On 18 December 2024, the Financial Stability Board (FSB) issued a consultation report on proposed policy recommendations to its members and standard setting bodies on leverage in non-bank financial intermediation (NBFI).
Entities in scope of the proposed recommendations are non-bank financial firms that use leverage, either financial or synthetic, including hedge
On 13 December 2024, the European Securities and Markets Authority (ESMA) issued Q&As on the application of its guidelines on funds’ names using ESG or sustainability-related terms (Guidelines).
Background
On 21 August 2024, ESMA announced that it had published translations of the Guidelines in all official EU languages.
Following the publication
On 12 December 2024, the Bank for International Settlement’s Financial Stability Institute published a paper which explores the potential transformative impact of artificial intelligence (AI) on the financial sector. In summary, the paper notes that while AI exacerbates existing risks such as model risk and data privacy, it does not introduce fundamentally new
On 12 December 2024, the Financial Stability Board (FSB) published:
On 12 December 2024, there was published in the Official Journal of the EU (OJ), Regulation (EU) 2024/3005 of the European Parliament and of the Council of 27 November 2024 on the transparency and integrity of Environmental, Social and Governance rating activities, and amending Regulations (EU) 2019/2088 and (EU) 2023/2859.
The Regulation enters
On 4 December 2024, the Financial Stability Board (FSB) issued a press release following its plenary in Hong Kong on 3 and 4 December.
Key points from the press release include that the FSB:
On 29 November 2024, the International Organization of Securities Commissions (IOSCO) issued a final report on the evolution in the operation, governance and business models of exchanges. The final report focuses on equity exchanges but may be of relevance to other types of trading venues and trading in other classes of financial instruments.
On 28 November 2024, the Basel Committee on Banking Supervision (Basel Committee) published a report which describes the range of practices in implementing a positive neutral countercyclical capital buffer (CCyB).
In 2010, the Basel Committee published guidance that detailed the key requirements for operating the CCyB, and in 2017 it published
On 27 November 2024, the Basel Committee on Banking Supervision (Basel Committee) published various finalised technical amendments to the Basel Framework.
The amendments, which relate to (i) the standardised approach to credit risk and (ii) cryptoasset exposures, were published for consultation in July 2024 and have been finalised as originally proposed.
The Basel Committee plans
On 27 November 2024, the Basel Committee on Banking Supervision (Basel Committee) issued a consultation on a technical amendment to rules in the Basel Framework that relate to the hedging of counterparty credit risk exposures.
The Basel Committee periodically publishes proposals for technical amendments with the aim of helping to promote consistent interpretation