential measures, particularly the Bank of Italy’s capital buffer decisions, were also presented. The meeting minutes will be published soon. | ||
New Zealand | Commerce Commission | The Commerce Commission issued a draft determination on Payments New Zealand Limited’s (Payments NZ) application to enhance its open banking framework. The Commission’s preliminary view supports granting conditional authorization for Payments NZ to collaborate with current and future API providers (e.g., banks) and third parties (e.g., fintech) to develop a partnering framework for API services. This arrangement aims to reduce transaction costs and improve contract efficiency between API providers and third parties. The proposed conditions address potential conflicts of interest in the framework’s decision-making processes. The Commission proposes an 18-month authorization period, considering the expected duration of discussions and anticipated regulatory interventions. Interested parties are invited to submit feedback by July 15, 2024, with cross-submissions due by July 22, 2024. | ||
Romania | ASF Romania | ASF Approves Revised Draft Law for Financial Instruments and Market Operations | The Financial Supervision Authority (ASF) approved the revised draft law amending Law No. 24/2017 on issuers of financial instruments and market operations. This draft, now sent to the Ministry of Finance for further approval and parliamentary debate, includes significant updates aimed at enhancing corporate governance, internal controls, and sustainability reporting standards for financial issuers. Key amendments address multi-voting shares, public offering procedures, and comprehensive sustainability reporting requirements. The proposed changes are designed to improve transparency, governance, and compliance in the financial sector, aligning with EU regulations. | |
Sweden | Riksbank | The Swedish Central Bank (Riksbank) has introduced a draft proposal for a new regulation for the reporting of payment statistics, aiming to enhance its capability to monitor and analyse the payment market effectively. These regulations, enabled by the legislative authority granted on January 1, 2023, will require payment service providers and operators of payment systems to report detailed, anonymized data regularly. This initiative addresses the current lack of comprehensive payment statistics in Sweden, aligning it with other EU member states and providing critical data for financial stability, economic analysis, and crisis preparedness. The regulations will be implemented in stages, starting May 1, 2025, with full compliance expected by October 1, 2025. Stakeholders are invited to submit feedback on the draft by the specified deadline, which will help refine and finalize the reporting framework. The deadline for responses to the consultation is 28 September 2024. | ||
United Kingdom | FCA | The Financial Conduct Authority (FCA) has released its Policy Statement PS24/5, outlining the regulated fees and levies for the fiscal year 2024/25. This statement finalizes the rules and fee structures initially proposed in Consultation Paper CP24/6. Key updates include adjustments to the final fee and levy rates based on changes in fee data, feedback from stakeholders, and amendments to ensure clarity and compliance with regulatory objectives. The FCA has addressed concerns about the financial stability of firms and the fairness of levy distributions, emphasizing the importance of a predictable and equitable fee system. Firms can calculate their individual fees using the FCA’s online calculator. The statement also reflects the FCA’s ongoing commitment to maintaining a balanced approach to regulatory fees while supporting the broader objectives of financial stability and consumer protection. | ||
United Kingdom | BOE | The Prudential Regulation Authority (PRA) under the Bank of England has released its policy statement detailing the regulated fees and levies for the fiscal year 2024/25. The statement outlines the specific rates that financial institutions will be charged to cover the PRA’s operational costs and its regulatory activities. This statement includes feedback from responses to consultation paper CP4/24 and details the fees required to meet the PRA’s Annual Funding Requirement (AFR) of £331.3 million, an increase from the previous year’s £309.3 million. The policy also includes changes aimed at improving the transparency and predictability of these charges, as well as adjustments to better reflect the current economic environment and the complexity of supervising various firms. These updates are crucial for ensuring that the PRA can effectively fulfil its mandate of promoting the safety and soundness of financial institutions while supporting financial stability in the UK | ||
Insurance | Chile | CMF | The Financial Market Commission (CMF) of Chile released a consultation proposal for amendments to Circular Letter No. 2,202, which governs the financial reporting requirements for insurance and reinsurance companies. The key change mandates that these entities submit audited half-yearly financial statements, a requirement that currently applies only to annual statements. This aligns Chile with international corporate governance best practices and ensures consistency with other entities supervised by the CMF, such as banks and securities issuers. The proposal aims to enhance the quality and timeliness of financial information available to regulators and market participants, thereby improving decision-making and early identification of potential financial issues. Feedback on the proposal can be submitted until June 6, 2024, with the new regulations set to take effect on January 1, 2025, impacting the financial statements as of June 30, 2025. | |
Finland | FSA | FIN-FSA Updates Supervisory Data Submission Guidelines for Insurance Entities | The Finnish Financial Supervisory Authority (FIN-FSA) has announced amendments to its regulations and guidelines concerning the submission of electronic supervisory data by entities operating in the insurance markets, effective July 1, 2024. These changes, part of the overhaul to incorporate the new FIN-FSA reporting system, will impact several national data collections, including annual, half-yearly, and quarterly submissions. Key data collections such as income statements, balance sheets, solvency metrics, and various statistical surveys will be transferred to the new system in 2024. Additionally, obsolete data items will be removed, and reporting structures simplified to enhance clarity and efficiency. The updated guidelines will be effective from December 31, 2024, for annual and half-yearly data, and from September 30, 2024, for quarterly data. | |
Investment | Malta | MFSA | The Malta Financial Services Authority (MFSA) has introduced proposals to strengthen the sponsors’ regime in its capital markets, aiming to improve the quality and integrity of market listings. The new framework, detailed in a consultation document, emphasizes the need for sponsors to possess adequate competence, experience, and resources. Key features include the introduction of a registration framework for sponsors, enhanced internal governance structures, and clear definitions of sponsors’ roles and responsibilities. The MFSA is considering three options for implementation, with a hybrid approach being preferred, consolidating the most practical aspects of the proposed changes. Stakeholders are invited to provide feedback on these proposals by August 2, 2024 | |
Netherland | Dutch Central Bank | The Dutch Central Bank (DNB) has issued a detailed guide on good practices for prudential reporting by investment firms and fund managers. The guide emphasizes the importance of accurate, reliable, and timely data submissions, highlighting robust governance frameworks and effective internal controls. It recommends the use of automated systems to minimize errors, regular training for staff, and thorough documentation processes. These practices are designed to align with international standards, ensuring high-quality data that supports effective supervision and enhances the overall stability and transparency of financial markets. The guidance aims to ensure that firms can produce comprehensive and compliant reports even under stress or crisis situations. |
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