Business Line | Country | Regulator | Regulatory Update | Summary |
All | Australia | ASIC | Regulatory Guide 121 for Conducting Financial Services Business in Australia | The Australian Securities and Investments Commission (ASIC) reissued Regulatory Guide 121 (RG 121), offering updated guidance for individuals and companies outside Australia looking to conduct financial services business within the country. This reissued guide reflects changes to the law and updates on the Courts’ interpretation of “carrying on a business in Australia.” Key updates include the removal of expired Australian Financial Services (AFS) licensing exemptions, a refreshed explanation of current AFS licensing relief, and clarifications on when one-off transactions may be considered as carrying on business in Australia. The revision replaces the 2013 version and aims to align with the evolving legal and regulatory framework in the financial services industry. |
Australia | ASIC | Businesses to Prepare for Mandatory Climate Reporting Starting January 2025 | ASIC is calling on large Australian businesses and financial institutions to prepare for mandatory climate-related financial disclosures, effective from 1 January 2025. The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024, passed in Parliament on 9 September 2024, introduces annual sustainability reporting requirements as part of a broader effort to improve climate disclosure and governance standards. ASIC Commissioner Kate O’Rourke emphasized the need for businesses to establish robust governance and record-keeping processes in preparation for compliance. The new reporting obligations will be implemented in three phases, with the first cohort commencing reporting for financial years beginning on or after 1 January 2025. ASIC has set up a dedicated sustainability reporting page and will consult stakeholders to issue further regulatory guidance, particularly on relief and interaction with existing obligations. |
Australia | ASIC | Guidance on Technological and Operational Resilience | The Australian Securities and Investments Commission (ASIC) has issued guidance for market participants on identifying critical business services and notifying ASIC of major events, as part of its strategic priority to enhance market resilience. The guidance follows a thematic review of market participants’ arrangements in accordance with the ASIC Market Integrity Rules (Securities Markets and Futures Markets) 2017. ASIC emphasized the need for robust and thorough identification of critical business services, advising against improper exclusion based solely on non-core business considerations or contingency plans. Market participants are required to review and document their resilience frameworks annually, ensure compliance with outsourcing requirements, and notify ASIC promptly in the event of significant disruptions. |
Belgium | FSMA | Practical Guidance on IORP II Governance and Risk Management Implementation | The FSMA has published a practical guide for Belgian pension institutions (IRPs) on the governance and risk management rules outlined in the IORP II Directive. This update, issued in response to the EIOPA’s opinions, clarifies how Belgian IRPs should implement governance frameworks, risk management policies, and internal control systems. The guide emphasizes the principle of proportionality, allowing IRPs to adapt these requirements based on their size, nature, and complexity. It also outlines best practices in areas such as internal audits, board responsibilities, and risk assessments, encouraging IRPs to strengthen their governance structures while meeting regulatory expectations. |
China | TC260 | Guidelines on Identifying Sensitive Personal Information | The National Cybersecurity Standards Technical Committee (TC260) has released a practical guide for identifying sensitive personal information, based on Chinese laws such as the Personal Information Protection Law and the Cybersecurity Law. This guide provides organizations with rules to help recognize sensitive data, which includes biometric information, religious beliefs, health records, and financial account details. The guide stresses the importance of identifying sensitive information to prevent potential risks to personal dignity, physical security, or financial assets if such data is leaked or misused. It serves as a foundational document for organizations to ensure compliance with data protection standards and enhance cybersecurity practices. |
Germany | BaFin | BaFin Supports Financial Entities in Transition to DORA Compliance | In a supervisory statement, BaFin (the German Federal Financial Supervisory Authority) offers guidance to financial entities on aligning with the requirements of the Digital Operational Resilience Act (DORA). The statement highlights the differences between DORA and existing German IT regulations, such as the BAIT and VAIT, which have governed ICT risk management for financial institutions. While BaFin’s guidance is non-binding, it aims to facilitate the transition to DORA’s more comprehensive ICT risk management framework, including third-party risk management. The industry was deeply involved in the development of these guidelines, ensuring practical application and relevance. Key changes include an expanded role for financial entities’ management bodies under DORA and a greater focus on ICT risk management over information security. BaFin’s findings confirm that many of the existing requirements align with DORA, helping financial institutions to be well-prepared for compliance. |
Ireland | GOV.IE | Public Consultation on Consumer Credit Directive 2 (CCD2) Implementation | The Department of Finance has initiated a public consultation, running from 19 September to 16 October 2024, regarding the national implementation of the Consumer Credit Directive 2 (CCD2). CCD2, published in October 2023 as Directive (EU) 2023/2225, aims to modernize the 2008 Consumer Credit Directive by addressing advancements in digitalisation and new credit products. While most of CCD2’s provisions will be uniformly applied across the EU, Member States, including Ireland, have discretion over 23 specific provisions. The feedback from this consultation will inform how these discretionary provisions will be transposed into Irish law. |
New Zealand | FMA | Public Consultation on Regulatory Returns for Financial Institution Licensees | The Financial Markets Authority (FMA) has opened a public consultation on proposed regulatory returns for licensed financial institutions, such as banks, insurers, and non-bank deposit takers. This consultation seeks feedback on the content, format, and frequency of the required regulatory returns, which will provide the FMA with vital information for monitoring the ongoing capability of these institutions to perform their licensed activities. The consultation, which runs until 25 October 2024, invites feedback from financial institutions, industry associations, law firms, and other stakeholders on the appropriateness of the proposed questions and any potential compliance burdens. The first regulatory return is expected to cover either the period from July 2025 to June 2026 or an alternative shorter period from October 2025 to June 2026, with submissions due by September 2026. |
Singapore | MAS | Revised Guidelines on Consumer Protection for Digital Payment Token Providers | The Monetary Authority of Singapore (MAS) has revised its guidelines on the provision of consumer protection safeguards for Digital Payment Token (DPT) service providers. Effective from 19 September 2024, these updated guidelines aim to ensure robust practices are in place for safeguarding customers’ assets, enhancing risk management, and ensuring clear consumer access measures. Key provisions include requirements for segregating customer assets, maintaining trust accounts, and implementing risk awareness assessments before providing DPT services to retail customers. The guidelines also restrict DPT providers from offering credit, leverage, or certain incentives to retail customers, thus focusing on protecting consumers from the volatile nature of digital assets. MAS’s updated framework is designed to support innovation in digital assets while mitigating risks associated with DPT services. |
United States | SEC | SEC Adopts Amendments to EDGAR Filer Manual | The Securities and Exchange Commission (SEC) has adopted updates to the EDGAR Filer Manual, reflecting changes implemented in EDGAR Release 24.3. Key updates include the ability to include co-registrants in draft registration statements for certain transactions, such as de-SPAC deals, and new requirements for Security-Based Swap Execution Facilities to file reports using Inline XBRL. Additionally, the EDGAR system now supports XBRL taxonomy for cybersecurity disclosures in forms like 6-K, 8-K, 10-K, and 20-F. These changes aim to enhance transparency and efficiency in electronic filings. The updated filer manual is available online and will be incorporated into the Code of Federal Regulations. |
Banking | Mexico | Banxico | Public Consultation on Credit Regulations Related to Workers’ Benefits | The Bank of Mexico announced a new public consultation for proposed amendments to the regulations governing credit institutions, regulated multiple-purpose financial companies (SOFOMs), and the National Financial Institution for Agricultural, Rural, Forestry, and Fisheries Development. These changes, originally issued via Circular 3/2012, relate to the use of workers’ benefits as collateral for financial services. This second consultation follows the adjustments made in response to feedback from a prior public consultation held in early 2024. The revised regulations aim to promote healthy financial sector growth, enhance consumer protection, foster competition, and streamline the payroll loan process. The public can review the proposal and submit comments until 18 October 2024, via the Bank of Mexico’s online portal. |
Portugal | BDP | Public Consultation on New Consumer Credit Instruction | Banco de Portugal has launched a public consultation on its proposed instruction regarding the calculation and periodic disclosure of maximum Annual Percentage Rates of Charge (APRC) for consumer credit agreements, replacing Instruction No. 14/2013. The revised instruction aims to clarify credit categories, introduce new subcategories, and align with market developments, such as including loans for energy transition purposes. This change also eliminates redundant reporting requirements for credit institutions. Stakeholders are invited to submit feedback via email by 28 October 2024. The proposed changes reflect a focus on simplifying credit classifications and promoting sustainability through energy-efficient financing options. |
Insurance | Chile | CMF | Public Consultation on Parametric Insurance Regulations | The Financial Market Commission (CMF) opened a public consultation on the proposed regulations for parametric insurance, as part of the framework set by the FinTech Law. This new regulation allows insurance companies to offer parametric insurance, which provides compensation based on predefined data or event triggers (such as earthquake intensity) rather than actual losses. The new rules outline criteria for the indices and risks that can be insured under this model and specify policy requirements. The consultation period runs until November 4, 2024. These regulations aim to enhance competition and innovation in the insurance market while ensuring financial inclusion. |
Investment | Australia | APRA | Response to Superannuation Data Collection Consultation | The Australian Prudential Regulation Authority (APRA) released its response to the consultation on enhancements to superannuation data collections, specifically addressing trustee financial statements and indirect investment costs. The proposed changes aim to increase transparency by improving the scope and quality of data collected on investment management costs, trustee expenditures, and fund profiles. Industry feedback was largely supportive, with APRA adjusting reduce reporting burdens and clarify instructions. This enhanced data will allow for better scrutiny of superannuation fund performance and increase accountability, particularly for underperforming trustees. A second response package covering additional topics will be issued later in the year. |
European Union | European Union | EU Council Publishes Retail Investment Strategy Amendments | The Council of the European Union published an information note regarding the Retail Investment Strategy. This strategy includes proposed amendments to several key directives related to retail investor protection, including Directives (EU) 2009/65/EC, 2009/138/EC, 2011/61/EU, 2014/65/EU, and (EU) 2016/97. These amendments aim to strengthen investor protection across the EU, increase transparency in financial markets, and promote financial literacy. The proposed changes were subject to multiple consultations with member states, resulting in a series of revised proposals addressing client categorization, value-for-money criteria, supervisory enforcement, and the promotion of financial literacy. |
Guernsey | GFSC | Consultation on New Investment Exchange Rules | The Guernsey Financial Services Commission (GFSC) has issued a consultation paper on the proposed Regulated Investment Exchange Operator Rules (RIEO Rules). These new rules, intended to replace the current Investment Exchange (Notification) Rules 1998, will apply to firms licensed under the Protection of Investors (Bailiwick of Guernsey) Law, 2020 (POI Law) to operate investment exchanges. The RIEO Rules aim to provide a consolidated and transparent regulatory framework for exchange operators, incorporating elements from existing rules under the POI Law. Interested parties are invited to submit feedback via the GFSC’s Consultation Hub, where draft rules and the consultation paper are available for review. |
Romania | ASF Romania | Amendments to Law on Financial Instruments and Market Operations | The Romanian Government approved a draft law to amend Law no. 24/2017 on issuers of financial instruments and market operations. Developed by the Financial Supervisory Authority (ASF), the draft law underwent public consultation to refine and enhance the legislation. The amendments aim to bolster investor protection, streamline capital access for companies, and support Romania’s economic growth. Key changes include reducing the timeframe for exercising the right of preference in capital increases and simplifying procedures for publishing decisions and reports. The new legislation will now proceed to Parliament for approval, and a fast-track process has been requested to expedite its implementation. These reforms are part of Romania’s broader strategy to modernize its capital market and align with European directives. |
Singapore | MAS | Consultation on Amendments to Business Trusts Regulations | The Monetary Authority of Singapore (MAS) launched a public consultation on proposed amendments to the Business Trusts Regulations (BTR) and Securities and Futures (Licensing and Conduct of Business) Regulations (SF(LCB)R). These amendments are part of Phase 2 of the implementation of the Business Trusts (Amendment) Act 2022. Key proposals include the introduction of a register of beneficial owners for unlisted business trusts, alignment of governance requirements for business trusts and REITs, and new rules on electronic transmission of documents. The consultation also seeks to codify exemptions for stapled business trusts and streamline financial reporting requirements. Public comments are invited until 18 October 2024 via the MAS Consultation Hub. |
United Kingdom | FCA | Expansion of Dormant Assets Scheme for Investment and Client Money Sectors | The Financial Conduct Authority (FCA) has issued a policy statement (PS24/10) outlining the second phase of the Dormant Assets Scheme expansion, targeting investment assets and client money. This follows the Dormant Assets Act 2022, which allows dormant investment assets and client money to be transferred to an authorised reclaim fund (ARF) to support social causes. The FCA’s updates address rule amendments in key areas such as investment fund management, client money treatment, and dispute resolution processes. The new rules offer participants the option to transfer dormant assets to the scheme, ensuring clients maintain the right to reclaim their assets. These changes are expected to enhance transparency and protect consumers while supporting charitable initiatives. |
United States | SEC | Amendments to Regulation NMS on Pricing, Fees, and Order Transparency | The U.S. Securities and Exchange Commission (SEC) has adopted amendments to Regulation NMS (National Market System), focusing on minimum pricing increments, access fees, and the transparency of better-priced orders. The new rules reduce the minimum pricing increment for quoting certain NMS stocks, lower access fee caps for trading centres, and require transparency in exchange fees and rebates at the time of execution. These changes aim to enhance liquidity, lower transaction costs, and improve the accuracy of price discovery in U.S. equity markets. The amendments will go into effect 60 days after publication in the Federal Register, with compliance dates set for 2025. |
