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Basel Committee supervisory newsletter on the adoption of POR and PSMOR

On 27 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a supervisory newsletter on the adoption of the Principles for Operational Resilience (POR) and the revised Principles for the Sound Management of Operational Risk (PSMOR). The newsletter reports on the Basel Committee’s evaluation of the POR and the PSMOR in early 2023 … Continue Reading

New Regulation Tomorrow Plus podcast: EMEA regulatory insights series – Australia

In our EMEA regulatory insights series colleagues from our EMEA offices provide an update on the key regulatory issues they are seeing in their local market. In this third episode James Morris from our Sydney office discuss what they are seeing in the Australian market touching on reforms to payment systems regulation, buy now pay … Continue Reading

Basel Committee newsletter on the implementation of the principles for the effective management and supervision of climate-related financial risks

On 22 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a newsletter on the implementation of the Principles for the effective management and supervision of climate-related financial risks (the Principles). The Basel Committee published the Principles, which seek to improve banks’ climate-related financial risk management and supervisors’ practices, as part of its … Continue Reading

FATF updates best practices on combating the abuse of NPOs

On 16 November 2023, the Financial Action Task Force (FATF) updated its best practices on combating the abuse of non-profit organisations (NPOs). The update follows the revisions that the FATF made earlier this year to Recommendation 8 that aim to protect NPOs from potential terrorist financing abuse through the effective implementation of risk-based measures. For … Continue Reading

Basel Committee discussion paper – Digital fraud and banking: supervisory and financial stability implications

On 15 November 2023, the Basel Committee on Banking Supervision issued a discussion paper which provides a high-level assessment of the supervisory and financial stability implications of digital fraud for the global banking system. It is structured around three broad sets of questions: The discussion paper does not make a formal distinction between retail and … Continue Reading

Basel Committee finalisation of various technical amendments

On 8 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a document containing final technical amendments which have been integrated into the consolidated Basel Framework. The amendments relate to: (i) the standardised approach to operational risk; (ii) the disclosure standards for credit valuation adjustment risk; (iii) the description of the calculation of … Continue Reading

NGFS scenarios for central banks and supervisors

On 7 November 2023, the Network for Greening the Financial System (NGFS) published the fourth vintage of its long-term climate macro-financial scenarios for forward-looking climate risks assessments. The NGFS scenarios explore the transition and physical impacts of climate change over a long time horizon and under varying assumptions. The NGFS scenarios have been updated to … Continue Reading

FATF report on crowdfunding for terrorism financing

On 1 November 2023, the Financial Action Task Force (FATF) published a report on crowdfunding for terrorism financing. The majority of crowdfunding activity is legitimate, but events around the world have demonstrated that it can also be exploited for illegal purposes. This includes terrorists and terrorist groups who exploit fundraising platforms and crowdfunding activities on … Continue Reading

FATF consults on FATF Risk-Based Guidance to Recommendation 25

On 31 October 2023, the Financial Action Task Force (FATF) published a public consultation on FATF Risk-Based Guidance to Recommendation 25. At the February 2023 Plenary, the FATF agreed on enhancements to Recommendation 25 on legal arrangements to bring its requirements broadly in line with those for Recommendation 24 on legal persons to ensure a … Continue Reading

Financial services regulation and ESG: Regulation Around the World

In this latest edition of Regulation Around the World we review recent steps that financial services regulatory authorities have taken as regards Environmental, Social and Governance measures focussing in particular on disclosures, greenwashing and taxonomy.… Continue Reading

CPMI interim report on linking fast payment systems across borders: considerations for governance and oversight

On 18 October 2023, the Bank for International Settlement’s Committee on Payments and Market Infrastructures (CPMI) published an interim report to the G20 on linking faster payment systems (FPS) across borders: considerations for governance and oversight. Interlinking arrangements among fast payment systems (FPS) are one of the most promising solutions for enhancing cross-border payments, offering … Continue Reading

CPMI publishes harmonised ISO 20022 data requirements

On 17 October 2023, the Bank for International Settlement’s Committee on Payments and Market Infrastructures (CPMI) published a report to the G20 on harmonised ISO 20022 data requirements for enhancing cross-border payments. The increased adoption of ISO 20022 by payment systems around the world is a major opportunity to improve their interoperability. But this opportunity … Continue Reading

Basel Committee consults on the disclosure of crypto-asset exposures

On 17 October 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultation document on the disclosure of crypto-asset exposures. The consultation document follows the Basel Committee’s paper on the prudential treatment of cryptoasset exposures which was published in December 2022 and set out the prudential requirements for banks’ exposures to cryptoassets. In … Continue Reading

FSB report on 2023 bank failures and the preliminary lessons learnt for resolution

On 10 October 2023, the Financial Stability Board (FSB) published a report on the 2023 bank failures and the preliminary lessons learnt from resolution. The report identifies preliminary lessons learnt regarding the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes) for: The report seeks to set out a clear understanding of … Continue Reading

TCFD 2023 status report

On 12 October 2023, the Task Force on Climate-related Financial Disclosures (TCFD) published its 2023 status report. This report describes companies’ progress in making climate-related financial disclosures and highlights some of the challenges they face in making such disclosures, including challenges with incorporating climate-related risks into their financial statements. Key findings from the status report … Continue Reading

FSB progress report on climate-related disclosures

On 12 October 2023, the Financial Stability Board (FSB) published a progress report on climate-related disclosures. The report has been delivered to G20 Finance Ministers and Central Bank Governors for their 11-12 October 2023 meeting. The report highlights the following: In keeping with the previous year’s progress report, this report highlights the findings of the … Continue Reading

FSB publishes annual report on promoting global financial stability

On 11 October 2023, the Financial Stability Board (FSB) published an annual report on promoting global financial stability. The report, which was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meeting in Marrakesh, describes the FSB’s work to promote global financial stability. The report looks at the banking turmoil in March … Continue Reading

FSB annual progress report on meeting the targets for cross-border payments

On 9 October 2023, the Financial Stability Board (FSB) published its inaugural annual report on key performance indicators (KPIs) for meeting the targets for cross-border payments and a consolidated report on progress under the FSB’s Roadmap for enhancing cross-border payments. The Roadmap was endorsed by the G20 in 2020 and provides a high-level plan designed … Continue Reading

Basel Committee report on the 2023 banking turmoil

On 5 October 2023, the Basel Committee on Banking Supervision published a report on the 2023 banking turmoil. The report assesses the causes of the banking turmoil, the regulatory and supervisory responses and the initial lessons learnt. Drawing on the findings of this report, the Basel Committee is pursuing a series of follow-up initiatives including: … Continue Reading

FSB report on stocktake of international data standards relevant to cross-border payments

On 25 September 2023, the Financial Stability Board (FSB) published a report: Stocktake of international data standards relevant to cross-border payments. The report looks at national and regional data frameworks relevant to the functioning, regulation and supervision of cross-border payment arrangements. Furthermore, the report takes forward one of the priority actions under the G20 Cross-border … Continue Reading

UNEP publishes second biennial progress report on implementation of the UN Principles for responsible banking

On 22 September 2023, the United Nations Environment Programme (UNEP) published the second biennial progress report on implementation of the UN Principles for responsible banking. The report highlights the key achievements of member banks in integrating sustainability considerations such as climate change mitigation into their strategies, transforming governance structures, understanding their impacts better, setting targets … Continue Reading

TNFD publishes recommendations

On 19 September 2023, the Taskforce on Nature-related Financial Disclosures (TNFD) published its recommendations. The TNFD was launched in 2021. It is a global, market-led, science-based, and government-supported initiative with the mission to develop and deliver a risk management and disclosure framework for organisations to report and act on evolving nature-related issues. The aim of … Continue Reading

FSB consults on financial resources and tools for central counterparty resolution

On 19 September 2023, the Financial Stability Board (FSB) published a consultation report on financial resources and tools for central counterparty (CCP) resolution. In the consultation report the FSB sets out a proposal for a toolbox approach as a global standard for CCP financial resources and tools for resolution. In a toolbox approach, resolution authorities … Continue Reading

IOSCO consults on leveraged loans and CLOs good practices for consideration

On 14 September 2023, the International Organization of Securities Commissions (IOSCO) published a consultation report on leveraged loans (LLs) and collateralised loan obligations (CLO) good practices for consideration. Broadly speaking, LLs are loans to highly indebted, non-investment grade, non-financial corporate issuers and are commonly used to fund mergers and acquisitions. They are typically structured as … Continue Reading
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