The world of finance is constantly evolving, and keeping up with the ever-changing regulatory landscape can be a daunting task for businesses of all sizes. New rules and updates can impact everything from capital requirements to reporting standards, potentially affecting your bottom line and day-to-day operations. In our latest blog we provide summaries of key updates from around the world, helping you understand how they might impact your investment strategies and business operations.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Belgium | Data Protection Authority | Establishment of the Informal Panel of Supervisory Authorities for the EU-US Data Privacy Framework | On April 17, 2024, the “Informal Panel of Supervisory Authorities in the EU” was established in accordance with Recital 75 of the European Commission’s Implementing Decision C(2023) 4745 and Principle III.5 of Annex 2. This panel is empowered to provide binding advice to U.S. organizations regarding unresolved complaints about the handling of personal information transferred from the EU under the EU-US Data Privacy Framework (DPF). The panel aims to deliver its advice within 60 days of receiving a complaint, though this is an indicative timeframe. Should an organization fail to comply with the panel’s advice, cases may be referred to the U.S. Department of Commerce for possible removal from the DPF list or to the Federal Trade Commission for enforcement actions. This initiative underscores a structured approach to resolving cross-border data privacy issues, ensuring that personal data transferred from the EU is handled in compliance with established DPF principles. |
Croatia | HANFA | At the recent meeting of the Hanfa Council, significant regulatory advancements were discussed, including the transposition of the EU Corporate Sustainability Reporting Directive (CSRD) into Croatian law. The Ministry of Finance has prepared the Accounting Act and the Act on Amendments to the Audit Act, both proposed to the Government on June 26, 2024, and adopted by Parliament on July 12, 2024. These acts, expected to be published soon in the Official Gazette, mandate sustainability reporting starting in 2025 for the financial year 2024. This legislative move aims to enhance corporate transparency and accountability regarding sustainability practices, aligning with the broader EU framework of sustainable investment, which includes the EU taxonomy and the SFDR regulations. The adoption of these standards will broaden the scope of reporting entities and ensure that sustainability reports are comprehensive, comparable, and published in a standardized electronic format, facilitating better informed investment decisions and supporting the transition to a sustainable economy. | ||
European Union | EBA | On July 17, 2024, the European Supervisory Authorities (EBA, EIOPA, and ESMA – collectively known as the ESAs) announced the publication of the second batch of policy products under the Digital Operational Resilience Act (DORA). This latest release comprises four final draft Regulatory Technical Standards (RTS), one set of Implementing Technical Standards (ITS), and two guidelines. These regulatory instruments aim to bolster the digital operational resilience of the EU financial sector, ensuring the continuous and secure provision of financial services. The policy products focus on the reporting framework for ICT-related incidents, threat-led penetration testing, and the oversight framework design. Notably, they include standards for reporting major ICT incidents, criteria for joint examination team composition, and guidelines on estimating costs from ICT incidents and oversight cooperation. The final draft technical standards have been submitted to the European Commission for review, with further updates expected in the coming months. This initiative follows extensive public consultations, ensuring the standards are streamlined, proportional, and responsive to sector-specific concerns. | ||
European Union | EBA | Consultation on Draft Guidelines for Reporting on ARTs and EMTs | The European Banking Authority (EBA) has released a consultation paper dated July 15, 2024, inviting feedback on the draft guidelines for templates to assist competent authorities in supervising compliance under Titles III and IV of Regulation (EU) 2023/1114, pertaining to Markets in Crypto assets (MiCAR). The guidelines propose standardized reporting templates to ensure uniformity and efficiency in monitoring issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs). These templates aim to bridge data gaps identified by the EBA, facilitating effective supervision of issuers’ compliance with own funds, liquidity, and reserve asset requirements. The consultation, open until October 15, 2024, seeks stakeholder input on various aspects of the proposed templates and reporting requirements. This initiative is crucial for enhancing supervisory convergence and maintaining the integrity and stability of the EU’s financial markets. | |
European Union | EDPB | Expansion of Role of DPAs in AI Act and Approves New Data Protection Seal | On July 17, 2024, the European Data Protection Board (EDPB) emphasized the critical role of Data Protection Authorities (DPAs) in the AI Act framework, recommending their designation as Market Surveillance Authorities (MSAs) for high-risk AI systems. This move aims to leverage DPAs’ expertise in safeguarding fundamental rights and ensure cohesive regulatory oversight. The EDPB also published FAQs on the EU-U.S. Data Privacy Framework, providing guidance for individuals and businesses on compliance and data transfer processes. Additionally, the EDPB approved the EuroPriSe Criteria Catalogue, recognizing it as a European Data Protection Seal, which enhances GDPR compliance and transparency across the EU. These developments underscore the EDPB’s commitment to robust data protection and regulatory coherence. | |
Guernsey | GFSC | Updates to the Handbook on Countering Financial Crime (AML/CFT/CPF) | The Guernsey Financial Services Commission (GFSC) has issued the latest revisions to its Handbook on Countering Financial Crime, which encompasses Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Countering the Financing of Proliferation of Weapons of Mass Destruction (CPF). These updates, effective from 19 July 2024, include significant changes to enhance compliance and risk management frameworks. Key updates involve amendments to the definitions and regulatory requirements, including enhanced customer due diligence measures, new guidelines on the assessment of risks related to money laundering and terrorist financing, and additional provisions on record keeping and reporting obligations. These changes aim to align Guernsey’s financial crime prevention measures with international standards set by the Financial Action Task Force (FATF) and ensure the robustness of the jurisdiction’s financial system against exploitation by criminals and terrorists. | |
New Zealand | FMA | Consultation on Proposed Guidance for Climate Statements in Disclosure Documents | The Financial Markets Authority (FMA) of New Zealand has released a consultation paper seeking feedback on a proposed information sheet that offers guidance to climate reporting entities (CREs) on incorporating climate-related disclosures into various financial documents. This initiative aims to ensure compliance with the new Climate-Related Disclosures (CRD) regime outlined in the Financial Markets Conduct Act 2013. The proposed guidance covers updates to Product Disclosure Statements (PDS), Other Material Information (OMI), Statements of Investment Policies and Objectives (SIPO), and annual reports. The FMA emphasizes the importance of clear and concise disclosure to promote informed decision-making among investors, businesses, and consumers. The consultation is open until August 30, 2024, inviting stakeholders to provide their views on the proposed guidance and any additional support they might require for effective compliance. | |
United States | FinCEN | On June 28, 2024, the U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) and other federal agencies proposed amendments to anti-money laundering and countering the financing of terrorism (AML/CFT) program requirements. These proposed rules aim to modernize AML/CFT programs for financial institutions, aligning them with the Anti-Money Laundering Act of 2020. Key changes include establishing a risk assessment process, encouraging technological innovation, and requiring U.S.-based oversight. The proposed amendments emphasize risk-based approaches, aiming to enhance the effectiveness of AML/CFT programs in preventing illicit financial activities. Public feedback is sought to refine these proposals, ensuring they meet modern financial challenges and regulatory expectations. | ||
Banking | European Union | EBA | On July 19, 2024, the European Banking Authority (EBA) published a consultation paper introducing a new chapter in its Handbook on Independent Valuers for Resolution. This chapter provides comprehensive guidelines and best practices for the selection, appointment, and assessment of independent valuers tasked with conducting valuations under the EU’s resolution framework. The draft Handbook addresses preparatory arrangements, the appointment process, and the assessment of valuers’ independence to ensure they meet legal and regulatory standards. The EBA’s objective is to enhance the quality and consistency of the valuation process, ensuring that independent valuers possess the necessary qualifications and are free from conflicts of interest. The consultation period is open until September 19, 2024, inviting feedback to refine the guidelines before the final Handbook is published. | |
European Union | EBA | Consultation on Amendments to Joint Decision Process for Prudential Permissions | On July 16, 2024, the European Banking Authority (EBA) released a consultation paper on draft amendments to the Implementing Technical Standards (ITS) for the joint decision process regarding certain prudential permissions. These amendments are designed to align the ITS with the latest changes in the EU regulatory framework, specifically the exclusion of the Advanced Measurement Approach (AMA) for operational risk from Regulation (EU) No 575/2013 (CRR). The proposed changes aim to enhance cooperation among competent authorities during the assessment of applications for internal models for credit risk, counterparty credit risk, and market risk. Stakeholders are invited to provide feedback by October 16, 2024, to ensure the final standards effectively facilitate joint decisions and maintain regulatory clarity and supervisory convergence across the EU. | |
Global | UNEP FI | Circular Economy Resources for Banks to Tackle Sustainability Challenges | On July 18, 2024, the UN Environment Programme Finance Initiative (UNEP FI) released the inaugural reports in a new series aimed at assisting banks in integrating circular economy principles to address climate change, nature loss, and pollution. Targeted at over 300 signatories of the Principles for Responsible Banking, these resources offer practical guidance for banks to move from setting sustainability targets to achieving them. The guidance encourages banks to embed circularity into policies, support clients transitioning to circular business models, and redirect financial flows towards sustainable solutions. By adopting circular models, banks can mitigate risks associated with traditional linear business practices, comply with emerging regulations, and contribute to significant economic benefits, estimated at $4.5 trillion annually by 2030, while fostering resilience and reducing costs related to resource consumption and waste management. | |
Global | BIS | Basel Committee Finalizes Crypto Asset Exposure Disclosure Standards for Banks | On July 18, 2024, the Basel Committee on Banking Supervision released the final standard for the disclosure of banks’ crypto asset exposures, set to be implemented by January 1, 2026. This standard, known as DIS55, establishes comprehensive requirements for banks to disclose their activities and risks associated with crypto assets. It includes qualitative disclosures on a bank’s crypto asset related activities, templates for reporting exposures and capital requirements, accounting classifications, and liquidity requirements. Key changes from the consultation phase include a two-stage definition of materiality and the requirement for banks to report average daily values to mitigate window-dressing concerns. These new disclosure requirements aim to enhance market discipline, reduce information asymmetry, and provide a clearer picture of the risks associated with crypto asset exposures in the banking sector. | |
Hong Kong | HKMA | Regulatory Regime for Stablecoin Issuers Following Public Consultation | On July 17, 2024, the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA) released the consultation conclusions for a new legislative proposal aimed at regulating fiat-referenced stablecoin (FRS) issuers in Hong Kong. The consultation, which ended in February, garnered 108 submissions from various stakeholders, with the majority supporting the need for a regulatory framework to manage monetary and financial stability risks associated with the growing virtual assets sector. Key elements of the proposal include licensing requirements for FRS issuers to align with international standards and mitigate financial stability risks. The FSTB and HKMA are now refining the legislative proposal based on feedback and aim to introduce the bill to the Legislative Council soon. The HKMA is also advancing its stablecoin issuer sandbox program, with participants to be announced shortly. | |
Insurance | Australia | APRA | On July 17, 2024, the Australian Prudential Regulation Authority (APRA) announced the finalization of several minor updates to its prudential framework, affecting authorised deposit-taking institutions (ADIs) and insurers. These updates, effective from October 1, 2024, for most changes, include technical clarifications without altering policy settings. Following an April 2024 consultation period, APRA received six submissions which have informed these updates. Key changes include clarifications in prudential standards related to audit, capital adequacy, and liquidity, with specific amendments to APS 330 Public Disclosure to enhance flexibility and ensure consistency with international standards. APRA has deferred changes to APS 111 and APS 220, pending further consultation. The finalized standards and responses to submissions are available on APRA’s website, with the next round of minor updates planned for later in 2024. | |
Switzerland | FINMA | Guidance on Duties of Insurers Regarding Insurance Intermediaries | The Swiss Financial Market Supervisory Authority (FINMA) released a supervisory notice detailing the obligations of insurance companies concerning their relationships with insurance intermediaries. The new regulations, effective January 1, 2024, under the revised Insurance Supervision Act (VAG) and the associated ordinance (AVO), emphasize heightened standards for protecting clients. Key points include ongoing due diligence and risk management responsibilities for insurers working with tied agents. Insurers must ensure that intermediaries meet reputational and operational standards both before and during their collaboration. Additionally, insurers are required to maintain updated records and conduct continuous monitoring to ensure compliance. These measures aim to enhance transparency and accountability within the insurance sector, ensuring that intermediaries operate in a manner consistent with regulatory expectations. | |
Investment | European Union | European Commission | the European Commission adopted a Delegated Regulation supplementing Regulation (EU) 2015/760 concerning European long-term investment funds (ELTIFs). This regulation specifies the conditions under which derivatives can be used solely for hedging risks, details the requirements for ELTIFs’ redemption policies and liquidity management tools, and outlines criteria for the disposal of ELTIF assets and cost disclosures. These measures are part of the broader Capital Markets Union (CMU) initiative, aiming to foster long-term investments across the EU and support projects in energy, social, and transport infrastructure. Following extensive consultations, the new rules ensure that ELTIFs can effectively manage liquidity and redemption processes, align investment strategies with lifecycle assets, and maintain transparency in cost structures, thus promoting investor confidence and regulatory compliance. The regulation will come into effect on the day following its publication in the Official Journal of the European Union. | |
European Union | ESMA | Consults on Draft Regulatory Technical Standards for Order Execution Policies | The European Securities and Markets Authority (ESMA) published a consultation paper on draft Regulatory Technical Standards (RTS) concerning investment firms’ order execution policies under the revised Markets in Financial Instruments Directive (MiFID II). These standards aim to ensure that investment firms take all necessary steps to achieve the best possible execution results for their clients. The proposed RTS include criteria for selecting execution venues, establishing monitoring procedures, and ensuring transparency and consistency in order execution policies. ESMA invites stakeholders to provide feedback by October 16, 2024, to refine these standards before submitting them to the European Commission. The final standards are expected to enhance investor protection and foster market integrity across the EU. | |
Malta | MFSA | ESMA Updates ESEF Reporting Manual and Corrects Final Report on RTS Amendments | On July 11, 2024, the European Securities and Markets Authority (ESMA) published an updated version of its Reporting Manual on the European Single Electronic Format (ESEF) and revised Annex II of the Regulatory Technical Standards (RTS) on ESEF. These updates aim to standardize and enhance the transparency of financial reporting across the EU. Key updates include technical improvements and guidance on tagging empty fields, linking extension elements, improving readability of block tags, and using unique identifiers for tagged facts. Additionally, a correction was made to the Final Report proposing amendments to the RTS on ESEF to include previously omitted taxonomy elements related to dividends. Issuers must follow the updated guidelines for their 2024 annual financial reports to ensure compliance and promote consistent financial reporting practices. Software developers are also encouraged to integrate these changes into their Inline XBRL tools. | |
Singapore | MAS | Guidelines on Regulation of Markets to Enhance Market Stability and Transparency | The Monetary Authority of Singapore (MAS) has updated its Guidelines on the Regulation of Markets to bolster market stability, transparency, and systemic risk reduction. These updates reinforce MAS’ objectives to promote fair, orderly, and transparent markets, facilitate efficient capital allocation and risk transfer, and mitigate systemic risk. The guidelines emphasize non-discriminatory access to market facilities, equitable matching of bids and offers, and real-time transparency of trading information. Additionally, the regulatory framework adopts a technology-neutral approach, ensuring that all market operators, regardless of their trading platform’s nature, are subject to the same regulatory regime. This revision aligns with international standards set by the International Organisation of Securities Commissions (IOSCO) and supports MAS’ overarching goal of maintaining confidence in the financial system and effective financial intermediation. | |
United Kingdom | FCA | Reforms to UK Listing Rules to Enhance Market Competitiveness | The Financial Conduct Authority (FCA) published Policy Statement PS24/6, detailing the final rules for a new, simplified UK listing regime, effective July 29, 2024. These reforms, the most significant in over three decades, aim to attract a wider range of companies to list and raise capital in the UK by removing the current ‘premium’ and ‘standard’ listing segments in favour of a single category for commercial companies. Key changes include the elimination of mandatory shareholder votes on significant and related party transactions, more flexible rules for dual class share structures, and enhanced disclosure requirements to support investor decision-making. The reforms are designed to balance market integrity and investor protection while fostering a competitive and vibrant UK capital market. |
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