Gallery
Share
Explore

Global Regulator & Central Bank News Roundup (Vol. 12/2023)

March 26 - April 2 2023
Your weekly summary of key regulatory updates in an objective bite-size format, drawing on official news and press releases from 400+ financial services regulators, central banks as well as global and regional standard setters,
⁠

At a glance - Highlights by topic


info
Visit Regxelerator’s new end-to-end automated and AI-powered regulatory news platform
Regxplora
⁠
for ongoing updates.

⁠
Prudential & financial stability
⁠
⁠
FSB sets global financial stability policy priorities for 2023
BCBS publishes various technical amendments and FAQs on the Basel framework
⁠
AML & CFT
⁠
⁠
EBA issues guidelines to ensure access to financial services for vulnerable customers and not-for-profit organizations
EBA proposes to extend its risk-based AML/CFT guidelines to crypto-asset service providers
⁠
Conduct & consumer protection
⁠
⁠
IOSCO report highlights potential retail investor harm and provides toolkit for regulators to address issues
EBA publishes retail risk indicators
ESMA publishes statement to provide guidance on fractional shares
⁠
Fintech & ecosystem innovation
⁠
⁠
BIS Innovation Hub launches Project Atlas aims to enhance central banks' understanding of cryptoassets and defi markets
Central Bank of Bahrain introduces amended crypto-assets module
⁠
Payments & currency
⁠
⁠
BIS report identifies barriers to higher adoption of payment versus payment and proposes solutions to reduce FX settlement risk
MAS and BNM finalize new cross-border QR code payment linkage
⁠
ESG
⁠
⁠
TNFD Releases Final Beta Framework for Nature-Related Risk Management and Disclosure
IOSCO publishes report on global assurance framework for sustainability-related corporate reporting
Reserve Bank of New Zealand invites submissions on new guidance to manage climate-related risks
ASEAN taxonomy board releases Version 2 of the ASEAN taxonomy for sustainable finance
Panama launches public-private project to align financial sector with Paris Agreement climate change objectives
Bank of Italy publishes second annual report on sustainable investments and climate-related risks
Bank of Portugal publishes report on climate-related financial disclosures of its assets
Central Bank of Ireland releases climate action roadmap and first annual climate-related financial disclosures
DNB publishes guide to identify, manage climate and environmental risks in the financial sector
Zambia SEC joins Sustainable Banking and Finance Network
⁠
Other transversal themes
⁠
⁠
ECB achieves interim gender targets and gets re-certified for equality progress

⁠

Prudential & financial stability


FSB sets global financial stability policy priorities for 2023
The Financial Stability Board has published its work programme for 2023. Priority areas of work include global cooperation on financial stability, resilience of non-bank financial intermediation, cross-border payments, digital innovation including crypto, climate-related risks, as well as cyber and operational resilience. The Plenary is also considering how best to prioritize its work in light of recent events. Alongside the strategic focus areas, the Board has outlined a tentative schedule for the publication of key reports. Newly planned consultative reports include inter alia revisions to the FSB’s 2017 recommendations on addressing liquidity mismatch in open-ended funds and recommendations on strengthening the management of third-party risks and outsourcing. Key crypto-related reports planned for this year include the final reports on its high-level recommendations on the regulation, supervision and oversight of global stablecoin arrangements and crypto-asset activities and markets, scheduled for July, as well as a new synthesis paper on macroeconomic and regulatory perspectives on crypto-assets, published jointly with the IMF.
⁠
Link
⁠
⁠
⁠
BCBS publishes various technical amendments and FAQs on the Basel framework
The Basel Committee on Banking Supervision (BCBS) as part of its efforts to promote a consistent interpretation of the Basel Committee has published a new set of technical amendments as well as answers to Frequently Asked Questions (FAQs). Issues covered include: the standardised approach to operational risk, the disclosure standards for credit valuation adjustment (CVA) risk, the description of the calculation of indicator scores for global systemically important banks (G-SIBs), the terminology used in the countercyclical capital buffer, and the application of the liquidity standards to certain products.
⁠
Link
⁠
⁠
⁠

AML & CFT


EBA issues guidelines to ensure access to financial services for vulnerable customers and not-for-profit organizations
The European Banking Authority has issued its final guidelines to address unwarranted de-risking and access to financial services by vulnerable customer groups, following its consultation in 2022. The guidelines are intended to ensure that vulnerable customers such refugees and homeless people are not denied access to financial services on the grounds of undue AML/CFT concerns. To that end, the guidelines clarify institutions’ AML/CFT obligations with a focus on situations where customers have legitimate reasons to be unable to satisfy customer due diligence requirements, outlining the alternative options that institutions need to consider before proceeding to reject a customer. A second set of guidelines further addresses regulatory expectations and provide guidance for financial institutions to manage ML/TF risk associated with Not-for-Profit organizations, which are also commonly associated with the risk of de-risking.
⁠
Link
⁠
⁠
⁠
EBA proposes to extend its risk-based AML/CFT guidelines to crypto-asset service providers
The European Banking Authority (EBA) is proposing to amend the scope of its guidelines on risk-based AML/CFT Supervision to clarify how they apply to AML/CFT supervisors of Crypto-Asset Service Providers (CASPs). In particular, the amendment includes guidance on the sources of information competent authorities should consider when assessing ML/TF risks associated with CASPs. More specific AML/CFT guidance for CASPs will be released as part of EBA’s planned amendments to its risk factor guidelines.
⁠
Link
⁠
⁠
⁠

Conduct & consumer protection


IOSCO report highlights potential retail investor harm and provides toolkit for regulators to address issues
The IOSCO has published the final version of its report on Retail Market Conduct following the release of the consultative report in early 2022. The report provides a comprehensive overview of the key trends and developments shaping retail trading and the implications for conduct from a regulatory point of view. Specific trends addressed in the report include inter alia the increasing amount of online trading platforms, mobile apps and social media in the promotion of securities prompted by technological advances, the shifts in retail investor risk appetite towards investments in higher-risk products such as retail OTC leveraged products and crypto-assets and the evolving and frequently riskier retail investor trading patterns, prompted among other things by market volatility and the low interest rate environment. Against this backdrop, the report lays out a toolkit of measures for regulators to consider in response to the developments. These address a broad spectrum of areas grouped in five main categories as follows: (1) Heightening regulators’ digital presence and online strategy to proactively address retail investor harm, (2) honing approaches to better identify and mitigate misconduct , (3) enhancing cross-border and domestic supervisory and enforcement cooperation frameworks, both bilaterally and multilaterally, (4) addressing retail investor harm that stems from crypto-assets; and (5) Implementing new regulatory approaches against retail misconduct.
⁠
Link
⁠
⁠
⁠
EBA publishes retail risk indicators
The European Banking Authority (EBA) has published a new document outlining a set of proposed indicators to measure the retail risks encountered by consumers in the EU in relation to banking products. The 11 indicators span across six product categories / thematic areas, namely: (1) Mortgage credits, (2) other consumer loans, (3) payment and deposit accounts, (4) credit and debit cards, (5) other payment instruments, and (6) access to financial services. The indicators are primarily intended to help the EBA and national competent authorities prioritize their consumer protection regulatory and supervisory work. The published document includes a methodological note with details on the choice, calculation, and interpretation of the indicators. Furthermore, EBA has created an interactive tool to visualize the currently available data for each indicator.
⁠
Link
⁠
⁠
⁠
Other highlights
The European Securities & Markets Authority has issued a public statement to address investor protection risks of derivatives on fractions of shares. The statement outlines among other things disclosure and other information requirements in the marketing of such fractional shares to retail investors including in relation to costs and charges. It also specifies expectations for product governance and appropriateness assessments.
⁠
Link
⁠
⁠
⁠

Fintech & ecosystem innovation


BIS Innovation Hub launches Project Atlas aims to enhance central banks' understanding of cryptoassets and defi markets
The Bank for International Settlements (BIS) Eurosystem Innovation Hub has launched the Project Atlas for the creation of an open-source data platform that provides insights into the macroeconomic relevance of cryptoassets and DeFi markets and potential financial stability risks. The platform will apply a layered approach to data-vetting, combining reported data gathered from crypto exchanges and stablecoin issuers (off-chain data) with data from public blockchains (on-chain data) to provide information on cryptoassets market capitalization, economic activity and international flow. Initial focus of the work will be on cross-border flows. The Project will be executed in collaboration with the German Bundesbank and De Nederlandsche Bank.
⁠
Link
⁠
⁠
⁠
Central Bank of Bahrain introduces amended crypto-assets module
Following consultation in the second half of 2022, the Central Bank of Bahrain has formally introduced changes to its crypto-asset module, which forms part of its capital markets rulebook. As part of the amendments, the Central Bank has expanded the scope of its regulatory framework to cover digital token offerings and accordingly has, among other things, specified the detailed expectations for the form and substance of digital token whitepapers. The Central Bank of Bahrain has issued new amendments to its Crypto-assets (CRA) Module in March 2023 to further develop the crypto-assets market and comply with industry best practices while enhancing investor protection. These amendments expand the scope of the regulatory framework to include digital token offerings and set out new requirements to safeguard clients' assets. The CBB has adopted a risk-based approach to ensure investors are adequately protected without inhibiting innovation.
⁠
Link
⁠
⁠
⁠

Payments & currency


BIS report identifies barriers to higher adoption of payment versus payment and proposes solutions to reduce FX settlement risk
The Bank for International Settlements (BIS), under the leadership of its Committee on Payments and Market Infrastructures, has published its final report on the adoption of payment versus payment, following its consultation in 2022. This report is intended to facilitate increased adoption of payment versus payment (PvP) to reduce foreign exchange (FX) settlement risk and improve cross-border payments by examining the causes of non-PvP settlement, setting out existing and proposed new PvP solutions, and discussing how the private and public sectors can contribute to increased adoption of PvP. The report identifies various barriers to broad adoption, including weak incentives for market participants to settle FX trades using PvP, technical challenges for PvP providers to access and interoperate with real-time gross settlement systems, and legal challenges for PvP providers to reconcile differences in national legal and regulatory frameworks.
⁠
Link
⁠
⁠
⁠
MAS and BNM finalize new cross-border QR code payment linkage
The Monetary Authority of Singapore (MAS) and Bank Negara Malaysia (BNM) have formally launched the new NETS-DuitNow cross-border QR code payment linkage between Singapore and Malaysia. The linkage will allow customers of participating financial institutions to make retail payments by scanning NETS and DuitNow QR physical QR codes displayed by merchants, and online cross-border e-commerce transactions. The next phase, which is expected to be completed by year-end, will enable real-time fund transfers between Singapore and Malaysia using just a mobile phone number.
⁠
Link
⁠
⁠
⁠

ESG


TNFD Releases Final Beta Framework for Nature-Related Risk Management and Disclosure
The Taskforce on Nature-related Financial Disclosures (TNFD) has released its fourth and final beta framework for nature-related risk management and disclosure. The framework is anchored by the same four pillars of the TCFD approach and the final draft includes 14 recommended disclosures. It also proposes a tiered approach of leading indicators which seeks to strike the right balance between being science-based and practical for market participants. The TNFD will publish its final recommendations in September 2023. Since its inception, the framework for nature-related risk management and disclosure has gained support from over 1,000 organisations.
⁠
Link
⁠
⁠
⁠
IOSCO publishes report on global assurance framework for sustainability-related corporate reporting
The IOSCO has published a report on international work to develop a global assurance framework for sustainability-related corporate reporting. The report outlines IOSCO's support for the on-going work of the international standard setters - the International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants - to develop profession-agnostic assurance and ethics (including independence) standards over sustainability-related information. reporting ecosystem. It provides an overview of the current assurance landscape and discusses considerations for the further its further evolution, with a view to enhancing the global consistency in the assurance of sustainability-related information. The report builds on work led by a dedicated team under IOSCO’s Sustainable Finance Taskforce and follows an extensive fact-finding exercise and stakeholder discussions carried out throughout 2022.
⁠
Link
⁠
⁠
⁠
ASEAN taxonomy board releases Version 2 of the ASEAN taxonomy for sustainable finance
The ASEAN Taxonomy Board (ATB) released Version 2 of the ASEAN Taxonomy for Sustainable Finance. This version contains a Foundation Framework with detailed methodologies for assessing economic activities, and Technical Screening Criteria for the Energy sector under the Plus Standard. It aims to be inclusive and science-based, with a multi-tiered framework that can be applied to ASEAN Member States. Version 2 also recognizes the importance of social aspects and incorporates coal phase-outs as a global first for a regional taxonomy. Targeted consultations with stakeholders will be held to assess the methodology and metrics for the Energy sector, with technical screening criteria for the remaining five focus sectors to be released in phases by 2025.
⁠
Link
⁠
⁠
⁠
Reserve Bank of New Zealand invites submissions on new guidance to manage climate-related risks
The Reserve Bank of New Zealand has issued now guidance to regulated entities for the management of climate-related risks. The guidance, which was developed in alignment with international best practice, is structured in six sections. It covers the conceptual basics of climate-related risks, outlines expectations for the governance, risk management and disclosure of climate-related risks as well as discusses entities’ build-up of capabilities for climate-related risk scenario analysis. The guidance is subject to a consultation period, which ends early June.
⁠
Link
⁠
⁠
⁠
Panama launches public-private project to align financial sector with Paris Agreement climate change objectives
The Superintendency of the Securities Market (SMV) of Panama has launched a new project to align Panama's financial sector with the climate change objectives of the Paris Agreement. The initiative seeks to develop a sustainable finance taxonomy and to create a framework for mapping, quantifying, and disclosing climate-related financial risks. The project is carried out in a public-private partnership in collaboration with domestic and international organizations including the Green Climate Fund, the European Union, and the United Nations Environment Program Financial Initiative.
⁠
Link
⁠
⁠
⁠
Other highlights
The Bank of Italy's has published its second annual report on sustainable investments and climate-related risks. It provides analysis on the Bank's non-monetary policy portfolios and is divided into four chapters that illustrate the decision-making process, investment strategies, risk management system, sustainability results, and objectives.
⁠
Link
⁠
⁠
The Banco de Portugal has published its first report on climate-related financial disclosures of its own financial assets. The report includes five metrics to measure and publicly disclose the environmental impact of these assets and to set appropriate targets for its portfolios. These comprise of: Weighted average carbon intensity, total carbon emissions, carbon footprint, carbon intensity, and the proportion of green bonds held.
⁠
Link
⁠
⁠
The Central Bank of Ireland has published its Climate Action Roadmap and its first annual climate-related financial disclosures of its investment assets. It sets out information on the climate-related impact of the Central Bank’s investment assets and includes a long-term target to align its euro-denominated investment assets with the decarbonisation objectives of the EU and Irish State. In addition to these two documents, the Central Bank has also published guidance to assist the (re)insurance sector in developing appropriate governance and risk management frameworks.
⁠
Link
⁠
⁠
De Nederlandsche Bank (DNB) has published a new guide to outline how the financial sector can identify and manage the risks associated with climate change and environmental degradation. The Guide also outlines the DNB’s approach to the supervision of climate and environmental risk.
⁠
Link
⁠
⁠
The Zambia Securities and Exchange Commission has joined the Sustainable Banking and Finance Network (SBFN), making it the 77th member to join the Network, which now has a representation of institutions from 63 countries globally.
⁠
Link
⁠
⁠
⁠

Other transversal themes


ECB achieves interim gender targets and gets re-certified for equality progress
In a new statement, the European Central Bank (ECB) announced that it has achieved its interim gender targets for managers. The targets from part of the ECB’s broader diversity and inclusion initiatives, which also address other aspects such as race/ethnicity, sexual orientation, age, nationality and disability. As part of its efforts, the ECB has also taken steps such as increasing paid special leave for the second parent to promote greater balance in family responsibility. Achievement of its progress towards gender equality was formally re-certified. The next assessment will be based on data for 2024.
⁠
Link
⁠
⁠
⁠

Leadership changes

Jesper Berg has submitted his resignation as the Director of the Danish Financial Services Authority. He will be replaced by Kristian Vie Madsen as an interim CEO until a new CEO has been appointed.
⁠
Link
⁠
⁠
⁠

International cooperation

The European Single Resolution Board and Perbadanan Insurans Deposit Malaysia have entered into a cooperation agreement to facilitate communication and cooperation between their jurisdiction in the resolution of cross-border entities.
⁠
Link
⁠
⁠
Additionally, the European Single Resolution Board also signed a cooperation agreement with the Central Bank of Argentina on banking resolution.
⁠
Link
⁠
⁠
⁠
© 2023 REGXELERATOR

At a glance - Highlights by topic
Prudential & financial stability
AML & CFT
Conduct & consumer protection
Fintech & ecosystem innovation
Payments & currency
ESG
Other transversal themes
Leadership changes
International cooperation
Gallery
Share
 
Want to print your doc?
This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
CtrlP
) instead.