In this regular update, we round-up FinTech-related regulatory developments for the week ending 14 April 2022.
FSI: Insight on CBDCs
The Bank of International Settlements’ (BIS) Financial Stability Institute (FSI) has published an Insight (and executive summary) on central bank digital currencies (CBDCs). The Insight draws on interviews with nine central banks with advanced work on CBDCs and financial inclusion, as well as ongoing research and policy work at the BIS and World Bank. It gives concrete examples from the central banks’ work and discusses challenges, risks and regulatory and legal implications. It aims to facilitate peer learning on a key set of issues around CBDCs and financial inclusion policy faced by societies around the world. [14 Apr 2022]
BoE: CPs on FMI outsourcing and third party risk management
The Bank of England has published three Consultation Papers (CPs) on its proposals around outsourcing and third party risk management in financial market infrastructures (FMI). The proposals are set out in three draft supervisory statements (SS) for central counterparties (CCPs), central securities depositories (CSDs), and recognised payment system operators (RPSOs) and specified service providers (SSPs). The CPs aim to:
In particular, the BoE is proposing to develop an outsourcing and third party risk management part to add to the Code of Practice that will apply to relevant RPSOs and SSPs.
Feedback is requested by 14 July 2022. [14 Apr 2022]
BoE: Update on joint data collection transformation programme
The Bank of England (BoE) has published an update on the joint BoE and FCA data collection transformation programme, and the achievements since its last communication in February 2022. Key updates for phase one (P1) and phase two (P2) are highlighted below:
ESAs: Report on risks and vulnerabilities in the EU financial system
The European Supervisory Authorities (ESAs) have published their first joint risk assessment report for 2022. The report highlights the increasing vulnerabilities across the financial sector as well as the rise of environmental and cyber risks. In the report, the ESAs advise national competent authorities, financial institutions and market participants to consider the elevated level and frequency of cyber incidents. It also notes that financial institutions should strengthen their cyber resilience and prepare for a potential increase in cyberattacks. [13 Apr 2022]
ECB: Opinion on a proposal for a directive on measures for a high common level of cybersecurity
The European Central Bank (ECB) has published an opinion on a proposal for a directive on measures for a high common level of cybersecurity across the EU, and repealing Network and Information Security Directive (NIS). The ECB welcomes the proposed directive and recognises that it will increase the level of cyber resilience across all relevant sectors, reduce inconsistencies across the internal market and improve the level of situational awareness and the collective capability to prepare and respond by ensuring efficient cooperation in the EU. The ECB makes observations in relation to the scope of the proposed directive; the European System of Central Banks (ESCB) and Eurosystem oversight competences; and ICT third-party risk, management of large-scale incidents and crises, information-sharing and national cybersecurity strategy. [13 Apr 2022]
MAS announces Australia-Singapore FinTech Bridge Agreement
In a press release, MAS has announced that it has signed the Australia-Singapore FinTech Bridge Agreement with the Australia Treasury. The Australia-Singapore FinTech Bridge sets out a framework to:
MAS: Joint Statement of the 8th AFMGM
MAS has published the Joint Statement of the 8th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting (AFMGM) which was hosted by Cambodia. The statement covers the range of topics discussed at the meeting, including cyber resilience, financial inclusion, infrastructure financing, payment connectivity and more.
With particular regard to sustainable finance, the AFMGM commended the progress made by the ASEAN Taxonomy Board (ATB) toward the development of an ASEAN Taxonomy for Sustainable Finance. Attendees also noted the ATB’s intention to commence stakeholder consultation in advance of further development of the taxonomy. In addition, the Meeting recognised the work undertaken by the Joint Sustainable Finance Working Group (JSFWG) Industry Advisory Panel (IAP), and indicated that the publication of IAP white papers in the coming months was anticipated. The statement catalogues a number of other green and sustainability initiatives currently underway.
On digital assets, the AFMGM welcomed the initiatives to include a standing agenda item in the ASEAN Capital Market Forum’s (ACMF’s) agenda to exchange information and views on the regulation and developments in this. The Meeting also encouraged the exchange of views on digital asset developments among the relevant ASEAN working committees. [8 Apr 2022]
BSP: New multi-sector working groups to support financial inclusion
The Bangko Sentral ng Pilipinas (BSP) has announced that the Financial Inclusion Steering Committee (FISC) has established working groups to drive timely implementation of priority initiatives under the National Strategy for Financial Inclusion (NSFI) 2022-2028. The FISC has appointed the BSP to chair the working group on digital finance. All working groups are expected to convene in May 2022. [12 Apr 2022]
Regular updates on sanctions and other developments that may impact businesses with interests or operations in Ukraine and/or Russia are available on our FSR and Corporate Crime Notes blog here