Regulatory alerts for the quarter

BoE · Consultation on core rules for financial market infrastructures
(11/19) · Financial markets

The Bank of England (BoE) has launched a public consultation on the new Core Rules for Financial Market Infrastructures (FMIs), including clearing houses, payment system operators, and others. This initiative aims to enhance transparency and establish clear expectations for supervised entities, with the goal of strengthening the financial stability of the United Kingdom. The consultation will remain open until February 19, 2025. (more detail)

ECB · Publication of results from the one-off Fit-For-55 climate scenario analysis
(11/19) · Sustainability

The European Central Bank (ECB) has published the results of the Fit-For-55 climate stress test, indicating that transition-related losses alone do not pose a significant threat to the financial stability of the European Union. However, the ECB emphasizes the need for an orderly implementation of climate policies to minimize risks and ensure an effective transition. The objective of these results is to assess the impact on the EU banking, investment funds, occupational pension funds, and insurance sectors under three transition scenarios that incorporate the implementation of the Fit for 55 package, as well as the potential for contagion and amplification effects throughout the financial system. An update on this work will be published in early 2025. (more detail)

Council/ESMA · New rules on the revision of the EMIR 3 Regulation and Directive and consultation on AAR after the EMIR 3 Regulation review
(11/19) · Conduct

The Council has adopted rules on the revision of the European Market Infrastructure Regulation (EMIR) 3 and Directive. The aim is to strengthen EU clearing services, making them more attractive and resilient by requiring active accounts in European Union (EU) central counterparties (CCPs) and improving supervision and financial stability. Additionally, the European Securities and Markets Authority (ESMA) has released a consultation paper on the conditions of the Active Account Requirement (AAR) after the EMIR 3 Regulation review. The main objective of this consultation is to define how to implement the AAR under EMIR 3 to ensure that derivative counterparties maintain operational accounts in EU CCPs, thereby strengthening their functionality and financial resilience. (more detail)

ISSB · Guide for companies to identify sustainability risks and opportunities
(11/19) · Sustainability · Reporting and disclosure

The International Sustainability Standards Board (ISSB) published a guide aimed at helping companies identify sustainability-related risks and opportunities, as well as determine the material information they must disclose. This initiative seeks to improve the quality and consistency of sustainability reports, facilitating the implementation of the sustainability disclosure standards issued by the ISSB. (more detail)

IAIS · Public consultation on the supervision of artificial intelligence in the insurance sector
(11/18) · Artificial Inteligence

The International Association of Insurance Supervisors (IAIS) has launched a public consultation on the draft Application Paper on the Supervision of Artificial Intelligence (AI). This document aims to provide guidance to insurance supervisors on assessing and managing risks associated with the use of AI in the sector. The consultation will be open for 90 days, allowing stakeholders to submit their feedback until February 16, 2025. (more detail)

PRA · Consultation on reforms to the United Kingdom's Insurance Special Purpose Vehicle regulatory framework
(11/15) · Capital

The Prudential Regulation Authority (PRA) has published a consultation paper proposing reforms to the UK's Insurance Special Purpose Vehicle (UK ISPV) regulatory framework. These reforms aim to enhance the safety and soundness of the insurance sector by providing cedants with more diversified access to reinsurance capital. Additionally, an accelerated pathway is introduced for certain UK ISPV applications, reducing the approval time to 10 working days, compared to the current 4 to 6-week process. The PRA invites stakeholders to submit their feedback on these proposals by February 14, 2025. (more detail)

PRA · Conclusion of the Solvency II Review
(11/15) · Capital

The Prudential Regulation Authority (PRA) has published several documents to present the conclusions of Solvency II: i) Policy statement (PS) 15/24 on the reconsideration of assimilated legislation in the Solvency II review; ii) the statement of purpose on the approach to adaptations related to the standard formula; iii) the SoP on the approach to the admissible recovery period for insurers to restore full coverage of their Solvency Capital Requirement (SCR); iv) Supervisory Statement (SS) 5/15 on risk management in pension schemes; v) SS8/24 on the calculation of Solvency II technical provisions; vi) the SoP on the approach to insurance own funds permissions; and vii) the SoP on volatility adjustment (VA) permissions. These reforms and the reconsideration of the rules provide a new regulatory framework to maintain the safety and soundness of insurance companies and protect their policyholders. Moreover, a more streamlined and flexible regulatory regime will create opportunities for productive investment in the UK and facilitate entry into the British insurance market. (more detail)

EBA · Publication of final guidance on internal policies to ensure compliance with restrictive measures
(11/13) · Compliance and conduct

The European Banking Authority (EBA) has published its final guidance on internal policies, procedures, and controls to ensure the effective implementation of European Union (EU) and national restrictive measures. This guidance outlines best practices and compliance expectations for financial institutions, aiming to mitigate risks of sanctions breaches and ensure alignment with both EU and national frameworks. It seeks to enhance consistency and effectiveness in managing restrictive measures within the financial sector. (more detail)

ECB · Publication of final guidance on evolving IT and cybersecurity risks
(11/13) · Cyber and other technological risks

The European Central Bank (ECB) has published its final guidance on evolving IT and cybersecurity risks. This guidance outlines best practices and compliance expectations for financial institutions, aiming to mitigate risks associated with IT and cybersecurity threats and ensure alignment with both EU and national frameworks. It seeks to enhance consistency and effectiveness in managing IT and cybersecurity risks within the financial sector. (more detail)

ISO · International guidance to support organizations in navigating ESG challenges
(11/12) · Sustainability · Reporting and disclosure

The International Organization for Standardization (ISO) has released the environmental, social, and governance (ESG) Implementation Principles (IWA 48), providing international guidelines for organizations to integrate ESG practices into their organizational culture. These principles are designed to support the management of ESG performance and facilitate measurement and reporting under existing disclosure frameworks, promoting consistency, comparability, and reliability of ESG practices globally. Sergio Mujica, ISO's Secretary-General, emphasized that these guidelines will help accelerate the adoption of sustainable business practices, benefiting diverse communities and the environment. (more detail)

EBA · Final document on the methodology, templates, and guidelines for the 2025 European Union (EU) stress test
(11/12) · Capital, liquidity and leverage

The European Banking Authority (EBA) has published the final document on the methodology, preliminary templates, and key dates for the 2025 European Union (EU)-wide stress test. This test aims to assess the resilience of EU banks against adverse economic scenarios, providing crucial insights for supervisory decision-making and strengthening market discipline. The exercise will formally begin in January 2025, when the macroeconomic scenarios that banks must use for their assessments will be released. The first submission of results is scheduled for April 2025, the second for June, the final in July, and the results will be published in early August 2025. (more detail)

EBA · Publication of consultation document proposing guidelines and methods for retail diversification
(11/12) · Capital, liquidity and leverage

The European Banking Authority (EBA) has launched a consultation on the guidelines specifying the proportionate retail diversification methods that may qualify for preferential risk weighting under the standardized approach for credit risk. The proposal allows institutions with less granular portfolios to retain access to preferential treatment through a 10% threshold on exposures exceeding 0.2%, provided the diversification test conditions are met. This iterative approach ensures proportionality and strengthens harmonization and supervisory convergence across the EU. The guidelines have been developed in accordance with Article 123(1) of Regulation (EU) No 575/2013 (CRR), as amended by Regulation (EU) 2024/1623 (CRR III). The consultation is open until February 12, 2025. (more detail)

IASB · Consultation on the exposure draft of proposed amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets
(11/12) · Provisions and NPL

The International Accounting Standards Board (IASB) has proposed targeted improvements to International Accounting Standard (IAS) 37 to clarify the requirements for recognizing and measuring provisions, which are liabilities of uncertain timing or amount. The proposals aim to enhance consistency in application and provide investors with more transparent and useful information, particularly regarding how provisions are measured and key details disclosed. The changes would be relevant for companies with significant long-term decommissioning obligations or exposure to levies and similar charges. The comment period remains open until March 12, 2025. (more detail)

ECB · Public consultation on revised policies on options and discretions available to supervisory authorities under Union law
(11/08) · Supervisory expectations

The European Central Bank (ECB) has launched a public consultation on revised policies on options and discretions available to supervisory authorities under Union law. The purpose of the revised policies is to enhance the transparency, consistency and effectiveness of the exercise of options and discretions by the ECB and national competent authorities. Specifically, the policies include a Guide, a Recommendation, a Guideline and a Regulation. The period for submitting comments ends on 10 January 2025. (more detail)

ENISA · Public consultation on technical guidance for cybersecurity measures under the Implementing Regulation of the NIS 2 Directive
(11/07) · Technology

The European Union Agency for Cybersecurity (ENISA) has published technical guidance to support EU Member States and affected entities in implementing the technical and methodological requirements of cybersecurity risk management measures, as outlined in Commission Implementing Regulation (EU) 2024/2690 on technical and methodological requirements for cybersecurity risk management in key service providers. This guidance provides additional advice, examples of evidence to assess compliance with requirements, and tables mapping the regulation's security demands to European and international standards, as well as national frameworks. ENISA invites industry stakeholders to submit their feedback on this draft technical guidance by December 9, 2024. (more detail)

EIOPA · Recommendation on dedicated prudential treatment for insurers' fossil fuel assets
(11/07) · Capital

The European Insurance and Occupational Pensions Authority (EIOPA) has published its final report on the prudential treatment of sustainability risks within Solvency II, recommending additional capital requirements for fossil fuel assets on European insurers' balance sheets to accurately reflect the high risks of these assets. The report covers three distinct areas: i) the market risk of assets exposed to the climate transition; ii) the impact of climate risk-related prevention measures on non-life underwriting risks; and iii) the treatment of social risks. These recommendations aim to enhance the resilience of the insurance sector within a sustainable framework. (more detail)

Council · Two pieces of legislation that amend the Solvency II directive and introduce new rules on IRRD
(11/05) · Capital

The Council of the European Union (EU) has adopted the Directive on the recovery and resolution of insurance and reinsurance undertakings (IRRD) and the Directive amending Solvency II. These two pieces of legislation have as their objective, to address vulnerabilities exposed by past financial crises and ensuring the continuity of critical functions in the insurance sector. The Directives shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union (OJEU). In addition, the Directives shall be adopted and published by Member States 24 months from the date of entry into force. (more detail)

SRB · Minimum Bail-in Data Template (MBDT) documentation package
(11/05) · Restructuration and resolution

The Single Resolution Board (SRB) has published the Minimum Bail-in Data Template (MBDT) documentation package with the aim of facilitating the execution of the bail-in tool in the event of a crisis or for testing exercises during the resolution planning phase. The MBDT includes a standard data point model that integrates country-specific data points relevant for National Resolution Authorities (NRAs) when implementing bail-in at the national level. Institutions have a 12-month period from the date of this publication to adapt to the MBDT requirements. (more detail)

ESMA · 2024 European Common Enforcement Priorities for corporate reporting 
(10/24) · Supervisory expectations  

The European Securities and Markets Authority (ESMA) has issued its annual European Common Enforcement Priorities (ECEP) Statement for 2024 corporate reporting. ESMA and European enforcers will focus in 2025 on the following topics:   i) International Financial Reporting Standards (IFRS) financial statements; ii) Sustainability statements; and iii) European Single Electronic Format (ESEF) digital reporting: common filing errors found in the Statement of Financial Position.  These recommendations should be contemplated by issuers considering materiality and relevance for the issuer's operations and annual financial report. (more detail)

EBA · First draft of the technical package for its 4.0 reporting framework
(10/23) · Reporting & disclosure

The European Banking Authority (EBA) has published a draft technical package for version 4.0 of its reporting framework. This publication aims to provide an early version of the 4.0 release given that its reporting obligations will apply as of the first half of 2025. This package, whose final version will be released in December 2024, will facilitate a smoother transition to the new data point model (DPM) semantic glossary and the capabilities of the DPM 2.0 model. (more detail)

IAIS · Strategic direction for 2025-2029
(10/22) · Supervisory expectations

The International Association of Insurance Supervisors (IAIS) has published its 2025-2029 Strategic Plan, focusing on three key themes: climate change, digital innovation (including cyber risks), and insurance's role in societal resilience. It has set goals for globally consistent standard implementation, risk monitoring, and supporting members in effective supervision. The IAIS aims to strengthen its response to emerging trends in the sector and enhance operational efficiency, prioritizing inclusion, sustainability, and technology use. (more detail)

BoE · Consultation Paper (CP) 14/24: Large Exposures Framework
(10/18) · Capital

The Bank of England (BoE), together with the Prudential Regulation Authority (PRA), has published a consultation paper (CP) on the large exposures framework, outlining the PRA's proposals to further implement the Basel large exposure standards within the UK regulatory environment. The aim is to strengthen financial stability by aligning the UK's approach with international standards. Responses are requested by Friday 17 January 2025. (more detail)

EC · New rules to boost cybersecurity of EU's critical entities and networks CRR
(10/17)

The European Commission (EC) has announced its adoption on the first implementing rules on cybersecurity of critical entities and networks under the Directive on measures for high common level of cybersecurity across the Union (NIS2 Directive). This implementing act details cybersecurity risk management measures as well as the cases in which an incident should be considered significant and companies providing digital infrastructures and services should report it to national authorities. This is another major step in boosting the cyber resilience of Europe's critical digital infrastructure. The implementation of the regulation will be published in the Official Journal of the European Union (OJEU) in due course and enter into force 20 days thereafter. (more detail)

Gov.UK · Public consultation on the reformulation of assimilated law related to the CRR
(10/15) · Capital

The Bank of England (BoE) has published along side the Prudential Regulation Authority (PRA) a consultation paper (CP) on restatement of assimilated law relating to the Capital Requirements Regulation (CRR), which sets out the PRA's proposals to restate the relevant provisions in the assimilated CRR No. 575/2013 in its Rulebook. These include the adjustments to securitization requirements, the handling of mortgages, the assessment of counterparty credit risk and the updating on the mapping of credit ratings in certain assimilated technical standards, with the aim of improving clarity and financial stability in the UK market. This consultation closes on 15 January 2025. (more detail)

CMF · Adjustments to the capital requirements regulation for banks
(10/11) · Capital

The Financial Market Commission (CMF) has has launched a public consultation on the new version of regulatory adjustments related to the additional capital requirements for banks under Pillar 2 of Basel III, focusing on improving the supervisory process and risk assessment. With respect to the previous version under consultation, the main concerns that were raised are clarified and specified. In addition, in this new proposal, the adjustment on the inherent risk profile is incorporated and it is stated that the CMF may suggest the amount that the banking entities must have with respect to their internal objective (OI). In relation to the effective terms, the proposal considers that the adjustments to Annex 1 (point 1 of the new proposal) will start to apply as from the reports that are required to be reported as from May 2025, with the situation of April of the same year, while the adjustments to points 2, 3, 4, 5 and 6 will be applied as from the review process of the Equity Self-Assessment Report (IAPE) to be delivered in April 2026. Finally, the suggestion that may be made by the CMF (point 4) regarding the level of additional capital that the bank will have to constitute as part of the internal effective net worth objective

EBA · Joint guidelines on information exchange for fit and proper assessments
(11/20) · Corporate governance

The European Supervisory Authorities (ESAs) have published joint guidelines to establish a system for exchanging information relevant to the fit and proper assessments of holders of qualifying holdings, directors, and key function holders in financial institutions. These guidelines aim to harmonize supervisory practices and enhance cooperation among competent authorities, facilitating a more efficient and consistent process in evaluating the suitability of individuals in key positions within the financial sector. (more detail)

DOF · Amendments to Circular 39/2020 on the updating of the correspondence of ratings issued by rating agencies
(11/14)

Mexico's Official Gazette (DOF) has published the Circular 12/2024 on the update of the correspondence of ratings assigned by securities rating agencies, amending Circular 39/2020 on the correspondence of the rating scales that securities rating agencies carry out, for those assumptions of the general provisions or resolutions from the Bank of Mexico (BANXICO) itself that makes a reference to a specific rating grade, since the National Banking and Securities Commission (CNBV) left without effect the authorization for the organization and operation of Dominion Bond Rating Service (DBRS) México, Securities Rating Institution (ICV), and established companies with Variable Capitals (S. A de C.V), without submitting these amendments to public consultation, as this would not be convenient for its purpose, considering that it is only the elimination of the reference to said company. The Regulation will now be published in the Official Journal of the EU (DOUE) and will enter into force twenty days after its publication. It will then be directly applicable in all EU Member States. (more detail)

ECB · Publication of sound practices for managing intraday liquidity risk
(11/13) · Supervisory expectations

The European Central Bank (ECB) has published a set of sound practices for managing intraday liquidity risk, based on a recent thematic review. These practices are grounded in existing international standards, such as the Basel Committee on Banking Supervision's Principles for Sound Liquidity Risk Management (BCBS 144) and the monitoring tools for intraday liquidity management (BCBS 248). The aim is to provide financial institutions with a reference point for designing their own intraday liquidity risk management frameworks and to serve as a starting point for supervisors in their engagements with these entities. (more detail)

EBA · Publication of opinion in response to the European Commission's proposed amendments to the final draft technical standards on supervisory reporting and Pillar 3 disclosures
(11/13) · Capital, liquidity and leverage · Reporting and disclosure

The European Banking Authority (EBA) has issued an opinion in response to the European Commission (EC)'s proposed amendments to the EBA's final draft implementing technical standards (ITS) on supervisory reporting and Pillar 3 disclosures. The EBA acknowledges the importance of these amendments in enhancing transparency and consistency in the financial reporting of banking institutions. However, it also highlights the need to balance the implementation of these changes with the operational burden they may impose on financial entities. The EBA emphasizes the importance of ongoing collaboration with the European Commission to ensure that the final technical standards achieve regulatory objectives without placing unnecessary burdens on financial institutions. (more detail)

ESMA · Data collection on costs linked to investments in Alternative Investment Funds (AIFs) and Undertakings for Collective Investment in Transferable Securities (UCITS)
(11/13) · Compliance

The European Securities and Markets Authority (ESMA) has launched a data collection initiative, in collaboration with national competent authorities, to analyze the costs associated with investments in AIFs and UCITS. This initiative, which will be carried out in two phases, aims to gather information from both fund manufacturers and distributors to enhance transparency in pricing practices and foster a more competitive market for retail investors in the European Union (EU). A report based on this data will be presented to the European Parliament, the Council, and the European Commission in October 2025. It will also form part of an extended ESMA report in 2025 on the costs and performance of EU retail investment products. (more detail)

FED · Public consultation on the impact report of a proposed international capital standard
(11/13) · Capital

The Federal Reserve Board (FRB) has released a report that examines the impact of a proposed international capital standard, as required by law. This report assesses how the implementation of such a standard could affect financial institutions and the financial system as a whole. The Board invites public comment on the report to consider various perspectives before making final decisions. Comments will be accepted until January 15, 2025. (more detail)

BoE · Publication of joint foreword on critical third parties to the UK financial sector
(11/12) · Capital

The Bank of England, the Prudential Regulation Authority (PRA), and the Financial Conduct Authority (FCA) have published a set of measures to oversee critical third parties (CTPs) in the UK's financial sector. These measures aim to manage systemic risks that could arise from failures or disruptions in services provided by these third parties, which will be designated by His Majesty's Treasury (HMT). The objective is to enhance the operational resilience of the financial sector, ensuring that regulated entities maintain stability and confidence in the UK's financial system. (more detail)

IOSCO · Statement of support on the IAASB's International Standard on Sustainability Assurance (ISSA) 5000
(11/12) · Sustainability

The International Organization of Securities Commissions (IOSCO) has issued a statement supporting the new standard from the International Auditing and Assurance Standards Board (IAASB), ISSA 5000, which sets general requirements for sustainability assurance engagements. IOSCO emphasizes that this standard can enhance the quality and consistency of sustainability-related information, bolstering investor confidence in the data provided by companies. Additionally, IOSCO appreciates the IAASB's plan to develop support materials and training initiatives to facilitate the effective implementation of the standard. (more detail)

IOSCO · Publication of consultation report on updated liquidity risk management recommendations for collective investment schemes
(11/11) · Capital, liquidity and leverage

The International Organization of Securities Commissions (IOSCO) has published a consultation report on updated recommendations for liquidity risk management in collective investment schemes, with a particular focus on open-ended funds. Additionally, IOSCO is seeking feedback on complementary guidance aimed at supporting the effective implementation of these recommendations. These initiatives aim to enhance the stability and resilience of the investment fund sector, incorporating lessons learned from recent events and aligning with the Financial Stability Board's (FSB) revised recommendations issued in December 2023. (more detail)

SEC · Final resolution on technical amendments to private fund adviser rules
(11/07) · Conduct

The U.S. Securities and Exchange Commission (SEC) has adopted technical amendments to various rules under the Investment Advisers Act of 1940 to reflect a federal court's vacatur of new rules and amendments that the Commission had adopted on August 23, 2023. These rules, known as the "Private Fund Adviser Rules," were designed to protect investors who directly or indirectly invest in private funds. The vacatur, effective as of June 5, 2024, had the legal effect of invalidating the new rules and related amendments, leading the SEC to revise the Code of Federal Regulations to reflect this court decision. (more detail)

FCA · Policy statement on Regulatory framework for pensions dashboard service firms 
(11/07) · Conduct

The Financial Conduct Authority (FCA) has published policy statement 24/15 (PS) which sets out the regulatory framework for firms that operate pensions dashboard services. Pension dashboards will be secure digital interfaces that allow consumers to find their pensions and to view basic information about them. Any entity, other than the Money and Pensions Service (MaPS), that wants to operate a pensions dashboard service (PDS firms) will need to ensure that they obtain the regulatory permission to carry out this specific activity, and if they are not already, will also need to become FCA authorised. PDS firms will also need to adhere to Government regulations as well as design standards issued by the pensions dashboard delivery group on behalf of MaPS. By publishing thier rules now allows firms to start considering and preparing their prospective business models, service design, research and testing well in advance of our gateway opening to accept applications for the new permission.  (more detail)

BCB · Resolution on deadlines and methodology for submission of financial documents in 2025
(11/07) · Accounting

The Central Bank of Brazil (BCB) has published Resolution BCB Nº 428, dated November 7, 2024, which sets the deadlines for the submission of accounting documents for January and February 2025 by financial institutions and other entities authorized to operate by the BCB. Additionally, the resolution defines the method for calculating the amount to be allocated to federal public securities and other financial instruments, aiming to ensure stability and transparency in the Brazilian financial system. (more detail)

SFC · Guidelines on the role of responsible actuaries in insurance entities
(11/05)

The Financial Superintendence of Colombia (SFC) has issued External Circular nº 17 of 2024, dated November 5, which provides instructions regarding the role of responsible actuaries in insurance entities. This circular establishes guidelines on the functions and responsibilities of actuaries, emphasizing the importance of their independence and objectivity in risk assessment and the determination of technical reserves. Additionally, it details the training and experience requirements that these professionals must meet to ensure proper actuarial management within insurance companies. (more detail)

FCA · Consultation on payment options for investment research for fund managers
(11/05) · Conduct

The Financial Conduct Authority (FCA) has issued Consultation Paper (CP) 24/21, which proposes changes to allow fund managers the option of using joint payments for investment research, making its acquisition easier and promoting greater operational efficiency. These proposals aim to reduce barriers and costs, particularly for growing firms and new entrants, while maintaining consumer protection and transparency in payments. The FCA invites stakeholders to submit feedback by December 16, 2024, assessing the impact of these changes on competition and access to research in international markets. (more detail)

NGFS · Enhanced climate scenarios for central banks and supervisors
(11/05) · Sustainability - Risk Management - Climate

The Network for Greening the Financial System (NGFS) has released the fifth edition of its long-term scenarios for central banks and supervisors, updated with the latest climate and economic data. This new framework includes an enhanced damage function to model physical risks, providing a more accurate assessment of climate change impacts on the economy. The scenarios emphasize the importance of early, coordinated policy action to limit global warming to 1.5°C, highlighting the economic benefits of an orderly transition to net-zero emissions by 2050. (more detail)

BoE · Policy statement on prudential assessment of acquisitions and increases in control
(11/01) · Capital

The Bank of England (BoE) has published the policy statement (PS) by the Prudential Regulation Authority (PRA) and Financial Conduct Authority (FCA), policy statement (PS) 18/24, which provides feedback to responses received to consultation paper (CP) 25/23  on supervisory statement (SS) 10/24 on the prudential assessment of acquisitions and increases in control. The consultation set out proposals to replace the European Union (EU) guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector. The PRA's SS10/24 and the FCA guidance took effect on 1 November 2024. (more detail)

BoE · Policy statement in response to occasional consultation paper CP6/24
(10/31) · Capital

The Bank of England (BoE) has published the Prudential Regulation Authority (PRA) policy statement 17/24 (PS). The PS provides feedback to responses the PRA received to consultation paper (CP) 6/24 Occasional consultation paper (OCP). It also contains PRA's and the Financial Conduct Authority's (FCA) final policy in the form of amendments to Binding Technical Standards (BTS) 2016/2251. The implementation date for the rules covered by this PS was on the 4 of November 2024. The amendments to BTS 2016/2251 came into effect on the 1 of November 2024, which is when the final Technical Standards instrument by the PRA and FCA came into force. (more detail)

ESAs · Joint Report on principal adverse impacts disclosures under the Sustainable Finance Disclosure Regulation
(10/30) · Sustainabilty

The European Supervisory Authorities (ESAs) have published their third annual report on disclosures of principal adverse impacts under the Sustainable Finance Disclosure Regulation (SFDR), which assesses both entity and product-level Principal Adverse Impact (PAI) disclosures under the SFDR. These disclosures aim at showing the negative impact of financial institutions' investments on the environment and people and the actions taken by asset managers, insurers, investment firms, banks and pension funds to mitigate them. Responses should be submitted by Friday, 29 November 2024. (more detail)

CNMV · Report on the disclosures related to the European Taxonomy of financial institutions
(10/30) · Sustainability  

The Spanish Securities and Exchange Commission (CNMV) has published the report on the breakdowns on the European environmental taxonomy of financial institutions for the 2023 financial year. The report describes the information published by financial institutions issuing securities on the degree of environmental sustainability of their financial activities, in accordance with the sustainability taxonomy established by the European Union (EU) framework. This is the first year in which financial issuers have had to provide information on the extent to which their financing, investment, management or underwriting activities are aligned with one of the two objectives related to climate change, mitigation or adaptation. The data reported show that the alignment indicators published by financial entities have been considerably low when compared to their eligibility indicators. (more detail)

CMV · Resolution on mandatory climate disclosures for public companies
(10/29) · Sustainability · Disclosure

The Securities and Exchange Commission (CVM) has published Resolution CVM Nº 218, dated October 29, 2024, which approves Technical Pronouncement CBPS Nº 02 – Climate-Related Disclosures, issued by the Brazilian Committee of Sustainability Pronouncements (CBPS). This resolution mandates that publicly traded companies disclose information on governance, strategy, risk management, metrics, and climate-related targets, aligning with international sustainability standards. The resolution will come into effect on November 1, 2024, and will apply to fiscal years beginning on or after January 1, 2026, allowing for early adoption under certain conditions. (more detail)

ESAs · Rules to facilitate access to financial and sustainability information on the ESAP
(10/29) · Reporting and disclosure 

The European Supervisory Authorities (ESAs) have published the Final Report on the draft implementing technical standards (ITS) regarding certain tasks of the collection bodies and functionalities of the European Single Access Point (ESAP). These standards are designed to make financial and sustainability information easily accessible and usable for future users on a centralised platform. The ESAP is foreseen in Level 1 legislation to be a two-tier system, where information is first submitted by entities to the Officially Appointed Mechanisms (OAMs), offices and agencies of the European Union (EU), national authorities, among others and then made available by the collection bodies to the ESAP. These ITS are the first milestone for the successful establishment of a fully operational ESAP. The ESAP is set to begin collecting information in July 2026, with the publication starting by July 2027. The Final Report has been submitted to the European Commission (EC) for adoption. (more detail)

EBA · Survey to entities falling within the scope of IM model authorisation under the EMIR 3
(10/29) · Compliance 

The European Banking Authority (EBA), in cooperation with the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), have launched a short survey addressed to entities within the scope of the initial margin (IM) model authorisation regime introduced by the upcoming revised European Market Infrastructure Regulation (EMIR 3). The survey aims to gather information from entities about their readiness and capacity to comply with the new initial margin model authorization requirements under the upcoming EMIR 3 revision. The deadline for submitting responses is Friday 29 November 2024. (more detail)

MINECO · The draft Law on Business Information on Sustainability
(10/29) · Sustainability  

The Ministry of Economy, Trade and Enterprise (MINECO) has approved the draft Law on Business Information on Sustainability to be submitted to Parliament, which amends the Commercial Code, the Capital Companies Act and the Audit Act. Additionally, the preliminary draft of a law has been introduced to adjust the criteria for classifying companies by size regarding corporate reporting obligations. This transposes two European directives (Directive (EU) 2022/2464 and Directive (EU) 2021/2167) that improve the framework for the presentation and verification of information on environmental, social and governance issues (ESG), and streamlines corporate reporting obligations for companies. The Corporate Sustainability Reporting Act will be applicable to all large companies and groups of companies, as well as to medium-sized and small listed companies (except micro-enterprises). Its entry into force will be staggered in order to facilitate the adaptation of companies to the new European regulations. (more detail)

ISSB · SASB Standards Taxonomy
(10/28) · Market risk

The International Sustainability Standards Board (ISSB) has issued updates to the Sustainability Accounting Standards Board (SASB) Standards Taxonomy to reflect disclosure requirements arising from recent amendments to the SASB Standards. In particular: i) the consequential amendments made in connection with issuing the International financial reporting standards (IFRS) S2 in June 2023; and ii) the amendments to improve the international applicability of the SASB standards project in December 2023. (more detail)

EBA · Public consultation on Draft technical standards for structural foreign exchange positions
(10/28) · Capital

The European Banking Authority (EBA) has launched a public consultation on its draft Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) on structural foreign exchange (FX), under the Capital Requirements Regulation (CRR). This document outlines criteria for defining and managing structural positions, specifying how institutions should calculate and report their exposures to mitigate FX risk across the European Union (EU). The consultation, aimed at enhancing regulatory consistency in these operations, will remain open until February 7, 2025. (more detail)

ESMA · Consultation on amendments to the research provisions in the MiFID II
(10/28) · Compliance & conduct 

The European Securities and Markets Authority (ESMA) has launched a consultation on amendments to the research provisions in the Directive on Markets in Financial Instruments II (MiFID II) following changes introduced by the Listing Act. The Listing Act introduces a new option allowing joint payments for execution services and research for all issuers, regardless of market size. To align with this, the Consultation Paper proposes amending Article 13 of the MiFID II Delegated Directive. ESMA's proposals focus on ensuring a robust annual assessment of research quality and a remuneration method for joint payments that upholds best execution standards. The consultation targets research providers, investment firms, and investors. ESMA will consider the feedback received to this consultation by 28 January 2025 and aims to provide its technical advice to the European Commission (EC) in Q2 2025. (more detail)

SEC · Adoption of the rule on Covered Clearing Agency Resilience and Recovery and Wind-Down Plans
(10/25) · Restructuring and resolution

The Securities and Exchange Commission (SEC) has adopted amendments to certain rules in the Covered Clearing Agency Standards (CCA) under the Securities Exchange Act of 1934 (Exchange Act) and the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act). The amendments strengthen existing rules by adding new requirements related to the collection of intraday margins by a CCA and the use of substantive inputs in its risk-based margin system. The SEC is also adopting a new rule to establish the required elements of a CCA's recovery and orderly wind-down plan (RWP). (more detail)

BCB · Regulatory update to enhance transparency in financial governance
(10/24) · Corporate governance

Brazil's Central Bank (BCB), through Instruction No. 532, has introduced guidelines aimed at strengthening governance in financial institutions. The regulation outlines requirements for risk management, organizational structures, and transparency practices, ensuring a robust governance framework. These measures are intended to enhance the resilience of Brazil's financial system, protect consumer interests, and enable effective monitoring of potential risks, thereby reinforcing public confidence in the country's financial stability. (more detail)

OJEU · ELTIF Regulation delegated act
(10/25) · Capital

The Official Journal of the European Union (OJEU) has published a Commission Delegated Regulation (EU) 2024/2759 of 19 July 2024 supplementing Regulation (EU) 2015/760 of the European Parliament and of the Council (EP/Council) with regard to regulatory technical standards specifying when derivatives will be used solely for hedging the risks inherent to other investments of the European long-term investment fund (ELTIF), the requirements for an ELTIF's redemption policy and liquidity management tools, the circumstances for the matching of transfer requests of units or shares of the ELTIF, certain criteria for the disposal of ELTIF assets, and certain elements of the costs disclosure. (more detail)

AEPD · Introduction to LIINE4DU 1.0, a new methodology for threat modeling
(10/24) · Sustainability 

The Spanish Data Protection Agency (AEPD) has published the document "Introduction to LIINE4DU 1.0: a new methodology for privacy and data protection threat modeling", aimed at data controllers, data managers and data protection officers (DPOs). The AEPD's technical note focuses on privacy threat modeling, the systematic process of identifying, understanding and communicating threats, and their corresponding prevention methods. Privacy threat modeling involves understanding, in a systematic way, what can go wrong through a proactive and structured approach. (more detail)

Gov.UK · The Data (Use and Access) Bill
(10/24) · Technology & AI 

The UK Government has introduced a new data bill in Parliament. The Data Bill amends the UK General Data Protection Regulation (GDPR) and the 2018 Data Protection Act on certain aspects of individual rights, purpose limitation, scientific research and automated decision-making. The Bill will legislate on digital verification services that will be delivered against the government's trust framework of standards. It will also modernize the Initial Coin Offerings (ICO) structure and add to its enforcement powers. The 250+ page Data Bill covers many new subjects of immediate interest to the private and public sectors. The Bill will also enable National Health Service (NHS) data sharing across platforms. (more detail)

Gov.UK · Consultation Paper (CP) 5/24 Review of Solvency II – statement on proposed permission requirement for the calculation of loss-absorbing capacity of deferred taxes under the standard formula
(10/23) · Capital 

The Prudential Regulation Authority (PRA) has reviewed permission requirements for calculating the loss-absorbing capacity of deferred taxes under the Solvency II standard formula. It has proposed a permission requirement within the framework of the Financial Services and Markets Act 2023, aimed at improving the accuracy in evaluating deferred tax assets. The PRA is considering a potential delay in implementation to allow firms more time to submit relevant applications. The PRA will publish its final policy on CP5/24 proposals in mid-November. (more detail)

FCA · Multi-firm review of consumer credit firms and non-bank mortgage lenders
(10/23) · Supervisory expectations  

The Financial Conduct Authority (FCA) has published its findings following a multi-firm review (MFR) of the financial resilience of consumer credit firms and non-bank lenders. The MFR was conducted during the second half of 2023 and the first half of 2024 and involved a sample of consumer credit firms and non-bank mortgage lenders. The FCA found that the majority of firms could improve their approach to risk governance and risk management. In particular, firms did not always identify and monitor their firm's risks and financial metrics to give a greater insight into the challenges they face. The FCA expects consumer credit firms and non-bank lenders to review their arrangements against the findings of the MFR and make any improvements that may be necessary. (more detail)

CMF · Public consultation on the "Fintec Information System Manual" and guidelines for submitting information from supervised entities
(10/22) · Reporting and disclosure

The CMF has released a public consultation on a regulatory proposal to establish the "Fintec Information System Manual," which outlines specific guidelines for data submission by supervised entities in the fintech sector. This manual aims to standardize and enhance the transparency of information provided to the regulator, allowing for more effective monitoring of the financial market. Stakeholders may submit their feedback by December 15, 2024, contributing to the development of a more robust and accessible regulatory framework for the fintech sector in Chile. (more detail)

EBA · Clarification of the procedure for the classification of asset-linked tokens and e-money tokens as significant and the transfer of supervisory powers
(10/22) · Technology & AI

The European Banking Authority (EBA) has clarified the procedure for classifying asset-referenced tokens (ARTs) and e-money tokens (EMTs) as significant under the markets in crypto-assets regulation (MiCAR). It has established a harmonized reporting schedule, rules for setting up supervisory colleges, and requirements for transferring supervisory responsibilities between the EBA and national authorities. The decision aims to ensure consistent and effective oversight of significant issuers, with shared responsibilities between the EBA and national regulators where applicable. (more detail)

OCC · Finalization of revisions to recovery planning guidelines
(10/22) · Recovery and resolution

The Office of the Comptroller of the Currency (OCC) has finalized revisions to its recovery planning guidelines for large insured national banks, federal savings associations, and federal branches with at least $100 billion in assets. It has incorporated a testing standard for recovery plans, clarified the role of non-financial risks (operational and strategic), and set staggered compliance deadlines. The revisions will take effect on January 1, 2025, aiming to enhance preparedness against systemic risks. (more detail)

Conamer · Resolution Amending the General Provisions Applicable to Securities Issuers and Other Market Participants
(10/21) · Compliance

The National Banking and Securities Commission (CNBV) has amended the regulations for securities issuers and market participants. It has removed the maximum debt limit for issuers of real estate trust certificates, allowing the holders' assembly to set the limit and debt service coverage ratio. Additionally, it updated disclosure requirements and coverage ratio calculations to enhance financial efficiency and protect investors' interests. (more detail)

CMF · Regulatory Project about Instructions for the submission of information for the supervision of entities authorized to provide the services under Title II of Law 21.521
(10/21) · Reporting & disclosure

The Financial Market Commission (CMF) has launched a public consultation for a proposed regulation establishing the Fintec Information System Manual, outlining requirements for reporting information to oversee entities authorized under Law 21.521. It has detailed the reporting requirements, including frequency, format, and types of data financial technology service providers must submit. The consultation is open until November 15, 2024, to gather input from the public and relevant entities. (more detail)

Gov.UK · Consultation on proposals for a new 6-year Climate Change Agreements scheme to begin in 2025
(10/17) · Sustainability 

The Department for Energy Security and Net Zero has launched a consultation on a new Climate Change Agreements scheme starting in 2025. It has proposed a six-year program with three target periods running until 2030 and the potential extension of certification to 2033. The scheme will maintain Climate Change Levy reductions for eligible participants, while assessing the inclusion of new sectors and enhancing reporting and target-setting. The consultation remains open until December 31, 2024. (more detail)

FSB · Format for Incident Reporting Exchange (FIRE)
(10/17) · Technology

The Financial Stability Board (FSB) published for consultation a Format for Incident Reporting Exchange (FIRE), a common format for financial firms' reporting of operational incidents, including cyber incidents. FIRE aims to promote convergence in reporting practices, to address operational challenges arising from reporting to multiple authorities, and to foster better communication within and across jurisdictions. The FSB is inviting comments on the consultation package and the questions set out. Responses should be submitted by 19 December 2024. (more detail)

EFRAG · Feedback Statement on the IASB's Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment
(10/17) · Accounting 

The European Financial Reporting Advisory Group (EFRAG) has published its Feedback Statement (FS) on the International Accounting Standards Board's (IASB) Exposure Draft (ED) Business Combinations—Disclosures, Goodwill and Impairment (Proposed amendments to International Financial Reporting Standards (IFRS) 3 and International Accounting Standards (IAS) 36). The FS summarises constituents' feedback to EFRAG with respect to the IASB's ED and explains how this feedback was considered in developing EFRAG's Final Comment Letter. Most stakeholders supported the IASB's goal of enhancing information on business combinations, but concerns were raised by preparers, auditors and national standard setters about some key aspects of the IASB's proposals and most constituents were not convinced that the proposed amendments would lead to changes in current practices or effectively meet the IASB's objective of reducing the effects of shielding and management over-optimism. The IASB published an Exposure Draft Business Combinations—Disclosures, Goodwill and Impairment on 14 March 2024. Thereafter, on 22 July 2024, EFRAG published its Final Comment Letter after receiving comments on its Draft Comment Letter published on 30 April 2024. (more detail)

ESMA · Updated guidance under the MiFIR Review
(10/16) · Compliance & Conduct 

The European Securities and Markets Authority (ESMA) has published updates to the Q&As on transparency and market structure issues, the Manual on post-trade Transparency and the Opinion on the assessment of pre-trade waivers considering the Markets in Financial Instruments Regulation (MiFIR) Review Transitional Provisions. The amendments are published with the objective of contributing to the smooth transition and consistent application of MiFIR, and complements the clarifications on the applicable MiFIR Review (Level 1) and Technical Standards (Level 2) provisions provided in the Interactive Single Rulebook (ISRB) earlier this year. Further revisions of Level 3 guidelines will be carried out following the implementation of the new or updated rules and Technical Standards. (more detail)

Gov.UK · Amendments to setting a minimum requirement for own funds and eligible liabilities (MREL)
(10/15) · Recovery & Resolution

The Bank of England (BoE) has published a consultation paper on amendments to its approach to setting a minimum requirement for own funds and eligible liabilities (MREL). The consultation brings together proposals relating to the BoE's statement of policy (SoP) on its approach to setting MREL. These updates aim to simplify and consolidate the framework, making it easier to navigate and implement. They also ensure the framework remains responsive to changes in financial regulation and markets, stays aligned with international standards, and adapts over time based on lessons learned from its application. The deadline for responses to the consultation is 15 January 2025.  (more detail)

SBS · Proposes that financial institutions must offer loan products with and without credit loss insurance so that users can exercise their right to choose
(10/14) · Compliance and conduct

The Superintendence of Banking, Insurance and AFP (SBS) has published a project that proposes modifications to the market conduct regulations of the financial system and the insurance system on issues related to credit loss insurance. Its objective is to protect the interests of the users of the financial and insurance systems and as part of a permanent work to review the regulatory framework of the entities under its supervision. In the event of the debtor's death, the bank's interests are protected. In this way, in the event of death, the financial institution collects the remainder of the debt through the aforementioned policy and releases the lender's heirs from their obligations. The draft is available for comments and suggestions from the industry and the general public until November 13, 2024. (more detail)

CMF · Modifications to General Rule No. 502
(10/14) · Technology

The Financial Market Commission (CMF) has announced that it will submit for consultation, until November 6, 2024, a regulatory proposal that improves certain rules applicable to the registration and authorization of financial service providers under the Fintec Law (No. 21,521), as well as their obligations. This initiative is part of the CMF's commitment to permanently evaluate its regulations in order to make the financial market an inclusive, innovative and safe space for all market agents. (more detail)

IAIS · Approval of the Insurance Capital Standard and conclusion of the Aggregation Method comparability assessment
(11/14) · Capital, liquidity and leverage

The Executive Committee of the International Association of Insurance Supervisors (IAIS) has approved the final version of the Insurance Capital Standard (ICS) as a prescribed capital requirement for Internationally Active Insurance Groups (IAIGs). Additionally, the Committee has finalized the comparability assessment of the Aggregation Method (AM) developed by the United States, concluding that this method provides a basis for implementing the ICS with comparable outcomes. The IAIS will continue working with its members to ensure a smooth transition to the ICS and provide the necessary guidance throughout the implementation process. This standard will be presented for adoption at the IAIS annual meeting on December 5, 2024. (more detail)

FCA · Reopened Questions on the Regulation of Commercial and Bespoke Insurance Business
(11/04) · Compliance and conduct  

The Financial Conduct Authority (FCA) has published Discussion Paper (DP) 24/1, reopening key questions regarding the regulation of commercial and bespoke insurance businesses. This paper seeks additional feedback on the potential impact of regulatory changes in this sector, including associated costs and financial effects on involved firms. The FCA invites stakeholders to respond to specific questions to improve cost-benefit analysis, with an extended deadline until January 10, 2025, to promote a more comprehensive understanding of how these regulations will affect the insurance market. (more detail)

CONSAR · Amendments to the general provisions on the capital regime of Afores, PENSIONISSSTE, and specialized investment companies in retirement funds
(10/29)

The National Commission of the Retirement Savings System (CONSAR) has published a proposal to amend the general provisions regarding the capital regime applicable to Retirement Fund Administrators (Afores), the National Pension Fund for State Employees (PENSIONISSSTE), and Specialized Investment Companies in Retirement Funds. The primary goal of this amendment is to reduce the requirements for the special reserve, enabling a more flexible and efficient management of reserve funds in line with current financial sustainability needs within Mexico's retirement savings system. These changes are anticipated to strengthen the capacity of Afores to manage workers' assets more effectively. (more detail)

ESMA · Recommendations on the application of IFRS 17 Insurance Contracts
(10/25) · Supervisory expectations

The European Securities and Markets Authority (ESMA) has published a report on first application of International financial reporting standards (IFRS) 17 Insurance Contracts. This Report provides: i) An overview of ESMA's and National Competent Authorities' (NCAs) observations regarding the first-time application of IFRS 17 Insurance Contracts in the 2023 financial statements of a sample of European insurance companies; ii) Examples of disclosures which may enable issuers to visualise the application of certain IFRS 17 requirements; and iii) Recommendations to issuers on how the IFRS 17 disclosures can be improved. ESMA considers that this document, together with the recently published European Common Enforcement Priorities (ECEP) Statement, will assist issuers, auditors, and supervisory bodies in the process of improving 2024 annual financial reports and help investors to better understand these reports. (more detail)

EIOPA · Consultation on criteria for selecting insurers to run macroprudential analyses
(10/17) Capital

The European Insurance and Occupational Pensions Authority (EIOPA) has opened a consultation regarding the criteria based on which national supervisors may request (re)insurers and insurance groups to perform macroprudential analysis in their Own Risk and Solvency Assessments (ORSA) and in their application of the Prudent Person Principle (PPP). The quantitative criterion foresees a threshold of €12 billion in total assets, which aligns with the criteria used in identifying undertakings for financial stability reporting. Further qualitative criteria are proposed to allow enough leeway for supervisory judgement and to incorporate risk-based considerations into the selection process. These criteria are expected to be used by national supervisors to remove or add (re)insurers to the list of undertakings that need to perform macroprudential analyses. EIOPA invites stakeholders to provide their feedback on the Consultation Paper (CP) by responding to the questions via the online surveys no later than 9 January 2025. (more detail)