As financial regulations continue to evolve, staying ahead of compliance changes is crucial for organizations operating in global markets. This week’s regulatory updates highlight key developments across various jurisdictions, addressing areas such as financial crime prevention, digital securities, investment management, and AI governance. Regulatory bodies are emphasizing enhanced risk management, improved disclosure standards, and streamlined compliance frameworks to adapt to the fast-changing financial landscape. Businesses must remain vigilant and proactive in understanding and implementing these new regulations to mitigate risks and ensure regulatory adherence.
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Global | IFRS | Applying IFRS S1 for Climate-Related Disclosures under IFRS S2 | The International Sustainability Standards Board (ISSB) has issued new educational material (January 2025) to guide companies on applying IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information when reporting only climate-related disclosures under IFRS S2 Climate-related Disclosures. This material supports a “climate-first” transition relief, allowing companies in their first year of ISSB Standards adoption to focus exclusively on climate-related risks and opportunities, postponing broader sustainability disclosures. While companies applying this transition relief must still comply with IFRS S1 as it relates to climate-related reporting, this approach ensures that disclosures remain consistent and comparable. Although full ISSB compliance requires adherence to both IFRS S1 and IFRS S2, companies can assert compliance even if they initially report only climate-related data. The guidance also acknowledges that jurisdictions may phase in climate-related disclosure mandates before requiring broader sustainability reporting, and that companies may voluntarily adopt IFRS S2 without full IFRS S1 compliance. |
Global | Cloud Security Alliance | The Cloud Security Alliance (CSA) has released a new report, AI Organizational Responsibilities: AI Tools and Applications, providing organizations with structured frameworks and strategies to implement AI securely and responsibly. As the third instalment in a series on AI governance, this report addresses practical aspects of AI adoption, including Large Language Models (LLMs) and Generative AI security, third-party and supply chain management, and operational considerations for AI integration. The guide offers six key evaluation criteria—including responsibility mapping, continuous monitoring, and adherence to AI standards—helping organizations navigate AI risks while ensuring compliance with evolving regulations. CSA emphasizes the growing need for strong AI governance, security protocols, and ethical considerations as AI technologies become more pervasive across industries. This report is a crucial resource for businesses seeking to manage AI responsibly while addressing cybersecurity and risk management challenges. | ||
Luxembourg | CSSF | The Commission de Surveillance du Secteur Financier (CSSF) has announced the launch of its 2024 Financial Crime Questionnaire, requiring all supervised entities, including banks, investment firms, fund managers, and virtual asset service providers, to submit responses by April 4, 2025 via the CSSF eDesk platform. The annual questionnaire assesses money laundering (ML) and terrorism financing (TF) risks, as well as the effectiveness of mitigation and compliance measures. While largely unchanged from the previous year, the 2024 version introduces new and amended questions. CSSF encourages the use of an API solution for streamlined submission but allows manual input. This initiative forms part of CSSF’s risk-based AML/CFT supervision approach to enhance financial crime monitoring and regulatory compliance. | ||
Malta | MFSA | The Malta Financial Services Authority (MFSA) has unveiled its Strategic Update 2024, outlining key priorities to enhance the resilience and efficiency of Malta’s financial regulatory framework. The update focuses on strengthening governance, risk management, and supervisory capabilities while ensuring alignment with European and international standards. Key initiatives include digital transformation, increased regulatory enforcement, and the introduction of enhanced compliance measures across the financial sector. The MFSA also aims to foster a more attractive and stable jurisdiction for businesses through innovation-friendly policies. This strategic roadmap underscores Malta’s commitment to maintaining a robust, transparent, and future-ready financial ecosystem. | ||
Malta | MFSA | The Malta Financial Services Authority (MFSA) has issued an addendum to its March 2024 circular on Technology Arrangements, ICT and Security Risk Management, and Outsourcing Arrangements. The update clarifies the applicability of existing guidelines in light of the Digital Operational Resilience Act (DORA), set to take effect on 17 January 2025. Under this framework, the current guidance will no longer apply to financial entities covered by DORA, while those outside its scope will continue to follow the MFSA’s guidelines. Furthermore, Crypto-asset Service Providers operating under the Markets in Crypto-Assets Regulation (MiCA) will transition to DORA upon obtaining an MFSA license. This move aims to streamline regulatory oversight and enhance cyber resilience across Malta’s financial sector. | ||
Singapore | MAS | The Monetary Authority of Singapore (MAS), in collaboration with industry associations, has released The Basic Financial Planning Guide, outlining best practices for financial advisory (FA) representatives. This guide aims to enhance financial literacy and improve advisory services by providing structured approaches to financial planning. Key areas covered include comprehensive training for FA representatives, integrating financial needs calculators, and emphasizing government-backed schemes like MediShield Life and CPF LIFE. The guide also promotes legacy planning and targeted advisory strategies to help individuals make informed financial decisions. By embedding these good practices into the advisory process, Singapore’s financial sector seeks to foster responsible financial planning and consumer protection. | ||
United Kingdom | GOV.UK | UK Statutory Instruments | The UK Treasury has introduced amendments to the Financial Services and Markets Act 2023 (Digital Securities Sandbox) Regulations 2025. These changes, effective from March 3, 2025, aim to refine the operational framework for digital securities within the Financial Market Infrastructure (FMI). The key updates include provisions for the appropriate regulators overseeing ancillary FMI activities, clarifications on the regulatory scope for digital securities depositories, and modifications to align with the UK’s Money Laundering, Terrorist Financing, and Transfer of Funds Regulations. The amendments are intended to enhance the regulatory environment for digital securities, ensuring robust operational standards and regulatory clarity, while also facilitating compliance with the broader financial regulatory framework | ||
United States | FINRA | The 2025 FINRA Annual Regulatory Oversight Report provides valuable insights into the regulatory findings and observations from FINRA’s oversight activities. This year’s report highlights several key updates, including new focus areas such as third-party risk, registered index-linked annuities, and extended hours trading. Among the significant updates, the report addresses emerging trends in cybersecurity and financial crimes prevention, with a focus on tackling cyber-enabled fraud and anti-money laundering practices. FINRA continues to emphasize the importance of compliance with rules such as Regulation Best Interest (Reg BI) and the Consolidated Audit Trail (CAT). The report serves as a comprehensive guide for firms to enhance their compliance programs, offering practical advice and resources to navigate the evolving regulatory landscape for 2025 and beyond. | ||
Banking | European Union | European Union | Correction to Regulatory Standards for Payment Institutions in Denmark | The European Commission has adopted Delegated Regulation (EU) 2025/212, correcting an error in Commission Delegated Regulation (EU) 2017/2055, which supplements Directive (EU) 2015/2366 (PSD2) regarding the cooperation and exchange of information between competent authorities for payment institutions. The correction updates Annex I to reflect the correct unique identification number for Denmark, distinguishing between company registration numbers (CVR) and personal registration numbers (CPR) for sole proprietorships and other natural persons. This amendment ensures accurate regulatory oversight and data consistency within the EU payment services framework. |
United Kingdom | BOE | The Prudential Regulation Authority (PRA) has released its Climate Change Adaptation Report 2025, detailing the progress made by UK-regulated banks and insurers in managing climate-related risks. In response to the government’s climate change targets, the PRA emphasizes the need for continued advancements in firms’ capabilities to identify, measure, and mitigate these risks. Since the last report in 2021, the PRA has observed positive steps but also noted the variability in firms’ preparedness, particularly regarding climate scenario analysis and integration into decision-making. Looking forward, the PRA plans to update its supervisory expectations, with a consultation on revisions to be released in 2025. This will further guide firms in aligning their operations with climate resilience goals while maintaining financial stability | ||
Insurance | European Union | EIOPA | 5th Annual Report on IDD Sanctions: Key Trends and Developments in 2023 | The European Insurance and Occupational Pensions Authority (EIOPA) has published its 5th Annual Report on the sanctions imposed under the Insurance Distribution Directive (IDD) in 2023. The report reveals a significant decrease in the total number of sanctions at the EU/EEA level, down by 1,250 from 2022, largely due to reduced enforcement in certain Member States. While 20 Member States reported imposing sanctions, overall figures show a decline in administrative pecuniary sanctions (-86) and withdrawals of registrations (-1,103). Notably, Germany and Portugal accounted for a substantial portion of sanctions, affecting the overall trends. The total value of fines imposed in 2023 amounted to EUR 326,073, reflecting a EUR 202,734 decrease compared to the previous year. EIOPA emphasizes the increasing role of pre-emptive measures, such as cease and desist orders, as supervisory authorities shift towards preventive enforcement strategies. |
Germany | BaFin | Consultation on Revised EIOPA General Decree on Pension Data Reporting | The Federal Financial Supervisory Authority (BaFin) has initiated a public consultation on the draft version of the EIOPA General Decree on Pension Data, aligning with the latest EIOPA Decision (EIOPA-BoS-23/030), which takes effect on January 1, 2025. This new decree updates reporting obligations based on amendments introduced by EIOPA in February 2023, replacing the prior decision from 2018 (EIOPA-BoS-18/114). The key changes include revised submission deadlines for pension data reporting, eliminating distinctions between company submissions and supervisory authority forwarding times. Notably, the quarterly reporting deadline has been extended to nine weeks post-quarter-end (previously seven weeks plus ten working days), while annual reporting is now due within 20 weeks (previously 14 weeks plus 20 working days). To compensate, BaFin will reduce its internal forwarding time, ensuring efficiency without imposing new burdens on Institutions for Occupational Retirement Provision (IORPs). Additionally, small IORPs remain exempt from reporting requirements. Stakeholders are invited to submit comments on the draft decree under Consultation 04/2025 by February 12, 2025 | |
Indonesia | OJK | Five New Regulations to Strengthen Insurance, Guarantee, and Pension Fund Sectors | The Otoritas Jasa Keuangan (OJK) has issued five new Financial Services Authority Regulations (POJK) to enhance the Insurance, Guarantee, and Pension Fund (PPDP) industry by improving governance, supervision, and enforcement mechanisms. These regulations include POJK 34/2024, focusing on human resource development, POJK 35/2024 on pension fund licensing and governance, POJK 36/2024 on insurance business operations, POJK 37/2024 on administrative sanctions, and POJK 38/2024 on liquidation and bankruptcy processes. The reforms aim to ensure a more stable, transparent, and consumer-protective financial sector, fostering sustainable growth and resilience in Indonesia’s PPDP industry. | |
Investment | Austria | FMA | The Austrian Financial Market Authority (FMA) has issued a circular providing comprehensive guidelines on prospectus supervision, aligning with the European Prospectus Regulation (EU) 2017/1129. The circular clarifies the FMA’s role in ensuring the completeness, coherence, and comprehensibility of prospectuses while emphasizing that it does not verify their accuracy. It outlines the types of prospectuses, exemptions from publication requirements, and compliance obligations under the Capital Market Act 2019 and Stock Exchange Act 2018. The document also details disclosure standards, risk factors, and advertisement rules, reinforcing investor protection and transparency in capital markets. | |
European Union | European Union | EU Extends Equivalence for UK Central Counterparties Until 2028 | The European Commission has issued Implementing Decision (EU) 2025/215, extending the recognition of the UK’s regulatory framework for central counterparties (CCPs) as equivalent under Regulation (EU) No 648/2012 (EMIR). This extension ensures that UK CCPs can continue providing clearing services to EU clearing members until 30 June 2028. The decision aims to prevent financial instability and allow time for EU market participants to reduce reliance on UK CCPs. It follows the expiration of previous temporary equivalence decisions and is aligned with the EU’s broader goal of strengthening its own clearing infrastructure and supervisory framework. | |
European Union | European Union | EEA Agreement Amendment: Incorporation of EU Crypto-Asset Regulation | The EEA Joint Committee has adopted a draft decision to amend Annex IX (Financial Services) of the EEA Agreement, incorporating Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA). This amendment ensures that the EFTA States (Iceland, Liechtenstein, and Norway) align with the EU framework on crypto-asset issuance, supervision, and regulation. The decision mandates cooperation between the European Securities and Markets Authority (ESMA), the European Banking Authority (EBA), and the EFTA Surveillance Authority, extending MiCA’s scope to EFTA jurisdictions. The amendment also aligns regulatory powers, supervisory responsibilities, and compliance requirements, reinforcing the harmonized oversight of crypto-asset markets across the EEA. | |
France | AMF | Guidance on the End-of-Life Management of Private Equity Funds | The French Autorité des Marchés Financiers (AMF) has issued new regulatory guidance on the end-of-life management of private equity funds to ensure investor protection and orderly fund liquidation. The guidance outlines best practices for fund managers in handling fund extensions, liquidation procedures, and investor communications when a fund reaches the end of its term. It emphasizes transparency, fair treatment of investors, and compliance with regulatory obligations to prevent conflicts of interest. This update is particularly relevant to fund managers operating in France, aligning with broader European regulatory expectations for alternative investment funds (AIFs). | |
France | AMF | The French Autorité des Marchés Financiers (AMF) has updated its guidelines on the liquidation of private equity funds, introducing clearer procedures for the end-of-life management of these funds. The revised document (DOC-2012-11), modified on January 31, 2025, outlines key steps in the liquidation process, including the pre-liquidation phase, the dissolution process, and the final asset realization and distribution. Notably, the maximum blocking period for investments has been extended from 10 to 15 years for newly approved funds under Law No. 2024-537. The AMF also reinforced requirements for fund managers to ensure timely liquidation and investor protection, addressing concerns over prolonged fund lifespans. These guidelines aim to enhance transparency and ensure that fund liquidations align with investor interests and regulatory standards. | ||
Global | FMSB | The Financial Markets Standards Board (FMSB) has introduced a Standard for Sharing of Standard Settlement Instructions (SSIs) to improve efficiency and reduce settlement risks in financial transactions. SSIs are essential for determining the correct destination for settlements, but manual processes and non-standardized formats often lead to errors, inefficiencies, and increased operational costs. The new FMSB Standard establishes Core Principles to encourage the use of electronic, pre-authenticated platforms for SSIs while providing standardized templates for manual sharing where digital adoption is not feasible. The standard aligns with global regulatory expectations and industry best practices, particularly as financial markets shift toward accelerated settlement cycles like T+1. Firms are encouraged to adopt these principles to minimize settlement failures, improve automation, and enhance operational security. | ||
Indonesia | OJK | Regulation on Investment Management Development and Strengthening in the Capital Market | The Otoritas Jasa Keuangan (OJK) has issued Regulation No. 33/2024 on Investment Management Development and Strengthening in the Capital Market, effective December 23, 2024. This regulation aims to support inclusive and sustainable economic growth by enhancing investment management practices. Key provisions include requirements for mutual funds to provide and/or receive loans and investment limitations on purchasing shares or units of other mutual funds. The new regulation supersedes specific provisions in prior OJK regulations governing mutual funds in the form of collective investment contracts and corporations, ensuring a more robust and transparent regulatory framework for investment management in Indonesia’s capital markets. | |
Netherlands | AFM | The Dutch Central Bank (DNB) and the Netherlands Authority for the Financial Markets (AFM) have published a joint newsletter providing guidance on the implementation of EMIR 3, which came into force on 24 December 2024. The updated regulation aims to enhance the resilience of EU clearing systems while reducing reliance on third-country central counterparties (CCPs). Key areas covered in the newsletter include compliance with the active account requirement for financial and non-financial counterparties, initial margin model validation, and transparency obligations for CCPs and clearing service providers (CSPs). While technical standards from the European Supervisory Authorities (ESAs) are still pending, the newsletter advises institutions to align with Level 1 requirements to the greatest extent possible. Supervisory action will not be prioritized until the relevant regulatory technical standards (RTS) take effect. | ||
Portugal | CMVM | The Comissão do Mercado de Valores Mobiliários (CMVM) has released Circular 001/2025, emphasizing the importance of ensuring a strong Value for Money principle in financial instruments. This initiative aligns with the European Commission’s efforts to increase retail investor participation in capital markets by promoting fair pricing and transparency. The circular highlights best practices for financial intermediaries, including assessing cost structures, ensuring alignment with target market needs, and preventing excessive charges that could hinder expected returns. Additionally, it reinforces compliance with MiFID II product governance requirements and the European Securities and Markets Authority (ESMA) guidelines. Financial entities are encouraged to implement internal policies ensuring that financial products remain competitive and beneficial to investors. | ||
United Kingdom | FCA | The UK Financial Conduct Authority (FCA) has released new proposals under the Public Offers and Admissions to Trading Regulations (POATRs) aimed at simplifying the listing and capital raising processes for companies. Key recommendations include aligning disclosure requirements for low and high denomination bonds to a single standard, streamlining the listing application process for further issuances, and eliminating the need for Listing Particulars, which will reduce regulatory complexity. The reforms seek to make capital raising more efficient by reducing administrative burdens and improving market access for smaller investors. These changes are expected to bolster the UK’s position as a global financial hub, enhancing competition and supporting economic growth. |
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