This week’s round-up delivers a global perspective on the evolving financial regulatory landscape, spotlighting crucial policy shifts and supervisory updates across banking, insurance, investment, and fintech sectors. The updates demonstrate the increasing complexity and interdependence of financial systems, ranging from new cyber resilience regulations in the EU to climate risk integration in Asia-Pacific. Whether you are a business leader or a compliance professional, this summary summarises the major developments influencing strategic priorities and regulatory obligations across jurisdictions.
Major Updates from Week 25
Business Line | Country | Regulator | Regulatory Update | Summary |
All | European Union | European Union | The European Commission has proposed an amendment to the Anti-Money Laundering Regulation (AMLR) to expand EU-level supervision over crypto asset service providers (CASPs). This move aims to address the growing risks of money laundering and terrorist financing in the crypto sector. The amendment designates the EU Anti-Money Laundering Authority (AMLA) as the primary supervisor for high-risk CASPs operating across borders. It also introduces clear selection criteria for supervised entities and seeks to harmonize supervisory practices across Member States. | |
European Union | European Union | Finalised Standards for Threat-Led Penetration Testing of Financial Entities | The European Commission adopted new rules under Regulation (EU) 2025/1190 requiring specific financial institutions to perform threat-led penetration testing (TLPT). These standards define criteria for selecting entities, using internal testers, and setting TLPT scope, methodology, and phases. The regulation mirrors the TIBER-EU framework, promoting realistic cyber resilience assessments. Key participants include control teams, red teams, and blue teams. TLPT aims to simulate cyberattacks on live systems, requiring strict secrecy, risk mitigation, and structured cooperation among EU authorities. Entities must report findings, issue remediation plans, and obtain formal attestations of compliance. | |
European Union | EBA | The EBA released final draft standards refining operational risk capital requirements under the EU Banking Package. These include detailed rules for calculating the Business Indicator (BI), a critical component in the standardised approach to operational risk. The EBA also published updated mapping to FINREP and amendments to supervisory reporting standards. The revisions align with accounting changes, clarify treatment of mergers and disposals, and aim to ensure supervisory consistency. Institutions must begin reporting under the new standards from 31 March 2026. | ||
United Kingdom | GOV.UK | HM Treasury | UK Government Sets Regulatory Path for Buy-Now, Pay-Later Products | The UK Government has confirmed plans to regulate Buy-Now, Pay-Later (BNPL) products by mid-2026. The regime will bring third-party BNPL lenders under Financial Conduct Authority (FCA) oversight, mandating affordability checks and consumer protections. Draft legislation excludes merchant-offered credit, but the government will monitor this segment. Credit broking exemptions and financial promotions oversight also feature in the plans. The FCA will design a tailored ruleset replacing outdated Consumer Credit Act provisions to ensure clear communication and borrower safeguards. | |
Banking | Egypt | CBE | Licensing Rules for Payment System Operators and Service Providers | The Central Bank of Egypt (CBE) has released new licensing and registration rules for payment system operators and service providers. The framework aims to boost secure, efficient digital financial services across Egypt. It outlines licensing terms for domestic and foreign entities offering payment services such as money transfers, digital wallets, and electronic payment tools. The rules define capital requirements, pre-approval conditions, and regulatory fees. Existing firms have a 12-month grace period to comply and seek licensing from the CBE. |
European Union | EBA | Consultation on technical standards on acquisitions in credit institutions | The EBA launched a consultation on draft RTS detailing the minimum information for acquiring qualifying holdings. It aims to harmonise standards across the EU, reduce duplication, and improve supervisory efficiency. Proposals include proportionate requirements based on holding size, exemptions for prior assessments, and reduced disclosures for low-influence structures like AIFs and UCITS. | |
Global | UNEPFI | APAC Strengthens Prudential Climate Risk Frameworks Across Banking Sector | Asia-Pacific regulators are rapidly embedding climate risk into financial supervision. Most jurisdictions now mandate climate disclosures. Central banks increasingly align with global frameworks like TCFD and ISSB. While capital requirement adjustments remain rare, stress testing and scenario analysis are expanding. Countries such as Singapore, Malaysia, and New Zealand lead with structured guidance. Banks must integrate climate risk into governance and risk management processes. These shifts aim to ensure systemic resilience and accelerate sustainable capital allocation. | |
Japan | JFSA | Exemptions for Shoko-Sai Bonds Under Revised Banking and Cooperative Credit Regulations | Japan’s Financial Services Agency issued draft revisions to several Cabinet Office Ordinances impacting banking and cooperative credit institutions. The changes primarily exempt specific bonds (shoko-sai) issued under the Shoko Chukin Bank Act from certain large credit exposure standards. These exemptions apply to banks, credit unions, labor banks, agricultural, and fisheries cooperatives. Institutions currently holding such bonds or acquiring them within two years can benefit from transitional relief. The amendments aim to support financial stability while planned legislative reviews continue. | |
Malaysia | BNM | Bank Negara Malaysia has issued a new exposure draft updating capital requirements under the Basel III Internal Ratings-Based (IRB) approach. The proposed framework, applicable from 2028, aims to align local regulations with global Basel III reforms. It replaces the existing Basel II-based IRB requirements. Key changes include stricter calculation of credit risk-weighted assets, minimum standards for IRB adoption, enhanced treatment of Islamic banking exposures, and an output floor to reduce variability in risk weights. Institutions must participate in a Quantitative Impact Study and submit feedback by December 2025. | ||
South Africa | Reserve Bank | The Prudential Authority (PA) of South Africa has issued a proposed directive mandating bank to comply with a new return submission framework from 1 July 2025. This forms part of the broader Umoja System Implementation Project, aimed at enhancing regulatory efficiency through a modernised digital interface. Following the deletion of all Banks Act (BA) returns from the Regulations effective 1 February 2025, the PA introduced new requirements via Directive 1 of 2025. The proposed directive outlines the financial, risk-based, and related returns that banks and controlling companies must submit directly to the PA. Each submission must include a certified Form BA 099 (for domestic entities) or BA 099A (for foreign operations). The updated reporting obligations aim to streamline regulatory compliance and align with the PA’s digitisation objectives. Stakeholders were invited to submit comments on the proposed directive by 23 June 2025. | ||
United States | CFPB | Extends Compliance Deadlines for Small Business Lending Rule | The CFPB has extended compliance deadlines for its small business lending rule under Section 1071 of the Dodd-Frank Act. The rule requires financial institutions to collect and report credit application data for women-owned, minority-owned, and small businesses. The extension aligns all lenders—regardless of litigation status—with a new schedule. Tier 1 institutions must now comply by July 1, 2026, with data filing starting June 2027. The CFPB aims to ensure consistent reporting and support fair lending enforcement and community development efforts. | |
Insurance | Chile | CMF | Elimination of External Annuity Offers in Pension Quotation System | Chile’s CMF and Superintendencia de Pensiones amended rules to prohibit external annuity offers in the SCOMP system. The change aims to improve competition and reduce regulatory burden by eliminating separate external processes. Updated rules also align pension offer thresholds with legal minimums and parameterize commission caps for flexibility. The new rules take effect from 1 September 2025, with transitional arrangements in place until then. |
Malta | MFSA | The MFSA has proposed amendments to the Retirement Pensions Act and Insurance Business Act to align with a forthcoming auto-enrolment pension regime. The updates introduce new regulatory powers for the Minister and MFSA to supervise occupational and personal retirement products. The Retirement Pensions Act will now include the authority to issue Conduct of Business Rules and expand the definition of auto-enrolment. Similarly, the Insurance Business Act will enable the regulation of insurance-based pension products, including personal and occupational retirement contracts, which fall outside existing EU directives. | ||
Investment | Canada | FCNB | Overhaul of ETF Regulation to Enhance Transparency and Liquidity | The Canadian Securities Administrators (CSA) published a consultation paper proposing major reforms to exchange-traded fund (ETF) regulation. The goal is to tailor rules to ETFs’ unique structure and enhance investor protection, liquidity, and transparency. Key proposals include mandatory policies for ETF unit creation/redemption, better oversight of arbitrage and liquidity, public disclosure of key trading metrics, and increased transparency around authorized participant (AP) arrangements. The CSA also seeks feedback on risks from limited AP access and asymmetries in portfolio data disclosures. Comments are invited until October 17, 2025. |
European Union | ESMA | Consultation on New Market Capitalisation Methodology for Withholding Tax Relief | ESMA has launched a consultation on draft rules defining how to calculate market capitalisation across EU Member States. The methodology supports the FASTER Directive, which aims to streamline excess withholding tax relief. It outlines how to compute share prices using transaction data and aggregate market value by country. Member States exceeding a 1.5% EU market cap threshold for four years will face additional obligations. Final regulatory standards are due by October 2025 and will apply from 2026. | |
European Union | ESMA | Final Rules on Active Account Requirement for Derivatives Clearing | ESMA has published its final report on the EMIR 3.0 Active Account Requirement (AAR), mandating EU financial counterparties to clear a portion of their derivative trades through EU central counterparties (CCPs). This aims to reduce excessive reliance on third-country CCPs and strengthen EU financial stability. The AAR applies to interest rate derivatives in EUR and Polish zloty, with thresholds based on entities’ clearing volumes. It sets phase-in timelines and monitoring tools to ensure compliance and data reporting from Q1 2026. | |
European Union | European Commission | EU Aims to Revive Securitisation Market with Targeted Reforms | The European Commission proposed amendments to the EU Securitisation Regulation to stimulate market growth. The changes aim to reduce operational and capital costs while maintaining investor protection and financial stability. Reforms include streamlined due diligence and transparency requirements, adjusted prudential frameworks, and enhanced supervisory coordination. The update also supports SME financing, investor participation, and the development of the Savings and Investments Union. These measures are expected to unlock bank lending capacity and improve market competitiveness across the EU. | |
France | AMF | The French AMF revised its rules to reflect ESMA’s updated technical standards under the EMIR framework. These updates adjust the clearing thresholds for OTC interest rate and credit default derivatives. Non-financial and small financial counterparties falling below set thresholds are now exempt from mandatory central clearing. The AMF’s decision includes updated calculation periods and reporting obligations, ensuring regulatory consistency. This move reduces compliance burdens on smaller entities while upholding market transparency and risk mitigation objectives. | ||
Romania | ASF Romania | The Romanian Financial Supervisory Authority (ASF) proposes updates to reporting rules for private pension entities. The changes amend Norm No. 34/2016, requiring electronic submission of semi-annual financial reports to ASF and the tax authority (ANAF) by August 16 each year. Updates standardize deadlines and submission formats for all pension-related entities, including administrators, brokers, and guarantee funds. Entities with no activity must now file a declaration of inactivity instead of reports. The amendments will apply starting with the 2025 financial reporting cycle. | ||
Switzerland | FINMA | FINMA has released new guidance for audit firms overseeing institutions under the Financial Institutions Act (FINIG) and Collective Investment Schemes Act (KAG). The update details mandatory templates for risk analysis, audit strategy, and regulatory reporting. It introduces periodic requirements based on risk levels, adds clearer rules for managing ICT and cyber risks, and outlines intervention frequencies. Auditors must now follow standardised checks and document risk rankings more transparently. These changes aim to enhance audit consistency and regulatory clarity across collective asset managers and custodian banks. | ||
United States | SEC | Reporting Relief and Efficiency Measures for Fixed Income Markets | FINRA has proposed maintaining the current 15-minute trade reporting deadline for TRACE-eligible securities, reversing plans to shorten it to one minute for electronic trades. This change reflects industry concerns over operational burdens and feasibility. FINRA also proposed a streamlined reporting option for broker-dealers who allocate trades to multiple managed customer accounts. The new rule would allow aggregate trade reports instead of individual entries, improving efficiency while preserving transparency. The changes aim to ease compliance while maintaining timely market data. |
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