Every week, global regulatory bodies introduce new rules that can significantly impact market operations and compliance requirements. Understanding these changes and their potential implications is essential for professionals aiming to identify risks, adapt strategies, and ensure their operations align with the latest standards. This blog provides a concise overview of key regulatory updates from week 35, highlighting the trends and shifts that may shape the financial markets soon.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Australia | APRA | Corporate Plan 2024-25: Strategic Shifts and Regulatory Priorities | The Australian Prudential Regulation Authority (APRA) has released its Corporate Plan for 2024-25, outlining its strategic objectives and regulatory priorities for the next four years. The plan emphasizes maintaining financial and operational resilience in response to evolving risks, such as technological advancements, geopolitical tensions, and climate change. Key initiatives include strengthening capital and liquidity standards, enhancing cyber resilience, and preparing for emerging risks like climate-related financial impacts and new business models in the financial sector. APRA’s approach remains supervision-led, with a focus on proportional regulation and maintaining stability in an increasingly interconnected global financial system. Additionally, APRA will increase transparency by publishing detailed policy, supervision, and data priorities, providing regulated entities with greater clarity on upcoming regulatory changes. This plan also marks a shift towards a more targeted policy agenda, building on the strong foundations of previous regulatory frameworks. |
European Union | EBA | EBA Updates G-SII Data for 2023: New Entrant and Rising Systemic Indicators | The European Banking Authority (EBA) released its updated dataset for identifying Global Systemically Important Institutions (G-SIIs), covering data from the end of 2023. This update features the 13 indicators used to assess systemic importance across the 33 largest EU institutions, all of which have leverage ratio exposure exceeding EUR 200 billion. Notably, the dataset now includes an additional institution for the first time, reflecting the evolving landscape of the EU’s banking sector. The publication provides enhanced transparency with the use of Excel and PowerBI tools, alongside bank-specific PDFs, making the data accessible for aggregation across the EU. Significant findings from the updated data include a 1.3% increase in total exposures among a stable sample of 27 institutions, with sharp rises in Securities Outstanding and Level 3 Assets, reaching their highest aggregate values since 2013. However, the Payments Activity indicator showed a decline of 3.7% from the previous year. These updates are critical as they will guide competent authorities in identifying G-SIIs, leading to higher capital buffer requirements, aligned with decisions by the Basel Committee on Banking Supervision (BCBS) and the Financial Stability Board (FSB). | |
Global | IFRS | Amendments to IFRS Taxonomy: Subsidiaries, Financial Instruments, and Annual Improvements | The International Accounting Standards Board (IASB) published Proposed Update 3 to the IFRS Accounting Taxonomy, addressing several key amendments. This update includes changes related to IFRS 19, which introduces reduced disclosure requirements for subsidiaries without public accountability, allowing them to apply IFRS standards with fewer disclosures. Additionally, amendments to the classification and measurement of financial instruments under IFRS 9 and IFRS 7 are proposed, focusing on financial liabilities settled through electronic payment systems and financial assets with contingent cash flow terms. The update also incorporates annual improvements to IFRS standards, enhancing clarity and addressing minor inconsistencies. The proposed changes aim to streamline financial reporting and improve the usability of digital financial data, with comments invited until October 28, 2024. | |
Global | FATF | FATF 2022 Methodology Update: Strengthening Global AML/CFT/CPF Assessments | The Financial Action Task Force (FATF) updated its methodology in August 2024 for assessing countries’ technical compliance with FATF Recommendations and the effectiveness of Anti-Money Laundering (AML), Countering the Financing of Terrorism (CFT), and Countering Proliferation Financing (CPF) systems. This revised methodology will guide FATF’s 5th round of evaluations, emphasizing a comprehensive understanding of countries’ risks, contexts, and effectiveness in achieving AML/CFT/CPF outcomes. The updated methodology includes refined criteria for technical compliance, prioritization of effectiveness outcomes, and enhanced guidance for assessors. This ensures a more nuanced assessment that better reflects the evolving complexities of global financial systems, and the threats posed by money laundering, terrorist financing, and the proliferation of weapons of mass destruction. The methodology aims to provide a more accurate and practical framework for evaluating and improving national AML/CFT/CPF regimes, ensuring that countries not only comply with technical standards but also effectively combat financial crimes. | |
Italy | BancadItalia | Compliance with EU Supervisory Guidelines and Recommendations | The Bank of Italy has released an extensive list detailing its intention to conform to various guidelines and recommendations issued by European Supervisory Authorities (ESAs), including the European Banking Authority (EBA). It outlines the specific guidelines, their titles, the scope of their application within Italy, and the respective dates when they will take effect. The guidelines cover a wide array of topics relevant to the financial sector, such as risk management, anti-money laundering (AML) procedures, and the management of financial institutions. The list also notes the methods by which these guidelines are adopted, whether through normative acts or supervisory guidance, ensuring that the Italian regulatory framework remains aligned with European standards. This structured approach highlights the Bank of Italy’s commitment to harmonizing national regulations with EU directives, ensuring robust compliance and uniformity in supervisory practices across the Italian financial sector. | |
Japan | JFSA | 2024 Administrative Policy: Strengthening Financial Stability and Innovation | The Financial Services Agency (FSA) of Japan has published its 2024 administrative policy, emphasizing the importance of contributing to sustainable economic growth through robust financial systems and innovation. The policy outlines several strategic priorities, including enhancing asset management, promoting sustainable finance, and adapting to digital financial services. The FSA aims to strengthen corporate governance and ensure financial institutions’ operations align with global standards. It also focuses on supporting the transition to a carbon-neutral economy and advancing the use of digital technology, such as AI and fintech, to improve financial services. Additionally, the policy highlights the importance of maintaining financial stability amid global uncertainties and evolving market conditions, with a strong emphasis on monitoring and managing emerging risks, such as cybersecurity threats and financial crimes. The FSA is committed to continuously evolving its regulatory approach to keep pace with the changing economic landscape, ensuring that Japan’s financial sector remains resilient, innovative, and aligned with international best practices. | |
Japan | JFSA | The Financial Services Agency (FSA) of Japan has released the results of the public comments on proposed amendments to the “Comprehensive Supervisory Guidelines for Regional and SME Financial Institutions.” The consultation period, which ran from June 27 to July 31, 2024, yielded 14 comments from various stakeholders. The key amendments focus on enhancing the consulting functions of financial institutions to better support M&A activities, including post-merger integration (PMI), and addressing concerns regarding the impact of personal guarantees on business succession and M&A transactions. The FSA also aims to clarify the requirements for financial institutions in managing conflicts of interest during M&A transactions, particularly in maintaining transparency and fairness. These amendments will be implemented starting October 1, 2024, and are expected to strengthen the role of regional and SME financial institutions in supporting business growth and succession. The detailed responses to the public comments and the final amendments can be found in the accompanying documents provided by the FSA. | ||
Japan | PPC | Public Consultation on Amendments to the Act on the Protection of Personal Information | The Personal Information Protection Commission of Japan has opened a public consultation on proposed amendments to the enforcement regulations of the Act on the Protection of Personal Information. The amendments, published on August 29, 2024, are aimed at refining the regulatory framework to better protect personal data in line with evolving privacy concerns and technological advancements. Stakeholders and the public are invited to submit their opinions on the proposed changes by September 27, 2024. Comments can be submitted through the e-Gov portal, by mail, or via email, with the collected feedback expected to shape the final version of the regulations. The Commission has emphasized that the submitted opinions will be carefully considered, although individual responses to submissions will not be provided. The final regulations, once adopted, will play a crucial role in ensuring that personal data handling practices across Japan meet the highest standards of privacy and security. | |
Jersey | JFSC | New Guidance on Asset Tokenisation and Initial Coin Offerings | The Jersey Financial Services Commission (JFSC) has released updated guidance on asset tokenisation and initial coin/token offerings (ICOs), reflecting the growing significance of blockchain technology in the financial sector. The guidance is designed to enhance Jersey’s competitiveness as a global financial centre by providing clarity on regulatory expectations for the issuance of tokenised assets, such as equities, bonds, and units in a fund. The principles-based approach of the guidance ensures its applicability across a wide range of tokenised products, emphasizing a substance-over-form assessment. The JFSC has also updated the application process for ICOs, focusing on investor protection, AML/CFT compliance, and market integrity. This guidance underscores Jersey’s commitment to fostering innovation while maintaining robust regulatory standards, with the intention of periodically evolving the framework through industry collaboration. | |
Banking | European Union | ESRB | Report on Bank Fragility and Policy Options to Address Deposit Runs | The European Systemic Risk Board’s (ESRB) Advisory Scientific Committee released a comprehensive report addressing the vulnerabilities of EU banks to deposit runs. The report revisits the facts, arguments, and policy options related to the fragility of banks’ funding structures, especially in the context of recent banking turmoil, such as the collapse of Silicon Valley Bank and the forced merger of Credit Suisse. It highlights the significant risks posed by an undiversified, uninsured deposit base, particularly under rapid shifts in monetary policy. The report discusses the interaction between interest rate risks and deposit funding stability, outlining various policy options, including adjustments to existing regulations and proposals for more profound structural changes to the banking system. The ESRB emphasizes the need for robust regulatory frameworks and supervision to mitigate the risk of future bank runs and ensure financial stability across the EU. |
Hong Kong | HKMA | HKMA Consults Banking Industry on Basel III Implementation Guidance | The Hong Kong Monetary Authority (HKMA) issued a letter on 27th August 2024, to the banking industry seeking feedback on proposed new and revised codes of practice related to capital rules, exposure limits, and liquidity rules, in line with the implementation of the Basel III final reform package. The consultation aims to clarify regulatory expectations and ensure that the banking sector in Hong Kong remains compliant with the latest international standards. The proposed guidance, which adopts a principles-based approach, is intended to address various aspects of the Basel III framework, including operational risk, capital requirements, and exposure limits. The HKMA’s proactive engagement with industry stakeholders reflects its commitment to maintaining a robust and resilient financial system, with the updated codes expected to take effect on January 1, 2025. | |
Luxembourg | CSSF | The Luxembourg Commission de Surveillance du Secteur Financier (CSSF) has released the final version of its reporting requirements for credit institutions, effective from August 30, 2024. The updated handbook provides comprehensive guidance on the supervisory reporting obligations applicable to credit institutions based in Luxembourg. Key updates include the integration of the latest European Banking Authority (EBA) taxonomy versions and changes to specific reporting templates, such as those for financial information, own funds requirements, and liquidity coverage. The revisions aim to ensure that Luxembourg’s reporting framework remains aligned with evolving EU regulations, particularly under the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD). The handbook also introduces new reporting modules, such as those for environmental, social, and governance (ESG) disclosures, reflecting the increasing importance of sustainable finance. Credit institutions are expected to comply with these updated requirements to enhance transparency and ensure regulatory compliance in the rapidly changing financial landscape. | ||
Luxembourg | CSSF | Internal Governance and Risk Management Framework for Credit Institutions | The Luxembourg Commission de Surveillance du Secteur Financier (CSSF) has issued an amended version of Circular CSSF 12/552, which outlines updated requirements for central administration, internal governance, and risk management for credit institutions. The circular, which has been revised multiple times since its initial publication, emphasizes the importance of robust internal control mechanisms, clear organizational structures, and effective risk management processes. It incorporates European and international standards, including the latest guidelines from the European Banking Authority (EBA). The amendments focus on enhancing the roles and responsibilities of the supervisory body and authorized management, strengthening the internal control functions, and ensuring comprehensive risk management across all activities. The updated circular also addresses the principles of proportionality, ensuring that governance and risk management practices are scaled according to the size and complexity of the institution. These changes are critical for maintaining the stability and integrity of the financial sector in Luxembourg. | |
Singapore | MAS | The Monetary Authority of Singapore (MAS) has released updated guidelines for licensing payment service providers, which came into effect on August 26, 2024. These guidelines are part of Singapore’s regulatory framework under the Payment Services Act 2019 and include comprehensive requirements for applicants seeking to provide various payment services, such as e-money issuance, digital payment tokens, and money-changing services. The revisions emphasize the importance of robust governance, stringent anti-money laundering and countering the financing of terrorism (AML/CFT) measures, and strong technology risk management practices. The guidelines also outline the expectations for ongoing compliance, including periodic audits, cyber hygiene, and consumer protection measures. These updates aim to ensure that payment service providers operate securely and in alignment with Singapore’s commitment to maintaining a safe and resilient financial ecosystem. | ||
United Kingdom | FS-CP | UK Payment Systems Regulator Reviews Card Scheme and Processing Fees | The Payment Systems Regulator (PSR) in the UK has released an interim report from its market review of card scheme and processing fees, focusing on the rising costs associated with Visa and Mastercard, which together account for 99% of UK card payments. The review highlights that the fees charged by these providers have increased by more than 30% over the past five years, with little connection to improvements in service quality. The PSR’s provisional findings suggest that the market lacks competitive constraints, leading to higher margins for the card providers. In response, the PSR is considering measures such as requiring more detailed financial reporting from Visa and Mastercard, improving fee transparency for merchants, and obliging the card networks to justify price changes. The consultation also underscores the need for ongoing work to promote Open Banking as a potential alternative to card payments, particularly to protect smaller merchants and consumers from rising costs. The PSR’s actions aim to ensure a fairer, more transparent payment system in the UK, benefiting both consumers and businesses. | |
United States | Federal Reserve Board | The Federal Reserve Board has announced the final individual capital requirements for all large banks, which will become effective on October 1, 2024. These requirements are informed by the results of the Board’s annual stress test, which assesses how banks would perform under hypothetical severe economic conditions. The capital requirements are composed of a minimum common equity tier 1 (CET1) capital ratio of 4.5%, a stress capital buffer (SCB) that varies based on each bank’s stress test results, and an additional capital surcharge for the largest and most complex banks. Notably, Goldman Sachs’ SCB was adjusted to 6.2% from an initial 6.4% after the firm successfully appealed the preliminary results, arguing that certain historical expenses included in the stress test were non-recurring. Banks that fall below these capital requirements will face automatic restrictions on capital distributions and discretionary bonus payments, ensuring financial stability and resilience in the face of economic stress. The Federal Reserve also indicated that it will continue to refine its stress testing framework, potentially revising regulatory reporting requirements to better capture data relevant to these assessments. | ||
Insurance | Bermuda | BMA | Bermuda Monetary Authority Releases Series on Long-term Insurance Market Risks | The Bermuda Monetary Authority (BMA) announced the release of a series of reports focusing on the long-term insurance market in Bermuda. These publications are part of the BMA’s ongoing effort to enhance transparency and share supervisory insights on the evolving risks within this sector. The first report, titled “Liquidity Risk in the Bermuda Long-term Insurance Market,” addresses the increasing volatility in interest rates and shifts in investment portfolios, which have heightened liquidity risks. Subsequent reports will explore collateral structures in Bermuda’s long-term insurance market and the growing involvement of insurers in private credit, including direct loans, collateralized loan obligations (CLOs), and private placements. These reports aim to provide a comprehensive understanding of the risks associated with structural shifts in the global life and annuity sectors, and to highlight the BMA’s supervisory approach in managing these emerging challenges. |
Mexico | COFECE | Amendments to Technical Criteria for Issuance of Precautionary Measures and Bonds | The Federal Economic Competition Commission (COFECE) of Mexico has released a draft proposal to amend its technical criteria for the issuance of precautionary measures and the setting of bonds. The proposed amendments, published recently, aim to refine and clarify the processes and requirements involved in granting precautionary measures and determining the appropriate bond amounts. Key changes include updates to the definitions, the addition of new procedural steps, and more stringent requirements for the verification and approval of guarantees. The amendments also introduce new articles focused on the roles and responsibilities of COFECE’s administrative bodies in managing these processes. These updates are intended to enhance transparency and ensure that the procedures align with current legal standards, thereby improving the effectiveness of COFECE’s enforcement actions. Public comments on the draft are being solicited to ensure that the final regulations are comprehensive and effective in safeguarding economic competition. | |
Philippines | Insurance Commission | The Insurance Commission of the Philippines released Circular Letter No. 2024-16, outlining updated guidelines for conducting Institutional Risk Assessments (IRA) for all insurance and reinsurance companies, mutual benefit associations, brokers, pre-need companies, and health maintenance organizations. These guidelines are designed to ensure a comprehensive and consistent approach to assessing money laundering, terrorist financing, and proliferation financing risks. The IRA forms the foundation of a risk-based Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) framework, requiring institutions to identify, assess, and manage risks according to their specific operational contexts. The guidelines emphasize the importance of aligning risk management strategies with the identified risks, including the introduction of enhanced measures for high-risk areas. The Commission mandates that these assessments be conducted at least every two years, or more frequently as necessary, to ensure ongoing compliance and the effectiveness of AML/CFT controls. | ||
Investment | Belgium | FSMA | The Financial Services and Markets Authority (FSMA) of Belgium released its findings from a review of liquidity stress testing (LST) practices among Belgian fund managers, specifically those managing Undertakings for Collective Investment in Transferable Securities (UCITS) and Alternative Investment Funds (AIFs). The review aimed to assess the extent to which fund managers adhere to ESMA guidelines on LST and how these simulations are organized and implemented. The FSMA noted several positive outcomes, including the widespread adoption of LST practices and the adequacy of the frameworks used. However, the review also highlighted areas for improvement, such as the limited use of reverse stress testing and the need for more varied and tailored stress test scenarios. Additionally, the FSMA observed that documentation related to LST procedures is often fragmented, making it challenging for both supervisors and internal stakeholders to maintain a clear overview of liquidity risk management policies. The FSMA expects fund managers to consider these findings and integrate them into their LST practices to enhance their effectiveness and ensure better preparedness for potential liquidity crises. | |
Canada | BCSC | Canadian Securities Regulators Update Companion Policy for Investment Funds | Canadian securities regulators issued updates to the Companion Policy 81-102CP, which accompanies National Instrument 81-102 governing investment funds. The revised policy provides detailed guidance on a range of topics, including the definitions of key terms such as “alternative mutual fund,” “illiquid asset,” and “cash equivalent.” It also offers clarification on the use of specified derivatives, leveraging practices, and the requirements for securities lending, repurchase, and reverse repurchase transactions. The updates aim to enhance investor protection by ensuring that investment funds operate within clearly defined parameters, while also providing flexibility to adapt to evolving market conditions. The policy emphasizes the importance of robust liquidity management, accurate valuation of illiquid assets, and adherence to best practices in fund management. These revisions are part of ongoing efforts by Canadian regulators to maintain a fair, efficient, and transparent investment fund industry. | |
Singapore | MAS | Licensing and Conduct Guidelines for Fund Management Companies | The Monetary Authority of Singapore (MAS) issued revised guidelines under the Securities and Futures Act (SFA) for the licensing and conduct of business for Fund Management Companies (FMCs). The updated guidelines, which supersede previous versions, provide detailed requirements for licensing criteria, ongoing compliance, and risk management practices for FMCs operating in Singapore. Key updates include enhanced standards for corporate governance, stringent compliance with Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regulations, and specific provisions for venture capital fund managers. The guidelines emphasize the importance of robust internal controls, the need for independent risk management functions, and the requirement for professional indemnity insurance. These revisions are intended to strengthen the regulatory framework, ensuring that FMCs maintain high standards of integrity and operational excellence while fostering innovation within Singapore’s financial sector. | |
United Kingdom | FCA | Consultation on New Public Offers and Admissions to Trading Regulations (POATRs) | The Financial Conduct Authority (FCA) launched a consultation on the proposed Public Offers and Admissions to Trading Regulations (POATRs). This new regulatory framework is designed to replace the existing UK Prospectus Regulation, aiming to make capital raising more efficient, reduce costs for issuers, and increase retail investor participation in UK markets. The consultation outlines the FCA’s proposed rules for admissions of securities to regulated markets and primary multilateral trading facilities (MTFs), with an emphasis on maintaining market integrity while introducing flexibility for issuers. Key proposals include raising the threshold for requiring a prospectus for further issuances to 75% of existing securities and enhancing disclosures, particularly in relation to sustainability-related risks and opportunities. The FCA invites feedback on these proposals by October 18, 2024, with the final rules expected to be implemented by mid-2025. | |
United States | FinCEN | FinCEN Finalizes AML/CFT Requirements for Investment Advisers | The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has issued a final rule, effective January 1, 2026, mandating that certain investment advisers establish Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) programs and file Suspicious Activity Reports (SARs). This rule broadens the definition of “financial institution” under the Bank Secrecy Act (BSA) to include registered investment advisers (RIAs) and exempt reporting advisers (ERAs), thereby requiring them to adhere to specific AML/CFT standards. The rule aims to address risks associated with illicit finance, particularly in the investment advisory sector, where vulnerabilities have been identified in relation to money laundering, terrorist financing, and other illicit activities. FinCEN’s action follows an extensive review and public consultation, with the final rule reflecting adjustments based on feedback, including the exclusion of certain lower-risk advisers from these new requirements. This regulatory enhancement underscores FinCEN’s commitment to strengthening the U.S. financial system’s defences against financial crimes. | |
United States | SEC | SEC Finalizes Amendments to Reporting Requirements for Investment Companies | The U.S. Securities and Exchange Commission (SEC) has adopted final amendments to the reporting requirements for registered investment companies, including changes to Forms N-PORT and N-CEN. These amendments will require more frequent reporting of monthly portfolio holdings and related information, with the aim of improving the SEC’s ability to monitor industry trends and assess risks more effectively. The amendments also include guidance on liquidity risk management programs for open-end funds. The new rules, which will take effect on November 17, 2025, for some amendments and on May 18, 2026, for others, are designed to enhance transparency and provide the SEC with timelier data, thereby strengthening oversight and investor protection within the investment fund industry. |
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