ReportWire

Tag: Regulatory Risk

  • December Global Regulatory Brief: Digital finance | Insights | Bloomberg Professional Services

    MAS updates guide on the tokenization of capital markets products

    Summary

    The Monetary Authority of Singapore (MAS) has updated its regulatory guide on tokenized capital markets products (CMPs), clarifying how securities laws apply to digital tokens. The revised guide, released on 14 November 2025, replaces the earlier Digital Token Offerings (DTO) Guide and reflects evolving market practices and technologies.

    Context

    Originally published in 2017 and updated in 2020, the DTO Guide provided guidance on digital token offerings under MAS-administered laws. The latest update responds to growing interest in tokenizing CMPs and the expansion of token-related activities across the capital markets value chain, including trading, settlement, and custody.

    Key takeaways

    • Technology-Neutral Approach: MAS continues to assess tokenized CMPs based on their economic substance rather than technological form.
    • Regulatory Scope: Tokenised CMPs are subject to the same requirements under the Securities and Futures Act (SFA) and Financial Advisers Act (FAA) as traditional CMPs.
    • Disclosure Requirements: Issuers must disclose token-specific risks and characteristics, including DLT architecture, smart contracts, custody arrangements, and legal rights.
    • Licensing Obligations: Entities involved in issuance, trading, custody, or advisory services related to tokenised CMPs may require MAS licences unless exempted.
    • AML/CFT Compliance: MAS reiterates the applicability of anti-money laundering and counter-terrorism financing obligations to token-related activities.
    • Extra-Territorial Reach: MAS regulations may apply to overseas activities with substantial effects in Singapore.
    • Case Studies: The guide includes 17 illustrative case studies to help entities assess whether their tokens qualify as CMPs.

    Next steps

    • Entities planning to issue or offer digital tokens in Singapore should:
      • Seek legal advice from Singapore-qualified counsel.
      • Review the guide and case studies to determine regulatory obligations.
      • If necessary, submit an enquiry to MAS using the checklist in Appendix 3.
    • MAS may issue further updates to the guide as tokenization practices evolve.

    SC announces first cohort of Regulatory Sandbox participants

    The Securities Commission Malaysia (SC) has selected six participants for the inaugural cohort of its Regulatory Sandbox, aimed at fostering innovation in the capital market. The sandbox provides a controlled environment for testing new products and services that enhance market vibrancy and inclusiveness.

    Context

    The Regulatory Sandbox was launched during the SCxSC Fintech Summit in 2024 as part of SC’s innovation toolkit. Applications for participation were open between 15 April and 31 May 2025, attracting strong interest from diverse market players.

    Key takeaways

    • Participants and Themes:
      • Alternative Real Estate Investments: Wahed X Sdn Bhd (Wahed) and Urban NX Sdn Bhd (Urby)
      • Secondary Market Innovation: Kapital DX Sdn Bhd (KLDX) and Pitch Platforms Sdn Bhd (PSTX 2.0)
      • Alternative Financing: Virtual Economy Technology Sdn Bhd (V Systems) and PeerHive (M) Sdn Bhd (PeerHive)
    • Several participants will leverage advanced data analytics and blockchain to improve due diligence and introduce new operating models.
    • Testing will occur over approximately 12 months, starting in two batches: January 2026 or July 2026, depending on readiness.
    • The sandbox aims to balance innovation with investor protection, supporting responsible experimentation under defined parameters.

    Next steps

    • Participants will begin testing in early or mid-2026.
    • Corporations with innovative business models can engage with the SC through the Alliance of FinTech Community (aFINity) by submitting proposals to afinity@seccom.com.my.
    • Further details on the sandbox framework are available via SC’s official resources.

    The Australian government publishes its National AI Plan

    The Australian government announces that the Australian government is releasing the National AI Plan, ‘a comprehensive roadmap to build an AI-enabled economy that harnesses the full potential of artificial intelligence for the benefit of all Australians’.

    Further detail

    The National AI Plan has three goals:

    1. Capturing the opportunities, including attracting investment in Australia’s digital and physical infrastructure, supporting local capability, and positioning Australia as a leading destination for future AI investment.
    2. Spreading the benefits, including improving public services, supporting AI adoption and building skills across the economy, including for not-for-profits, universities, schools, TAFEs and community organisations.
    3. Keeping Australians safe, including through setting up the recently announced AI Safety Institute to monitor, test and share information on emerging AI capabilities, risks and harms, which builds on our commitment to robust legal, regulatory, and ethical frameworks and engaging internationally to protect rights and build trust.

    The plan noted that Australia has strong protections in place to address many risks, but the technology is fast-moving and regulation must keep pace. That’s why the government continues to assess the suitability of existing laws in the context of AI. The government is taking action to identify and understand how AI risks deal with specific harms, including reviews and regulations relating to online harms, copyright law, AI use in healthcare and consumer protections.

    The announcement was backed by a $29.9 million commitment to establish the AI Safety Institute in early 2026 to ensure that the government is monitoring and responding to risks, supporting agencies and regulators.

    Stated the Minister of Science: ‘The National AI Plan is about making sure technology serves Australians, not the other way around…As the technology continues to evolve, we will continue to refine and strengthen this plan to seize new opportunities and act decisively to keep Australians safe”.

    The Business Council of Australia called the plan “an important step forward [that] charts a clear direction for how Australia can embrace AI to boost productivity, sharpen our competitiveness and raise living standards”.

    Bloomberg

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  • December Global Regulatory Brief: Green finance | Insights | Bloomberg Professional Services

    European Commission proposes simplified transparency rules for Sustainable Financial products

    The European Commission has proposed a set of amendments to the Sustainable Finance Disclosure Regulation (SFDR) to make sustainability disclosure rules simpler, clearer, and more cost-efficient. The revisions aim to reduce reporting burdens for financial market participants (FMPs), make disclosures more understandable for retail investors, and introduce a clear categorisation system for sustainable financial products.

    Context

    The SFDR, in force since March 2021, established the EU’s transparency framework for sustainability-related financial products. However, the Commission’s recent review found the framework overly complex, costly to implement, and unintentionally used as a labelling regime, leading to investor confusion. The proposed changes are part of the Commission’s broader effort to streamline EU financial regulation, consistent with the February 2025 “Omnibus I” simplification package.

    Key takeaways

    • Streamlined Entity-Level Disclosures:
      • Entity-level reporting on “principal adverse impacts” will be deleted from SFDR to eliminate overlap with the Corporate Sustainability Reporting Directive (CSRD).
      • Only large FMPs covered under CSRD thresholds will be required to disclose their environmental and social impacts.
      • This reform significantly reduces duplication and compliance costs for smaller firms.
    • Simplified Product-Level Disclosures:
      • Product disclosures will be limited to essential, comparable, and meaningful sustainability data.
      • The aim is to improve investor understanding and comparability while reducing complexity for product manufacturers.
      • Retail-oriented presentation standards will be introduced to improve clarity.
    • Introduction of Three Product Categories:
      • Sustainable: Products investing in assets that already meet high sustainability standards.
      • Transition: Products supporting entities or projects on a credible path toward sustainability.
      • ESG Basics: Products applying general ESG integration or exclusion strategies without qualifying as sustainable or transition investments.
      • Categorized products must ensure at least 70% of investments align with their sustainability strategy and must exclude harmful sectors (e.g., human rights violators, tobacco, prohibited weapons, high fossil fuel exposure).
      • ESG-related product names and marketing claims will be restricted to products within these categories.

    Next steps

    The Commission’s proposal will now proceed to the European Parliament and EU Member States (Council) for consideration under the ordinary legislative procedure. At a future date, the Commission will issue implementing rules setting out the technical specifications for disclosures and category criteria.

    Financial Conduct Authority (FCA) consults on UK ESG Ratings Regime

    The FCA has launched a comprehensive consultation setting out the detailed regulatory framework for the UK’s new ESG ratings regime. The proposals combine baseline FCA rules with tailored requirements covering transparency, governance, conflicts of interest, and stakeholder engagement. The consultation is open until 31 March 2026 and final rules are expected in Q4 2026, with the regime going live on 29 June 2028.

    Context

    The consultation follows HM Treasury’s secondary legislation bringing ESG rating providers within the FCA perimeter. The FCA seeks to reduce harms arising from inconsistent or opaque ESG ratings and to align the regime with IOSCO recommendations.

    Key takeaways

    Given that this will be a newly regulated sector, the FCA are proposing to do the following:

    • Apply many existing baseline rules to rating providers that apply to most other FCA-regulated firms, ensuring that there is a consistent approach. Some of the existing baseline standards include the following:
    • Threshold Conditions (COND): The minimum conditions, set out in the Financial Services and Markets Act 2000 (FSMA), that a firm must satisfy, and continue to satisfy, to get and keep its permission. The TCs are not part of this consultation, but the FCA is open to feedback on applying COND to ESG rating providers.
    • Principles for Business (PRIN): A general statement of the fundamental obligations that firms must comply with at all times. The FCA is further proposing that ESG rating providers must always comply with Principle 7 on “Communications with clients”, while also noting that ESG rating providers cannot treat their clients as ‘eligible counterparties’ for the purposes of PRIN 3.4.1R and PRIN 3.4.2R.
    • Systems and Controls (SYSC): Sets out how firms must organize their businesses, manage risk and maintain effective internal systems and controls. One of its purposes is to underline Principle 3: ‘A firm must take reasonable care to organize and control its affairs responsibly and effectively, with adequate risk management systems’.
    • Senior Managers and Certification Regime (SM&CR): How firms must allocate responsibilities, certify key staff and apply conduct rules to promote accountability and good governance. The proposal for SM&CR is to classify ESG rating providers as “Core Firms” under SM&CR, unless a regulated firm undertakes other activities and has been categorized as an Enhanced firm will keep this Enhanced status, even if it also provides ESG ratings.
    • General Provisions (GEN): General rules that apply to all firms, including statutory disclosure statements and use of the FCA name or logo.
    • Introduce tailored rules where existing baseline requirements (mentioned above) are not appropriate or not proportionate to address the risks of harm. It is important to note, is that these rules are building on the IOSCO recommendations. These rules focus on the following areas:
      • Transparency: Minimum disclosure requirements for methodologies, data sources and objectives, so users better understand the ratings and rated entities understand how they are assessed.
      • Systems and Controls: Requirements for robust arrangements to ensure the integrity of the ratings process, including quality control, data validation and methodology reviews.
      • Governance: Requirements to maintain operational responsibility over the ratings process, including any outsourcing, to ensure appropriate oversight and compliance with the regime.
      • Conflicts of interest: Requirements to identify, prevent, manage, and disclose conflicts of interest at the organizational and personnel level, to maintain the ratings’ independence and integrity.
      • Stakeholder engagement: Requirements to provide rated entities with the opportunity to correct factual errors, procedures to allow other stakeholders to provide feedback and a fair complaints-handling procedure

    Source: FCA Consultation Paper (p.7), Overview of proposed regime

    Next steps

    The FCA is welcoming feedback on the draft rules and any questions. The deadline to respond to the consultation is 31 March 2026. The FCA expects to finalize the rules by Q4 2026. The FCA authorizations gateway intends to open in June 2027. The regime go-live is on 29 June 2028. An overview of the timeline can be found in the Consultation Paper on page 8.

    Brunei launches Sustainable Finance Roadmap to drive ESG integration

    The Brunei Darussalam Central Bank (BDCB) has introduced the Sustainable Finance Roadmap (SFR) to guide the financial sector in embedding environmental, social, and governance (ESG) considerations into financial practices. The roadmap aims to support the country’s transition to a low-carbon, climate-resilient economy and strengthen financial stability through sustainability integration.

    Context

    The SFR aligns with Brunei’s broader sustainability agenda outlined in three key policy documents:

    • Brunei National Climate Change Policy (BNCCP) – strategies for a low-carbon, climate-resilient economy.
    • Economic Blueprint for Brunei Darussalam – aspirations for a dynamic and sustainable economy under Wawasan Brunei 2035.
    • Financial Sector Blueprint (FSBP) 2016–2025 – vision for a competitive and innovative financial sector.

    Key takeaways

    • Definition: Sustainable finance under the SFR integrates ESG factors into financial decision-making to promote sustainable growth and long-term social well-being.
    • Vision: A sustainable and climate-resilient financial sector.
    • Purpose: Provide strategic direction for ESG adoption across financial institutions.
    • Time Horizon: 2025–2030 (6 years).
    • Goals:
    1. Increase readiness to manage sustainability-related risks.
    2. Facilitate development of sustainable financial products and services.
    3. Enhance adoption of ESG practices in business models and strategies.
    1. Robust Sustainability Risk Management Framework – strengthen capabilities and policies to manage ESG risks.
    2. Innovative Sustainable Products and Services – promote financial products supporting national sustainability initiatives.
    3. International Cooperation – boost Brunei’s role in regional and global sustainable finance efforts.
    4. Knowledge, Skills, and Talent Development – build capacity among regulators, industry, and consumers for ESG integration.

    Next steps

    • Implementation of the roadmap begins in 2025, with milestones set through 2030.
    • Financial institutions are expected to align strategies with the roadmap and develop ESG-compliant products.
    • BDCB will issue supporting policies and frameworks to operationalize the roadmap’s pillars.

    Bloomberg

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  • December Global Regulatory Brief: Risk, capital and financial stability | Insights | Bloomberg Professional Services

    APRA finalises changes to phase out Additional Tier 1 capital instruments

    The Australian Prudential Regulation Authority (APRA) has finalised consequential amendments to its bank prudential framework to phase out Additional Tier 1 (AT1) capital instruments – also known as hybrid bonds – as eligible regulatory capital.

    Background

    On 21 September 2023, APRA had released a discussion paper on the challenges of using AT1 capital instruments in a potential bank stress scenario in an Australian context. This came after the Council of Financial Regulators (CFR) had flagged that ‘international experience has highlighted the importance of crisis management tools, including Additional Tier 1 capital operating as intended and guarantee schemes being able to provide depositors timely access to funds’.

    On 10 September 2024, APRA released a discussion paper that outlined potential amendments to APRA’s prudential framework to ensure that the capital strength of the Australian banking system operates more effectively in stress. This included proposing to replace bank-issued AT1 capital instruments with more reliable and effective forms of regulatory capital.

    In December of last year, APRA had confirmed its decision to phase out AT1. That was accompanied by a letter whose purpose it was to confirm APRA’s approach, minimise uncertainty, and to support an orderly transition. Among others, APRA made clear that it would further consider the impact of the removal of AT1 on other prudential requirements and determine whether any amendments should be proposed.

    On 8 July of this year, APRA had released a consultation paper on implementing APRA’s decision to phase out AT1 capital instruments. The paper also proposed consequential amendments to APRA’s prudential and reporting frameworks.

    Today, APRA confirmed that existing AT1 will be phased out gradually to ensure an orderly transition and limit any immediate impacts on issuers or investors. APRA expects all AT1 issued by banks to be phased out by 2032.

    There will be no changes to the existing legal terms, including subordination, of these outstanding instruments.

    The regulator also made the accompanying changes to its prudential framework to facilitate the transition, including a reduction of the minimum leverage ratio requirement from 3.5 to 3.25%, measured on a Common Equity Tier 1 (CET1) capital basis, in order to avoid consequential tightening of the minimum leverage ratio. The new prudential standards and guidance will come into effect on 1 January 2027. APRA expects banks to be compliant with the updated reporting requirements for the March 2027 quarter reporting period.

    The anticipated benefits of the phasing out of AT1 are:

    • improved stabilization in a crisis and reduced contagion risk. International experience has shown that AT1 capital does not fulfil a stabilizing function in a crisis due to the complexities of using it and the risk of causing contagion;
    • enhanced proportionality by lowering the cost of capital for smaller banks relative to larger banks; and
    • reduced compliance costs for banks by simplifying the framework and removing a capital instrument that can impose additional design, marketing and issuance costs, particularly for small banks.

    APRA will allow banks to replace AT1 predominantly with cheaper and more reliable forms of capital that would absorb losses more effectively in times of stress.

    UAE enacts new AML law

    The UAE has issued a new AML/CTF law, replacing the 2018 framework, and introducing significant updates to the UAE’s legal framework on AML/CFT and proliferation financing. It aligns the UAE’s laws more closely with Financial Action Task Force (FATF) standards and addresses identified gaps in risk-based supervision, enforcement powers, and virtual asset regulation. The law strengthens institutional coordination, clarifies liability for legal persons, and enhances the capacity for both domestic and international cooperation.

    Key points and proposals

    • Broader Definitions: Expanded definitions of money laundering, predicate offences (including tax crimes), and proliferation financing (Art. 2–3).
    • Legal Person Liability: Legal persons are now directly liable for AML/CFT offences committed in their name or interest (Art. 4, 27).
    • Virtual Assets: Explicit coverage of virtual assets and service providers, including reporting and licensing requirements (Art. 1, 19–20, 30).
    • Beneficial Ownership: Strengthened transparency and disclosure obligations for beneficial owners, including criminal penalties for non-compliance (Art. 19, 35).
    • Expanded Enforcement Powers: The Financial Intelligence Unit and law enforcement are granted enhanced powers for freezing, seizure, and undercover operations (Art. 5–9).
    • Administrative Penalties: Supervisory authorities can impose fines up to AED 5 million per violation, with revocation of licenses for repeat or serious breaches (Art. 17).
    • International Cooperation: Provisions facilitate rapid exchange of information and recognition of foreign confiscation orders (Art. 21–22).

    Implications and next steps

    The law entered into force two weeks after its publication (i.e. mid-October 2025). Executive Regulations will follow via Cabinet resolution to clarify implementation details. Businesses—especially financial institutions, DNFBPs, and virtual asset service providers—must prepare for stricter supervision, enhanced due diligence obligations, and proactive reporting requirements. Legal entities should update internal controls and compliance programs to align with the new law.

    The NZFMA updates insider trading guidance

    The FMA issues a revised educational information sheet on insider trading

    The revised sheet replaces a previous report dated August 2025 and seeks to support stronger practice on insider trading across the investment industry, following industry engagement.

    Further details

    In its mid-year Financial Conduct Report, the FMA had signalled its concerns regarding insider trading, following a steady increase in insider trading referrals from NZ RegCo.

    The information sheet outlines the view of the FMA on how the statutory prohibitions against insider trading under the Financial Markets Conduct Act 2013 may apply to situations where a person trades in a listed issuer (B) while in possession of non-public information relating to another listed issuer (A) – a practice sometimes referred to as ‘shadow insider trading’.

    It replaces a previous report dated August 2025 titled ‘Shadow Insider Trading: Regulatory expectations and emerging conduct risk’.

    Stated Louise Unger, Executive Director for Response and Enforcement:

    “This information sheet is informed by industry feedback on the FMA’s approach following inquiries made by the FMA earlier in the year into the trading conduct of two institutional investors. The FMA decided to take an educative approach, rather than an intervention, to clarify for industry how the insider trading prohibitions may apply in these types of circumstances. We do not want the safeguards around this type of insider trading to deter legitimate market activity.

    The updated November information sheet includes risk mitigation strategies that may help investors manage their risk.”

    Bloomberg

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  • December Global Regulatory Brief: Trading and markets | Insights | Bloomberg Professional Services

    EU Commission launches major package to fully integrate EU financial markets

    The EU Commission presented the legislative package on market integration and efficient supervision to tackle regulatory and supervisory barriers within the EU that give rise to the fragmentation and underperformance of EU capital markets. It is the flagship initiative under the Savings and Investments Union (SIU) Strategy, and proposes a significant revamp of market structure and supervision with amendments to MIFID/R, UCITS, AIFMD, EMIR, CSDR, CBFD, ESAs Regulation, DLT Pilot, MICAR and SFD.

    Context

    More integrated capital markets are essential to support economic growth and achieving strategic priorities such as increased competitiveness. EU financial markets remain significantly fragmented, small and lack competitiveness, missing out on potential economies of scale and efficiency gains. Financial institutions still face varying requirements and practices across Member States, hindering cross-border operations and restricting opportunities for both citizens and businesses, negatively impacting the economy and the EU’s competitiveness.

    Proposed measures

    • Removing obstacles to market integration and leveraging scale: The package aims to eliminate barriers to integration in trading, post-trading, and asset management. It seeks to enable market participants to operate more seamlessly across Member States, thus reducing cost differences between domestic and cross-border transactions. Proposed measures include enhancing passporting opportunities for Regulated Markets (RMs) and Central Securities Depositories (CSDs), introducing ‘Pan-European Market Operator’ (PEMO) status for operators of trading venues to streamline corporate structures and licenses into a single entity or single license format, and streamlining the cross-border distribution of investment funds (UCITS and AIFs) in the Union.
    • Facilitating innovation: The package focuses on removing regulatory barriers to innovation related to distributed ledger technology (DLT). It adapts the regulatory framework to support these technologies and amends the DLT Pilot Regulation (DLTPR) to relax limits, increase proportionality and flexibility, and provide legal certainty, thus encouraging the adoption of new technologies in the financial sector.
    • Streamlining and enhancing supervision: Improvements to the supervisory framework are closely linked to the removal of regulatory barriers. The package aims to address inconsistencies and complexities from fragmented national supervisory approaches, making supervision more effective and conducive to cross-border activities, while being responsive to emerging risks. This includes transferring direct supervisory competences over significant market infrastructures such as certain trading venues, Central Counterparties (CCPs), CSDs, and all Crypto-Asset Service Providers (CASPs) to the European Securities and Markets Authority (ESMA) and enhancing ESMA’s coordination role for the asset management sector.
    • Simplification and burden reduction: As seen in previous SIU measures, the package will simplify the capital markets framework further by converting directives into regulations, streamlining level 2 empowerments, and reducing national options and discretions to prevent gold-plating.

    Next steps

    The European Parliament and the Council of the EU (which brings together member states) will now kick off the negotiations on the final text of the rules. Legislative procedures generally last around 24 months, but given the sensitivity of areas covered in these proposals negotiations might well take longer.

    SEC Chair outlines reform agenda for public markets

    Securities and Exchange Commission (SEC) Chair Paul Atkins gave a speech outlining his regulatory ambition to revitalize U.S. public markets through a series of reforms.

    Context

    Chair Atkins underscored the importance of a regulatory framework that allows for a wide range of companies to raise capital through an initial public offering (IPO). Moreover, he described the decline in the number of companies listed on U.S. Exchanges since the mid-1990s as a “cautionary tale of regulatory creep”.

    Disclosures

    Chair Atkins stated that reform of the SEC’s disclosure rules is required (i) to better root disclosure obligations in the concept of financial materiality and (ii) to scale requirements with a company’s size and maturity.

    • Chair Atkins identified executive compensation disclosure requirements as one example of an area where reform is needed, following recent industry engagement that highlighted how disclosure length and complexity have limited usefulness.
    • Chair Atkins stressed that SEC disclosure rules should scale with the company’s size and maturity, and that reconsideration of the thresholds that separate “large” companies, that are subject to all disclosure rules, from “small” companies, that are subject to only some, is overdue.
    • For newly public companies, the “IPO on-ramp” could be developed further by allowing companies to remain “on-ramp” for longer than the first year currently permitted.

    Other areas of reform

    • Chair Atkins stressed that he aims to “de-politicize” shareholder meetings and return their focus to voting on director elections and significant corporate matters.
    • Chair Atkins identified the importance of reform to the litigation landscape for securities lawsuits in order to remove “frivolous complaints” while maintaining an avenue for shareholders to continue to bring forth meritorious claims.

    Looking ahead

    The SEC will pursue a series of reforms over the coming months aimed at improving U.S. public markets.

    FCA consults on framework for UK equity Consolidated Tape

    Summary

    The Financial Conduct Authority (FCA) has launched a consultation on proposals to establish a regulatory framework for introducing a UK equity Consolidated Tape (CT), which will collect and distribute both post-trade data (including prices and trading volumes) and attributed pre-trade market data on equities from all UK trading venues and OTC trades. Alongside the consultation, the FCA has launched an engagement process for prospective consolidated tape providers.

    Context

    The initiative builds on the UK Wholesale Markets Review and forms part of the FCA’s efforts to enhance transparency and efficiency in UK financial markets. By establishing a consolidated source of equity market data, the FCA aims to increase the use of UK equity trade data and provide a comprehensive view of UK equity market liquidity.

    Key takeaways

    Design Proposals

    • The FCA proposes a single equity CTP, selected via a procurement and authorisation process. The CT would include:
    • Post-trade data for all equities traded in the UK (the FCA initially evaluated four potential tape models ranging from post-trade-only to deep multi-level pre-trade data); and
    • Attributed pre-trade best bid and offer (BBO) from lit trading venues.

    The CP also proposes latency requirements for both data contributors and the CTP. Principally, data contributors must transmit information to the CTP within 50 milliseconds of timestamp (with a 95% confidence interval). The CTP must publish received data within 100 milliseconds, with a 99.99% daily confidence interval and maintain 99.95% uptime during market hours. The FCA will monitor data quality metrics, latency and completeness per contributor and may require remedial actions or publish aggregate results.

    Economic Model

    • The FCA notes that data contributors (venues and APAs) must provide data free of charge to the CTP. While the CTP may charge users commercially, licensing must be transparent and non-discriminatory. The FCA is also not proposing a requirement for “free after 15 minutes” data release. Revenue sharing with data contributors is not proposed but the FCA notes this may be reconsidered post-implementation and there is also no mandatory consumption requirement for the CT.

    Data Coverage and Governance

    • The FCA notes the CT should be as comprehensive as possible and should include data from all UK trading venues trading a relevant instrument and all APAs publishing OTC trade reports in that instrument. In-scope instruments are: shares, exchange-traded funds (ETFs), depositary receipts, certificates. Trading venues and APAs must also connect to the CTP and provide data from the start of operations.
    • Equity pre-trade transparency requirements: trading venues must supply a standard set of fields (price, volume, instrument ID, side, and timestamps) so that the CTP can calculate and publish a single attributed BBO across the market.
    • Equity post-trade transparency requirements: the FCA proposes to use the existing information under UK MiFID as the input data to a UK CTP. APAs will not be required to send to the CTP information about the time at which they received details of a trade from a client.
    • Intermediaries executing equity orders will need to consider if the equity CT’s data can improve their execution arrangements and monitoring compared to the data they already use.
    • The CTP must publish: regulatory data on the status of instruments and trading systems; a database of historical post-trade data (updated daily); and a database of pre-trade BBO data, in the same formats as post-trade data.
    • The CTP must maintain effective administrative arrangements to prevent conflicts of interest with clients, redistributors, and data contributors. Quarterly reports will also be required from the CTP to the FCA on data quality and performance and the CTP must also implement mechanisms for automated alerts on potentially erroneous data.

    Next steps

    Feedback on the consultation is due by 30 January. The FCA will review industry responses before sharing a policy statement in the first half of 2026, with the expectation that the CT will be operational in 2027. The FCA has also highlighted that it plans to conduct a post-implementation review two years after the CT launch.

    MAS finalises its equities market review

    Singapore Finalises Equities Market Review: SGX-Nasdaq Dual Listing Bridge, S$30m Value Unlock Package, and EQDP Expansion.

    Summary

    The Monetary Authority of Singapore (MAS) has concluded the Equities Market Review Group’s work with a final report outlining major reforms to enhance the competitiveness of Singapore’s equities market. Key initiatives include a proposed SGX-Nasdaq dual listing bridge, a S$30 million “Value Unlock” programme, and the appointment of six new asset managers under the Equity Market Development Programme (EQDP), bringing total allocations to S$3.95 billion.

    Context

    The Equities Market Review Group was established to assess and recommend measures to strengthen Singapore’s position as a leading equities hub. Earlier tranches of reforms were announced in February and July 2025. The final report consolidates these efforts and introduces new initiatives aimed at improving market connectivity, liquidity, and investor engagement.

    Key takeaways

    • SGX-Nasdaq Dual Listing Bridge:

    A proposed cross-border listing framework between SGX and Nasdaq will allow high-growth Asian companies (market cap ≥ S$2 billion) with global ambitions to raise capital in both regions. MAS will work with SGX to develop a harmonised prospectus disclosure regime aligned with U.S. standards to reduce regulatory friction. The new Board is expected to launch by mid-2026.

    • S$30 Million “Value Unlock” Programme:

    Funded via the Financial Sector Development Fund (FSDF), this initiative supports listed companies in enhancing shareholder value through three pillars:

    • Capabilities: Grants (“Equip” and “Elevate”) to build competencies in strategy, capital optimisation, and investor relations.
    • Communication: Toolkits, outreach, media engagement, and enhanced research coverage under the GEMS scheme.
    • Communities: Peer learning platforms such as the SID Chairpersons Guild to promote best practices.

    MAS appointed six new asset managers—Amova, AR Capital, BlackRock, Eastspring, Lion Global, and Manulife—under the EQDP, with S$2.85 billion in new placements. Combined with the first batch (Avanda, Fullerton, JP Morgan), total allocations now stand at S$3.95 billion. These managers will support IPOs and broaden investor participation in Singapore equities.

    • Market Infrastructure Enhancements:
      • Market Making: Incentives and grants to support liquidity in small- and mid-cap stocks, with details due in 1Q 2026.
      • Custody Reform: SGX to consult on broker custody accounts to modernise post-trade infrastructure and enable services like robo-investing and fractional trading.
      • Board Lot Size Reduction: SGX plans to reduce lot size for securities priced above S$10 from 100 to 10 units to improve retail access.

    Next steps

    • MAS will establish an Equity Market Implementation Committee, co-chaired by MAS MD Chia Der Jiun and SGX CEO Loh Boon Chye, to oversee execution of the measures.
    • Regulatory consultations on the dual listing framework and custody reforms are expected in 1Q 2026.
    • Further EQDP appointments will be reviewed in 2Q 2026.

    Bloomberg

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  • November Global Regulatory Brief: Green finance | Insights | Bloomberg Professional Services

    Key takeaways

    • Scope reduction:
      • Sustainability reporting will apply only to firms with over 1,750 employees and net turnover above €450 million.
      • Due diligence duties will apply solely to companies with over 5,000 employees and turnover above €1.5 billion.
    • Simplified reporting standards:
      • Reporting requirements under the CSRD will involve fewer qualitative disclosures; sector-specific standards will become voluntary.
      • Large firms cannot compel smaller suppliers to provide more data than required by voluntary templates, protecting SMEs from cascading obligations.
    • Due diligence obligations:
      • A risk-based approach will replace blanket requirements. Large companies may rely on existing information and engage smaller partners only as a last resort.
      • The requirement to prepare climate transition plans aligned with the Paris Agreement will be removed.
      • Liability will be established and enforced at national level only (no EU-wide requirement).
    • Digital portal:
      • The European Commission will establish an EU-wide online portal offering templates, guidelines, and free access to all sustainability reporting obligations.
      • The platform will complement the European Single Access Point (ESAP) initiative.

    Next steps

    Trilogue negotiations between the Parliament, EU Member States, and European Commission will begin on 18 November 2025, with the objective of finalising the legislation by end-2025.

    Singapore government launched initiatives to support the development of high-integrity carbon markets

    Summary

    The Singapore Government has announced a series of coordinated initiatives to advance the development of high-integrity carbon markets, reinforcing the city-state’s role as a leading regional hub for climate finance and sustainability solutions. The initiatives, jointly led by the National Climate Change Secretariat (NCCS), Ministry of Trade and Industry (MTI), Enterprise Singapore (EnterpriseSG), and the Monetary Authority of Singapore (MAS), focus on three key areas: providing guidance for companies on the use of carbon credits, fostering an industry-led buyers’ coalition to drive credible demand, and introducing a new grant scheme to support financial institutions’ participation in carbon markets.

    Together, these measures aim to catalyse market growth, strengthen confidence in carbon credit integrity, and channel capital into credible projects that contribute to the global transition towards net zero.

    In more detail

    Carbon markets play an increasingly important role in facilitating global decarbonisation by mobilising private capital towards emission reduction and removal projects. However, their growth has been constrained in recent years by weak demand, limited supply of high-quality credits, and gaps in market infrastructure. To address these challenges, Singapore is introducing a comprehensive framework that strengthens both demand and supply while enhancing transparency and governance.

    A key component of this framework is the publication of the Voluntary Carbon Market (VCM) Guidance, developed by NCCS, MTI, and EnterpriseSG. The guidance provides a clear framework for companies on how to incorporate carbon credits into their decarbonisation strategies in a credible and transparent manner. It outlines principles for identifying high-integrity carbon credits, determining appropriate usage, and disclosing credit utilisation within corporate sustainability reporting. Developed in consultation with industry experts, academics, and international organisations, the guidance will be regularly reviewed to ensure it remains aligned with global best practices and evolving standards.

    To complement the guidance, Enterprise Singapore is engaging with major corporates across Asia to form an industry-led buyers’ coalition that aligns and aggregates regional demand for high-quality carbon credits. The coalition is expected to enhance liquidity, provide stronger demand signals to project developers, and help scale the pipeline of credible carbon projects across Asia and beyond. Details on its structure and implementation are expected in 2026.

    In parallel, the Monetary Authority of Singapore (MAS) will launch a Financial Sector Carbon Market Development Grant to strengthen the financial sector’s role in carbon markets. Financial institutions play a vital part in the carbon value chain — from project financing and structuring to insurance, trading, and risk management. However, early participation has been limited by high upfront costs and the complexity of developing new capabilities in this emerging field. The new grant, supported by S$15 million over three years until 2028 from the Financial Sector Development Fund, will help offset these challenges. It will support the establishment or expansion of financial institution teams engaged in carbon market activities, as well as defray costs associated with developing innovative financing structures, conducting due diligence and verification, managing risks, and purchasing carbon credit insurance. Applications will open on 1 November 2025, with details on eligibility and process available through the MAS website.

    Through these initiatives, Singapore seeks to build a robust and trusted carbon market ecosystem, underpinned by integrity, transparency, and strong participation from both corporates and financial institutions. This effort builds on previous government actions, including the Carbon Project Development Grant launched at COP29 and ongoing Article 6 partnerships with international counterparts. Collectively, they form part of a broader strategy to scale up credible carbon finance and promote sustainable economic growth.

    Next steps

    The Singapore Government agencies will work closely with industry to promote adoption of the new VCM guidance and encourage companies to align their decarbonisation strategies with its principles.

    For the financial sector, MAS will begin accepting applications for the Carbon Market Development Grant in November, prioritising projects that demonstrate strong potential to build market capacity or innovation. This phase is expected to lay the groundwork for sustained institutional participation in carbon financing, trading, and risk management.

    EnterpriseSG will continue discussions with leading corporates to finalise the framework for the buyers’ coalition, with the goal of launching it in 2026. The coalition is expected to create a coordinated demand base that drives investment in verified, high-integrity carbon projects.

    Over the medium term, Singapore will deepen collaboration with international partners through initiatives such as Article 6 cooperation and the Coalition to Grow Carbon Markets, enhancing cross-border trust and supporting the development of scalable, transparent carbon markets.

    These efforts reinforce Singapore’s long-term vision of a credible, efficient, and high-integrity carbon market ecosystem that supports global climate goals while positioning the financial and corporate sectors for sustainable growth.

    HKMA to issue new guidance on bank climate risk management good practices

    The HKMA is preparing to roll out additional supervisory guidance on managing climate-related financial risks, highlighting three key trends observed in the banking industry.

    In more detail

    In a recent speech, Hong Kong Monetary Authority Executive Director Carmen Chu confirmed that climate risk is a financial risk impacting bank operations, collateral values, and cash flows. The HKMA is committed to solidify Hong Kong’s position as a leading sustainable finance hub by building a climate-resilient financial system, and support sustainable development in Asia and further afield. Central to this is to build a financial system that is truly climate-resilient. The Supervisory Policy Manual (GS-1) offers guidance on the essentials of climate-related risk management for banks. and two rounds of climate risk stress tests.

    HKMA has supplemented this guidance by issuing circulars sharing tools and best practices that exceed minimum requirements. Furthermore, both the pilot and second rounds of sector-wide climate risk stress tests have been used to help banks enhance their methods for measuring and assessing climate exposures.

    Following recent industry consultations and examinations, the HKMA plans to issue new guidance focusing on good practices adopted by Authorized Institutions, grouped under three themes:

    • Quantitative Frameworks: A move toward measuring climate risk with numbers, such as using metrics and limits in risk appetite statements, and leveraging financial technology (fintech) for more efficient risk management.
    • Data-Driven Approaches: Banks are bridging data gaps by utilizing tailored ESG questionnaires, alternative datasets, and proxy methods to incorporate climate factors into credit decisions.
    • Holistic Views: Banks are increasingly embedding climate considerations across all traditional risk disciplines, including operational, market, liquidity, and reputational risks. The Whole Industry Simulation Exercise (WISE) focus on “extreme weather” reinforces the need for holistic operational resilience.

    What’s next

    The HKMA is set to release additional guidance that will provide the best practices observed in the industry to further strengthen climate risk management among banks.

    HKMA to issue new guidance on bank climate risk management good practices

    The HKMA is preparing to roll out additional supervisory guidance on managing climate-related financial risks, highlighting three key trends observed in the banking industry.

    In more detail

    In a recent speech, Hong Kong Monetary Authority Executive Director Carmen Chu confirmed that climate risk is a financial risk impacting bank operations, collateral values, and cash flows. The HKMA is committed to solidify Hong Kong’s position as a leading sustainable finance hub by building a climate-resilient financial system, and support sustainable development in Asia and further afield. Central to this is to build a financial system that is truly climate-resilient. The Supervisory Policy Manual (GS-1) offers guidance on the essentials of climate-related risk management for banks. and two rounds of climate risk stress tests.

    HKMA has supplemented this guidance by issuing circulars sharing tools and best practices that exceed minimum requirements. Furthermore, both the pilot and second rounds of sector-wide climate risk stress tests have been used to help banks enhance their methods for measuring and assessing climate exposures.

    Following recent industry consultations and examinations, the HKMA plans to issue new guidance focusing on good practices adopted by Authorized Institutions, grouped under three themes:

    • Quantitative Frameworks: A move toward measuring climate risk with numbers, such as using metrics and limits in risk appetite statements, and leveraging financial technology (fintech) for more efficient risk management.
    • Data-Driven Approaches: Banks are bridging data gaps by utilizing tailored ESG questionnaires, alternative datasets, and proxy methods to incorporate climate factors into credit decisions.
    • Holistic Views: Banks are increasingly embedding climate considerations across all traditional risk disciplines, including operational, market, liquidity, and reputational risks. The Whole Industry Simulation Exercise (WISE) focus on “extreme weather” reinforces the need for holistic operational resilience.

    What’s next 

    The HKMA is set to release additional guidance that will provide the best practices observed in the industry to further strengthen climate risk management among banks.

    The Central Bank of Bahrain proposes new rules to introduce Sustainable and Sustainability-Linked Debt Instruments

    Summary

    The Central Bank of Bahrain (CBB) is proposing new regulatory rules to introduce and govern the issuance of Sustainable Debt Securities (SDS) and Sustainability-Linked Debt (SLD) instruments in Bahrain. These rules are intended to align with international sustainability standards, enhance market transparency, and support Bahrain’s broader ESG goals.

    The consultation invites feedback on the proposed additions to Volume 6 of the CBB Rulebook, which focuses on the offering of securities and collective investment undertakings.

    Key proposals include

    New Chapter on Sustainable Instruments: Addition of a new chapter in Volume 6 (Offering of Securities Module) covering requirements for SDS and SLD instruments.

    Eligible Instruments: Applies to bonds, sukuk, and similar debt instruments that are either:

    • Labelled as “green,” “social,” or “sustainability” (SDS), or
    • Sustainability-linked (SLD) with ESG performance targets.

    Disclosure Requirements: Issuers must provide pre-issuance frameworks and post-issuance reports aligned with international principles (e.g., ICMA Green Bond Principles, Sustainability-Linked Bond Principles).

    Verification and Reporting: Mandatory third-party external reviews (pre- and post-issuance). Ongoing annual updates are required for transparency.

    SLD-Specific Obligations: For SLDs, key performance indicators (KPIs), sustainability performance targets (SPTs), and impact of failure to meet SPTs must be clearly disclosed.

    Label Use: Use of sustainability-related labels must be justified with robust documentation.

    Next steps

    The CBB is soliciting comments from stakeholders until 30 October 2025.

    Bloomberg

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  • November Global Regulatory Brief: Risk, capital and financial stability | Insights | Bloomberg Professional Services

    Regulatory implications

    Unlike banks, nonbanks mostly operate under lighter prudential regulation and often provide limited disclosure of their assets, leverage, and liquidity which makes vulnerabilities and interconnections harder to detect.

    • The IMF notes the approach of regulators in the UK and Australia where they have begun integrating system-wide stress tests and scenario analysis to better understand the dynamics at play.
    • For banks, the IMF underscores the importance of implementing the Basel III standards and advancing recovery and resolution frameworks to safeguard the sector against contagion from weak banks.
    • For non-banks, the IMF calls for enhanced supervision through more extensive data collection, improving forward-looking analysis, and strengthening co-ordination between supervisors.
    • The IMF calls for improving and expanding the availability and usability of liquidity management tools for open-ended investment funds to address pressures and forced bond sales by non-banks.

    OJK issues two new regs on capital and liquidity structure

    OJK Strengthens Capital and Liquidity Structure with Two New Regulations for Islamic Banks

    Summary

    Jakarta, October 31, 2025 — The Financial Services Authority of Indonesia (OJK) has issued two new regulations aimed at enhancing the resilience and competitiveness of the national Islamic banking industry:

    1. OJK Regulation (POJK) No. 20 of 2025 on the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) for Islamic Commercial Banks (BUS) and Islamic Business Units (UUS).
    2. OJK Regulation (POJK) No. 21 of 2025 on the Leverage Ratio for Islamic Commercial Banks.

    These regulations reinforce capital structure, liquidity management, and long-term funding for Islamic banks, aligning Indonesia’s Islamic finance system with international standards under Basel III and the Islamic Financial Services Board (IFSB).

    In more detail

    POJK No. 20 of 2025 – Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)

    This regulation requires Islamic Commercial Banks (BUS) and Islamic Business Units (UUS) to maintain both the LCR and NSFR at a minimum of 100 percent, ensuring robust short-term liquidity and stable long-term funding. Implementation will be phased in from 2026 to 2028 in line with industry readiness.

    The rule mandates regular calculation, monitoring, and reporting of liquidity and funding adequacy — both on an individual and consolidated basis — to ensure transparent and measured liquidity risk management.

    Modeled after Basel III: The Liquidity Coverage Ratio and Liquidity Risk Monitoring Tools and The Net Stable Funding Ratio, and guided by IFSB’s Guidance Note GN-6, this regulation aims to align Indonesia’s Islamic banking framework with international best practices.

    Ultimately, this is expected to enhance liquidity discipline, improve asset–liability composition, and strengthen banks’ ability to withstand multiple stress scenarios — all without compromising their intermediation function.

    This initiative is part of the 2023–2027 Islamic Banking Development and Strengthening Roadmap (RP3SI), particularly under Pillar I (industry resilience) and Pillar V (regulation, licensing, and supervision).

    POJK No. 21 of 2025 – Leverage Ratio

    This regulation introduces a new capital adequacy indicator to strengthen the resilience of Islamic Commercial Banks by requiring a minimum leverage ratio of 3 percent, consistent with global Basel III and IFSB-23 standards.

    The leverage ratio enhances the industry’s awareness of maintaining proportional business growth relative to its capital base, independent of risk-weighted asset adjustments. This helps banks anticipate potential deleveraging impacts across various scenarios.

    The regulation, effective September 17, 2025, requires:

    • First reporting: end of Q1 2026
    • First public disclosure: September 2026
    • Banks failing to meet the minimum threshold must submit a corrective action plan to OJK. Non-compliance may result in administrative sanctions, including fines or non-monetary penalties.

    This move supports the creation of a strong capital foundation for Islamic Commercial Banks, enabling a healthy, globally competitive, and resilient Islamic banking system.

    Next steps

    • For BUS and UUS:
      • Begin internal readiness assessments for LCR, NSFR, and leverage ratio calculations.
      • Develop systems and processes for phased reporting between 2026–2028.
      • Integrate risk management frameworks aligned with Basel III and IFSB standards.
    • For OJK:
      • Continue supervision and capacity building to ensure smooth transition and compliance.
      • Facilitate harmonization of Islamic financial reporting and monitoring tools.

    These new regulations mark a significant milestone in building a resilient, efficient, and internationally competitive Islamic banking ecosystem in Indonesia.

    HKMA consults on new capital requirements for cryptoasset exposures

    The HKMA is seeking industry feedback on a proposed prudential framework for cryptoasset exposures held by locally incorporated authorized institutions, aligning with global standards.

    In more detail

    The Hong Kong Monetary Authority (HKMA) issued a letter to consult the banking industry on proposed changes to the Supervisory Policy Manual (SPM) module CA-G-1, on the capital adequacy regime.

    The proposal introduces a comprehensive prudential framework for Authorized Institutions’ (AIs) exposures to cryptoassets. It outlines a risk-based approach by categorizing cryptoassets into different groups, assigning differentiated capital treatments. New sections covering the topic include “Credit risk (cryptoasset exposures)” and”Calculation of risk-weighted amounts of cryptoasset exposures.” The revisions are designed to align the capital adequacy requirements with international Basel III standards and also cover derivatives, market risk, and infrastructure-related exposures.

    What’s next

    The consultation period is open until November 24, and the HKMA currently anticipates the revised standards to be implemented starting January 1, 2026.

    UK and Switzerland publish guidance for firms on the Berne Financial Services Agreement (BFSA)

    Summary

    The United Kingdom’s Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) have issued joint guidelines for UK and Swiss firms on implementing the Berne Financial Services Agreement (BFSA). The BFSA establishes mutual recognition of financial services regulation between the UK and Switzerland, allowing cross-border provision of wholesale financial services based on deference to each jurisdiction’s supervisory frameworks. The guidance clarifies notification procedures, eligibility criteria, and reporting obligations for firms operating under the new regime. Similarly, Switzerland’s financial regulator FINMA also published guidelines for interested institutions.

    Context

    The BFSA represents the first bilateral financial services agreement of its kind between the UK and Switzerland since Brexit, formalising regulatory cooperation and equivalence across key sectors such as investment and insurance services. It aims to simplify market access for wholesale and high-net-worth clients while maintaining robust prudential standards and investor protection. The framework also strengthens supervisory collaboration among the FCA, PRA, Bank of England, and Switzerland’s FINMA.

    Key takeaways

    • Mutual Recognition Framework: Each country recognises the other’s regulatory and supervisory systems as achieving equivalent outcomes in covered sectors, promoting market integrity and financial stability.
    • Swiss Investment Services Firms:
      • May provide cross-border investment and ancillary services to UK wholesale clients and high-net-worth individuals without UK authorisation, subject to notification and registration via FINMA’s EHP platform.
      • Must meet conditions on client disclosures, annual reporting (by 30 April), and suitability tests for high-net-worth clients.
      • Required to obtain client consent for regulatory information sharing and ensure segregation of client assets when using sub-custodians.
    • UK Insurance Firms:
      • May offer certain general insurance services into Switzerland without Swiss authorisation, provided they meet solvency and prudential standards equivalent to Solvency II and are registered with FINMA.
      • Must report annually to FINMA (copied to PRA/FCA) and confirm that services are also offered outside Switzerland.
      • Retail and life insurance are excluded; only large corporate clients (meeting at least two of turnover, balance sheet, or employee thresholds) are in scope.
    • UK Investment Services Firms:
      • Must notify the FCA before providing investment services into Switzerland through client advisers on a temporary basis and comply with disclosure obligations for Swiss clients.

    Next steps

    Firms seeking to rely on the BFSA must complete the relevant notification process (via FCA Connect or FINMA’s EHP system) before providing services.

    • Annual reporting deadlines begin in April 2026, covering the 2025 reporting year.
    • The FCA and PRA will publish corresponding rule amendments disapplying conflicting domestic provisions to give full effect to the BFSA.
    • Both regulators encourage firms to review their governance, client disclosure processes, and cross-border operational structures ahead of implementation.

    Bloomberg

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  • November Global Regulatory Brief: Digital finance | Insights | Bloomberg Professional Services

    In more detail

    Summary of the guiding principles and the six pillar recommended under the guidelines include:

    • Regulatory stance: No separate AI law proposed; existing frameworks under the Information Technology Act, the Digital Personal Data Protection Act, consumer protection and sectoral laws to be used, with targeted amendments as necessary.
    • Guiding principles: Seven “sutras” — Trust, People-First, Innovation over Restraint, Fairness & Equity, Accountability, Understandable by Design, and Safety, Resilience & Sustainability.
    • The framework rests on six key pillars:
      • Infrastructure – Expanding access to high-quality data, computing resources, and integration with India’s Digital Public Infrastructure (DPI) to support inclusive and secure AI development.
      • Capacity Building – Promoting AI literacy, education, and skills development for professionals, regulators, and students to strengthen India’s AI talent base.
      • Policy & Regulation – Reviewing existing laws on data protection, copyright, and liability to address AI-specific risks through targeted amendments rather than a new AI law.
      • Risk Mitigation – Establishing India-specific risk and incident-reporting frameworks, encouraging voluntary codes, and deploying techno-legal tools such as content authentication and privacy-preserving technologies.
      • Accountability – Introducing graded liability, transparency reporting, and accessible grievance mechanisms to ensure responsible conduct across the AI value chain.
      • Institutions – Creating an AI Governance Group (AIGG) for coordination, a Technology & Policy Expert Committee (TPEC) for technical advice, and an AI Safety Institute (AISI) for risk assessment and standard-setting.
    • Implementation roadmap:
      • Short term: Set up institutions (AIGG, TPEC, AISI), develop risk frameworks, and adopt voluntary commitments.
      • Medium term: Publish common standards, amend existing laws, pilot regulatory sandboxes, and operationalise an AI incident database.
      • Long term: Review and refine governance mechanisms, introduce new laws if required, and strengthen international cooperation on AI governance.
    • Industry and regulator guidance: Industry expected to comply with existing laws, adopt voluntary codes and transparency reports, and establish grievance mechanisms; regulators advised to avoid compliance-heavy regimes and focus on techno-legal and risk-proportionate measures.

    The guidelines position India’s model as an iterative, evidence-based governance approach leveraging its digital public infrastructure and local datasets to promote inclusive, culturally aligned AI development.

    Next steps

    Government would set up institutions as suggested in the report towards operationalizing the implementation roadmap.

    Singapore bolsters national cybersecurity posture

    Summary

    Singapore is significantly bolstering its national cybersecurity posture by initiating unprecedented classified intelligence sharing with financial institutions and critical infrastructure owners to strengthen defences against state-backed hackers. A new Cyber Resilience Centre will be established to support small and medium-sized enterprises (SMEs) with prevention and recovery. The government is also enhancing supply chain security requirements, and launching frameworks to address risks associated with emerging technologies like quantum computing, AI, and mobile apps.

    In more detail

    Singapore is boosting its cyber defences with several key actions:

    • Proactive government powers: authorities will share classified threat intelligence directly with critical sectors and gain immediate investigation powers, moving beyond a traditional regulator-regulated relationship. Singapore will also partner with firms for threat-hunting and red-teaming exercises.
    • SME support: A Cyber Resilience Centre, launching in 2026, will offer SMEs a one-stop hub for preventive workshops, incident response help, and recovery aid. This addresses a context where over 80% of Singaporean enterprises experienced a cyber incident last year.
    • Modernised standards and supply chain: Updated Cyber Essentials and Cyber Trust marks now cover cloud, operational technology, and AI. ICT vendor security requirements and cybersecurity service provider (CSP) licensing will be tightened.
    • Emerging tech governance: New frameworks and consultations address Quantum Security (Quantum-Safe Handbook, Quantum Readiness Index), Agentic AI (securing autonomous systems), and Mobile App Security (Safe App Portal pilot, App Defense Alliance MOU).
    • Partnerships: Enhanced AI-driven threat intelligence sharing is being established via MOUs with TRM Labs (blockchain intelligence), Google, and AWS, focusing on areas like ransomware tracking. Singapore also renewed its UN-Singapore Cyber Programme for global capacity building.

    Next steps

    Cyber Resilience Centre launch: The centre is expected to begin operations in 2026.

    Public consultations: Consultations are open for the Quantum-Safe Handbook, Quantum Readiness Index (QRI), and the guidelines on securing agentic AI systems until December 31, 2025.

    Safe App Portal pilot: The six-month pilot of the mobile app security scanning tool is underway.

    National strategy: A more comprehensive, long-term national cybersecurity strategy is expected later this year.

    BNM issues discussion paper on asset tokenisation

    Summary

    On 30 Oct, Bank Negara Malaysia released a discussion paper outlining its proposed approach to asset tokenisation in the Malaysian financial sector. The aim is to foster a collaborative, safe and sustainable roadmap for the development of tokenised financial services in Malaysia. BNM invites industry and stakeholder feedback on the key themes, issues for clarification, and alternative proposals. Responses are due by 1 March 2026.

    In more detail

    The discussion paper reflects BNM’s recognition that asset tokenisation — the representation of financial or real-world assets in token form on digital platforms — offers potential benefits for the Malaysian financial ecosystem, including greater efficiency, new business models, and broader financial inclusion. At the same time, BNM emphasises the need to manage risks and ensure financial stability, integrity and consumer protection.

    Key elements of the proposed approach include:

    • High-level principles and use cases: The paper will set out core principles for tokenisation (such as asset backing, transparency, separation of roles, custody, etc) and identify potential use cases — for example, tokenised deposits, programmable payments, supply-chain finance, and other real-world asset tokenisation.
    • Regulatory and developmental approach: BNM emphasises collaboration with industry and other regulators (such as the Securities Commission Malaysia) to co-create frameworks, pilot tokenisation projects and explore how tokenisation may integrate with existing systems (including central bank digital currency (CBDC) considerations) while preserving monetary and financial system stability.
    • Feedback and industry input: The discussion paper invites feedback from stakeholders, asking them to articulate clear rationale, supporting evidence or illustrative examples, and propose areas of clarification or alternative approaches.
    • Safeguards and risk considerations: While innovation is encouraged, BNM flags key risks involving operational technology (e.g., distributed-ledger-technology vulnerabilities), interoperability, anti-money-laundering / counter-terror-financing (AML/CFT), custody, investor protection and system stability.

    Next steps

    • Interested parties should review the discussion paper and submit their feedback via email to tokenisation@bnm.gov.my by 1 March 2026.
    • The broader ecosystem (financial institutions, industry bodies, fintechs) may use this period to form pilot projects or collaborations with BNM’s innovation or sandbox facilities to test tokenisation use cases in a controlled environment.

    Australia’s National AI Centre releases practical guidance

    The National AI Centre (NAIC), part of the Department of Industry, Science and Resources released Guidance for AI Adoption, a practical resource to help Australian business adopt artificial intelligence safely and responsibly.

    Further details

    The guidance responded to feedback from industry seeking clearer, simpler and more actionable advice. It evolves the Voluntary AI Safety Standard and remains aligned with Australia’s AI Ethics Principles, as well as international standards and best practices.

    The guidance is designed to meet businesses where they are on their AI adoption journey:

    Foundations provides practical steps for organisations that are starting with AI, including small businesses. It focuses on aligning AI with business goals, establishing governance and managing risk across 6 practices.

    Implementation Practices supports organisations that are scaling AI or managing more complex systems. It offers detailed technical information to strengthen governance, improve oversight and embed responsible AI across systems, processes and decision-making.

    The guidance is the first update of the Voluntary AI Safety Standard (VAISS), which was published in September of last year. At time of release, it was communicated that NAIC would update the VAISS to extend best practices to AI developers as well as deployers. The update condensed 10 guardrails into 6 essential practices.

    The 2025 Responsible AI Index, released 26 August 2025 had found that only 29% had implemented relevant responsible AI practices.

    Bloomberg

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  • November Global Regulatory Brief: Trading and markets | Insights | Bloomberg Professional Services

    In more detail

    This scheme would provide an exemption for certain venture issuers listed on the TSX Venture Exchange Inc. or the CNSX Markets Inc. from the requirement to file first and third quarter financial reports.

    Context

    The creation of a voluntary semi-annual reporting framework aims to make financial reporting more efficient and cost-effective for eligible issuers.

    Looking ahead

    The CSA proposals are open for comment until December 22, 2025 and the CSA intends to engage in a broader rule-making project related to voluntary semi-annual reporting.

    FCA Consults on New Short Selling Regime

    The UK Financial Conduct Authority (FCA) has launched a consultation on its proposed rules and guidance governing short selling activity. The proposals aim to create a more efficient and proportionate framework that maintains transparency and control over short selling while removing unnecessary burdens on firms.

    Context

    This consultation are based on feedback from HM Treasury’s Short Selling Regulation: Call for Evidence, which concluded that the UK’s shonht selling regime could be largely retained but reformed to reduce disproportionate compliance costs. The consultation also reflects new powers granted to the FCA under the Financial Services and Markets Act 2023, which enables it to establish firm-facing rules replacing assimilated EU law.

    Key proposed changes

    • Position Reporting:
      • Deadline for reporting net short position (NSP) changes extended to 23:59 T+1, giving firms more time to calculate and submit.
      • New guidance will clarify how to calculate NSPs (e.g. issued share capital, timing), and how to report within groups.
      • Firms can apply for a waiver in exceptional cases such as system outages.
    • Covering Requirements:
      • Short sellers must still ensure adequate covering arrangements before trading and retain records for at least five years to strengthen auditability.
    • Reportable Shares List (RSL):
      • Replaces the old exempt list with a new Reportable Shares List identifying shares subject to reporting and covering.
      • Narrower criteria will cut the number of reportable shares.
      • Updated every two years on 1 April (aligned with the EU’s cycle) to simplify cross-border compliance.
    • Market Maker Exemptions:
      • Simplified and faster notification process, with less lead time and reduced information requirements.
      • Aims to make it easier for market makers to rely on exemptions that support liquidity.
    • Public Disclosure:
      • FCA will publish aggregate net short positions (ANSPs) by company, with individual positions anonymised.
      • New guidance will explain how ANSPs are calculated, updated, and corrected.
      • Balances transparency with confidentiality while maintaining regulatory visibility.
    • Handbook and Structural Updates:
      • New Short Selling Sourcebook (SSLS) will consolidate all rules and guidance.
      • Updates to FINMAR, SUP, DEPP, and ENF for consistency with the new regime.
      • Emergency powers retained with a high threshold and clarified via a new Statement of Policy.

    Next steps

    Comments on the consultation (CP25/29) are due by 16 December 2025. Responses may be submitted via the FCA’s online form or in writing to the FCA. Following the consultation, the FCA will finalise and publish the new short selling rules, expected to form the cornerstone of the UK’s post-EU short selling regime.

    ASIC proposes updates to its derivatives clearing rules

    ASIC is seeking feedback on its proposal to remake the ASIC Derivative Transaction Rules (Clearing) 2015 (the 2015 Rules), which are scheduled to sunset on 1 April 2026. Having reviewed the operation of the 2015 Rules to ensure they remain effective and efficient, ASIC proposes limited, minor and administrative amendments and one minor policy update in the draft 2026 Rules to modernise the 2015 Rules.

    Further detail

    Following the 2008 global financial crisis, the Leaders of the Group of Twenty (G20) nations, including Australia, committed to reforming OTC derivatives markets. A key element of this commitment was the requirement for all standardised OTC derivative transactions to be cleared through central counterparties. These reforms aimed to improve transparency, mitigate systemic risk, and protect against market abuse in OTC derivatives markets.

    On 3 January 2013, legislation establishing a framework to implement the G20 commitments in Australia came into effect. Subsequently, on 3 December 2015, ASIC made the ASIC Derivative Transaction Rules (Clearing) 2015 under section 901A of the Corporations Act 2001.

    The 2015 Rules introduced a mandatory central clearing regime in Australia for OTC interest rate derivatives denominated in Australian dollars, US dollars, euros, British pounds and Japanese yen.

    The clearing mandate applies to Australian and foreign financial institutions that meet the clearing threshold. Alternatively, entities may voluntarily opt in to comply with the Rules to benefit from substituted compliance arrangements in respect of equivalent clearing requirements in key foreign jurisdictions.

    ASIC proposes to remake the 2015 Rules in substantially the same form, except for:

    • minor administrative updates to modernise the 2015 Rules, and
    • to support post-trade risk reduction exercises, extend exemptive relief to clearing derivative transactions resulting from these exercises, consistent with existing relief in relation to multilateral portfolio compressions.

    ASIC also proposes to let transitional relief from the 2015 Rules, in relation to certain swaptions, expire on 1 April 2026.

    Details can be found on the ASIC website.

    Next steps

    ASIC welcomes feedback from industry on the proposed changes by 5pm AEDT on 28 November 2025. A consultation paper was not issued for this consultation.

    Singapore to announce measures to strengthen equity market

    Summary

    Singapore plans to announce new measures in November to enhance shareholder value and strengthen its equity market, building on the earlier “Value Unlock” programme concept. Key initiatives include practical support for listed companies (grants, toolkits), appointing a second group of asset managers under the SGD 5 billion Equity Market Development Programme (EQDP), streamlining the listing process by consolidating reviews within SGX RegCo, and consulting on ways to enhance investor recourse. These efforts are part of Singapore’s broader strategy to bolster its position as a leading international financial centre, focusing on existing strengths while building new capabilities in areas like AI.

    In more detail

    Singapore is taking several steps to boost its equity market and financial sector:

    • Value unlock programme: New measures in November will provide listed companies with government grants, toolkits, and expanded engagement platforms to help them unlock shareholder value and improve investor relations.
    • Equity market development: A second batch of asset managers (global, regional, and local) will be appointed later this year under the SGD 5 billion EQDP to attract institutional flows and broaden liquidity, complementing the first batch appointed in July. The government emphasised avoiding ‘quick fixes’ like mandating sovereign wealth fund investments.
    • Streamlined listing process: MAS and SGX RegCo will soon consult on consolidating the listing review functions within SGX RegCo to simplify the current dual-review process.
    • Investor protection: MAS will consult on proposals to enhance investor recourse mechanisms, aiming for balance without creating an overly litigious environment.
    • Strategic financial centre priorities: Singapore will focus on deepening existing strengths (asset management, insurance, FX, capital markets), building new pillars like AI, enhancing regional/global connectivity, and developing talent.

    Next steps

    • November announcement: Details of the “Value Unlock” support measures (grants, toolkits, platforms) will be announced.
    • EQDP appointments: The second batch of asset managers under the Equity Market Development Programme will be appointed later this year.
    • Consultations: MAS and SGX RegCo will issue consultations in the coming weeks on streamlining the listing process and enhancing investor recourse.
    • Review finalisation: A broader review of measures to boost the equity market is expected to be finalised by the end of the year.

    Bloomberg

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  • How are bank treasury priorities evolving | Insights | Bloomberg Professional Services

    Some are already there: the announcement last month by nine banks in the eurozone that they were launching a EUR-denominated stablecoins was instructive. Currently, 99% of all stablecoins are backed by USD assets. Given that regulators have not issued detailed guidance yet on how such assets should be treated on the balance sheet for ALM-related purposes adds to the challenge for banks. 

    The perennial issue of liquidity risk management is just that – perennial. As the bank failures of 2023 showed, it’s still possible for banks to fail because of of liquidity risk exposure (and of course, interest-rate risk exposure). But what will the next stress event look like?

    This is a classic “unknown unknown”: will bank liquidity risk processes be up to handling it? Silicon Valley Bank and First Republic Bank were classic examples of failure for what the UK regulator termed “Pillar 2 liquidity”. Their balance sheets exhibited extreme concentration. This concentration manifested itself in three ways: 

    1. Concentration by customer type;
    2. Concentration by product type; 
    3. Concentration by contractual tenor. 

    In the absence of any forewarning of the likely form of the next stress scenario, what banks can (and should) do is to remain conservative in their funding risk management outlook and structure the balance sheet accordingly. That is one risk type where the appetite for exposure must be low. 

    is also another structural consideration on the horizon. With the evolution of stablecoins into potential central bank digital currencies (CBDCs), the traditional deposit base could gradually migrate to central bank balance sheets. This could reshape the liability side of the commercial bank balance sheet entirely.  

    How will atransform ALM decision-making? 

    Another consideration is the rise of AI which is set to impact banks and Bank Treasury teams as much as any other industry, and likely more than most. As experts during recent Bloomberg Enterprise Tech & Data Summit in New York stated, AI is already changing the way investment research companies operate.  

    Zooming in on bank treasury, what can we expect the core ALM process to look like once systems capable of autonomously perceiving, reasoning, and taking actions to achieve goals known as agentic AI, becomes mainstream?  

    AI is already in use across varied applications in the finance industry. We expect that those employed in Treasury and ALM disciplines will see, or are seeing now, the following changes: 

    • Some banks have adopted agentic AI already, in processes including fraud detection and know your customer (KYC) onboarding.  
    • Use of agentic AI in additional areas such as customer experience and product origination will reduce costs, and, theoretically at least, increase efficiency.  
    • Most consequential, is the point at which banks begin delegating strategic-level decisions to AI. 

    This has significant implications for Treasury, and crucially the bank’s ALM Committee (ALCO). As Bloomberg Intelligence analysis shows governance is one of the central themes of banks shifting towards agentic AI.”. From the ALCO perspective, accurate and up-to-the-minute balance sheet reporting will always remain paramount: to enable effective decision making on ALM-related matters requires real-time ALM risk reporting and touch-of-a-button stress testing. We expect that for those banks that adopt it for these purposes, agentic AI will be a game changer. 

    , the implications for ALM go far beyond automation. The very foundation of Treasury analytics (behavioral modelling of non-amenable positions and dynamic balance sheet projections for net interest income) relies on regression and statistical inference.

    Agentic AI is uniquely suited to elevate this by uncovering complex, non-linear relationships within macroeconomic and market data that humans may not easily discern. In time, this could enable continuous, on-demand balance sheet optimisation and more precise scenario forecasting, transforming ALM into a genuinely adaptive and predictive discipline.

    Balancing innovation and governance in treasury risk management 

     Today there are a large number of issues and risks for Treasury to manage, and it can be difficult to know where to start. There are the more technical topics such as Pillar 2 liquidity and interest-rate risk in the banking book (IRRBB); there are also areas where the industry is evolving so quickly that it may be more advantageous to eschew “first mover advantage” and observe how things develop.

    The traditional pillars of sound risk management remain essential. Good governance, underpinned by the ALCO framework, and a good risk culture will, ultimately, prevail in an environment of market uncertainty and geopolitical tension. 

    To learn more about Bloomberg Bank Treasury and Risk solutions click 

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  • October Global Regulatory Brief: Digital finance | Insights | Bloomberg Professional Services

    MAS launches PathFin.ai knowledge hub to boost industry literacy and innovation in AI

    Summary

    In a speech by Minister Chee Hong Tat, the Monetary Authority of Singapore (MAS) announced the launch of the PathFin.ai knowledge hub, a strategic initiative to boost AI adoption, literacy, and innovation across Singapore’s financial sector. This launch is part of a two-pronged strategy—upgrading the AI ecosystem and upskilling the workforce—designed to ensure the sector remains competitive amidst global shifts in technology, trade, and climate change. The government confirmed its commitment to ensuring AI augments workers, with the goal of uplifting AI literacy for all employees while providing clarity on supervisory expectations for responsible AI use.

    In more detail

    Strategic vision and context

    • Growth Driver: The financial sector is critical to Singapore’s economy, growing by 6.8% last year, and is essential for creating high-value jobs for locals. AI is identified as a major force capable of adding significant value to the global sector.
    • Two Key Pillars: To maintain competitiveness, the sector will focus on: 
    1. Continuously upgrading the AI ecosystem to promote knowledge exchange and innovation;
    2. Uplifting and upskilling the workforce to be AI-ready.

    Pillar 1: Upgrading the AI ccosystem

    • PathFin.ai Knowledge Hub: Launched under the existing PathFin.ai program (which involves over 80 FIs), the hub is a new resource for peer learning. It features an initial set of successful AI use cases and learnings curated by industry participants in key areas like sales, risk management, and tech. The goal is to reduce the time and effort required for individual FIs to implement AI solutions by learning from shared experiences.
    • Enhancing Supervisory Clarity: MAS plans to boost industry confidence in innovation by clarifying its expectations on AI risk management.
      • Building on the FEAT principles (Fairness, Ethics, Accountability, Transparency), MAS will consult the industry later this year on new supervisory guidelines on AI risk management.
      • Concurrently, MAS is developing the Project MindForge AI risk management handbook for publication later this year, which will provide practitioners’ perspectives to guide responsible AI deployment.

    Pillar 2: Preparing the AI-ready workforce

    • Jobs Transformation Map (JTM): MAS and IBF, in partnership with WSG, developed a JTM to study how Generative AI will reshape jobs and skills. Pilot programs with 10 FIs are testing and refining the approach.
    • Universal AI Literacy: The core principle is to “leave no one behind” by lifting foundational AI skills for all workers (e.g., prompt design, AI governance). The three local banks have committed to training all 35,000 of their Singapore employees in the next 1–2 years using IBF-accredited programs.
    • Augmentation over Replacement: The strategy is to augment employees with role-specific AI tools, streamlining routine tasks to enable them to take on higher-value and more complex work, thereby improving productivity and career progression (e.g., Manulife underwriters, Bank of Singapore RMs).
    • Talent Pipeline: IBF is working with Institutes of Higher Learning (IHLs) and FIs (like UBS and UOB) to establish internships and traineeships for young talent to gain practical exposure to AI use cases in finance early in their careers.

    Next steps

    • MAS Consults on AI Risk Guidelines: MAS will formally consult the industry later this year on new supervisory guidelines for AI risk management.
    • Publish Practitioner Handbook: The Project MindForge AI risk management handbook will be published later this year to assist FIs with responsible AI implementation.
    • Expand PathFin.ai Hub Content: MAS and industry partners will progressively enhance the PathFin.ai knowledge hub with more peer-validated use cases, resources, and solutions.
    • Complete Mass AI Literacy Training: The three local banks are expected to complete the training of their 35,000 employees in foundational AI literacy within the next 1 to 2 years.
    • Union and FI Collaboration: FIs and unions are encouraged to utilize platforms like the NTUC Company Training Committee (CTC) grant and roll out IBF-accredited courses to accelerate the upskilling of the financial sector workforce.

    The Australian government proposes legislation for crypto platforms

    Treasury presented proposals for new rules affecting digital asset platforms (DAPs) and tokenised custody platforms (TCPs) in Australia. The focus of the legislation is on businesses that hold assets on behalf of clients, rather than on the digital assets themselves. It is part of the Government’s commitment in the 2024-2025 budget to modernise Australia’s digital asset regulation.

    Background

    The draft legislation seeks to capture DAPs and TCPs by introducing each as new financial products. Where digital assets already fall within existing financial product definitions, the proposed laws will largely apply to activities involving those assets in the same way they do now. However, the proposals introduce targeted elements of risk mitigation, regulatory clarity, and “right-sized” obligations – in a way that facilitates innovations without sacrificing consumer protections.

    Anyone providing specified services in relation to DAPs or TCPs will be treated as providing a financial service. Providers of financial services will need to hold an Australian Financial Services Licence (AFSL), the same licence required for other financial service providers. Using the existing AFSL framework avoids the need for a new licensing regime. It also reduces complexity and gives industry and consumers the benefit of familiar rules and protections.

    Last week, ASIC had proposed extending class relief for intermediaries engaging in the secondary distribution of a second stablecoin issued by an Australian financial services (licenced) issuer. Earlier this month, ASIC granted class relief for intermediaries engaging in the secondary distribution of a stablecoin issued by an AFS licensed issuer. ASIC advised at the time that as and when more issuers of eligible stablecoins obtain an AFS licence, it will consider extending the same relief to intermediaries distributing those stablecoins. ASIC is working closely with Treasury as it looks to implement the Government’s digital assets reforms.

    In developing its legislative proposals, Treasury considered the recommendations proposed by the FSB and IOSCO, and have been guided by them in developing the current reforms. These recommendations aim to ensure a level-playing field between traditional and emerging financial intermediaries.

    Next steps

    Treasury’s consultation closes on 24 October 2025.

    South African regulators issue consultation on upcoming cybersecurity & incident reporting standards

    Context

    The Financial Sector Conduct Authority (FSCA) and the Prudential Authority (PA) have issued two key Joint Standards that reshape regulatory expectations for financial institutions:

    • Joint Standard 1 of 2023 – IT Governance and Risk Management (effective 15 November 2024)
    • Joint Standard 2 of 2024 – Cybersecurity and Cyber Resilience Requirements (effective 1 June 2025)

    Together, these standards define notification obligations for material IT and cyber incidents across regulated financial institutions.

    Current development, consultation on notification framework

    In September 2025, the Authorities released Joint Communication 3 of 2025 for industry consultation, including:

    • Annexure A: Draft Determination outlining the formal notification process.
    • Annexure B: Draft template for reporting material IT and cyber incidents.
    • Annexure C: Comment template for feedback (submissions due 5 October 2025).

    Implications

    Regulators are tightening expectations around timely and standardized incident reporting.

    Bloomberg

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  • October Global Regulatory Brief: Green finance | Insights | Bloomberg Professional Services

    Key takeaways

    • MEPs propose that only companies with more than 1,000 employees and over €450 million in annual turnover be required to undertake sustainability reporting. 
    • Firms falling outside the scope would report Corporate Sustainability Reporting Directive (CSRD) and EU Taxonomy data on a voluntary basis following Commission guidance. Large companies would be prohibited from demanding sustainability data beyond these voluntary standards from smaller partners.
    • Sector-specific reporting would become voluntary and European Sustainability Reporting Standards (ESRS) would focus on quantitative disclosures to ease cost and compliance burdens.
    • The Commission would establish a free online portal with templates, guidelines, and reporting information to complement the European Single Access Point.
    • Obligations under the Corporate Sustainability Due Diligence Directive (CSDDD) would apply only to EU firms with over 5,000 employees and €1.5 billion in turnover, or foreign companies meeting the same EU turnover threshold. 
    • Companies would face national, rather than EU-level, liability for due diligence breaches, with fines capped at 5% of global turnover.
    • Large firms would still be required to prepare a transition plan aligned with the Paris Agreement.

    Next Steps

    The European Parliament is due to adopt the position in a plenary sitting next week, after which interinstitutional negotiations with the EU Member States (Council) and Commission are expected to begin in late October or November to finalise the legislative text under the Omnibus package.

    MAS appoints new Chief Sustainability Officer

    The Monetary Authority of Singapore (MAS) has appointed Ms. Abigail Ng as its new Chief Sustainability Officer (CSO), effective October 6, 2025. Ms. Ng, currently the Department Head of the Markets Policy & Consumer Department, will take over from Ms. Gillian Tan, who had concurrently held the CSO role with her duties as Assistant Managing Director (Development & International) since October 2022. This transition marks the move to a dedicated CSO role as MAS’s sustainability agenda enters a more mature phase.

    Key takeaways

    • The leadership change reflects MAS’s decision to dedicate the CSO role as its Sustainability Group (SG) agenda matures. The outgoing CSO, Ms. Gillian Tan, will focus on her position as Group Head of the Development & International Group.
    • Under Ms. Tan’s three-year tenure, the Sustainability Group spearheaded several significant initiatives to advance sustainable finance in Asia, including:
    • Finance for Net Zero Action Plan: A strategy aimed at mobilizing financing to support Asia’s shift to a low-carbon economy.
    • Singapore-Asia Taxonomy: An effort to establish consistent and clear standards for sustainable financing.
    • Key Transition and Blended Finance Initiatives: The launch of the Transition Credits Coalition (TRACTION) and the Financing Asia’s Transition Partnership (FAST-P) to accelerate the energy transition.
    • Talent Development: The Sustainable Finance Jobs Transformation Map to boost skills and competencies within the sector.
    • The incoming CSO, Ms. Abigail Ng, is expected to leverage her extensive background in sustainability issues, including her experience in formulating sustainability disclosure policies and collaborating with international and diverse stakeholders, to lead the Sustainability Group in its next phase.

    Next steps

    Looking ahead, there would likely be continued focus on MAS’ key efforts like the Singapore-Asia Taxonomy and blended finance platforms (TRACTION, FAST-P). Given Ms. Ng’s expertise in policy, her tenure may also bring greater focus to sustainability disclosure requirements. This dedicated leadership structure reinforces the MAS’s commitment to advancing Singapore’s role as a key regional hub for sustainable finance.

    Switzerland to align due diligence law with EU CSDDD

    The Swiss Federal Council has announced plans to introduce a corporate due diligence law aligned with the EU Corporate Sustainability Due Diligence Directive (CSDDD). A draft legislative proposal is expected by March 2026 based on the EU’s final framework following adoption of the first Omnibus package.

    Context

    The initiative follows renewed political momentum in Switzerland, spurred by a popular initiative launched in summer 2025 with support from over 280,000 citizens and a broad civil society coalition. 

    Key takeaways

    • Swiss government will design its due diligence law in line with the EU’s CSDDD framework.
    • Announcement responds to strong domestic political and civil society pressure.
    • Signals convergence of Swiss and EU approaches to sustainability and responsible business conduct.
    • Companies headquartered or operating in Switzerland should anticipate tighter requirements on human rights and environmental due diligence, particularly for multinationals with cross-border operations.

    Next steps

    • Draft legislation to be presented by March 2026.
    • Text will be coordinated with the EU’s final CSDDD as amended under the Omnibus simplification package.

    FCA publishes letter on sustainability-linked loans market

    The Financial Conduct Authority (FCA) has published a letter highlighting progress in the overall functioning of the sustainability-linked loans (SLLs) market since its last review in 2023. The letter highlights the importance of robust internal controls, governance frameworks, and transparency in SLL arrangements. 

    Key takeaways

    Overall, the FCA recognises that – despite headwinds – the SLL market has matured, with firms adopting better practices and stronger product structures. Specifically, the FCA noted: 

    • Improvements in the quality of SLL structuring, including more robust KPIs and stronger governance processes; 
    • Post-transaction monitoring could be a tool to inform self-assessments of existing approaches to SLL provision and help ensure internal frameworks evolve to account for best practice; 
    • Regulated firms should remain alert to risks of misleading disclosures and ensure sustainability claims are accurate and appropriately communicated. 

    Next steps: Firms should continue to review their internal systems and governance arrangements for SLLs in light of the FCA’s observations. The FCA will continue to work closely with the UK’s Transition Finance Council as it drives forward the UK Government’s recommendations to promote a credible transition finance ecosystem.

    Bloomberg

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  • October Global Regulatory Brief: Risk, capital and financial stability | Insights | Bloomberg Professional Services

    Key takeaways

    • ASIC’s role is to ensure consumer credit protections are universally applied and enjoyed. Therefore, ongoing work to examine compliance across the sector continues to be a priority.
    • Specific areas of focus include mortgage brokers, motor vehicle finance, financial hardship, debt management, credit repair and debt collection.
    • As a key enforcement priority, ASIC is closing loopholes that enable business models to avoid consumer credit protections and is closing in on the businesses who seek to exploit them.
    • ASIC continues to take action across the spectrum, wherever it sees credit-related misconduct. Entities whose conduct causes harm to consumers – or harm to their financial futures – should expect ASIC to take an active interest.
    • ASIC’s concern is with outcomes – not the type of credit, or the type of business involved.

    South Africa advances OTC derivatives reform with new exemption framework

    Summary

    South Africa’s twin-peak regulators (the FSCA and PA) have issued Joint Standard 1 of 2025, advancing Phase 2 of OTC derivatives reform. The standard allows recognised foreign CCPs and trade repositories, mainly from equivalent jurisdictions (EU, UK, US), to apply for exemptions from local FMA licensing, avoiding duplicate regulation. It builds South Africa’s central clearing framework, balancing market access with systemic-risk oversight. 

    Purpose

    • Provides the framework to allow foreign market infrastructures from equivalent jurisdictions (e.g., EU, UK, US) to be exempted from domestic licensing and regulatory requirements.
    • The standard is a key step in Phase 2 of the Joint Roadmap for Central Clearing, complementing the broader equivalence framework and licensing regime for both local and external CCPs and TRs. 

    Insights from the Consultation Report

    The Consultation Report (August 2025) provides transparency on the feedback process and regulator responses, from organisations such as BASA, JSE, and SAIS.

    Main Issues Raised

    • Fairness to local entities: Stakeholders questioned whether foreign CCPs/TRs could operate on lighter terms than domestic ones.
      • The FSCA/PA clarified that foreign entities face equivalent or stricter requirements, as exemptions only apply after formal equivalence assessments and compliance with international standards.
    • Local presence concerns: Some advocated that external CCPs/TRs maintain a South African legal presence to mitigate systemic risk.
      • The Authorities disagreed that this should be a blanket requirement but noted they could impose local presence conditions on a case-by-case basis.
    • Systemic risk and oversight: JSE and SAIS raised concerns about loss of supervisory control, regulatory arbitrage, and data privacy.
      • The regulators emphasized that MOUs and continuous monitoring mechanisms under the FMA will ensure cooperation, data exchange, and oversight parity.
    • Timing and coordination: Some argued the framework was premature given pending reforms under the proposed COFI Bill and the FMA Review.
      • The regulators responded that this Joint Standard was a G20-mandated prerequisite and part of a phased rollout of South Africa’s central clearing regime.
    • Market fragmentation: Concerns that multiple CCPs might fragment liquidity or create unequal competition.
      • The regulators replied that competition could instead enhance efficiency and reduce concentration risk, provided consistent regulation is applied.

    The RBNZ opens a consultation on the use of the word ‘bank’ under the Deposit Takers Act 2023 (DTA)

    The consultation paper proposes expanding the use of the word ‘bank’ to all deposit takers that become licensed under the DTA. This could include entities that are currently licensed as non-bank deposit takers (NBDTs). 

    Background

    • The DTA modernises New Zealand’s regulatory framework for deposit takers. The DTA will replace existing prudential legislation with a single regulatory regime for all deposit takers.
    • Its standards are expected to come into effect on 1 December 2028. 
    • The Reserve Bank of New Zealand (Reserve Bank) has the power to authorise persons to use a restricted word in their name or title. Restricting the use of the word ‘bank’ is a standard feature of prudential regulation for deposit taking activity internationally.
    • The paper seeks feedback on:
      • a proposal to authorise the use of the term ‘bank’ by all licensed deposit takers under the DTA
      • continuing our current approach to authorising the use of the word ‘bank’ in New Zealand for overseas banks not licensed by the Reserve Bank.
    • Proposals for a second tranche of DTA regulations have been released for consultation alongside the consultation paper. These include proposed regulations that will affect the ‘perimeter’ of the DTA, which determines the types of entities that can become licensed deposit takers and therefore, subject to final policy decisions, potentially be authorised to use a restricted word in their name. 

    Next steps

    Submissions will close at 5PM on 24 November 2025. Final decisions are expected to be announced in early 2026.

    Canadian Superintendent outlines priorities for financial regulation

    Canadian Superintendent of Financial Institutions (OSFI) Peter Routledge gave a speech highlighting the resilience of Canada’s financial system as evidenced by significant capital buffers while emphasising the role OFSI plays to promote innovation and ease burdens in the Canadian market. 

    Context

    The speech comes as OSFI continues to recalibrate its regulatory approach post-pandemic, balancing resilience with competitiveness. Routledge stated that Canada has not had a deposit-taking institutional fail since 1996 while the U.S. banking system has absorbed over 500 failures in the same period, giving OFSI room to adjust its risk appetite. 

    Key takeaways

    • Resilience: Canadian banks’ CET1 ratios average 13.7%, leaving ~$500bn in lending headroom before breaching capital minimums; insurers’ core capital ratios are up 13% in six years.
    • Proactive Supervision: OSFI will continue modernizing its framework, rescinding outdated guidelines, adjusting risk-weightings, and consulting on capital treatment of certain loans to support business lending.
    • Competitive Balance: OSFI paused increases in the Basel III output floor earlier in 2025 to aid international competitiveness and announced a reduction in capital requirements for Canadian infrastructure debt and equity investments made by OFSI-regulated life insurers. 
    • Innovation and Market Entry: OSFI will revamp its approvals process to ease entry for new banks and support digital innovation (e.g., stablecoins, distributed ledger products) under the principle of “same activity, same risk, same rules.”

    Next steps

    OFSI will provide further details in November 2025 on easing burdens for smaller institutions.

    • OSFI will consult on the capital treatment of certain loans to encourage business lending by banks.
    • A streamlined approvals process for new banking entrants will be developed, alongside a risk-based framework for digital financial innovations.

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  • October Global Regulatory Brief: Trading and markets | Insights | Bloomberg Professional Services

    Key Takeaways

    • Strengthen inventory management: Firms should maintain accurate, real-time visibility over securities holdings to ensure timely access and placement.
    • Review settlement chains: Identify weak points across trading, clearing, and settlement workflows.
    • Automate manual processes: Reliance on manual intervention increases error and delay risks under compressed timelines.
    • Client and counterparty engagement: End-to-end readiness across the settlement chain is critical for success.
    • Avoid over-reliance on US experience: UK post-trade arrangements differ significantly from those in the US.
    • Address specific challenges: These include same-day securities lending and collateralisation, tighter FX cut-offs for cross-border trades, and potential settlement delays in CREST if matching is not timely. Firms are increasingly conducting detailed T+1 readiness assessments, focusing on automation, system upgrades, and identifying client segments still dependent on manual workflows.

    Next Steps

    The FCA will continue industry engagement and expects firms to develop and communicate detailed T+1 transition plans, including risk identification and mitigation strategies. Firms should monitor updates via the AST website and the FCA’s T+1 page as the transition progresses toward 2027.

    ESMA issues supervisory statement on MiFIR Review application transition regime

    ESMA published a supervisory statement on the MiFIR Review application transition regime and updated the Manual on pre- and post-trade transparency under MiFIR/D. 

    Key Takeaways

    Supervisory statement: The statement provides practical guidance on:

    • the application of the provisions on commodity derivatives and derivatives on emission allowances, and to the new SI regime; 
    • the ‘single’ volume cap mechanism; 
    • the application of the revised transparency rules for bonds, structured finance products, emission allowances, and equity instruments introduced by the MiFIR review; and 
    • the discontinuation of FITRS in the context of the Double Volume Cap regime.

    Manual on pre-trade and post-trade transparency: The updated manual includes new Section 6 on pre-trade transparency for equity instruments and Section 7 on the input/output data reported to/transmitted by the CTP.

    Saudi Arabia consults on plans to open stock market to all foreign investors

    The Saudi Capital Markets Authority (CMA) has released a draft regulatory framework for public consultation that would allow all non-resident foreign investors to directly invest in shares, debt instruments, and investment funds listed on the Kingdom’s Main Market. This marks a major shift from the previous regime, which limited direct access to certain qualified investors or required indirect participation via swap agreements.

    Key Takeaways

    • Open Access: Any foreign investor, not just those classified as “Qualified Foreign Investors” (QFIs), would be allowed to invest directly in listed shares.
    • Old Rules Repealed: The CMA would remove the QFI system and rules that let foreign investors participate through swap agreements, bringing KSA’s investment framework closer to international standards. 
    • Ownership Limits Stay: 
      • A single foreign investor (unless a strategic investor) may not own 10% or more of the shares or convertible debt instruments of any single listed company.
      • The total foreign ownership is capped at 49% of the shares or convertible debt instruments of any listed company

    These limits are clearly retained in the proposed amendments and apply across both equity and convertible debt securities.

    • Rule Changes Across the Board: Multiple CMA rules and definitions would be updated, including those covering investment accounts, depositary receipts, and company governance.

    Next Steps: The public consultation is open for 30 calendar days. Final rules will be published after reviewing comments and feedback.

    SSC issues new regulation on concurrent IPO and listing reviews

    Summary

    Vietnam’s State Securities Commission (SSC) has issued a new regulation to streamline the concurrent review of IPO and stock listing applications, aiming to shorten timelines, enhance transparency, and improve capital-raising efficiency in the securities market.

    In more detail

    The new Coordination Regulation, issued under Decision No. 709/QĐ-UBCK on September 27, 2025, implements Article 111a of Decree No. 155/2020/ND-CP (as amended). It sets out a mechanism for SSC and the Ho Chi Minh City Stock Exchange (HOSE) to jointly review IPO and listing applications, including financial statements, paid-in capital reports, company charters, and other documents. The process allows for information-sharing, written exchanges, and technical meetings, with HOSE commencing its review immediately after SSC grants the IPO registration certificate. This eliminates overlapping procedures, aligns IPO and listing requirements, and strengthens investor protections by ensuring greater consistency and transparency.

    Next steps

    The SSC expects the regulation to accelerate post-IPO listings, improve the efficiency of capital raising, and enhance the competitiveness of Vietnam’s securities market. Companies pursuing IPOs will benefit from a more streamlined process that prepares them simultaneously for listing requirements, helping to boost investor confidence and support sustainable market development.

    Bloomberg

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