Crypto-assets, market fragmentation, asset management, margin requirements, fintech, sustainable finance, cyber risk and data protection were all cited as among key priorities at the International Organization of Securities Commissions (IOSCO) annual meeting in Sydney.
Regulatory Relations
Congress told cyber is the biggest risk to the financial system
Following a near six hour session at the US House of Representatives involving the CEOs of seven US G-SIBs it was revealed that cyber is the single greatest risk to the financial system while considerable concern was also expressed about shadow banking
FSB voices concern over CLOs with many new reports scheduled
Despite there being few signs of imminent threats to financial stability, the Financial Stability Board (FSB) restated its concerns over the growth of collateralised loan obligations (CLOs) at its plenary meeting in New York on April 26 and promises a raft of reports on various aspects of the financial system.
FCA signals return to principles-based approach post Brexit
Following the possible departure of the UK from the EU, the Financial Conduct Authority (FCA) would favour a regulatory approach that focuses on the same outcomes, but with a lower regulatory burden on firms.
ESAs gain more powers, but European Commission disappointed
The three European Supervisory Authorities have gained more power, but not as much as the European Commission asked for, while reactions from industry are mixed.
Euroclear France authorised by AMF
France’s markets regulator, Autorité des marchés financiers (AMF), has given French central securities repository, Euroclear France, authorisation for central securities depositories, placing it under the European regulatory framework.
Five new appointments to SFC advisory committee
Hong Kong’s financial secretary, Paul Chan Mo-po, has made a series of appointments and reappointments to the Securities and Futures Commission (SFC) advisory committee for a two-year period from June 1, 2019, to May 31, 2021.
New reform proposal to relaunch the French blocking statute raises concerns
In France, a proposed measure to modernise laws designed to protect domestic companies from being subjected to legal discovery procedures abroad has resurfaced. However, it could see French banks, in particular, confronted with conflicting legal obligations under certain circumstances
EU stands firm on relocation policy while UK seeks flexibility on equivalence
UK-located banks are under pressure from EU regulators to continue shifting operations and capital to the union to serve customers there, while UK regulators are seeking more flexibility on access to the single market post-Brexit.
FSB sees more work to be done on resolution regimes
Much work has been done in member jurisdictions to build frameworks to resolve failing banks and a variety of approaches are being taken, however, the Financial Stability Board (FSB) still sees scope for improvement.
Most Viewed
- Market participants lobbying over short Emir 2.1 timelines
- The digitisation of financial services highlights regulatory and technological hotspots
- The PRA’s demanding liquidity framework is a commercial opportunity
- Firms turning to automation to keep pace with anti-money laundering rules
- EU moves towards its own crypto-asset regime
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