The requirements surrounding robust ESG alignment and disclosure are tightening, and firms must be prepared. Nonetheless, financial services firms have always had to measure and evaluate risk, but their key areas of focus may require significant evolution during 2023.
Reporting and Governance
Firms should prepare for tightening ESG standards
Around the world we are seeing nations and new networks ramping up their efforts to meet their climate goals and transition to a green economy. But the road ahead is far from smooth, and a number of real challenges can be seen on the horizon. We examine some of the key ESG headwinds we face and discuss their impact on global climate action, financing and the geopolitical landscape.
FTX’s collapse calls for stronger governance within crypto firms
The dramatic collapse of FTX, one of the world’s largest cryptocurrency exchanges, has shaken the cryptocurrency markets and raised serious questions around governance, corporate controls and the centralisation of power within some of these firms.
CFA Institute calls for harmonisation of crypto-asset regulation
Policy-makers should try to harmonise crypto regulatory frameworks, classify them, be technology neutral and regulate stablecoins for systemic risks, the CFA Institute said on January 4 in a report.
CSRD to make greenwashing harder in the EU
The fight against greenwashing has received a major fillip following a vote by the European Parliament on November 10 to pass the Corporate Sustainability Reporting Directive (CSRD) – an ESG framework that will force more accurate reporting of climate related data.
COP15: central banks join fight to save biodiversity
Financial regulators converge on COP15 in Montreal on December 7-19 determined to push nature loss high up the supervisory agenda. How far will they go to establish rules for biodiversity that replicate the scenario-based stress tests and disclosure regimes coming into place for climate change?
Swaps industry gears up for reporting 2.0 ‘nirvana’
The over-the-counter swaps market has taken a major step towards a new system of digital reporting that promises to vastly improve regulatory data quality and deliver big efficiencies to participants.
Questions loom over FCA’s ability to regulate big tech
The UK’s Financial Conduct Authority is taking a greater interest in big tech’s foray into financial services. However, there are concerns over whether it has the capabilities to oversee an increasingly complex and rapidly evolving sector.
OFR harmonises users understanding of financial data through FERD enhancement
Users will be able to compare more international data covering commonly used asset classes, such as equities, debt, options, warrants and futures following an enhancement to the Office of Financial Research’s (OFR) Financial Instrument Reference Database (FIRD).
CFTC launches two consultations on reporting and substituted compliance
Two proposals open to public comment related to derivatives have been put forward by the Commodity Futures Trading Commission (CFTC).
@RiskRegulator
