The global financial sector is in a constant state of flux, with regulatory changes occurring at a rapid pace. These regulatory shifts can have far-reaching consequences, affecting everything from compliance protocols and reporting mechanisms to operational strategies and risk assessment frameworks. As financial regulations continue to adapt to global challenges and technological advancements, it’s essential for businesses to remain agile and well-prepared. This blog brings you a concise summary of the key regulatory developments from around the world for Week 33, highlighting changes that may affect your organization’s strategic and operational decisions.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | China | NFRA | The National Financial Supervision Administration of China has released a draft regulation titled “Regulations on Compliance Management of Financial Institutions” for public consultation. This new regulation aims to enhance the legal and compliant operational capabilities of financial institutions, covering a wide range of entities, including commercial banks, insurance companies, and financial holding companies. The draft outlines comprehensive guidelines for establishing robust compliance management systems, emphasizing the importance of compliance culture, independent authority for compliance officers, and a three-line defence framework to manage compliance risks. It mandates financial institutions to integrate compliance across all levels of decision-making, execution, and supervision, ensuring that both institutional and employee behaviours adhere to legal and regulatory standards. The regulation, set to come into effect on March 1, 2025, also includes provisions for penalties and accountability for non-compliance, reinforcing the importance of compliance in maintaining financial stability and integrity. | |
Malta | MFSA | EU Commission Clarifies Corporate Sustainability Reporting Rules with New FAQs | On August 7, 2024, the European Commission released a Draft Commission Notice featuring a set of Frequently Asked Questions (FAQs) to clarify the implementation of key provisions under the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosures Regulation (SFDR). This publication aims to assist companies in efficiently meeting sustainability reporting requirements by providing clear interpretations of specific legal provisions, including scope, application dates, and exemptions. Additionally, the FAQs address select provisions within the European Sustainability Reporting Standards (ESRS), enhancing the usability and comparability of sustainability reports while reducing administrative burdens. The European Commission may update these FAQs as needed to ensure ongoing clarity and support for market participants in the evolving landscape of sustainability reporting. | |
Uganda | FIA | New Guidelines on Timelines for Filing Suspicious Transaction Reports | The Financial Intelligence Authority (FIA) has issued new guidelines for all accountable persons as specified under the Anti-Money Laundering Act, 2013 (as amended). These guidelines aim to clarify the timelines for filing Suspicious Transaction Reports (STRs) and Suspicious Activity Reports (SARs) to ensure consistency and compliance. While Section 9(2) of the Anti-Money Laundering Act, 2017 mandates filing these reports within two days of forming a suspicion, there was previously no guidance on the time allowed for forming the suspicion itself. The new guidelines now provide that accountable persons have up to ten working days to investigate flagged transactions or activities before determining whether they are suspicious. Once a suspicion is formed, the report must be filed with the FIA within the mandated two days. The guidelines also emphasize the need for prompt reporting in cases related to Terrorism Financing and Proliferation Financing, which must be prioritized and reported without delay. These guidelines are intended to enhance the prompt identification and reporting of suspicious activities, thereby strengthening the overall framework for combating money laundering and related offenses. | |
United Kingdom | FRC | The Financial Reporting Council (FRC) released a discussion paper titled “Opportunities for Future UK Digital Reporting,” highlighting the evolving landscape of digital reporting in the UK. With the UK’s exit from the European Union and the passing of the Economic Crime and Corporate Transparency Act 2023, the FRC is seeking feedback on the future direction of digital reporting, particularly in relation to the development and application of UK-specific taxonomies. The paper emphasizes the importance of aligning digital reporting standards with the needs of various stakeholders, including regulators, companies, and investors. Key areas of focus include potential changes to digital reporting requirements, the introduction of alternative taxonomies, and the assurance of digital tagging. The discussion paper invites stakeholders to contribute their views on how to enhance the quality, comparability, and utility of digital reports, ensuring that the UK’s digital reporting framework supports efficient decision-making, transparency, and economic growth. Responses to the paper will inform future regulatory developments and the strategic direction of digital reporting in the UK. | ||
Banking | European Union | European Union | European Systemic Risk Board Updates Recommendations on Cross-Border Macroprudential Measures | The European Systemic Risk Board (ESRB) issued an amendment to its Recommendation ESRB/2015/2, which deals with the assessment of cross-border effects and voluntary reciprocity for macroprudential policy measures. This amendment, documented as ESRB/2024/3, was made in response to a notification by the Danish Ministry of Industry, Business and Financial Affairs regarding adjustments to a sectoral systemic risk buffer (sSyRB) rate. The amendment ensures that the updated Danish measure, which targets exposures related to real estate activities and building project development in Denmark, continues to be reciprocated by other EU Member States. The ESRB’s recommendation includes a 7% sSyRB rate, excluding exposures with a loan-to-value ratio of 0% to 15%. Member States are urged to reciprocate this measure within three months to prevent regulatory arbitrage and ensure consistent macroprudential oversight across borders. The amendment highlights the importance of aligning national measures with broader EU-wide financial stability objectives. |
European Union | European Union | Opinion on Proposed Regulation for Financial Services Reporting Requirements | The European Central Bank (ECB) released an opinion on a proposed regulation by the European Parliament and the Council regarding certain reporting requirements in financial services and investment support. The ECB supports the regulation’s goal of streamlining reporting processes and reducing the administrative burden on financial institutions by improving data sharing among European Supervisory Authorities (ESAs) and the European Systemic Risk Board (ESRB). However, the ECB recommends clarifying several aspects of the regulation to ensure effective implementation without compromising supervisory efficiency. The ECB also notes the potential challenges posed by the proposed creation of a Single Integrated Reporting System (SIRS) and emphasizes the need for careful coordination with existing data-sharing initiatives to avoid unnecessary complexity and costs. | |
European Union | EBA | Final Report on Amendments to FRTB Regulatory Technical Standards | The European Banking Authority (EBA) published the final report on amendments to the Regulatory Technical Standards (RTS) under the Fundamental Review of the Trading Book (FRTB) framework. These amendments, which follow the CRR3 legislative process, update the RTS concerning profit and loss attribution (PLA), risk factor modellability, and the treatment of foreign exchange (FX) and commodity risk in the banking book. Key changes include adjustments to the PLA requirements to reflect new CRR3 provisions, enhanced documentation requirements for risk factors using third-party data, and clarifications on how institutions should manage and document FX and commodity risks. The updates aim to align the RTS with the latest CRR text while ensuring consistency and stability in the regulatory framework. The EBA’s amendments are designed to minimize the impact on institutions that have already implemented the existing standards, maintaining regulatory continuity and clarity in the application of the FRTB rules. | |
Hong Kong | HKMA | The Hong Kong Monetary Authority (HKMA) released a set of Questions and Answers (Q&As) to provide guidance on the revised market risk and Credit Valuation Adjustment (CVA) risk capital frameworks as outlined in the Banking (Capital) (Amendment) Rules 2023. The Q&As aim to clarify the interpretation and application of the amended Part 8 and Part 8A of the Banking (Capital) Rules (BCR). These guidelines cover various topics, including the treatment of funding swaps, internal transactions between trading and banking books, distressed loans, and the handling of specific financial instruments like real estate investment trusts and structural FX positions. The Q&As are intended to ensure consistent implementation across all authorized institutions, with further updates anticipated as new interpretative issues arise. Institutions are encouraged to review the Q&As in conjunction with the BCR and seek legal or professional advice as needed to ensure full compliance. | ||
Italy | BancadItalia | ECB Publishes Harmonised Rules for Eurosystem Collateral Management | The European Central Bank (ECB) announced the publication of harmonised rules for the mobilisation and management of collateral within Eurosystem credit operations. These new rules are a significant step towards greater financial integration in the euro area and the broader capital markets union. The harmonised framework, detailed in Guideline ECB/2024/22, introduces several key developments, including the use of TARGET2-Securities (T2S) for holding collateral assets, the adoption of market standards from the Single Collateral Management Rulebook for Europe (SCoRE), and the implementation of a unified pooling method for collateral maintenance. These changes are set to take effect on November 18, 2024, coinciding with the launch of the Eurosystem Collateral Management System (ECMS), which will replace the individual collateral management systems of national central banks in the euro area. The updated rules also refine the Eurosystem Credit Assessment Framework (ECAF) and adjust eligibility criteria for securities settlement systems, among other technical enhancements. | |
Japan | JFSA | Overview of the Basel Committee’s Principles for Sound Third-Party Risk Management | In August 2024, the Financial Services Agency (FSA) and the Bank of Japan released a summary document to facilitate understanding of the Basel Committee on Banking Supervision’s (BCBS) consultation paper titled “Principles for the Sound Management of Third-Party Risk.” The document emphasizes the importance of these principles in response to the increasing reliance on third-party service providers (TPSPs) due to digitalization in the banking sector. The principles aim to enhance the effectiveness of third-party risk management and operational resilience, targeting primarily large, internationally active banks, but also providing benefits to smaller institutions and other financial entities. The consultation document invites comments by October 9, 2024, with submissions to be made in English via the Bank for International Settlements (BIS) website. This initiative reflects the BCBS’s commitment to strengthening third-party risk management across the global banking sector, particularly in the context of evolving operational challenges. | |
Netherland | ACM | Dutch Banks Collaborate on ESG Data Scheme Without Breaching Competition Rules | The Netherlands Authority for Consumers and Markets (ACM) issued informal guidance regarding a collaborative initiative led by the Dutch Banking Association (NVB) involving several major Dutch banks. The initiative focuses on developing a shared digital platform for managing environmental, social, and governance (ESG) data, particularly considering the Corporate Sustainability Reporting Directive (CSRD). This platform aims to standardize the interpretation of ESG criteria, improve the comparability of sustainability reports, and streamline data collection processes across the banking sector. After an informal assessment, ACM concluded that the initiative does not pose a significant risk to competition, as participation is voluntary, open to all banks, and does not involve the exchange of competitively sensitive information. The initiative is expected to enhance transparency and support the sector’s sustainability goals without undermining market competition. | |
Insurance | India | IRDAI | Amendment to PML (Maintenance of Records) Rules, 2024 and Its Impact on Insurers | the Insurance Regulatory and Development Authority of India (IRDAI) issued a circular (Ref: IRDAI/IID/CIR/MISC/112/8/2024) addressing the recent amendments to the Prevention of Money-Laundering (Maintenance of Records) Rules, 2005. These amendments, which were notified in the Gazette of India on July 19, 2024, introduce significant changes in how insurers must comply with Know Your Customer (KYC) norms. Specifically, insurers are now required to follow the procedures outlined in Rule 9(1C) of the amended PML Rules for KYC compliance and to update any additional KYC information to the Central KYC Registry (CKYCR) as per Rule 9(1D). Insurers must also retrieve updated KYC records from the CKYCR whenever an update is informed, ensuring that their records are consistently aligned with the central registry. These modifications aim to enhance the accuracy and comprehensiveness of KYC records, further strengthening the framework against money laundering in the insurance sector. Insurers are advised to take immediate steps to implement these changes in accordance with the Master Guidelines on AML/CFT dated August 1, 2022. |
Investment | Singapore | MAS | Amendments to Financial Reporting Requirements for Collective Investment Schemes | The Monetary Authority of Singapore (MAS) issued a consultation paper proposing amendments to the financial reporting requirements under the Code on Collective Investment Schemes (CIS Code). The key proposal involves transitioning the preparation of financial statements for authorised schemes, including Real Estate Investment Trusts (REITs), from the current Statement of Recommended Accounting Practice 7 (RAP 7) to the Singapore Financial Reporting Standards (International) [SFRS(I)]. This shift aims to align Singapore’s reporting practices with international standards, thereby enhancing the comparability of financial statements across different jurisdictions and types of capital market issuers. The MAS also proposes retaining certain RAP 7 disclosures that are not required under SFRS(I) by incorporating them into the CIS Code to ensure critical information remains available to fund investors. Stakeholders are invited to provide feedback on these proposals by September 14, 2024. |
United States | ABA | CFPB Releases 2025 Filing Instructions Guide for Small Business Lending Data | The Consumer Financial Protection Bureau (CFPB) has released the 2025 Filing Instructions Guide (FIG) for financial institutions required to submit small business lending data covering the period from July 18, 2025, to December 31, 2025. The guide includes important updates from the previous year, including adjustments to reporting period dates, application and action taken dates, and validation criteria. Financial institutions must submit their data through the CFPB’s online platform in CSV format, following strict guidelines on file structure and data field specifications. This guide is crucial for ensuring compliance with the CFPB’s reporting requirements and is intended to support staff involved in data collection, preparation, and submission. | |
United States | Federal Register | The Internal Revenue Service (IRS) has published corrections to its final regulations (Treasury Decision 10000) concerning the reporting requirements and determination of the amount realized and basis for certain digital asset sales and exchanges. These corrections, which will take effect on September 9, 2024, address various technical and typographical errors in the originally published document. Key changes include clarifications to the text regarding digital asset sales, reporting deadlines, and specific terminology related to stablecoins and other digital assets. These updates are crucial for ensuring accurate compliance with the reporting requirements outlined in the final regulations. For further details or inquiries, contact the relevant officials listed in the supplementary information section. | ||
United States | Federal Register | The U.S. Securities and Exchange Commission (SEC) released its Semiannual Regulatory Flexibility Agenda for Spring 2024 on August 16, 2024. This agenda outlines the rulemaking actions the SEC expects to consider over the next 12 months, reflecting the priorities of the SEC Chair. Key areas of focus include enhancing cybersecurity risk management, implementing climate-related disclosures for investors, and revising regulations related to special purpose acquisition companies (SPACs). The agenda also highlights proposed and final rules in areas such as electronic submissions under the Securities Exchange Act and the oversight of investment advisers’ outsourcing practices. The SEC invites public comments on the agenda and individual entries by September 16, 2024. This agenda is crucial for stakeholders to stay informed about upcoming regulatory changes that may significantly impact the financial sector, particularly small entities. |
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