Asia

Basel Committee consults core principles for effective banking supervision

On 6 July 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultive document on core principles for effective banking supervision (the Core Principles). The Core Principles are the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems. They are universally applicable and accommodate a range … Continue Reading

IOSCO consults on guidance for effective implementation of the recommendations for liquidity risk management for collective investment schemes

On 5 July 2023, the International Organisation of Securities Commissions (IOSCO) published a consultation report on guidance for effective implementation of the recommendations for liquidity risk management for collective investment schemes. The report provides detailed guidance to support greater and more consistent use of anti-dilution liquidity management tools by responsible entities for open-ended funds (OEFs), … Continue Reading

IRSG consults on draft voluntary code of conduct for ESG ratings and data product providers

By Haney Saadah, Simon Lovegrove (UK) and Daniel Nevzat (UK) on July 5, 2023 Posted in Africa, Asia, Australia, Canada, Dubai and Saudi, ESG, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 5 July 2023, the International Regulatory Strategic Group (IRSG) published a consultation paper on a draft voluntary code of conduct for ESG ratings and data product providers. This draft code of conduct aims to foster a trusted, efficient and transparent market, by introducing clear standards for ESG ratings and data products providers and also … Continue Reading

FMSB publishes spotlight review on data and transparency in precious metals

On 5 July 2023, the Financial Markets Standards Board (FMSB) published a spotlight review on data and transparency in precious metals markets. This review is the third in a series of spotlight reviews by FMSB members that also cover precious metals market structure and post-trade. This review focuses on:… Continue Reading

FATF consults on the revision of Recommendation 8 and its interpretive note

On 30 June 2023, the Financial Action Task Force (FATF) launched a public consultation on the revision of Recommendation 8 and its interpretive note. The FATF is considering proposals for draft amendment text to Recommendation 8 of the FATF Standards and its interpretive note (R.8/INR.8), which aims to protect non-profit organisations (NPOs) from potential terrorist … Continue Reading

Targeted update on implementation of the FATF standards on virtual assets and virtual asset service providers

On 27 June 2023, the Financial Action Task Force (FATF) published a report, Targeted update on implementation of the FATF standards on virtual assets and virtual asset service providers. In October 2018, the FATF updated Recommendation 15 (R.15) to extend anti-money laundering / countering the financing of terrorism (AML/CFT) requirements to virtual assets (VAs) and … Continue Reading

FATF publishes plenary outcomes

On 26 June 2023, the Financial Action Task Force (FATF) published the outcomes from the FATF Plenary, which took place on 21-23 June 2023. Delegates from over 200 jurisdictions of the Global Network and observers from international organisations participated in these discussions at the FATF headquarters in Paris. The outcomes of the discussions included the … Continue Reading

ISSB issues inaugural global sustainability disclosure standards

By Haney Saadah, Simon Lovegrove (UK) and Daniel Nevzat (UK) on June 26, 2023 Posted in Africa, Asia, Australia, Canada, Dubai and Saudi, ESG, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 26 June 2023, the International Sustainability Standards Board (ISSB) published its inaugural standards. The standards are designed to ensure that companies provide sustainability-related information alongside financial statements – in the same reporting package. The standards, which fully incorporate the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), are: The ISSB will work … Continue Reading

FSB consults on toolkit for enhancing third-party risk management and oversight

On 22 June 2023, the Financial Stability Board (FSB) published a consultative document on enhancing third-party risk management and oversight: a toolkit for financial institutions and financial authorities. The toolkit has been developed against a backdrop of digitalisation of the financial services sector and growing reliance of financial institutions on third-party service providers for a … Continue Reading

New briefing note: Regulation and lending during a cost of living crisis: Five global themes

In many jurisdictions there has been heightened regulatory scrutiny on how financial institutions are dealing with borrowers in financial difficulty. When looking at the statements and criticisms’ that the regulators have made and what institutions themselves have self-identified, the issues may revolve around five key themes – vulnerable customers, due diligence/understanding customers, forbearance, communications and … Continue Reading

SFC releases VASP regime consultation conclusions

By Etelka Bogardi (HK) and Conrad Lam on May 25, 2023 Posted in Asia, crypotcurrency, Crypto assets, Fintech, Regulation and compliance

On 23 May 2023, the Securities and Futures Commission (the SFC) published its much anticipated consultation conclusions (the Consultation Conclusions) on the proposed regulatory requirements for virtual asset (VA) trading platform operators (Platform Operators). The new licensing regime for Platform Operators under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO) will come into effect on … Continue Reading

BIS paper on central bank digital currencies: ongoing policy perspectives

On 25 May 2023, a group of central banks, together with the Bank for International Settlements, published a paper on central bank digital currencies (CBDC): ongoing policy perspectives. Since publishing (i) a report in October 2020 setting out the common foundational principles and core features of a CBDC, and (ii) an executive summary and three … Continue Reading

Basel Committee joint report on margin dynamics in centrally cleared commodities markets in 2022

On 24 May 2023, the Basel Committee on Banking Supervision (BCBS), the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a joint report on margin dynamics in centrally cleared commodities markets in 2022. The report examines margin calls in centrally cleared commodities markets … Continue Reading

IOSCO consultation report on policy recommendation for crypto and digital asset markets

On 23 May 2023, the International Organization of Securities Commissions (IOSCO) published a consultation report containing 18 proposed recommendations intended to help IOSCO members apply IOSCO’s Objectives and Principles for Securities Regulation and relevant supporting IOSCO standards, recommendations and good practices to crypto-asset activities within their jurisdictions. The proposed recommendations cover six key areas: The … Continue Reading

UNIDROIT principles on digital assets and private law adopted at the 102nd session of the Governing Council

On 18 May 2023, UNIDROIT’s Governing Council reported that it had adopted the UNIDROIT principles on digital assets and private law (the principles) at its 102nd session in Rome, Italy. The principles were prepared by a working group on digital assets and private law, which comprised of 25 members, 22 observers from international, regional and … Continue Reading

Singapore toughens laws to combat financial crime and money laundering

By Wilson Ang and Charis Low on May 16, 2023 Posted in Asia, Financial Services, Financial Services, Money laundering, Regulation and compliance

On 9 May 2023, the Singapore Parliament passed amendments to the Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act 1992 (CDSA) which will introduce significant new offences of rash and negligent money laundering. Under the current law, the successful prosecution of money mules (i.e., those who assist with the transfer of illicit funds … Continue Reading

IOSCO Good Practices Relating to the Implementation of the IOSCO Principles for Exchange Traded Funds

On 12 May 2023, the International Organization of Securities Commissions (IOSCO) published Good Practices Relating to the Implementation of the IOSCO Principles for Exchange Traded Funds. Exchange traded funds (ETFs) are an increasingly popular investment vehicle, which offer investors exposure to underlying markets for stocks, bonds and other assets; portfolio diversification; and access to a … Continue Reading

Financial Services and Markets Act 2022 – 1st phase commencement

By Etelka Bogardi (HK) and Mabelle Tay (Ascendant Legal) on May 10, 2023 Posted in Asia

The Financial Services and Markets Act (FSMA) was passed in Parliament on 5 April 2022. The FSMA is expected to be implemented in phases, with the first phase having commenced on 28 April 2023. The FSMA is the Monetary Authority of Singapore’s (MAS) omnibus act for the sector-wide regulation of financial services and markets and … Continue Reading

FSB publishes statement on final preparations for the USD LIBOR transitions

By Hannah Meakin (UK) on April 27, 2023 Posted in Africa, Asia, Australia, Benchmarks, Canada, Dubai and Saudi, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 27 April 2023, the Financial Stability Board (FSB) published a statement to encourage final preparations for the USD LIBOR transition. The statement highlights the following:… Continue Reading

FSB report on climate-related financial risk factors in compensation frameworks

By Haney Saadah and Simon Lovegrove (UK) on April 21, 2023 Posted in Africa, Asia, Australia, Canada, Dubai and Saudi, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 20 April 2023, the Financial Stability Board (FSB) published a report on climate-related financial risk factors in compensation frameworks. The impact of climate change on the financial system is becoming a strategic priority for financial institutions and regulators. In turn, financial institutions are increasingly adopting climate-related metrics in compensation frameworks and many jurisdictions have … Continue Reading

Hong Kong High Court rules for the first time: cryptocurrencies are “property” capable of being held on trust

By Etelka Bogardi (HK) and Stephanie Chan on April 21, 2023 Posted in Asia, Crypto assets, Financial Services, Fintech

Introduction In a landmark decision on the legal status of digital assets in Hong Kong handed down on 31 March 2023, the Court of First Instance, in Re Gatecoin Limited[1], has ruled that cryptocurrencies satisfy the definition of “property” under Hong Kong law and are capable of being held on trust. The case arose in connection … Continue Reading

Wolfsburg Group publishes updated ABC programme guidance

On 17 April 2023, the Wolfsburg Group published an updated version of its anti-bribery and corruption compliance programme guidance. The publication is designed to provide guidance to the financial services industry on how to develop, implement and maintain an effective anti-bribery and corruption (ABC) compliance programme, and should be read in conjunction with applicable legislation, … Continue Reading

Proposed amendments to implement a risk-based capital regime for the Hong Kong insurance industry

By Etelka Bogardi (HK) and Conrad Lam on April 14, 2023 Posted in Asia, Financial Services

The Insurance Ordinance (Amendment) Bill (the Bill) was published by the Hong Kong Government (Government) in the Gazette on 6 April 2023. The Bill seeks to amend the Insurance Ordinance (Cap.41) (the IO) and other relevant legislation to provide the legal framework for the implementation of a risk-based capital (RBC) regime for the Hong Kong … Continue Reading

FSB publishes final report on recommendations to achieve greater convergence in cyber incident reporting

On 13 April 2023, the Financial Stability Board (FSB) published a Final Report on recommendations to achieve greater convergence in cyber incident reporting. The report notes that cyber incidents are rapidly growing in frequency and sophistication. At the same time, the cyber threat landscape is expanding amid digital transformation, increased dependencies on third-party service providers … Continue Reading