Management Solutions compiles new regulations published by regulators of the financial services industry on a global level (BCBS, FSB), a supranational one (with a focus on Europe), and on some local geographies (USA, UK and Spain).
Relevant publications
CMF · Circular on the monthly requirement for financial and solvency information for insurance companies
(09/05) · Reporting and disclosure
The Financial Market Commission (CMF) has published a modification to Circular No. 2275, which establishes the monthly financial and solvency reporting requirements for insurance companies. This modification, in response to the financial volatility following the Covid-19 pandemic, introduces forward-looking solvency indicators with a three-month horizon and strengthens the CMF's continuous supervision. Additionally, new annexes with detailed financial projections and six new accounts for monthly reporting have been integrated. The information will be submitted through the SEIL system or a new system using the Extensible Business Reporting Language (XBRL). The modifications will take effect on December 1, 2024. (CMF, more detail)
CMF · Public consultation on the modification of General Rule (NCG) No. 461 regarding the Integrated Annual Report of supervised entities
(09/04) · Sustainability · Reporting and disclosure
The Financial Market Commission (CMF) has initiated a public consultation process to modify General Rule (NCG) No. 461, which establishes sustainability and corporate governance requirements for the annual reports of public securities issuers and supervised entities. This update aims to align local regulations with international standards, such as those from the International Sustainability Standards Board (ISSB), integrating International Financial Reporting Standards (IFRS) S1 and S2 and the Sustainability Accounting Standards Board (SASB) standards. The proposed changes enhance the transparency and comparability of disclosed information, particularly in terms of governance and sustainability, with a gradual implementation approach starting in 2024. The CMF will receive comments until September 27, 2024, before publishing the final version in the last quarter of the year. (CMF, more detail)
Gov.uk · Joint statement on competition in generative AI foundation models and AI products
(07/30) · Reporting & disclosure
The Bank of England (BoE) has published updates to its Supervisory Statement (SS) 5/21 and is consulting on new branch reporting requirements. These changes aim to enhance the regulatory framework for international banks operating in the UK, ensuring they meet robust prudential standards. The consultation paper outlines the proposed revisions and invites feedback from stakeholders by October 31, 2024, to refine and finalize the guidelines. (BoE, more detail)
DOUE · Directive on the improvement of the European Union electricity market configuration
(26/07)
Directive 2024/1711 amending the Directives on the internal electricity market and on the use of energy from renewable sources has been published in the OJEU with regard to improving the configuration of the EU electricity market. The new Directive aims to establish a regulatory framework that ensures the stability and efficiency of electricity supply, protecting household customers and small and medium-sized enterprises (SMEs) from the adverse effects of high energy prices. (DOUE, more detail)
ECB · Consultation on new Guidance on Risk Governance and Risk Culture
(07/24) · Government
The European Central Bank (ECB) has published the Consultation Draft of the new Guide on Governance and Risk Culture, aimed at enhancing the governance structures and risk cultures within banks operating in the European Union. The Guidance replaces the 2016 SSM Statement on Governance and Risk Appetite, in line with guidelines issued by the European Banking Authority (EBA) and other international standards, underlines the importance of a sound risk culture and effective governance for all banks, and aims to foster consistent supervisory practices across the euro area, while recognizing national specificities. (ECB, more detail)
OCC/Board/FDIC/NCUA · Proposed Amendments to the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Program Requirements
(07/19) · Supervision
The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration Federal Reserve (NCUA) have published the proposal of the amendments on the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Program Requirements. This document updates the requirements of the four federal financial institution for supervised institutions to establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs. The amendments are intended to align with changes concurrently proposed by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), most of which result from the AML Act of 2020. (OCC/Board/FDIC/NCUA, more detail)
Fed/CFPB/FDIC/FHFA/NCUA/OCC · Standards for quality controls in automated valuation models
(07/17) · Capital
The Board of Governors of the Federal Reserve System (Fed), the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Federal Housing Finance Agency (FHFA), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) have published the final rule to implement quality control standards for the use of automated valuation models, which is substantially similar to the proposal published previously, with targeted changes to clarify the proposed definition of mortgage originator in response to feedback about inconsistencies. These changes involve incorporating the Truth in Lending Act (TILA) definition directly into the rule text and making necessary modifications to align it with the scope of the final rule. Additionally, the rule will now explicitly include TILA's definition of "person" for further clarity. (Fed, more detail)
Statement on the design of the DyGIST 2025
(07/15)
The Prudential Regulation Authority (PRA) has published the statement on the design of the General Insurance Stress Test (DyGIST), detailing the schedule and structure of the exercise, which will involve simulations of adverse events over three weeks in May 2025. Insurers are expected to provide initial financial assessments and, by late July 2025, submit final estimates of the events' impact, along with qualitative reflections on risk management findings. Results will be released in Q4 2025 and incorporated into supervision plans for the following year. In the second half of 2024, the PRA will host workshops to engage insurers, providers, and intermediaries in the exercise, inviting professional bodies to participate. (PRA, more detail)
ITS amending Commission Implementing Regulation on supervisory reporting
(07/09) · Supervisory expectations
The European Banking Authority (EBA) has published the final report on implementing technical standrads (ITS) report amending Comission Implementing Regulation 2021/451 on supervisory reporting referred to in Article 430 (7) of Regulation nº 575/2013. These ITS incorporate changes to ensure that the reporting framework remains relevant, meaningful and aligned with Capital Requirements Regulation (CRR III), which implements the latest Basel III reforms. They will provide supervisors with comparable information to monitor institutions' compliance with the requirements of CRR III, promoting enhanced and consistent supervision. (EBA, more detail)
Public Consultation on rules for governance, comprehensive risk management, and minimum capital
(07/08) · Governance
The Financial Market Commission (CMF) has launched a public consultation on regulatory proposals addressing corporate governance, comprehensive risk management, and minimum capital requirements for various financial market participants. These proposals aim to enhance supervision and risk management for securities intermediaries, commodity brokers, and general fund administrators, among others. It also sets a new minimum capital requirement based on risk-weighted assets for stock exchanges and fund administrators. The public consultation is open until August 22, 2024, after which the CMF will evaluate feedback and gradually implement the approved regulations, continuously monitoring their effectiveness to ensure financial market stability and transparency. (CMF, more detail)
Consultation paper on the principles for sound third party risk management
(09/07) · Governance · Supervisory expectations
The Basel Committee on Banking Supervision (BCBS) has published a consultative paper on principles for sound management of third-party risk, replacing the 2005 Joint Forum paper. This new paper introduces 12 principles focused on operational risk management and operational resilience of banks, promoting international collaboration and reducing regulatory fragmentation. The principles cover areas such as governance, risk assessment, due diligence, contracting, ongoing supervision and the termination of arrangements with third-party service providers (TPSPs). In addition, the importance of the role of supervisors in the ongoing assessment of banks' management of third party risk is highlighted. The consultation will be open until 9 October 2024. (BCBS, more detail)
Draft methodology, templates, and guidance for the 2025 European Union wide stress test
(07/05) · Capital· Supervisory expectations
The European Banking Authority (EBA), in collaboration with the European Systemic Risk Borad (ESRB), has published a formal consultation of the EU wide stress tests to evaluate the resilience of financial institutions against adverse market conditions that additionally incorporates the integration of the Capital Requirements Regulation (CRR3). The primary aim is to provide supervisors, banks, and market participants with a standardized analytical framework for comparing and assessing the stability of EU banks and the banking system. This involves using a common methodology, relevant scenarios, and templates to gather initial data and stress test outcomes, ensuring a thorough evaluation of selected banks. The EBA will publish the final methodology by the end of 2024, launch the exercise in January 2025 and publish the results by the end of July 2025. (EBA , more detail)
Final Report on Guidelines on enforcement of sustainability information
(07/05) · Sustainability · Supervisory expectations
The European Securities and Market Authority (ESMA) has published the final report on guidelines for the supervision of sustainability reporting. The final report, which incorporates feedback from the consultation, introduces additional guidelines on publishing decisions and reporting enforcement activities. These guidelines include new directives on decision publication and enforcement activity reporting to ensure consistent application and effective supervision. They address various aspects such as enforcement objectives, resource allocation, third-country reporting, independence, selection models, examination types and processes, enforcement actions, materiality assessments, follow-ups, and coordination within ESMA’s Sustainability Reporting Working Group (SRWG). The guidelines will be translated into EU languages within two months, with National Competent Authorities (NCAs) required to notify ESMA of their compliance intentions. The guidelines will take effect on 1 January 2025. (ESMA , more detail)
Final report of the Draft Technical Standards specifying certain requirements of the second package of Market in Crypto-Assets (MiCA)
(07/03) · Reporting and Disclosure · Technology and AI · Sustainability
The European Securities and Markets Authority (ESMA) has published the final report specifying certain requirements of the second MiCA package. The Technical Standards Projects include sustainability indicators in relation to climate and other environmental-related adverse impacts, business continuity measures for crypto-asset service providers (CASP), and transparency and record-keeping requirements. Additionally, guidelines are established for automatic readings of whitepapers and public disclosure of privileged information by CASPs. The technical standards projects will be submitted to the European Commission (EC) for adoption within three months from their presentation. (ESMA, more detail)
Other publications of interest
EFRAG · XBRL taxonomy for Set 1 of the European Sustainability Reporting Standards (ESRS)
(08/30) · Sustainability, Reporting & disclosure
The European Financial Reporting Advisory Group (EFRAG) has published the XBRL taxonomy for Set 1 of the European Sustainability Reporting Standards (ESRS). This taxonomy will enable the digital tagging of sustainability reports in a machine-readable format, facilitating digital interoperability and enhancing the usefulness of reports on environmental, social, and governance (ESG) risks. This tool is intended for adoption by the European Securities and Markets Authority (ESMA) and the European Commission (EC). Companies are encouraged to use it from the outset. (EFRAG, more detail)
SEC · New Rules Proposal to Enhance Transparency and Oversight in Private Fund Industry
(08/28) · Conduct · Reporting and disclosure
The Securities and Exchange Commission (SEC) has published a proposal for new rules aimed at enhancing transparency and oversight in the private fund industry. The proposal includes requirements for private fund advisers to provide detailed quarterly statements to investors on fund performance, fees, and expenses, as well as to conduct annual financial statement audits. Additionally, the proposal seeks to prohibit certain practices by all private fund advisers, including preferential treatment of investors, which could disadvantage others, and mandates standardized reporting and more comprehensive disclosure. (SEC, more detail).
FDIC · Proposed revisions to regulations related to the brokered deposits restrictions
(08/23) · Compliance and conduct
The Federal Deposit Insurance Corporation (FDIC) has published proposed revisions to its regulations related to brokered deposit restrictions, which apply to insured depository institutions that are not well capitalised. The rules are intended to revise the definitions and application processes related to brokered deposit and primary purpose exceptions for insured depository institutions (IDIs). They seek to improve the safety and soundness of the industry by eliminating certain exceptions, simplifying definitions, and updating application processes to reduce the misclassification of brokered deposits. They include changes such as adjusting the principal purpose exception from 25% to 10%, clarifying the roles of third parties in the placement of deposits and ensuring that only IDIs can submit applications on behalf of third parties. Comments must be received no later than October 22, 2024.(FDIC, more detail).
IASB · Proposed IFRS Accounting Taxonomy Update
(08/29) · Accounting
The International Accounting Standards Board (IASB) has published a proposed update to the International Financial Reporting Standards (IFRS) Accounting Taxonomy 2024 to reflect these new and amended IFRS Accounting Standards: i) IFRS 19 on disclosures of subsidiaries without public accountability, issued in May 2024; ii) amendments to the Classification and Measurement of Financial Instruments, which amended IFRS 9 on Financial Instruments and IFRS 7 on disclosures of Financial Instruments, issued in May 2024; iii) and annual improvements to IFRS Accounting Standards. The deadline for submitting comments is 28 October 2024. (IASB, more detail).
FCA · General insurance and pure protection product governance thematic review
(08/21) · Compliance and conduct
The Financial Conduct Authority (FCA) has published a thematic review revealing that many general insurance and pure protection firms are not meeting their obligations under PROD 4 to ensure products deliver fair value and good outcomes. Key findings show that manufacturers often fail to assess or demonstrate product value, and most distributors do not fully understand how their remuneration affects product value, leading to potential consumer harm. In response, the FCA is urging all manufacturers and distributors to urgently review their product governance arrangements. Firms are expected to assess whether these issues apply to their activities and take prompt corrective action, including providing redress to affected customers. The FCA also plans further supervisory actions, which could include setting action plans, withdrawing products from the market, and holding firms and senior managers accountable where significant harm has occurred. The FCA has made it clear that ongoing failures to meet these obligations will result in regulatory intervention. (FCA, more detail).
SEC · Final rule on qualifying venture capital funds inflation adjustment
(08/21) · Others
The Securities and Exchange Commission (SEC) has adopted a rule that adjusts for inflation the dollar threshold used to define a "qualifying venture capital fund" under the Investment Company Act of 1940. The final rule raises the threshold from $10 million in aggregate capital contributions and uncalled committed capital to $12 million, and it also grants the SEC the authority to adjust this threshold for inflation every five years by order, specifying the method for these adjustments. This rule fulfills the inflation adjustment requirements set by the Economic Growth, Regulatory Relief, and Consumer Protection Act of 2018 (EGRRCPA) concerning qualifying venture capital funds. (SEC, more detail).
NIST · Consultation on second public draft of digital identity guidelines
(08/21) · Technology and AI
The National Institute of Standards and Technology (NIST) has released the second public draft of its updated Digital Identity Guidelines, which provide guidance on various methods for proving identity, including digital wallets, passkeys, and traditional physical IDs The revised guidelines aim to improve security, privacy and accessibility in identity verification processes for accessing government services, although they can be applied to other uses, and include measures to prevent fraud and cyber threats. The updates incorporate extensive feedback from previous consultations, addressing the use of modern technologies like syncable authenticators and digital wallets, while ensuring that traditional methods remain accessible. NIST is seeking public comments on the draft until October 7, 2024, to finalize the guidelines, which balance fraud prevention with broad access to essential services. (NIST, more detail).
UNEP FI · Recommendations for a Just Transition at the G20
(08/20) · Sustainability
The United Nations Environment Programme Finance Initiative (UNEP FI) has published recommendations for the G20 Sustainable Finance Working Group, urging a shift towards a nature-positive economy and a just transition. These recommendations include enhancing transparency in corporate and financial sector disclosures related to biodiversity and social impacts, supporting small and medium enterprises (SMEs) in sustainability reporting, and developing interoperable sustainable finance taxonomies. UNEP FI also advocates for robust markets for Nature-based Solutions (NbS) and calls for regulatory frameworks tailored to local contexts, especially those involving Indigenous Peoples and local communities. By adopting these measures, the G20 can promote economic growth that aligns with environmental sustainability and social equity. (UNEP FI, more detail).
FDIC · Guidance for Resolution Plan Submissions of Foreign Triennial Full Filers
(08/15) · Recovery & resolution
The Board of Governors of the Federal Reserve System (Board) and the Federal Deposit Insurance Corporation (FDIC) have issued final guidance for the 2025 and subsequent resolution plan submissions required of certain foreign banking organizations (FBOs) under the Dodd-Frank Act. This guidance applies to foreign Category II and III banking organizations and supersedes previous guidance for foreign-based covered companies. It provides expectations for these firms' resolution plans, addressing key vulnerabilities such as capital, liquidity, governance, and legal entity separability under the U.S. Bankruptcy Code. The final guidance has been refined based on public comments, further analysis, and an assessment of the firms' risk profiles and will take effect on August 15, 2024. (FDIC, more detail).
FDIC · Guidance for Resolution Plan Submissions of Domestic Triennial Full Filers
(08/15) · Recovery & resolution
The Board of Governors of the Federal Reserve System (Board) and the Federal Deposit Insurance Corporation (FDIC) have issued final guidance for the 2025 and future resolution plan submissions required of certain domestic banking organizations under the Dodd-Frank Act. This guidance applies to domestic Category II and III banking organizations, helping them develop resolution plans that address key vulnerabilities such as capital, liquidity, governance, and legal entity rationalization under the U.S. Bankruptcy Code. The guidance has been refined in response to public comments, additional analysis, and a reassessment of these firms' risk profiles. The final guidance will be effective on August 15, 2024. (FDIC, more detail).
IFRS Accounting Taxonomy update for Contracts for Renewable Electricity
(08/15) · Accounting and sustainability
The International Accounting Standards Board (IASB) has published a proposed update to the IFRS Accounting Taxonomy 2024 to align with new disclosure requirements for renewable electricity contracts. These contracts are essential for ensuring stable access to renewable energy sources. In May 2024, the IASB proposed amendments to IFRS 9 and IFRS 7 to better reflect the impact of these contracts on financial statements. The IASB plans to finalize these changes by the end of 2024 and aims to make the new requirements available for early application. To streamline the integration into the IFRS Accounting Taxonomy 2025, the IASB has released this proposed update ahead of finalizing the amendments. The consultation will be open until 14 October 2024 (IASB, more detail).
ECB · Harmonization of rules for Eurosystem collateral management
(08/14) · Others
The European Central Bank (ECB) has introduced harmonized rules and arrangements for the mobilization and management of collateral in Eurosystem credit operations, a move aimed at advancing financial integration in the euro area and fostering a European capital markets union. These new rules, outlined in Guideline ECB/2024/22, will take effect with the launch of the Eurosystem Collateral Management System (ECMS) on November 18, 2024. The ECMS will unify the management of collateral across the Eurosystem, replacing individual national central bank systems. Key updates include the adoption of market standards from the Single Collateral Management Rulebook for Europe (SCoRE), alignment of domestic and cross-border procedures, and the implementation of a single operational method—pooling—for collateral management. Additionally, the General Documentation has been updated to reflect these changes, including adjustments to credit assessment processes and the handling of external costs. (ECB, more detail).
EBA · Final draft technical standards on market risk
(08/13) · Capital, liquidity and leverage
The European Banking Authority (EBA) has published final amendments to its Regulatory Technical Standards (RTS) on the fundamental review of the trading book (FRTB), aligning them with the Capital Requirements Regulation (CRR3) as part of its roadmap for implementing the Banking Package in the EU. These amendments address changes introduced by CRR3, including updates to the RTS on foreign-exchange and commodity risk in the banking book, the profit and loss attribution test, and risk factor modellability assessment. Key revisions include the removal of the aggregation formula for market risk capital requirements in line with CRR3, provisions for assessing reliance on third-party vendors in risk factor modellability, and ensuring that translation risk in non-trading book positions is adequately captured. (EBA, more detail).
ESMA · Recognition of CDS Clearing and Depository Services as Tier 1 Central Counterparty (CCP)
(08/13) · Capital, liquidity and leverage
The European Securities and Markets Authority (ESMA) has recognized CDS Clearing and Depository Services Inc. (CDSC) as a Tier 1 Central Counterparty (CCP) under the European Markets Infrastructure Regulation (EMIR). This recognition follows a Memorandum of Understanding (MoU) signed with the British Columbia Securities Commission on July 18, 2024, allowing cooperation and information exchange regarding Canadian CCPs. The MoU builds on a 2015 European Union (EU) equivalence decision for Canada's regulatory framework and complements agreements with Ontario and Québec. ESMA now has 26 cooperation arrangements with non-EU authorities across 21 countries worldwide.(ESMA, more detail).
EBA · 2025 Priorities for Resolution Authorities and Review 2023 Progress
(08/13) · Supervisory expectations
The European Banking Authority (EBA) has released its 2025 European Resolution Examination Programme (EREP) Report, highlighting three key priorities for resolution authorities and banks: operationalizing resolution tools, enhancing liquidity strategies during resolution, and improving management information systems for valuation. These priorities build on the 2024 focus areas, reflecting ongoing policy and market developments. The EBA noted that most banks have met their minimum requirements for own funds and eligible liabilities (MREL), shifting the focus to the qualitative aspects of MREL. The report also reviewed 2023 progress, showing increased European Union (EU) convergence in resolution planning and identifying ongoing challenges, particularly in liquidity and valuation testing. The EBA is working on a Handbook for the independence of valuers, currently under public consultation, to support these efforts. (EBA, more detail).
EBA · Postposition of the application of the market risk framework in the EU
(08/13) · Capital, liquidity and leverage
The European Banking Authority (EBA) has issued a no-action letter following the European Commission's decision to delay the application of the revised market risk framework (Fundamental Review of the Trading Book, FRTB) in the EU to January 2026. In the letter, the EBA recommends that authorities should deprioritize supervisory or enforcement actions related to the boundary between banking and trading books, as well as internal risk transfers. The EBA argues that front-loading these provisions would create operational complexity and regulatory fragmentation. Additionally, the EBA addressed technical issues to ensure harmonized implementation during the postponement. (EBA, more detail).
FDIC · Consultation on Anti-Money Laundering and Countering the Financing of Terrorism Program Requirements
(08/09) · Technology and AI
The Office of the Comptroller of the Currency (OCC), Federal Reserve Board, Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration (NCUA) are seeking comments on a proposed rule to update Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) programs for supervised banks. This proposal aligns with the Anti-Money Laundering Act of 2020 and changes from the Financial Crimes Enforcement Network (FinCEN). It introduces a risk-based assessment process, incorporates national AML/CFT priorities, and adds customer due diligence requirements. The amendments aim to clarify expectations and ensure compliance with recent legislative updates. Comments must be received on or before October 8, 2024. (FDIC, more detail).
EBA · Implementing Technical Standards (ITS) amending the Implementing Regulation on the benchmarking of credit risk, market risk and IFRS9 models for the 2025 exercise
(08/09) · Reporting and disclosure
The European Banking Authority (EBA) has published final draft Implementing Technical Standards (ITS) amending data collection requirements for the 2025 benchmarking exercise on credit risk, market risk, and IFRS9 models. The key change is the expansion of the alternative standardized approach (ASA) validation portfolios to all asset classes in market risk. Due to a delay in the European Union’s (EU) Fundamental Review of the Trading Book (FRTB), internal model templates are not implemented, and data collection deadlines have been postponed. Minor adjustments clarify reporting requirements for credit risk, focusing on probability of default (PD), loss given default (LGD), and internal model IDs. These amendments are mandated by Article 78 of the Capital Requirements Directive (CRD) and support supervisory assessment of internal models used in calculating capital requirements.(EBA, more detail).
FCA · Consultation on proposed changes to the National Storage Mechanism
(08/09) · Reporting & disclosure
The Financial Conduct Authority (FCA) is consulting on proposed changes to the National Storage Mechanism (NSM), a free online archive of company information crucial for UK market regulation. The consultation seeks to enhance the NSM by introducing stricter data requirements for regulated information, aiming to improve data quality and searchability. Key proposals include the standardization of metadata requirements and the use of a uniform schema and API for data submissions by Primary Information Providers (PIPs). While these changes may impose costs on issuers and PIPs, they are expected to benefit users through easier access to accurate information. The consultation is open until September 27, 2024, with final rules anticipated by the end of the year and implementation scheduled for the second half of 2025. (FCA, more detail)
FCA · Additional guidance on good and poor practices in crypto-assets
(08/08) · Compliance and conduct
The Financial Conduct Authority (FCA) has published additional guidance on good and poor practice for the implementation of the cryptoasset financial promotions rules. These rules, introduced in June 2023, aim to protect UK consumers and raise standards in the cryptoasset industry. The guidance addresses key areas such as mandatory cooling-off period, personalised risk warnings, client categorisation, appropriateness, record keeping and due diligence. (FCA, more detail)
FCA · Consultation on new rules and guidance for a value for money framework for savers in default arrangements of workplace defined contribution pension schemes
(08/08) · Reporting & disclosure
The Financial Conduct Authority (FCA) is consulting on new rules and guidance for a value for money (VFM) framework for savers in default arrangements of workplace defined contribution (DC) pension schemes. The proposed framework aims to enhance transparency and competition by requiring firms to consistently measure and publicly disclose investment performance, costs, and service quality. Key elements include a standardized approach for firms to publish data in a machine-readable format, public disclosure of VFM ratings, and mandated actions for underperforming arrangements. This consultation seeks feedback from various stakeholders, including pension firms, governance bodies, and consumer representatives, by October 17, 2024. (FCA, more detail)
OJEU · Corrigendum to Implementing Regulation (EU) 2024/1618 on supervisory reporting and public disclosure of information on the minimum requirement for own funds and eligible liabilities
(08/08) · Reporting and disclosure
The Official Journal of the European Union (OJUE) has published a Corrigendum to Implementing Regulation (EU) 2024/1618. This corrigendum includes a new Annex IV, which provides detailed instructions on the disclosure of information regarding the minimum requirement for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirement. The new guidelines are structured in three main templates and specify key abbreviations and disclosure procedures, ensuring consistent and accurate presentation of MREL and TLAC data at the level of resolution entities and other relevant companies. (OJEU, more detail)
EC · Implementing Regulation laying down technical information for the calculation of technical provisions and basic own funds for the purpose of the reporting of information on the taking-up and pursuit of the business of insurance and reinsurance
(08/07) · Capital
The European Commission (EC) has issued Implementing Regulation (EU) 2024/2147, effective from June 30, 2024, to September 29, 2024, detailing the technical information required for insurance and reinsurance companies to calculate their technical provisions and basic own funds. This regulation, aligned with Directive 2009/138/EC (Solvency II), mandates the use of specific risk-free interest rate term structures, fundamental spreads, and volatility adjustments based on market data from the end of June 2024. It ensures consistency across reporting entities and was adopted urgently to provide legal clarity and uniformity in financial reporting within the EU. (EC, more detail)
Agencies · Final joint guidance to help large banks further develop their resolution plans
(08/05) · Recovery & resolution
The Federal Reserve Board, in collaboration with the Federal Deposit Insurance Corporation (FDIC), has finalized guidance to help banks with over $250 billion in assets, develop their resolution plans. The guidance, updated from an August 2023 proposal, addresses key vulnerabilities like capital, liquidity, and operational capabilities, and applies to both domestic and foreign banks, excluding the largest institutions. The deadline for banks to submit these plans has been extended to October 1, 2025, to allow time for incorporating the final guidance. (FRB, more detail)
MINECO · Consultation on Ministerial Order approving the quantitative information models in the insurance field
(08/05) · Reporting
The Ministry of Economy, Trade and Enterprise has launched a consultation on the Ministerial Order that establishes the new quantitative and qualitative information models that insurance and reinsurance companies must periodically submit to the Directorate General of Insurance and Pension Funds for supervisory, statistical and accounting purposes. This regulation unifies and updates the previous regulation, extending the information required on distribution channels, organisational structures and group consolidation. In addition, it imposes an obligation on reinsurance entities to submit quarterly reports, which will improve supervision. The order comes into force the day after its publication in the BOE.(MINECO, more detail)
EIOPA · Consultation on the future implementation of the new proportionality framework under Solvency II
(08/02) · Capital
The European Insurance and Occupational Pensions Authority (EIOPA) has launched a public consultation on the future implementation of the new proportionality framework under Solvency II. The consultation covers two aspects, namely, the fine-tuning of the methodology for classifying insurance undertakings as small and non-complex – who would stand to benefit from proportionality measures – as well as the conditions for granting similar proportionality measures (i.e. certain reduced requirements) to insurers that do not by default fall in the small and non-complex category. (EIOPA, more detail)
Agencies · Consultation on proposed data standards to enhance interagency financial regulatory interoperability
(08/02) · Reporting & disclosure
Several U.S. financial regulatory agencies, including the Office of the Comptroller of the Currency (OCC), the Federal Reserve (FED), and the Securities and Exchange Commission (SEC), have launched a public consultation on a proposed rule to create data standards aimed at enhancing the interoperability of financial regulatory data across these agencies. This initiative, mandated by the Financial Data Transparency Act of 2022, will lead to the adoption of final data standards, which will be applied to specific information collections through future rulemakings or other actions by the agencies. (SEC, more detail)
FDIC · Consultation on the review under the Economic Growth and Regulatory Paperwork Reduction Act of 1996
(08/01) · Supervisory expectations
The Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) issued their second notice under the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) in the Federal Register, seeking public comments on regulations related to Consumer Protection, Directors, Officers, and Employees, and Money Laundering. This review aims to identify outdated or burdensome rules for insured depository institutions. Comments are due by October 30, 2024, and will guide the agencies' ongoing review, which will continue over the next two years with additional notices and outreach meetings. (FDIC, more detail)
IFRS · Guide to support regulators implementing the IFRS digital taxonomies
(08/01) · Reporting & disclosure
The International Financial Reporting Standards (IFRS) Foundation has published a guide titled "Using the IFRS Digital Taxonomies—A Guide for Regulators Implementing the IFRS Digital Taxonomies in a Digital Filing System." This guide aims to assist regulators in implementing IFRS digital taxonomies to enhance cross-border digital comparability and analysis of financial information. The taxonomies, which include the IFRS Accounting Taxonomy and the IFRS Sustainability Disclosure Taxonomy, enable the reporting of information in a structured, computer-readable format. This format helps investors efficiently search, extract, and compare companies' financial disclosures. (IFRS, more detail)
FDIC · Consultation on Bank-Fintech Arrangements Involving Banking Products and Services
(07/31) · Supervisory expectations
The Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) are seeking public comments by September 30, 2024, on bank-fintech arrangements that distribute banking products and services to consumers and businesses. These agencies have reviewed such arrangements, noting both benefits and risks. They support responsible innovation, ensuring these partnerships comply with safe banking practices and relevant laws, including consumer protection and anti-fraud measures. The request seeks input on the nature and risks of bank-fintech collaborations, effective risk management practices, and potential enhancements to supervisory guidance. This initiative aims to better understand these arrangements' implications on banks' risk management, safety, soundness, and regulatory compliance. (FDIC, more detail)
EBA · Consultation on ITS for reporting under the Single Euro Payments Area Regulation
(07/31) · Reporting and disclosure
The European Banking Authority (EBA) initiated a public consultation on draft Implementing Technical Standards (ITS) for standardized reporting templates under the Single Euro Payments Area (SEPA) Regulation. These templates aim to unify reporting by Payment Service Providers (PSPs) to their National Competent Authorities (NCAs) regarding charges for credit transfers and the rate of rejected transactions. The EBA's draft proposes detailed breakdowns of charges by transfer type, payment user type, initiation channel, and charge party, along with data on rejected transactions due to EU-wide restrictions. The consultation seeks stakeholder feedback on the clarity and balance of the proposed reporting requirements, aiming to facilitate robust data collection while minimizing the industry's reporting burden. Comments are open until 31 October 2024, and a public hearing will be held on 9 October 2024. (EBA, more detail)
EIOPA · Consultation on the capital treatment of insurers’ direct exposure to central clearing counterparties in the standard formula
(07/31) · Capital, liquidity & leverage
The European Insurance and Occupational Pensions Authority (EIOPA) has initiated a public consultation on capital requirements for insurers' direct exposure to qualified central counterparties (CCPs) within the standard formula, with comments due by 23 October 2024. Traditionally, European Economic Area (EEA) (re)insurers have used CCPs indirectly through intermediaries, with Solvency II covering these arrangements. Direct exposures to CCPs are currently treated as bilateral, leading to higher capital requirements. EIOPA's consultation assesses new access models like the ‘sponsored model’ and proposes three options: maintaining the current regime, extending indirect exposure treatment to direct exposures, or aligning default fund contributions with the Capital Requirements Regulation, the preferred choice. Feedback will shape EIOPA’s final advice to the European Commission, due by 31 January 2025. (EIOPA, more detail)
IASB · Consultation on illustrative examples to improve reporting of climate-related and other uncertainties in financial statements
(07/31) · Reporting & disclosure
The International Accounting Standards Board (IASB) has published a consultation document proposing eight illustrative examples to improve the reporting of climate-related and other uncertainties in financial statements. These examples aim to enhance transparency and strengthen the link between financial statements and other reports, such as sustainability disclosures. Developed in response to investor concerns about insufficient or inconsistent climate-related information, the examples focus on materiality judgments, disclosure of assumptions, estimation uncertainties, and information disaggregation. They are designed to clarify the application of existing International Financial Reporting Standards (IFRS) without changing the requirements. Stakeholders are invited to provide feedback by 28 November 2024. (IASB, more detail)
BoE · Consultation on SS5/21 update for international companies and new branch office reporting requirements
(07/30) · Reporting & disclosure
The Bank of England (BoE) has published updates to its Supervisory Statement (SS) 5/21 and is consulting on new branch reporting requirements. These changes aim to enhance the regulatory framework for international banks operating in the UK, ensuring they meet robust prudential standards. The consultation paper outlines the proposed revisions and invites feedback from stakeholders by October 31, 2024, to refine and finalize the guidelines. (BoE, more detail)
FCA · Consultation on the regulation of commercial and bespoke insurance business
(07/29) · Compliance and conduct
The Financial Conduct Authority (FCA) has published a discussion paper, DP24/1, addressing the regulation of high-risk investments and products. This paper seeks input on how to better protect consumers from potential harm associated with complex and risky financial products, such as cryptocurrencies and other speculative investments. It explores the need for enhanced consumer warnings, clearer product information, and possibly more stringent regulatory measures to ensure that investors are adequately informed and can make more secure investment decisions. The FCA invites stakeholders to provide feedback on various proposals aimed at improving market integrity and consumer protection. (FCA, more detail)
BoE · Leverage ratio treatment of omnibus account reserves and minor amendments to the leverage ratio framework
(07/29) · Capital
The Bank of England (BoE) has published a policy statement outlining changes to the leverage ratio treatment of omnibus account reserves. This update aims to refine the regulatory framework to better accommodate central counterparties' (CCPs) omnibus accounts, ensuring that the leverage ratio more accurately reflects the risk associated with these reserves. The policy statement details the revised approach and seeks to enhance the prudential standards and financial stability by aligning the leverage ratio framework with the actual risks posed by these accounts. This move is part of the BoE's ongoing efforts to adapt regulatory measures to evolving market practices and financial instruments (BoE, more detail)
FCA · Consultation on the new Public Offers and Admissions to Trading Regulations regime (POATRs)
(07/29) · Others
The FCA has published Consultation Paper CP24/12, which seeks feedback on proposed updates to the rules governing the disclosure of information for investment products. The consultation aims to enhance the clarity and transparency of product information provided to consumers, ensuring they receive comprehensive and easily understandable details about investment risks and terms. Key proposals include standardizing disclosures to improve comparability and implementing new requirements for clearer communication of potential risks. The FCA is inviting stakeholders to comment on these proposals to help refine regulatory standards and better protect investors. (FCA, more detail)
FCA · Consultation on the derivatives trading obligation and post-trade risk reduction services
(07/29) · Compliance and conduct
The FCA has published Consultation Paper CP24/14, which seeks feedback on proposed changes to the regulatory framework for firms providing consumer credit products. This consultation focuses on enhancing consumer protection by introducing stricter rules and requirements for firms, including improved disclosure of product risks, clearer communication of terms and conditions, and measures to prevent irresponsible lending practices. The FCA aims to ensure that consumers are better informed and safeguarded against potential financial harm, and it invites stakeholders to review and comment on the proposed amendments to strengthen regulatory standards and promote fair treatment in the consumer credit market. (FCA, more detail)
ECB · Cyber resilience stress test
(07/26) · Resolution
The European Central Bank (ECB) has completed its cyber resilience stress test, assessing how banks would respond to and recover from severe cybersecurity incidents. The test, launched in January 2024, involved a fictitious scenario where preventive measures failed, focusing on banks' response and recovery capabilities rather than prevention. It covered 109 directly supervised banks, with 28 undergoing more detailed testing, including Information Technology (IT) recovery tests and on-site evaluations. Results showed that while banks have frameworks in place, there are areas needing improvement. The findings will be integrated into the 2024 Supervisory Review and Evaluation Process (SREP), highlighting the need for robust crisis management, communication, and recovery plans. The ECB plans to continue working with banks to enhance their cyber resilience, ensuring they meet supervisory expectations and address any identified weaknesses. (ECB, more detail)
EBA · Consultation on technical standards on the joint decision process for internal model authorization
(07/16) · Capital, liquidity & leverage
The European Banking Authority (EBA) has published a consultation paper amending the Implementing Regulation concerning the joint decision process for the authorization of internal models under the Capital Requirements Regulation (CRR). The revised Implementing Technical Standards (ITS) incorporate changes in the European Union (EU) legal framework, including the reduced scope of internal models under CRR III and the updated framework on the overall functioning of supervisory colleges. This draft amendment of the ITS is part of the first phase of the EBA's roadmap for implementing the EU banking package. This consultation will be open until October 16, 2024. (EBA, more detail)
EBA · Consultation on the Handbook on independent valuers for resolution purposes
(07/19) · Recovery & resolution
The European Banking Authority (EBA) has published a new consultation paper addressing the regulatory framework for crypto-assets within the European Union (EU) banking sector. This initiative aims to establish clear guidelines and standards for the management and supervision of crypto-assets, ensuring they are integrated safely into the traditional banking system. The consultation focuses on key areas such as risk management, capital requirements, and consumer protection, intending to provide a robust framework that balances innovation with regulatory oversight. Stakeholders are invited to contribute their views to shape the final regulations, which will be critical in guiding how banks interact with and manage crypto-assets. (EBA, more detail)
EBA · Peer review on the definition of default
(07/22) · Capital
The European Banking Authority (EBA) has published a Peer Review on its Guidelines on the application of the definition of default. The Review found that the effectiveness of supervision in this area is good, in particular as regards the monitoring of internal ratings-based approach (IRBA) credit institutions. Supervision of the definition of default of credit institutions using the standardised approach (SA) is also good but more varied, reflecting the more dispersed nature of credit institutions and the relative predominance of IRBA credit institutions in terms of size and assets in different jurisdictions. The Report identifies a set of follow-up measures/recommendations for certain competent authorities as well as best practices that would be of benefit for other competent authorities to adopt. (EBA, more detail)
EC · Updated Guidance on recovery and resilience plans
(07/23) · Capital
The European Commission (EC) has updated the guidance on recovery and resilience plans emphasizes the strategic use of the Recovery and Resilience Facility (RRF) by European Union (EU) Member States to advance reforms and investments aligned with EU priorities, particularly in response to the COVID-19 crisis and the challenges posed by Russia's aggression in Ukraine. By April 2024, EUR 232 billion had been disbursed, and significant milestones were met. The RRF, now incorporating the REPowerEU and Support to the Energy Transition and Public Investment (STEP) components, plays a crucial role in enhancing EU competitiveness and addressing critical challenges like energy security, technological advancements, and labor shortages. The guidance outlines procedures for amending Recovery and Resilience Plans (RRPs), encourages streamlined administration, and stresses the importance of timely implementation and flexibility to address emerging challenges. It also introduces measures to simplify the implementation process, reduce administrative burdens, and ensure effective use of funds. (EC, more detail)
EBA · Joint Final Guidelines on complaints handling in the banking and securities sectors
(07/24) · Conduct
The European Banking Authority (EBA) has issued final Guidelines extending the existing Joint Committee Guidelines on complaints handling to include credit servicers, under the new Credit Servicers Directive. These Guidelines require credit servicers to adopt effective and transparent procedures for managing complaints, mirroring those used in the banking, insurance, and securities sectors. They detail policies for complaints management, registration, reporting, internal follow-up, and communication with complainants. The EBA also made minor adjustments to align the Guidelines with changes in the EBA Regulation from 2020, removing outdated procedural requirements. The consolidated Guidelines will be available in all 24 European union (EU) languages in 2025, coinciding with the enforcement of the new EU Payment Services Regulation. (EBA, more detail)
ECB · Consultation on new Guidance on Risk Governance and Risk Culture
(07/24) · Government
The European Central Bank (ECB) has published the Consultation Draft of the new Guide on Governance and Risk Culture, aimed at enhancing the governance structures and risk cultures within banks operating in the European Union. The Guidance replaces the 2016 SSM Statement on Governance and Risk Appetite, in line with guidelines issued by the European Banking Authority (EBA) and other international standards, underlines the importance of a sound risk culture and effective governance for all banks, and aims to foster consistent supervisory practices across the euro area, while recognizing national specificities. (ECB, more detail)
ECB · Cyber resilience stress test
(07/26) · Resolution
The European Central Bank (ECB) has completed its cyber resilience stress test, assessing how banks would respond to and recover from severe cybersecurity incidents. The test, launched in January 2024, involved a fictitious scenario where preventive measures failed, focusing on banks' response and recovery capabilities rather than prevention. It covered 109 directly supervised banks, with 28 undergoing more detailed testing, including Information Technology (IT) recovery tests and on-site evaluations. Results showed that while banks have frameworks in place, there are areas needing improvement. The findings will be integrated into the 2024 Supervisory Review and Evaluation Process (SREP), highlighting the need for robust crisis management, communication, and recovery plans. The ECB plans to continue working with banks to enhance their cyber resilience, ensuring they meet supervisory expectations and address any identified weaknesses. (ECB, more detail)
Spain
CNMV · Authorization manual and information notification template for providing crypto-asset services
(23/07) - Reporting and Disclosure
The Spanish Securities and Exchange Commission (CNMV) has published new information and documents related to the upcoming entry into force of the European Regulation on cryptoasset markets (MiCA). Specifically, these are the Manual for the application for the authorization of cryptoasset service providers (CSPs) and the Model notification of the information to be submitted by certain financial entities to provide cryptoasset services. Both documents are intended to facilitate the processes of authorization of cryptoasset service providers and notification of financial entities wishing to provide these services. The manual and the template provide guidance on the documentation and information required from interested parties. Interested parties will be able to submit their applications as of September 2024. (CNMV, more detail)
UK
FCA · PS24/8: Access to cash
(07/24) · Others
The Financial Conduct Authority (FCA) has published a policy statement establishing new rules to introduce a consumer duty in financial services. This duty aims to enhance consumer protection, focusing on ensuring good outcomes for retail customers. The document includes feedback to Consulting Paper (CP) 23/29 , final rules, and guidance for firms to comply with these requirements. The new rules emphasize fair treatment, clear communication, and the prevention of foreseeable harm to consumers. (FCA, more detail)
United States
Fed/CFPB/FDIC/FHFA/NCUA/OCC · Standards for quality controls in automated valuation models
(07/17) · Capital
The Board of Governors of the Federal Reserve System (Fed), the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the Federal Housing Finance Agency (FHFA), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) have published the final rule to implement quality control standards for the use of automated valuation models, which is substantially similar to the proposal published previously, with targeted changes to clarify the proposed definition of mortgage originator in response to feedback about inconsistencies. These changes involve incorporating the Truth in Lending Act (TILA) definition directly into the rule text and making necessary modifications to align it with the scope of the final rule. Additionally, the rule will now explicitly include TILA's definition of "person" for further clarity. (Fed, more detail)
OCC/Board/FDIC/NCUA · Proposed Amendments to the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) Program Requirements
(07/19) · Supervision
The Office of the Comptroller of the Currency (OCC), Board of Governors of the Federal Reserve System (Board), Federal Deposit Insurance Corporation (FDIC), and National Credit Union Administration Federal Reserve (NCUA) have published the proposal of the amendments on the Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) Program Requirements. This document updates the requirements of the four federal financial institution for supervised institutions to establish, implement, and maintain effective, risk-based, and reasonably designed AML/CFT programs. The amendments are intended to align with changes concurrently proposed by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), most of which result from the AML Act of 2020. (OCC/Board/FDIC/NCUA, more detail)
Federal Reserve · Statement on Potential Risks Associated with Third Party Depository Arrangements
(07/25) · Others
Federal bank regulatory agencies have issued a statement to remind banks of the potential risks involved with third-party arrangements for delivering deposit products and services. While supporting responsible innovation, the agencies highlight concerns related to safety, compliance, and consumer issues that have emerged from supervisory experience. The statement outlines potential risks, effective risk management practices, and existing legal requirements without introducing new supervisory expectations. Additionally, the agencies are seeking input on a wide range of bank-fintech arrangements, including those related to deposits, payments, and lending, to evaluate whether further steps are needed to ensure effective risk management. (Federal Reserve, more detail)
Brasil
BCB · Instruction on applications for authorization related to the operation of institutions
(07/22) · Government
The Central Bank of Brazil (BCB) has published a Normative Instruction establishing new procedures, documents, deadlines and information for the authorization and operation of certain financial institutions. It introduces specific changes in the articles referring to the declarations and documentation required from controlling shareholders, credit unions and other financial institutions. It also updates the annexes and repeals previous provisions to simplify and streamline processes. In addition, the need for regulatory impact analysis is excluded as it does not add additional requirements to the current regulations. The Regulatory Instruction will enter into force on the date of its publication, July 22, 2024. (BCB, more detail)
BCB · Resolution in the Pix Instant Payment Agreement
(07/22) · Technology
The Central Bank of Brazil (BCB) has published a resolution amending an August 2020 resolution and its regulations, which establish the Pix instant payment agreement. The amendments include updating the operational and liquidity risk management structure, implementing a more robust cybersecurity policy, and procedures for the application of sanctions imposed by United Nations Security Council resolutions. In addition, the rules for the initiation and receipt of Pix transactions, the participation of other financial institutions and payment institutions, and fraud management in the system are adjusted. The resolution takes effect immediately for most of the provisions, while the amendments related to risk management will be effective as of November 1, 2024. (BCB, more detail)
UK
HM Treasury · Draft guidance on disclosure aligned with TCFD
(07/25) · Public administrations · Sustainability
HM Treasury has launched a public consultation on its Phase 3 Exposure Draft for Task Force on Climate-related Financial Disclosures (TCFD)-aligned reporting, inviting feedback on new climate-related disclosure requirements for annual reports. This phase focuses on the Strategy pillar of the TCFD framework and builds on previous phases addressing Governance, Risk Management, and Metrics and Targets. The consultation, open until 19 September 2024, seeks input from central government and public sector stakeholders on the proposed adaptations and guidance. The Phase 3 disclosures, effective from 1 April 2025, will be required in 2025-26 reports from central governments agencies, and other public sector entities are encouraged to follow or voluntarily apply the guidance. The proposals may be adjusted before final approval by the Financial Reporting Advisory Board (FRAB). (HM Treasury, more detail)
Federal Reserve · Statement on Potential Risks Associated with Third Party Depository Arrangements
(07/25) · Others
Federal bank regulatory agencies have issued a statement to remind banks of the potential risks involved with third-party arrangements for delivering deposit products and services. While supporting responsible innovation, the agencies highlight concerns related to safety, compliance, and consumer issues that have emerged from supervisory experience. The statement outlines potential risks, effective risk management practices, and existing legal requirements without introducing new supervisory expectations. Additionally, the agencies are seeking input on a wide range of bank-fintech arrangements, including those related to deposits, payments, and lending, to evaluate whether further steps are needed to ensure effective risk management. (Federal Reserve, more detail)
EBA · Joint Final Guidelines on complaints handling in the banking and securities sectors
(07/24) · Conduct
The European Banking Authority (EBA) has issued final Guidelines extending the existing Joint Committee Guidelines on complaints handling to include credit servicers, under the new Credit Servicers Directive. These Guidelines require credit servicers to adopt effective and transparent procedures for managing complaints, mirroring those used in the banking, insurance, and securities sectors. They detail policies for complaints management, registration, reporting, internal follow-up, and communication with complainants. The EBA also made minor adjustments to align the Guidelines with changes in the EBA Regulation from 2020, removing outdated procedural requirements. The consolidated Guidelines will be available in all 24 European union (EU) languages in 2025, coinciding with the enforcement of the new EU Payment Services Regulation. (EBA, more detail)
FCA · PS24/8: Access to cash
(07/24) · Others
The Financial Conduct Authority (FCA) has published a policy statement establishing new rules to introduce a consumer duty in financial services. This duty aims to enhance consumer protection, focusing on ensuring good outcomes for retail customers. The document includes feedback to Consulting Paper (CP) 23/29 , final rules, and guidance for firms to comply with these requirements. The new rules emphasize fair treatment, clear communication, and the prevention of foreseeable harm to consumers. (FCA, more detail)
CNMV · Authorization manual and information notification template for providing crypto-asset services
(23/07) - Reporting and Disclosure
The Spanish Securities and Exchange Commission (CNMV) has published new information and documents related to the upcoming entry into force of the European Regulation on cryptoasset markets (MiCA). Specifically, these are the Manual for the application for the authorization of cryptoasset service providers (CSPs) and the Model notification of the information to be submitted by certain financial entities to provide cryptoasset services. Both documents are intended to facilitate the processes of authorization of cryptoasset service providers and notification of financial entities wishing to provide these services. The manual and the template provide guidance on the documentation and information required from interested parties. Interested parties will be able to submit their applications as of September 2024. (CNMV, more detail)
EC · Updated Guidance on recovery and resilience plans
(07/23) · Capital
The European Commission (EC) has updated the guidance on recovery and resilience plans emphasizes the strategic use of the Recovery and Resilience Facility (RRF) by European Union (EU) Member States to advance reforms and investments aligned with EU priorities, particularly in response to the COVID-19 crisis and the challenges posed by Russia's aggression in Ukraine. By April 2024, EUR 232 billion had been disbursed, and significant milestones were met. The RRF, now incorporating the REPowerEU and Support to the Energy Transition and Public Investment (STEP) components, plays a crucial role in enhancing EU competitiveness and addressing critical challenges like energy security, technological advancements, and labor shortages. The guidance outlines procedures for amending Recovery and Resilience Plans (RRPs), encourages streamlined administration, and stresses the importance of timely implementation and flexibility to address emerging challenges. It also introduces measures to simplify the implementation process, reduce administrative burdens, and ensure effective use of funds. (EC, more detail)
EBA · Peer review on the definition of default
(07/22) · Capital
The European Banking Authority (EBA) has published a Peer Review on its Guidelines on the application of the definition of default. The Review found that the effectiveness of supervision in this area is good, in particular as regards the monitoring of internal ratings-based approach (IRBA) credit institutions. Supervision of the definition of default of credit institutions using the standardised approach (SA) is also good but more varied, reflecting the more dispersed nature of credit institutions and the relative predominance of IRBA credit institutions in terms of size and assets in different jurisdictions. The Report identifies a set of follow-up measures/recommendations for certain competent authorities as well as best practices that would be of benefit for other competent authorities to adopt. (EBA, more detail)
EBA · Consultation on the Handbook on independent valuers for resolution purposes
(07/19) · Recovery & resolution
The European Banking Authority (EBA) has published a new consultation paper addressing the regulatory framework for crypto-assets within the European Union (EU) banking sector. This initiative aims to establish clear guidelines and standards for the management and supervision of crypto-assets, ensuring they are integrated safely into the traditional banking system. The consultation focuses on key areas such as risk management, capital requirements, and consumer protection, intending to provide a robust framework that balances innovation with regulatory oversight. Stakeholders are invited to contribute their views to shape the final regulations, which will be critical in guiding how banks interact with and manage crypto-assets. (EBA, more detail)
Consultation on the Handbook on independent valuers for resolution purposes
(07/19) · Recovery and resolution
The European Banking Authority (EBA) has initiated a public consultation on its draft Handbook for independent valuers in resolution cases. The Handbook aims to standardize practices by offering methodologies for selecting and appointing valuers, and guidelines for managing conflicts of interest. It details procedures before, during, and after the valuer's appointment. The consultation runs until September 19, 2024, and feedback will be used to finalize the Handbook, which supports the EBA's goal of improving resolution practices for financial institutions. (EBA, more detail)
Final revised standard on cryptoasset exposures
(07/17) · Capital
In December 2023, the Basel Committee on Banking Supervision (BCBS) proposed amendments to the prudential treatment of banks’ exposures to cryptoassets. After considering stakeholder feedback, the Committee finalized the SCO60 Cryptoasset exposures standard, to be implemented by 1 January 2026. Key changes include: 1) Bankruptcy remoteness of cash: reserve assets must be placed in structures that are bankruptcy remote from any party involved in the stablecoin operation. An exception is made for banks providing custody services to stablecoins, where cash does not need to be held bankruptcy remote from the banks other deposits; 2) Inclusion of cash receivable under reverse repurchase agreements in Group 1b stablecoin reserves, subject to certain conditions; 3) Various other amendments: clarifications on external audit requirements for stablecoin reserve assets, clearing requirements for exchange traded fund (ETF) /exchange traded note (ETN), frequency of due diligence requirements and haircuts for ineligible collateral lent or posted under securities financing transactions (SFTs). (BCBS, more detail)
Final standard on disclosure of cryptoasset exposures
(07/17) · Capital · Liquidity · Disclosure
In October 2023, the Basel Committee on Banking Supervision (BCBS) proposed minimum disclosure requirements for banks’ exposures to cryptoassets. After considering stakeholder feedback, the Committee finalized the DIS55 Cryptoasset exposures standard, to be implemented by 1 January 2026. The disclosure framework introduces standardized tables and templates requiring banks to provide both qualitative and quantitative details on their cryptoasset activities (capital requirements, liquidity requirements and accounting classification), enhancing transparency and market discipline. (BCBS, more detail)
Final revised standard on interest rate risk in the banking book
(07/16) · Capital
The Basel Committee on Banking Supervision (BCBS) has finalized targeted adjustments to its standard on interest rate risk in the banking book (IRRBB). These adjustments include expanding the calibration time series to December 2023, using local shock factors for each currency, moving from the 99th to the 99.9th percentile value for shock factors, and refining interest rate shock rounding to 25 basis points. These changes aim to better capture interest rate changes, especially when rates are near zero. It will be implemented by 1 January 2026, incorporated into the Basel Framework. (BCBS, more detail)
EBA · Consultation on technical standards on the joint decision process for internal model authorization
(07/16) · Capital, liquidity & leverage
The European Banking Authority (EBA) has published a consultation paper amending the Implementing Regulation concerning the joint decision process for the authorization of internal models under the Capital Requirements Regulation (CRR). The revised Implementing Technical Standards (ITS) incorporate changes in the European Union (EU) legal framework, including the reduced scope of internal models under CRR III and the updated framework on the overall functioning of supervisory colleges. This draft amendment of the ITS is part of the first phase of the EBA's roadmap for implementing the EU banking package. This consultation will be open until October 16, 2024. (EBA, more detail)
Flexibility in the methodology for analyzing the replicability of Telefónica's broadband
(07/15)
The National Commission on Markets and Competition (CNMC) has published a public consultation to update the methodology that analyzes whether Telefónica's fiber offers can be replicated by other operators, ensuring market competition. This update proposes to make the methodology more flexible following the European Commission's Gigabit Recommendation. The changes include evaluating replicability in aggregate over a portfolio of specific products, removing the time limit for promotions of sports content, simplifying the calculation of commercial costs, and reducing Telefónica's information obligations, giving it greater agility. Interested parties can submit their comments until August 16, 2024. (CNMC, more detail)
Requirements Reform of the Credit Institutions Law
(07/12) · Compliance and Conduct
The National Commission for Regulatory Improvement (CONAMER) has published a resolution that modifies various general provisions related the Credit Institutions Law. It introduces new accounts for Small and Medium-sized enterprises (SMEs), migrants, and refugees, and implements automated systems for alerts on transactions involving persons on the Blocked Persons or Politically Exposed Persons Lists, as well as sanctioned jurisdictions. It also updates the internal compliance manuals to include risks of terrorist financing and ensures that the internal accounts of institutions are not used for direct client operations without the corresponding registration. Additionally, the role of an interim compliance officer is incorporated. (CONAMER, more detail)
Third consultation package on MiFIR and MiFID II mandates
(07/10) · Compliance and conduct
The European Securities and Markets Authority (ESMA) has published a Consultation Paper (CP) containing amendments to the Markets in Financial Instruments Regulation (MiFIR) and the Markets in Financial Instruments Directive (MiFID II), published on 8 March 2024. This CP seeks stakeholder feedback on various proposed amendments, such as changes to equity transparency requirements, a new standard for notifying investment firms acting as Systematic Internalizers (SIs), amendments to volume cap specifications, organizational requirements for trading venues, and data requirements for the equity consolidated tape (CTP). Additionally, it proposes new post-trade transparency flags for non-equity instruments. All comments must be received by 15 September 2024 for sections 3, 4 and 8. For sections 5, 6 and 7 the deadline is 15 October 2024. ESMA intends to publish the final reports in December 2024 and March 2025, with the objective of aligning transparency requirements in a timely manner and bringing the equity CTP selection process to a successful conclusion. (ESMA, more detail)
2024 ESEF Reporting Manual
(07/11) · Reporting and disclosure
The European Securities and Markets Authority (ESMA) has updated its Reporting Manual on the European Single Electronic Format (ESEF). This aims to ensure consistent preparation of annual financial reports. The manual includes technical improvements and guidance to enhance data analysis and comparability. Updates cover practices for tagging empty fields, requirements for extension elements, and improving data readability and uniqueness. ESMA aims for uniformity in financial reporting under the Regulatory Technical Standards (RTS) on ESEF, urging issuers to follow the guidance for their 2024 reports and software firms to integrate these standards into Inline eXtensible Business Reporting Language (XBRL) tools. ESMA also corrected errors in Annex II of the RTS to align with updates to International Financial Reporting Standards (IFRS) Taxonomy and XBRL specifications, promptly updating submissions to the European Commission (EC). (ESMA, more detail)
Consultation on Guidelines under the Markets in Crypto-Assets Regulation
(07/12) · Technology
The three European Supervisory Authorities (ESAS) have published a consultation paper on Guidelines under the Markets in Crypto-assets Regulation (MiCAR). These guides establish templates for explanations and legal opinions regarding the classification of crypto-assets, with a standardized test to foster a common classification approach. The guidelines provide a framework for regulatory classification of asset-referenced tokens (ARTs) and other crypto-assets, ensuring that white papers for these assets include detailed legal opinions and explanations. This initiative aims to support market participants and supervisors in adopting a convergent approach to crypto-asset classification. The ESAs invite comments on the consultation paper by 12 October 2024 and will hold a virtual public hearing on 23 September 2024. (ESAS, more detail)
Guidelines to standardize ART and EMT reporting under MiCAR
(07/12) Technology and AI · Reporting and Disclosure
The European Banking Authority (EBA) has published draft guidelines aimed at standardizing the templates used by issuers of asset referenced tokens (ART) and electronic money tokens (EMT) for reporting to competent authorities. They are a response to the MiCA Regulation, which mandates the reporting of certain data to ensure compliance with own funds and liquidity requirements. The guidelines address data gaps that impede effective supervision by specifying templates to be used by issuers to provide information on parameters such as number of holders, market capitalization and trading volume. The aim is to ensure harmonized supervision across the European Union (EU), enhancing consumer protection, market integrity and supervisory convergence. (EBA, more detail)
Application of the Regulation on crypto-asset markets with respect to the issuance of ARTs and EMTs
(07/10) · Technology and AI
The Bank of Spain (BdE) has published a statement on the implementation of the Regulation concerning cryptoasset markets (MiCAR), specifically in relation to the issuance of asset-backed tokens (ART) and electronic money tokens (EMT). As of June 30, 2024, only authorized legal entities or credit institutions with the approval of the Bank of Spain may issue ARTs. Existing issuers must apply for authorization by July 30, 2024 to continue operating. EMTs can only be issued by authorized credit or electronic money institutions. The Bank of Spain will monitor and sanction compliance with MiCAR, recommending interested parties to contact before initiating formal procedures. In addition, potential purchasers of ART or EMTs are urged to verify the relevant authorizations and consents prior to acquisition. (BdE, more detail)
Technical package for its 3.5 reporting framework
(07/09) · Technology and AI
The European Banking Authority (EBA) has released a technical package for version 3.5 of its reporting framework, which includes validation rules, the Data Point Model (DPM), and XBRL taxonomies to support various reporting obligations. These obligations cover amendments to reporting standards for the Fundamental Review of the Trading Book (FRTB), diversity benchmarking guidelines, templates for information communication technologies (ICT) service provider arrangements under the Digital Operational Resilience Act (DORA), and changes to standards for minimum requirements for own funds, eligible liabilities, and total loss-absorbing capacity (MREL/TLAC). The package introduces a new format for DPM2.0 and an updated DPM Query Tool. The FRTB amendments will be effective from January 1, 2026, following a postponed application, while the DORA package will be adjusted as needed based on the Commission's adoption process. (EBA, more detail)
Consultation on rules to recalibrate the CSDR Refit Framework
(07/09) · Reporting and disclosure
The European Securities and Markets Authority (ESMA) has launched new consultations on the Central Securities Depositories Regulation (CSDR) Refit, addressing information requirements for European Union (EU) Central Securities Depositories (CSDs), notification obligations for third-country CSDs, and the scope of settlement discipline. The consultations propose harmonizing data shared by CSDs with national competent authorities (NCAs), streamlining reporting by third-country CSDs, and defining causes of settlement failures not attributable to transaction participants. These efforts aim to refine the CSDR framework. Stakeholders are invited to respond by September 9, 2024, with final proposals to be submitted to the European Commission (EC) in the first quarter of 2025. Further consultations are planned. (ESMA, more detail)
Key supervisory areas as part of the European Supervisory Examination Programme for 2025
(07/08) · Supervisory expectations
The European Banking Authority (EBA) has released the European Supervisory Examination Programme (ESEP) for 2025, outlining key supervisory priorities to enhance convergence across the European Union (EU). These priorities include managing economic and financial uncertainties due to global market volatility and geopolitical changes, addressing digital challenges with a focus on Information and Communication Technologies (ICT) risk management and operational resilience amidst the digital transformation, and transitioning to Basel III and the EU banking package by ensuring robust information systems and capital planning. The EBA developed these priorities through consultations with EU authorities and its risk analysis work. Competent authorities are expected to integrate these topics into their supervisory activities, with the EBA monitoring their implementation to assess the convergence of supervisory practices across the EU. (EBA, more detail)
Consultation on criteria to assess the materiality of CVA risk exposures arising from securities financing transactions
(07/08) · Capital
The European Banking Authority (EBA) has launched a consultation on draft Regulatory Technical Standards (RTS) to specify the conditions and the criteria to assess whether the credit valuation adjustment (CVA) risk exposures arising from fair-valued securities financing transactions are material, as well as the frequency of that assessment. The concept of materiality set out in the draft RTS will determine whether fair-valued securities financing transactions can be exempted from own funds requirements for CVA risk. The consultation runs until 8 October 2024. (EBA, more detail)
Consultation on Liquidity Management Tools for funds
(07/08) · Liquidity
The European Securities and Markets Authority (ESMA) is seeking input on draft guidelines and technical standards under the revised Alternative Investment Fund Managers Directive (AIFMD) and the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. These revisions aim to mitigate financial stability risks and promote harmonized liquidity risk management in the investment funds sector. The draft Regulatory Technical Standards (RTS) and guidelines outline the characteristics and application of Liquidity Management Tools (LMTs), providing detailed guidance for fund managers. The consultation aims to ensure that European Union (EU) fund managers are better prepared for market stress and to standardize practices such as the use of side pockets. Responses to the consultations are welcomed by October 8, 2024, with final RTS and guidelines expected by April 16, 2025. (EBA, more detail)
Technical Amendments and FAQs to Enhance Basel Framework Implementation
(07/05) · Capital
The Basel Committee on Banking Supervision (BCBS) has published several technical amendments and frequently asked questions (FAQs) to ensure consistent implementation of the Basel Framework globally. The amendments, open for comment until August 19, 2024, address inconsistencies in the definition of specialized lending between the standardized approach (SA) and the internal ratings-based (IRB) approach for credit risk and align the formula for aggregating curvature risk positions for Group2a cryptoasset exposures with that used for other asset classes in the market risk framework. The document also includes FAQs that clarify the interpretation of the rules, covering topics such as the timing of collateral exchange, the treatment of derivative assets, the calculation of operational risk losses, and the application of risk weights for capital requirements. These FAQs provide guidance without modifying the standards and are intended for uniform application across jurisdictions. (BCBS, more detail)
Travel rule guidance to tackle money laundering and terrorist financing in transfers of funds and crypto assets
(07/04) · Technology and AI
The European Banking Authority (EBA) has issued new Guidelines on the travel rule, the information that should accompany transfers of funds and certain crypto assets, as mandated by the Regulation on information accompanying transfers of funds and certain cryptoassets. This rule will help tackle the abuse of such transfers for money laundering and terrorist financing purposes. The Guidelines specify which information should accompany a transfer of funds or crypto assets and also list the steps that payment service providers (PSPs), intermediary PSPs (IPSPs), crypto-asset service providers (CASPs) and intermediary CASPs (ICASPs) should take to detect missing or incomplete information, and what they should do if a transfer of funds or a transfer of crypto-assets lacks the required information. The objective is to establish a consistent and effective approach to implementing the travel rule across the European Union (EU) that allows relevant authorities to fully trace such transfers where this is necessary to prevent, detect or investigate money laundering and terrorist financing. (EBA, more detail)
Evaluation of the expected loss for the calculation and constitution of the allowance for expected losses associated with the credit risk
(07/05) · Provisions and NPLs
The Central Bank of Brazil (BCB) has published a resolution that establishes the procedures for requesting authorization to use the complete methodology for the evaluation of expected loss and for the calculation and constitution of the provision for expected losses associated with credit risk, provided to financial institutions and other institutions authorized to operate by the BCB. (BCB, more detail)
Framework to guide Action by Central Banks and Supervisors in Nature-relate Financial Risks
(07/02) · Supervisory Expectations · Sustainability
The Networking for Greening the Financial System (NGFS) has published a Framework for nature-related financial risks that is a beta version document that integrates climate-related and broader environmental-related financial risks. It aims to establish a science-based understanding and terminology for these risks among NGFS members and provide clarity on key concepts. The Framework includes a principle-based risk assessment framework, aiding central banks and supervisors in considering and developing policies on nature-related financial risks within their jurisdictional contexts. It emphasizes microprudential, macroprudential, and macroeconomic perspectives to ensure financial and price stability while acknowledging the potential impact on well-being and economic opportunities. (NGFS, more detail)
Adoption of Update EDGAR Filer Manual
(07/01) · Reporting and Disclosure
The Securities and Exchange Commission (SEC) is adopting amendments to Volume II of the Electronic Data Gathering, Analysis, and Retrieval system Filer Manual (EDGAR Filer Manual). These amendments include updates to related rules and forms, aiming to enhance the procedures for electronic filings. The updated manual is incorporated by reference into the Code of Federal Regulations, providing essential guidance for filers on submission requirements to ensure timely processing of electronic documents. The document also addresses the administrative and statutory basis for these changes, noting that they do not significantly alter the rights and obligations of non-agency parties, and therefore, do not require public notice and comment. (SEC, more detail)
Regulatory news from previous periods or FYs can be found in the Quarterly Regulatory Reports, section for current year reports, or the Annual Regulatory Reports section for previous year reports.
