Australia

Basel Committee publishes evaluation of the impact and efficacy of the Basel III reforms

On 14 December 2022, the Basel Committee on Banking Supervision published a report on the evaluation of the impact and efficacy of the Basel III reforms. This report provides the Committee’s first holistic evaluation of the impact and efficacy of the Basel III reforms and how they have affected bank resilience and systemic risk as … Continue Reading

FSB proposed strengthening the liquidity management framework for open-ended funds

On 14 December 2022, the Financial Stability Board (FSB) published its assessment of the effectiveness of the FSB’s 2017 recommendations on liquidity mismatch in open-ended funds (OEFs). The assessment, which forms part of the FSB’s work programme to enhance the resilience of non-bank financial intermediation (NBFI), includes proposals for further policy work in this area. … Continue Reading

Financial Services monthly wrap-up: November 2022

By Jon Ireland, Ray Giblett (AU), Rajaee Rouhani, Stephen Lee, Merren Taylor, Timothy Chan (AU), Joshua Kan and Rex Lee on December 11, 2022 Posted in Australia, Funds management, General, Insurance

The month of November saw a flurry of regulatory activity by APRA and ASIC across strategic focus areas: crypto-asset regulation, enforcement of design and distribution obligations, reforming operational risk requirements for super funds and improving governance practices across the superannuation industry at investment and board levels. Meanwhile, AUSTRAC launched two consultations on proposed changes and … Continue Reading

Basel Committee clarifies how climate-related financial risks may be captured in the existing Basel Framework

By Simon Lovegrove (UK) on December 8, 2022 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 8 December 2022, the Basel Committee on Banking Supervision issued responses to frequently asked questions to clarify how climate-related financial risks may be captured in existing Pillar 1 standards. The responses, which are consistent with the Basel Committee’s Principles for the effective management and supervision of climate-related financial risks, cover the calculation of risk … Continue Reading

FSB calls for urgent work to address cross-border resolution challenges in the non-bank sector

On 8 December 2022, the Financial Stability Board (FSB) published its 2022 Resolution Report. The report takes stock of progress made by FSB members in implementing resolution reforms and enhancing resolvability across the banking, financial market infrastructure, and insurance sectors. The report notes that there has been a lot of progress in resolvability in the … Continue Reading

CPMI and IOSCO report ‘Implementation monitoring of the PFMI: level 3 assessment on financial market infrastructures’ cyber resilience’

On 29 November 2022, the Committee on Payments and Market Infrastructures (CPMI) and the International Organisation of Securities Commissions (IOSCO) published a report, ‘Implementation monitoring of the Principles of financial marketing infrastructures (PFMI): level 3 assessment on financial market infrastructures’ cyber resilience’. In April 2012, the CPMI and IOSCO published the PFMI, which set out … Continue Reading

IOSCO final report ‘Investor behaviour and investor education in times of turmoil: Recommended framework for regulators based on lessons learned from the COVID- 19 pandemic’

On 30 November 2022, the International Organisation of Securities Commissions published a report, ‘Investor behaviour and investor education in times of turmoil: Recommended framework for regulators based on lessons learned from the COVID- 19 pandemic’. The final report highlights the research insights and experiences IOSCO members gained during the COVID-19 pandemic. It explores changes in … Continue Reading

NRF Shareholder Collaboration Tool

By Caroline Herkströter on November 29, 2022 Posted in Africa, Asia, Australia, Canada, France, General, General, General, General, General, General, General, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

Institutional investors collaborate with each other when communicating with investee companies’ management regarding, for example, ESG matters. Such shareholder collaboration leads to challenges in multiple legal areas. Minimising such legal risk is key. NRF’s Shareholder Collaboration Tool allows Institutional investors to confidently collaborate, while reducing the burden on legal teams to manage the associated risks. … Continue Reading

BIS newsletter on bank exposures to non-bank financial intermediaries

By Simon Lovegrove (UK) on November 28, 2022 Posted in Africa, Asia, Australia, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Canada, France, Germany, The Netherlands, United Arab Emirates, United Kingdom, United States

On 24 November 2022, the Bank for International Settlements (BIS) published a newsletter on bank exposures to non-bank financial intermediaries. The newsletter highlights the following: The non-bank financial intermediary (NBFI) sector continues to grow and has the potential to cause financial stability concerns, though its size and the associated risk vary amongst member jurisdictions. Recent … Continue Reading

FSB publishes list of globally systemically important Banks

By Simon Lovegrove (UK) on November 22, 2022 Posted in Africa, Asia, Australia, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Canada, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 21 November 2022, the Financial Stability Board (FSB) published the 2022 list of globally systemically important banks (G-SIBs). The list is based on end-2021 data and an assessment methodology designed by the Basel Committee on Banking Supervision, which was revised in 2018. The revised methodology is applied for the first time this year. The … Continue Reading

FSB publishes 2022 annual report on promoting global financial stability

On 16 November 2022, the Financial Stability Board (FSB) published its latest annual report on promoting financial stability. The report, delivered to the G20 leaders ahead of their Bali Summit, describes the FSB’s work to promote global financial stability. Among other things the report makes the following findings: The outlook for financial stability is particularly … Continue Reading

FSB and NGFS publish initial findings and lessons from the Climate Scenario Analysis by Jurisdictions

By Simon Lovegrove (UK) on November 16, 2022 Posted in Africa, Asia, Australia, Canada, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 15 November 2022, the Financial Stability Board (FSB) and Network for Greening the Financial System (NGFS) published their initial findings and lessons from the Climate Scenario Analysis by Jurisdictions. The report provides a synthesis of the findings from climate scenario analysis exercises undertaken by financial authorities at the individual firm level, at the level … Continue Reading

Monthly Global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

FSB final report ‘Financial policies in the wake of COVID-19: supporting equitable recovery and addressing effects from scarring in the financial sector’

On 14 November 2022, the Financial Stability Board (FSB) published ‘Financial policies in the wake of COVID-19: supporting equitable recovery and addressing effects from scarring in the financial sector’. The final report considers exit strategies through the lens of financial stability and the capacity of the financial system to finance strong and equitable growth. Incorporating … Continue Reading

FSB chair writes to G20 leaders ahead of the Bali Summit

On 11 November 2022, the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 leaders ahead of their Summit in Bali on 15-16 November. The letter sets forth that developments since the Rome Summit have been a stark reminder that global financial stability should not be taken for granted. So … Continue Reading

Financial Services monthly wrap-up: October 2022

By Jon Ireland, Ray Giblett (AU), Rajaee Rouhani, Stephen Lee, Merren Taylor, Timothy Chan (AU), Nathan Condoleon and Joshua Kan on November 10, 2022 Posted in Australia, Funds management, General, Insurance

October has been a busy month for regulators with both ASIC and APRA releasing their reports on the 2021/22 financial year. The chairs of both regulators, in addressing the House of Representatives, signalled their progress in the past year and their goals for the year ahead. The month of October 2022 also saw both ASIC … Continue Reading

IOSCO call for action on good sustainable finance practices for financial markets voluntary standard setting bodes and industry associates

By Simon Lovegrove (UK) on November 8, 2022 Posted in Africa, Asia, Australia, Canada, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 7 October 2022, the International Organisation of Securities Commissions (IOSCO) announced a call for action on good sustainable finance practices for financial markets voluntary standard setting bodes and industry associates. IOSCO is calling upon all voluntary standard setting bodies and industry associations operating in financial markets to promote good practices amongst their members to … Continue Reading

FSB publishes report on OTC Derivative Market reforms: Implementation progress in 2022

By Simon Lovegrove (UK) on November 8, 2022 Posted in Africa, Asia, Australia, Canada, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 7 November 2022, the Financial Stability Board (FSB) published a report on OTC Derivatives Market Reforms: Implementation progress in 2022. The report tracks national and regional progress in implementing the G20 reforms to global over-the counter (OTC) derivatives market reforms following the 2007 Global Financial Crisis. The report finds that overall implementation across the … Continue Reading

FATF consults on guidance on beneficial ownership

On 26 October 2022, the Financial Action Task Force (FATF) launched a public consultation on its guidance on beneficial ownership. At the March 2022 Plenary, the FATF adopted amendments to Recommendation 24, and agreed to immediately start the work to update guidance on beneficial ownership with a view to help support the implementation of the … Continue Reading

FATF consults on the revision of Recommendation 25 and its interpretive note on the transparency and beneficial ownership of legal arrangements

On 26 October 2022, the Financial Action Task Force (FATF) launched a public consultation on Recommendation 25 and its interpretive note (R.25/INR.25) on the transparency and beneficial ownership of legal arrangements. The FATF is also considering amending the definition of beneficial ownership in the glossary to provide more clarity regarding legal arrangements. The FATF’s objective … Continue Reading

FSB consultative document on achieving greater convergence in cyber incident reporting

By Simon Lovegrove (UK) on October 17, 2022 Posted in Africa, Asia, Australia, Canada, Fintech, Fintech, Fintech, Fintech, Fintech, Fintech, FinTech, Fintech, Fintech, Fintech, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 17 October 2022, the Financial Stability Board (FSB) published a consultative document in which it sets out proposed recommendations to address impediments to achieving greater convergence in cyber incident reporting (CIR) with a view to promoting better practices, while recognising that a one-size-fits-all approach is not feasible or preferable. The FSB’s proposals include: Recommendations … Continue Reading

IOSCO final report on retail distribution and digitalisation

By Simon Lovegrove (UK) on October 14, 2022 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Arab Emirates, United Kingdom

On 12 October 2022, the International Organization of Securities Commissions (IOSCO) published a final report on retail distribution and digitalisation. IOSCO sees retail distribution and digitalisation as a priority given the recent and rapid developments in online marketing and distribution which are changing the way in which financial firms interact with prospective clients and financial … Continue Reading

FSB final report on regulatory approaches to climate-related risks and progress report on climate related disclosures

By Simon Lovegrove (UK) on October 13, 2022 Posted in Africa, Asia, Australia, Canada, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom, United States

On 13 October 2022, the Financial Stability Board (FSB) published its final report on supervisory and regulatory approaches to climate-related risks. The report is intended to assist all authorities in assessing climate-related risk. However, the applicability of the high-level recommendations may differ depending on each authority’s mandate and the role that different tools (such as … Continue Reading

Global webinar on 18 October 2022: Crypto regulatory investigations and enforcement – Key developments and practical steps for clients

Against the backdrop of recent turmoil in the crypto market and with increasing regulatory scrutiny in this area, understanding the regulators’ approach to investigations and enforcement and how best to avoid the common pitfalls is even more of a priority. In the latest webinar of our financial services crypto series, members of our global financial … Continue Reading