UK’s Climate Financial Risk Forum publishes guide on addressing climate-related risks

The Climate Financial Risk Forum has published a guide to help firms address climate-related financial risks.  The guide provides recommendations on disclosure of climate-related financial risks; effective risk management; scenario analysis, and opportunities for innovation in the interest of consumers. Established in March 2019, the forum’s aim is to build capacity and share best practice […]

South Africa publishes margin requirements for non-centrally cleared derivatives transactions

The Financial Sector Conduct Authority and the Prudential Authority have published a Joint Standard on Margin Requirements (Standard). The Standard prescribes margin requirements for non-centrally cleared derivative transactions in South Africa. It will become effective at a date to be announced by the regulators. Additional details are available here. Photo Credit: Pixabay

Report on Fintech Adoption in Hong Kong

The Hong Kong Institute for Monetary and Financial Research has published a report on Fintech penetration in Hong Kong. Titled “Fintech Adoption and Innovation in the Hong Kong Banking Industry,” the report explores the current landscape of Fintech development in the Hong Kong banking industry and how banks view the future of Fintech development 10 […]

European Central Bank consults on Climate-related and Environmental Risks

The European Central Bank (ECB) has issued a consultation on its draft Guide on Climate-related and Environmental Risks (Guide). Current prudential rules require European banks to identify, manage, and disclose all material risks to which they are exposed.  In this regard, the Guide explains how the ECB expects banks to safely and prudently manage climate-related […]

Norway proposes to implement a framework for testing cyber resilience of its financial institutions

The Central Bank of Norway (Norges Bank) and the Financial Supervisory Authority of Norway (Finanstilsynet) have proposed to develop a framework to test the cyber resilience of the Norwegian banking and payment system (Framework). The Framework, according to Norges Bank and Finanstilsynet, will build on the TIBER-EU framework designed by the European Central Bank. The […]

Singapore: Proposed regulatory approach for derivatives contracts on payment tokens

In November 2019, the Monetary Authority of Singapore (MAS) issued a consultation paper on proposed regulatory approach under the Securities and Futures Act (SFA) for derivatives contracts that reference payment tokens as underlying assets. Following stakeholders’ feedback, the regulator has now published its response. On the proposal to possibly regulate payment token derivatives (PTDs) offered […]

Bank of Canada publishes Financial System Review for 2020

The Bank of Canada has published its Financial System Review (FSR) for 2020.   The FSR focuses exclusively on COVID-19 impact on the Canadian financial system.  It details the results of policy actions introduced to assist Canadians and businesses through this extremely challenging period. To date, the Bank’s policy actions in response to the pandemic include: […]

United States: CFPB Publishes Final Remittance Rule

The Consumer Financial Protection Bureau has published a final rule covering remittances transfers (Rule). The Rule imposes requirements on entities that send international money transfers, or remittance transfers, on behalf of consumers. Among its requirements, the Rule mandates that remittance transfer providers generally must disclose the exact exchange rate, the amount of certain fees, and […]

South Korea: Margin requirements for non-centrally cleared derivatives

The Financial Services Commission (FSC) has postponed implementation of margin requirements for non-centrally cleared derivatives by one year. The postponement, noted the FSC, is aimed at easing compliance burdens on South Korea-based financial institutions due to the COVID-19 pandemic. In April, Canada and Australia similarly extended their implementation timelines by one year. The same is […]

Australia: Prudential Regulator publishes FAQs on loan repayment deferrals and residential mortgage lending

The Australian Prudential Regulation Authority has released a set of FAQs on its expectations for regulated deposit-taking institutions during the period of disruption due to COVID-19. The FAQs cover the regulatory capital approach for loan repayment deferrals. The page also clarifies APRA’s guidance for serviceability assessments in Prudential Practice Guide APG 223 – Residential Mortgage […]