Financial Stability Board (FSB)’s Post

The #LEI (Legal Entity Identifier) will play a crucial role in tracking the #sustainability and #ESG performance of cross-border companies and value chains. I anticipate that all major databases, such as #ESGRatings, #CDP, #ISSB, and #ESRS, will soon integrate LEIs into their data structures to enhance transparency and accountability.

Today, Swiss Federal Councillor Karin Keller-Sutter and the UK Chancellor of the Exchequer, Jeremy Hunt, signed the Mutual Recognition Agreement (#MRA) in Financial Servics, the so-called Berne Financial Services Agreement. The agreement covers the recognition of equivalence in the areas of #banking, #investment services, #insurance, #assetmanagement and financial market infrastructures (FMIs) for sophisticated clients. With respect to #FMI, the Berne Financial Services Agreement recognises the #equivalence of the relevant framework for central counterparties and confirms the existing framework with regard to trading venues. In a broader perspective it is a landmark event that two major financial centers have been able to agree on outcomes-based mutual recognition rather than rigid, line-by-line comparisons of supervisory regimes. This hopefully sets a new #benchmark for cross-border #marketaccess regimes. Jos Dijsselhof explains why this new type of agreements is of a completely new quality: “As an international operator of securities trading infrastructure, SIX supports regulated, open cross-border trading. Compared with unilateral recognition of equivalence, the agreement creates much greater legal certainty by providing a firm bilateral basis for mutual market access and thus making it easier to put business and strategic decisions into practice. This increased planning security benefits all market participants.” I'm thrilled and humbled that I was able to witness and accompany the development of such a new type of agreement. Congratulations to the negotiators on both sides! https://lnkd.in/e-Yh5Q4a Mario Ramo Urs Leimbacher Angel Serna Roberto Battegay Roman Studer Silvan Lipp Adrian Schatzmann Simon Pabst Ian Cornwall, Chart.MCSI Marco Estermann Laura Bayley James Sullivan Swiss Banking - Schweizerische Bankiervereinigung economiesuisse Asset Management Association Switzerland Staatssekretariat für internationale Finanzfragen SIF

Are enforcement practices evolving in Canada's securities industry? Our latest study presents intriguing findings. The evidence suggests that the Investment Industry Regulatory Organization of Canada (IIROC) leans towards issuing lighter minor penalties and harsher serious penalties, such as suspensions and fines, compared to its predecessor, the Investment Dealers Association of Canada (IDA). While lighter penalties may seem lenient, they serve a compliance-oriented purpose to deter future misconduct. However, finding the right balance between deterrence and punishment is a challenge. Excessively harsh penalties can unintentionally discourage legitimate market activities. Nonetheless, under IIROC, serious penalties such as suspensions and fines have seen a significant increase, sending a clear message that misconduct won't be tolerated. However, this shift may also indicate that IIROC is handling more serious quasi-criminal offences, raising concerns about cases being funneled away from the criminal justice system. Dive into the insights here: https://lnkd.in/gZmDmFTC #SecuritiesEnforcement #IIROC #IDA #RegulatoryGovernance #FinancialMarkets #SecuritiesLaws #DeterrenceMechanisms #MarketMisconduct

Australia's financial services regulatory and compliance landscape is changing rapidly - our weekly Regulatory Roundup by Liam Hennessy will ensure you are up to date with the most important changes. In each edition, we set out key developments from the past week. In this most recent edition: 👉 Choice products: ASIC has published a report calling out a risk of Australians investing in persistently underperforming super options.   👉 Predatory lending / directors duties: The corporate regulator will hold directors accountable in areas of emerging consumer harm, ASIC Deputy Chair Sarah Court, has signalled to the market. 👉 ACCC: The Australian Competition Tribunal has overturned the ACCC's decision to deny ANZ and Suncorp Bank’s application for merger authorisation in August 2023. 👉 Gen Z women: ASIC's Money smart website has conducted research which indicates that Gen Z women are more likely than Gen Z men to feel stressed and overwhelmed by finances and money. 👉 International perspective: The Hong Kong Monetary Authority has published its consultation paper on implementing the Basel Committee’s standards for the regulatory capital and prudential treatment of banks’ cryptoasset exposures. Read more here: https://lnkd.in/ga_4BceN #regulatory #compliance #financialservices #FAR #digitalassets #risk

Lots of progress in financial services regulation this week as the European Parliament held its last plenary session ahead of the European elections in June. The ninth legislature of the European Parliament has been a busy one in financial services, and its last plenary saw many agreements among the EU institutions approved by MEPs: 💸Fighting money laundering and terrorist financing: new EU-wide rules and the setting-up of a new EU Anti-Money Laundering Authority 🏦Banking: implementing the international Basel banking standards in the EU, using flexibilities in them to account for the fact that EU banks are especially important for lending to corporates and for providing mortgages to home owners and to avoid unnecessary burdens for small EU banks 🛡️Insurance: updating the EU’s rules on insurance, #SolvencyII, and enabling insurance companies to utilise more of the capital they hold 📈Clearing: strengthening the EU’s ecosystem for central clearing 📑Listing Act: making it easier for companies to get listed and stay listed by reducing red tape, especially for smaller companies 🌱ESG ratings: bringing clarity to the ESG ratings market and ending greenwashing My thanks to MEPs who worked hard to negotiate these deals and bring them to a successful conclusion – as well as to their counterparts in the Council of the European Union, especially the different presidencies over the past few years.

The European Securities and Markets Authority (#ESMA), the EU’s financial markets regulator and supervisor, published feedback received to its Call for Evidence on shortening the settlement cycle. In the report ESMA summarises the feedback from market participants during the consultation, focused on four areas: 💡 Many operational impacts beyond adaptations of post-trade processes are identified as resulting from a reduction of the securities settlement cycle in the #EU. 💡Respondents identified a wide range of both potential costs and benefits of a shortened cycle, with some responses supporting a thorough impact assessment before deciding.  💡Respondents provided suggestions around how and when a shorter settlement cycle could be achieved, with a strong demand for a clear signal from the regulatory front at the start of the work and clear coordination between regulators and the industry.  💡#Stakeholders made clear the need for a proactive approach to adapt their own processes to the transition to T+1 in other jurisdictions. Some responses warned about potential infringements due to the misalignment of the EU and North America settlement cycles, that ESMA is currently assessing. #financialmarkets #markets #industry Find more here: https://lnkd.in/dZkavnjK

🇨🇭 Switzerland is the world’s primary hub for offshore accounts because of its extensive history of neutrality, economic stability, and banking privacy. If you decide to open a Swiss bank account to shelter your assets from economic instability, lawsuits, and currency devaluation, our asset protection team at Blake Harris Law can assist you with the process to make it as easy as possible to safeguard your wealth@ 💰🔒 #trust #trustcompany #switzerland #swissbanking #swissbanks #moneymanagement #assetmanagement #assetprotection #assetprotectionplan #cookislands #cookislandstrust #offshoretrust #assetprotectiontrust #lawyerlife

There is a growing drumbeat that makes some think greater regulatory scrutiny of the private markets is inevitable—particularly for private credit, but also PE and VC. In September, the International Organization of Securities Commissions (IOSCO—the global umbrella body for national securities regulators such as the Securities and Exchange Commission in the US and the Financial Conduct Authority (FCA) in the UK—published a detailed paper titled "Emerging Risks in Private Finance." It stressed that going forward, it will be critical for regulators to be able to effectively monitor the private markets to identify areas of emerging risks. #privateequity #venturecapital #privatecredit #regulation

📢 ASIC’s 2024-2028 Strategic Priorities: A Closer Look The Australian Securities and Investments Commission (ASIC) has unveiled its 2024-2028 Corporate Plan, outlining key strategic priorities that will guide its regulatory activities over the next four years. Here’s a breakdown of what to expect: 🔍 Key Priorities: Improve Consumer Outcomes: Expanding focus on issues like predatory sales practices and dispute resolution to ensure better protection for consumers. Address Financial System Climate Risk: Tackling climate-related financial risks to build a more resilient financial system. Enhance Retirement Outcomes: Focusing on improving member services and retirement products. Advance Digital & Data Resilience: Strengthening the safety and security of digital systems across markets. 💡 Notable Changes: Broadened Focus: Previous pillars have been rephrased to cover a wider range of issues, reflecting ASIC’s evolving approach. Accountability on ASX: ASIC says they will hold the Australian Securities Exchange accountable for the CHESS replacement program. 🛠 Looking Ahead: Enforcement: ASIC trumpets a rise in commencing proceedings in court, but the win rate (particularly in crypto cases) may inform better decisions in providing guidance versus regulation by enforcement in future. Digital Asset Regulation: While digital assets are no longer a "core strategic project," their integration into regulated markets signals a convergence that could shape future regulatory frameworks. #ASIC #CorporatePlan #FinancialRegulation #DigitalAssets #DeFi #CryptoLaw https://wix.to/VY9bcMj

🌟 N26 Achieves Major Milestone: Lifting of BaFin Growth Restriction! 🌟 N26, the European digital bank, has successfully lifted the growth restriction imposed by BaFin, the German Federal Financial Supervisory Authority, effective June 1, 2024. This landmark achievement follows close cooperation between N26 and BaFin to address financial crime and money laundering concerns. 🏦🚀 🔍 Key Takeaways: 🏛️ Regulatory Success: N26 met stringent regulatory requirements to lift BaFin’s growth cap. 🌐 Growth Potential: N26 can now meet increasing demand, beyond the previous limit of 60,000 new customers per month. 🤝 Ongoing Cooperation: Continuous dialogue with BaFin ensures compliance and innovation in financial services. Read more about this achievement here: https://buff.ly/4bYvCON #Fintech #RegTech #N26 #BaFin #FinancialCompliance #DigitalBanking