Regulators across the globe are putting more emphasis on digital transformation, sustainability, and market resilience. In this roundup, we’ve gathered the most important regulatory updates from Week 28 of 2025—spanning updates in open finance and cryptocurrency regulations to fresh expectations regarding climate risk and anti-money laundering. No matter if you’re tracking changes in Europe, Asia-Pacific, or the Americas, this summary gives you a straightforward look at how compliance priorities are shifting in various regions.
Important updates from Week 28
Business Line | Country | Regulator | Regulatory Update | Summary |
All | Australia | ASIC | ASIC is reviewing two electronic disclosure instruments set to expire in October 2025. It plans to remake them for five more years. These instruments let financial service providers deliver disclosures digitally with fewer format restrictions. ASIC is also updating Regulatory Guide 221 to simplify the language, fix outdated references, and clarify how digital methods can be used. The revisions aim to reflect current practices and show that ASIC doesn’t prescribe one method of digital delivery. | |
Canada | Fintrac-Canafe | Canada will apply anti-money laundering rules to financing and leasing entities under the Proceeds of Crime Act. These firms must now verify client identities, report large or suspicious transactions, and maintain detailed records. The rules also apply when financing business-use property or vehicles over CA$100,000. FINTRAC will focus first on outreach and guidance, but compliance exams and penalties will follow. | ||
Global | IFRS | Guidance on using industry-based resources with issb standards | The IFRS Foundation has published material to help companies apply ISSB Standards using industry-based guidance like the SASB Standards. It clarifies how firms should refer to these resources when disclosing sustainability-related information. The guidance explains when and how to use the industry-based metrics and what disclosures are needed about their use. This move supports consistent and informed implementation of the ISSB framework. | |
Japan | JFSA | The Financial Services Agency of Japan has published a detailed follow-up to its 2022 guidance on climate-related risk management. This 2025 document highlights real-world practices and issues drawn from dialogues with major banks, insurers, and regional institutions. It emphasizes the need for financial firms to integrate climate risk into governance, risk assessments, scenario analysis, and client engagement. The FSA expects firms to move beyond simple emissions tracking and adopt practical, forward-looking strategies—especially for supporting high-emitting clients in transition. Temporary increases in financed emissions (FE) are accepted if tied to credible decarbonization plans. Ongoing engagement, stronger internal controls, and climate-linked financial products are central to this effort. | ||
Banking | Chile | CMF | Updating open finance regulation and publishing technical annex for consultation | Chile’s financial regulator CMF is updating its open finance rule (NCG 514) and releasing a draft of its Technical Annex No. 3. The proposal sets out detailed specifications for APIs, security certificates, performance metrics, consent management, and participant governance. It also addresses quality monitoring, incident handling, and suspension procedures. Public feedback is open until August 18, 2025. |
European Union | European Union | The ECB has replaced its 2014 regulation with a stricter framework for systemically important payment systems (SIPS). The update strengthens governance, risk management, cyber resilience, and oversight powers. It also clarifies exemptions for central bank-operated SIPS and introduces new rules for outsourcing and operational continuity. The regulation ensures more transparency and enforces penalties for non-compliance. | ||
European Union | EBA | The EBA is seeking feedback on draft rules covering booking arrangements, capital endowment, and supervisory coordination for third-country branches in the EU. These aim to standardise how branches track assets, meet capital requirements, and are supervised. The move follows changes in the Capital Requirements Directive and is meant to ensure consistent oversight and cooperation across Member States. Consultations close on 10 October 2025. | ||
European Union | EBA | Consultation to amend technical standards on own funds and eligible liabilities | The EBA wants to shorten the approval timeline for reducing own funds and eligible liabilities from four to three months. This move simplifies procedures under the Capital Requirements Regulation and gives banks more flexibility in capital planning. The update also removes the simplified process for liquidation entities, reflecting changes in EU law. The consultation is open until 9 October 2025. | |
European Union | EBA | Updating governance rules to tackle greenwashing in ESG banking products | The EBA is revising its product oversight and governance guidelines for retail banking. The goal is to address ESG-related risks, especially greenwashing. It wants banks to avoid misleading consumers while offering ESG-linked products. The changes aim to clarify duties without adding extra regulatory burden. The proposal focuses on internal controls, target markets, distribution, and product information. Public feedback is open until 9 October 2025. Final guidelines are expected in early 2026, with application starting from December. | |
European Union | EBA | The EBA is revising its third-party risk guidelines to cover non-ICT services. These updates align with DORA and replace the 2019 outsourcing rules. Financial firms must tighten oversight across the entire third-party arrangement lifecycle, from risk assessment to exit planning. The guidelines promote using one register for both ICT and non-ICT providers. A two-year transition period allows firms to adapt existing contracts and documentation. The consultation runs until 8 October 2025, with a public hearing scheduled for early September. | ||
European Union | EBA | Consultation on guidelines for ancillary services undertakings | The EBA has opened a consultation on draft guidelines for identifying ancillary services undertakings (ASUs) under the Capital Requirements Regulation. The proposed criteria clarify what counts as a direct extension or ancillary to banking. This matters for defining the scope of prudential consolidation within banking groups. The guidelines aim to align supervisory practices across the EU and ensure consistent application of CRR rules. The consultation is open until 7 October 2025. | |
Hong Kong | HKMA | The Hong Kong Monetary Authority has gazetted new rules covering capital, disclosure, and exposure limits for crypto asset holdings. These updates align with Basel Committee standards and aim to improve consistency and clarity in the local banking framework. The rules are expected to take effect on 1 January 2026, pending legislative approval. | ||
United Kingdom | BOE | The Prudential Regulation Authority is reviewing the rule that caps high loan-to-income (LTI) mortgage lending at 15% of new loans. In the meantime, it’s offering a modification by consent that allows firms to temporarily disapply this cap. This follows the Financial Policy Committee’s recommendation to give lenders more flexibility, provided the system-wide share of high LTI lending remains consistent with the 15% limit. Lenders opting in must notify the PRA of material changes to their business plans and risk frameworks within a month. They must also report monthly on the volume and share of high LTI loans. The modification will stay in effect until 30 June 2026 or until the rule is formally updated or withdrawn. The PRA reserves the right to revoke or revise the modification if system-level risks increase or the 15% aggregate limit is breached. | ||
United Kingdom | BOE | UK regulators raise LTI threshold to ease rules for small mortgage lenders | The PRA and FCA have increased the loan-to-income (LTI) de minimis threshold from £100 million to £150 million. This change reduces the number of small lenders subject to the 15% cap on high-LTI mortgage lending. It’s aimed at easing regulatory burdens for smaller firms and encouraging competition in the mortgage market. The updated threshold reflects economic growth since 2014 and aligns with the Financial Policy Committee’s risk appetite. Around 10 more lenders will now be exempt from the flow limit. Regulators confirmed the rules will apply from 11 July 2025 and plan to review the threshold regularly to keep it relevant. | |
Investment | Australia | ASIC | ASIC is reviewing how it guides firms on creating Product Disclosure Statements (PDSs). The regulator wants feedback on a refreshed version of Regulatory Guide 168. It proposes merging rules from other guides and info sheets into one place and removing outdated documents. It also wants to sharpen the focus on misleading disclosure and better explain its ‘Good Disclosure Principles’. The goal is to cut complexity and make requirements easier to follow. | |
Chile | CMF | Rule change to enhance portfolio compression in clearing systems | Chile’s CMF has opened consultation on changes to Rule NCG 258, which governs credit and liquidity risk in clearing systems. The update introduces rules for bilateral portfolio compression by central counterparties. This process reduces contract volume and gross notional value without changing net risk or collateral requirements. It also sets traceability rules for pre- and post-compression activities. | |
European Union | European Union | Update on EU directive for alternative investment fund managers | The EU has updated the AIFMD to tighten supervision of alternative fund managers. It clarifies rules on delegation, leverage, and valuation. The changes require stricter risk management, liquidity controls, and enhanced investor disclosures. It also strengthens cross-border marketing conditions and outlines clearer depositary roles. These updates aim to reduce systemic risk and increase transparency in non-UCITS fund markets. | |
Global | FSB | The Financial Stability Board issued final recommendations to tackle financial stability risks from excessive leverage in nonbank financial intermediation. The report highlights how hedge funds, investment funds, pension schemes, and insurers using financial or synthetic leverage can amplify market stress. Key episodes like Archegos and the UK LDI crisis exposed these vulnerabilities. The FSB now urges regulators to tighten data reporting, enforce margin and leverage controls, and close regulatory gaps across jurisdictions. It also calls for more counterparty transparency and global coordination to prevent cross-border arbitrage and systemic spillovers. | ||
India | RBI | The Reserve Bank of India has released draft directions for novation of over the counter (OTC) derivative contracts. These rules outline how a new market maker can legally replace an existing counterparty in a derivative deal. The framework requires prior consent, market-based pricing, and a tripartite agreement between all parties. It also mandates reporting to the Clearing Corporation of India and use of standard documentation. The aim is to improve risk management and bring Indian practices closer to international norms. | ||
Indonesia | OJK | The OJK has issued a draft circular revising the monthly reporting requirements for venture capital firms and their sharia-compliant counterparts. The update reflects changes introduced by POJK 25/2023 on business operations. Key changes include procedures for submitting reports offline when online systems fail and updated guidance on where and how to send these reports. Revised templates in Attachments II and III are now part of the regulation. The circular takes effect from 1 December 2025 and is meant to ensure more consistent, accurate, and timely reporting in line with evolving supervisory needs. | ||
Malta | MFSA | The Malta Financial Services Authority has launched a consultation to revamp rules for the Institutional Financial Securities Market (IFSM). The proposal aims to streamline existing requirements and, for the first time, introduces clear provisions for sukuk. These Islamic financial instruments will now have defined pathways for listing on the IFSM, covering admission criteria, disclosure requirements, and ongoing obligations. The MFSA also plans to modernize the rulebook by redefining “professional securities,” removing outdated references, and aligning listing agent roles with the broader Sponsors’ Regime. Feedback is open until 8 August 2025. |
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