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Global Regulator & Central Bank News Roundup (Vol. 8/2023)

February 27 - March 5 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,

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At a glance - Highlights by topic

Information: In this special edition, all newsletter content has been drawn from Regxelerator’s new end-to-end automated and AI-powered regulatory news platform

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. All summaries provided herein are 100% AI generated using state-of-the-art natural language processing technology combined with the power of robotic process automation. Visit

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for more information.

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Prudential & financial stability⁠

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Basel III monitoring exercise shows record highs in capital ratios dropped to pre-pandemic levels in H1 2022

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AML & CFT⁠

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FATF Forum focuses on global asset recovery to combat financial crime

FATF report reveals risks and good practices in art, antiquities and cultural objects markets

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Conduct & consumer protection⁠

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IOPA launches public consultation to review IORP II Directive

CFPB report reveals higher financial distress for buy now, pay later borrowers

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Fintech & ecosystem innovation⁠

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SEC charges former co-lead engineer of FTX Trading Ltd. with alleged multiyear scheme to defraud equity investors

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Payments & currency⁠

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G20 gives green light to iso 20022 for cross-border payments by 2025

RBA and DFCRC to pilot CBDCs in Australia, report expected mid-year

European Central Bank launches rulebook development group for digital euro scheme

OeNB Launches 'Cash for All Cases' Initiative in Austria to prepare for crises

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Other transversal themes⁠

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ASIC publishes report to encourage whistleblowers: report outlines good practices to help entities improve their policies

ESMA and ACER find no measurable impact from introduction of market correction mechanism on gas derivatives

OSFI launches public consultation on draft culture and behaviour risk guideline, self-assessment tool to follow in 2023

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Prudential & financial stability

Basel III monitoring exercise shows record highs in capital ratios dropped to pre-pandemic levels in H1 2022

Initial Basel III capital ratios for a sample of the largest global banks decreased from their record highs in H2 2021 to pre-pandemic levels in H1 2022 according to the latest Basel III monitoring exercise. Liquidity ratios declined, but remained above pre-pandemic levels. The report also explores the impact of the final Basel III framework and provides interactive visuals of the results, such as securitisation and cryptoasset exposures.

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Link

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AML & CFT

FATF Forum focuses on global asset recovery to combat financial crime

The FATF has made it a priority to improve global asset recovery as financial crime has significantly increased in recent years. Over 300 judicial, law enforcement, FIU, tax and other operational experts met at the inaugural Learning and Development Forum to discuss strategies to prevent and detect financial crime, identify and investigate criminal proceeds, and strengthen international cooperation. It was noted that countries need to make asset recovery a priority and ensure the right structures and systems are in place to facilitate effective use. The Forum provided an opportunity for experts to build connections and share best practices to make a difference in recovering criminal assets.

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Link

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FATF report reveals risks and good practices in art, antiquities and cultural objects markets

A new FATF report examines the risks associated with the art, antiquities and other cultural objects market, and provides risk indicators, good practices and advice on how to identify, trace and investigate suspicious activities. It highlights the need for countries to have sufficient awareness and understanding of the market in order to pursue cross-border investigations, and suggests the establishment of specialised units and access to relevant databases.

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Link

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Conduct & consumer protection

EIOPA launches public consultation to review IORP II Directive, stakeholders invited to provide feedback until May 25, 2023

EIOPA has launched a public consultation on the review of the IORP II Directive in response to a call from the European Commission. The consultation covers areas such as governance, prudential standards, cross-border activities and transfers, shift from defined benefit to defined contributions, sustainability, diversity and inclusion. The draft advice aims to protect the legacy while embracing the future. Stakeholders have until May 25, 2023 to provide feedback.

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Link

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CFPB report reveals higher financial distress for buy now, pay later borrowers

The Consumer Financial Protection Bureau (CFPB) has published a report analyzing the financial profiles of Buy Now, Pay Later borrowers. The report finds that Buy Now, Pay Later borrowers are more likely to be active users of other types of credit products, as well as exhibiting higher levels of financial distress than non-users. The report also found that these borrowers use high-interest financial services more often, are more likely to be Black, Hispanic, and female, and have lower credit scores than non-borrowers. The report concludes that further research is needed to determine if Buy Now, Pay Later usage has a causal impact on consumer indebtedness.

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Link

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Fintech & ecosystem innovation

SEC charges former co-lead engineer of FTX Trading Ltd. with alleged multiyear scheme to defraud equity investors

The SEC has charged Nishad Singh, the former Co-Lead Engineer of FTX Trading Ltd., for his role in a multiyear scheme to defraud equity investors. Singh allegedly created software code that diverted customer funds to another entity despite false assurances that the crypto asset trading platform was secure. The complaint also alleges that Singh was an active participant in the scheme and withdrew $6 million from FTX for personal use. The SEC is seeking an injunction, disgorgement of ill-gotten gains, a civil penalty, and an officer and director bar. The U.S. Attorney’s Office, CFTC, and FBI are also involved in the case.

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Link

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Payments & currency

G20 gives green light to iso 20022 for cross-border payments by 2025

By 2025, most of the world's payment systems will adopt the ISO 20022 messaging standard to make cross-border payments faster, cheaper, and more transparent. A joint task force comprising the CPMI and PMPG has developed harmonisation requirements for the use of ISO 20022 messages in cross-border payments, which are presented in a consultative report. The Indian G20 Presidency views this as a key deliverable and the CPMI seeks comments on the report by 10 May 2023. Online workshops will also be held to facilitate broader industry engagement.

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Link

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RBA and DFCRC to pilot CBDCs in Australia, report expected mid-year

The Reserve Bank of Australia is collaborating with the Digital Finance Cooperative Research Centre to explore the potential use cases and economic benefits of a central bank digital currency (CBDC) in Australia. 14 use case proposals from a range of industry participants have been invited to participate in a live pilot over the coming months. A report on the project is expected to be published around the middle of the year. The project is funded by industry partners, universities and the Australian Government, and the Reserve Bank is using its involvement to support work on its strategic focus area on payments, including research on CBDC.

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Link

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European Central Bank launches rulebook development group for digital euro scheme

The European Central Bank held the first meeting of the Rulebook Development Group on 15 February 2023 to assist with drafting a rulebook for a potential digital euro scheme. Updates on the progress made and the agenda and minutes of each RDG meeting will be published on the ECB's website. A public consultation will be held once a first draft of the Rulebook is ready. Calls for expression of interest will be issued to identify potential candidates for Rulebook development workstreams who will then be selected by the digital euro team.

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Link

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OeNB Launches 'Cash for All Cases' Initiative in Austria to prepare for crises

The Oesterreichische Nationalbank (OeNB) has launched an initiative called "Cash for All Cases" to encourage people in Austria to keep a small amount of cash (around EUR 100 per family member) at home in the event of a crisis. As part of the initiative, precautionary envelopes with useful tips from the Austrian Civil Defence Association are available for free at Austrian Post branches and OeNB ticket offices. The Austrian Trade Association, together with the Federal Ministries of Agriculture, Forestry, Regions and Water Management (BML) and for Climate Protection, Environment, Energy, Mobility, Innovation and Technology (BMK) have pledged to open business branches in the event of a blackout and issue ready-made food and beverage packages for cash.

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Link

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Other transversal themes

ASIC publishes report to encourage whistleblowers: report outlines good practices to help entities improve their policies

ASIC published a report today to help entities improve their arrangements for handling whistleblower disclosures, in order to ensure they are effective and encourage people to speak up. The report outlines good practices observed from a review of seven entities’ whistleblower programs from a cross-section of industries, and encourages entities to scale and tailor them to their own operations. Companies are now required to have a whistleblower policy that sets out matters and make it available to officers and employees, and ASIC is urging entities to improve their whistleblower policies.

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Link

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ESMA and ACER find no measurable impact from introduction of market correction mechanism on gas derivatives

ESMA published an Effects Assessment of the introduction of the market correction mechanism (MCM) on gas derivative markets, which found that no measurable impact has been identified so far. It also found no changes in the EU gas derivatives trading that could be attributed to the MCM, and no noticeable changes in CCP risk management or margin requirements. The report concluded that the current market environment is likely a factor in the absence of a significant impact, and that the impact of the MCM could be different as the market environment changes. ACER also published its Effects Assessment.

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Link

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OSFI launches public consultation on draft culture and behaviour risk guideline, self-assessment tool to follow in 2023

The Office of the Superintendent of Financial Institutions (OSFI) released a draft Culture and Behaviour Risk Guideline for consultation and launched a public consultation period from February 28 to May 31, 2023. OSFI will assess comments and feedback before issuing a final guideline by the end of 2023, and will provide a self-assessment tool with the final guideline. The draft guideline complements OSFI's existing guidance and was developed in light of feedback to its March 2022 Culture Risk Management Letter.

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Link

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Leadership changes

HH Sheikh Tamim bin Hamad Al-Thani has appointed Tamy Ahmed Ali Al Boutamy Al Binali as the new CEO of Qatar Financial Markets Authority (QFMA), effective from 3/2/2023.

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Link

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At a glance - Highlights by topic

Prudential & financial stability

AML & CFT

Conduct & consumer protection

Fintech & ecosystem innovation

Payments & currency

Other transversal themes

Leadership changes

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