In its second major consultation on financial rules, the UK Treasury set out a vision of crafting a nimbler regulatory framework to support the country’s competitiveness and drive towards decarbonising the economy. 

The creation of the internal market in the field of financial services was primarily established on the principle of mutual recognition between member states, which is contingent on different levels of harmonisation and supervisory convergence. Authorised financial services operators are granted a passport to provide products and services across the EU based on a notification to the host regulator but without requiring additional authorisations in the host member state. 

Fears of potential market disruption have prompted the UK’s Financial Conduct Authority (FCA) to temporarily allow the use of ‘synthetic’ sterling and yen London interbank offered rates (Libor) for legacy contracts referencing the benchmark that are not changed before December 31. But this will not apply to cleared derivatives.

The high profile COP26 conference, which ended on November 12, is likely to accelerate the use of climate finance and will see financial regulators act with greater urgency to green the financial system, according to industry sources.

In a statement on November 8, Randal Quarles announced his resignation as the Federal Reserve Board’s first vice chair for supervision, and is to stand down at the end of December, potentially complicating the central bank’s management structure.

Interest in decentralised finance, or ‘DeFi’, is booming in the technology world. The term has invited enthusiasm, scepticism and curiosity, in equal measure. There is no doubt that the technology could be host to a number of exciting applications. At its core, DeFi rests upon the central principle of disintermediation, and this could have many benefits, including the democratisation of finance. 

The phenomenal growth of the global digital currency market has made headlines throughout this year. No surprise, perhaps, given that its aggregate value has surged from $800bn to $2.3tn during that time. This raises the question as to whether or not they represent a serious systemic threat. 

Financial services firms have a lot on their plate. They need to adjust to greater uncertainty, technology that changes faster than ever and customers who expect more and more flexibility. We believe sustainability is central to this new normal – pressure is coming in the form of consumer demand so firms and regulators must step up. 

China’s regulators have turned sour on the nation’s most high-profile — and the world’s most indebted — property developer, Evergrande. Experts predict its demise is unlikely to batter the banking sector, but are sceptical as to whether China can steer an orderly deflation of its property bubble. 

Singapore is attempting to boost its appeal to asset managers with the digitisation of a recently launched fund structure, which some in the industry believe will be a game-changer for the city state.

The European Commission’s proposals to better insulate EU banks from shocks have been met by the industry with concerns that they gold-plate Basel III rules.