July 2025 Regulatory Update

Gulf Cooperation Council Regulatory Developments

United Arab Emirates

Central Bank of the UAE (CBUAE)

• CBUAE Issues Commemorative Coins for the “Zayed and Rashid” Campaign, Reinforcing National Identity

  • The CBUAE issued gold and silver commemorative coins to mark the “Zayed and Rashid” campaign, aimed at reinforcing the values of unity and development upon which the nation was founded. The coins celebrate the legacy of the UAE’s founding fathers and their contributions to national progress.

Source: CBUAE

• CBUAE Imposes a Financial Sanction of AED 5.9 Million on a Branch of a Foreign Bank Operating in the UAE

  • Following an examination, the CBUAE imposed a fine of AED 5.9 million on a branch of a foreign bank for failing to comply with the Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organizations framework. The action underscores the regulator’s commitment to strict enforcement of AML/CFT requirements.

Source: CBUAE

Read also: Penalties and charges for money laundering in the UAE

• CBUAE Imposes Financial Sanctions of AED 4.1 Million on Three Exchange Houses

  • The CBUAE levied fines totalling AED 4.1 million on three exchange houses after inspections revealed non-compliance with Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) policies and procedures. The sanctions are part of ongoing supervisory efforts to strengthen compliance within the UAE’s financial sector.

Source: CBUAE

• CBUAE Imposes a Financial Sanction of AED 3 Million on a Bank

  • The CBUAE fined a UAE-based bank AED 3 million for violations of Decree Federal Law No. (20) of 2018 on Anti-Money Laundering and Combating the Financing of Terrorism and Illegal Organisations. The enforcement action followed examinations which identified failures to comply with prescribed Central Bank instructions.

Source: CBUAE

• CBUAE Revokes the Licence of Al Khazna Insurance Company P.S.C.

  • The CBUAE revoked the licence of Al Khazna Insurance Company after determining the insurer had failed to meet requirements set out in the Insurance Law and other applicable regulations during the suspension period. The decision followed examinations and regulatory follow-ups.

Source: CBUAE

• Board of Directors of the Financial Stability Council Holds First Meeting of 2025

  • The Financial Stability Council convened virtually under the chairmanship of H.E. Mohamed bin Hadi Al Hussaini to review previous directives, assess financial stability trends, and approve the 2025–2026 work programme, including establishing a technical advisory committee.

Source: CBUAE

• CBUAE Imposes a Financial Sanction on a Branch of a Foreign Bank

  • The CBUAE fined a foreign bank’s UAE branch AED 600,000 under Article 137 of the Decretal Federal Law No. 14 of 2018 for breaches related to market conduct and consumer protection regulations.

Source: CBUAE

• CBUAE Imposes a Financial Sanction on an Exchange House

  • The CBUAE imposed an AED 800,000 fine on a UAE-based exchange house under Article 137 of the Decretal Federal Law No. 14 of 2018 for failing to implement adequate AML/CFT policies and procedures.

Source: CBUAE

• Digital Dirham – A Primer on the UAE’s Central Bank Digital Currency

  • The CBUAE released a policy paper outlining the design and phased rollout of the Digital Dirham, a central bank digital currency (CBDC) set to serve as a safe, non-interest-bearing legal tender distributed via licensed financial institutions. Key features include wallet-based access, privacy controls, and programmability, with retail and cross-border use cases under the FIT program. Pilot testing is underway, with a phased rollout anticipated from Q4 2025.

Source: CBUAE

Securities and Commodities Authority (SCA)

• SCA Board Reports Record First-Half Milestones and Initiates Strategic Frameworks

  • The SCA reported record growth in the first half of 2025, including a 55% increase in new licenses and a 230% surge in assets under management. The Board approved major strategic initiatives, such as the launch of a new Finfluencer framework, the establishment of a joint regulatory committee with FSRA, DFSA, and VARA, and the introduction of rules on goodwill recognition. These measures aim to reinforce the UAE’s standing as a global financial hub through regulatory innovation, market transparency, and alignment with international standards.

Source: SCA

• A Global Endorsement of Emirati Regulatory Leadership – Waleed Al Awadhi Elected Chair of IOSCO’s AMERC

  • SCA CEO H.E. Waleed Al Awadhi was elected Chair of IOSCO’s Africa and Middle-East Regional Committee (AMERC), representing 43 jurisdictions. This appointment strengthens the UAE’s global regulatory influence and underscores its leadership in advancing capital markets across the region.

Source: SCA

• SCA Imposes AED 5 Million Fine and Refers Case to Public Prosecution to Enhance Market Integrity

  • The SCA imposed a fine of AED 5 million on a licensed firm for misleading clients and breaching Anti-Money Laundering (AML) regulations. The case has been referred to Public Prosecution, reflecting the Authority’s commitment to protecting investors and safeguarding market integrity.

Source: SCA

Dubai Financial Services Authority (DFSA)

• DFSA Issues Consultation Paper No. 167 on Basel Core Principles Alignment

  • The DFSA released Consultation Paper No. 167, seeking feedback by 5 September 2025 on proposed updates to align its Rulebook with the Basel Core Principles for Effective Banking Supervision. The reforms address risk governance, credit risk, concentration risk, and related-party transactions, with implementation targeted for 2 July 2026.

Source: DFSA

• DFSA Publishes FAQ on Revised Client Assets Regime

  • The DFSA issued a Frequently Asked Questions (FAQ) document to assist firms in understanding and preparing for the revised Client Assets regime, which will take effect on 1 January 2026. The guidance aims to clarify obligations and support smooth implementation.

Source: DFSA

Abu Dhabi Global Market (ADGM)

• ADGM Courts Launch Pro Bono Mediation Scheme to Enhance Access to Justice

  • ADGM Courts introduced a Pro Bono Mediators Panel comprised of internationally accredited professionals to provide free mediation services, supporting early dispute resolution and fostering emerging mediation talent. The initiative builds on the Court-Annexed Mediation Scheme, which has achieved an 80% settlement rate annually since 2019.

Source: ADGM

Abu Dhabi Global Market (ADGM) | Financial Services Regulatory Authority (FSRA)

• ADGM FSRA Publishes 2024 Annual Report Highlighting Sector Growth and Digital Innovation

  • The FSRA released its 2024 Annual Report showcasing a 30% increase in licensed financial services firms, advancements in digital asset regulation, and strengthened anti-financial crime measures. The report reflects ADGM’s position as a leading international financial centre.

Source: ADGM

• ADGM FSRA Issues Revised Cyber Risk Management Framework

  • The FSRA implemented a revised Cyber Risk Management Framework for Authorised Persons and Recognised Bodies, requiring integration of cyber risk into governance structures. Firms must achieve compliance by 31 January 2026, following a six-month transition period.

Source: ADGM

• ADGM FSRA Publishes Consultation Paper No. 8 of 2025 on Regulatory Enhancements

  • The FSRA published Consultation Paper No. 8 of 2025, inviting feedback by 27 August 2025 on proposed measures including prohibitions on misleading conduct, enhanced licensing standards, strengthened prudential direction powers, and improved client asset protections.

Source: ADGM

Virtual Assets Regulatory Authority (VARA)

• UAE National Committee Updates List of Jurisdictions Under Heightened AML/CFT Scrutiny

  • The National Committee updated its official list of jurisdictions under heightened AML/CFT scrutiny and those designated as high-risk subject to “calls for action,” in line with FATF standards and Cabinet Decision No. 10 (2019, as amended). All UAE-regulated entities — including banks, DNFBPs, virtual asset providers, and non-profit organizations — must apply countermeasures and enhanced due diligence proportional to the identified risks, and regularly reference updates from the FATF and the National Committee.

Source: VARA

• VARA Issues VASP Circular on Payment Services Registration Requirements

  • VARA issued a circular requiring all Virtual Asset Service Providers (VASPs) offering payment-related virtual asset services to comply with the UAE Central Bank’s “Payment Token Services Regulation” by obtaining a specific No Objection Certificate (NoC). The directive mandates full regulatory coordination and adherence to national payment systems compliance requirements.

Source: VARA

• VARA Reminder on Licence Code Use for VA Proprietary Trading

  • VARA reminded commercial entities engaging in virtual asset proprietary trading that they must hold a valid trade licence coded “VA Proprietary Trading” and obtain a No Objection Certificate (NoC) under the 2023 VARA regulations. VASPs are responsible for ensuring that their customers meet these regulatory requirements.

Source: VARA

Saudi Arabia

Saudi Central Bank (SAMA)

• SAMA Launches New E-commerce Payments Interface

  • SAMA announced the launch of a new e-commerce payments interface that enables service providers to leverage national infrastructure for integration between the “mada” payment system and global payment networks. The interface introduces a centralized registration service, allowing banks and financial institutions to provide innovative financing solutions to e-commerce businesses.

Source: SAMA

• SAMA Licenses “Awn Alraidah” Company for Consumer Microfinance Activities

  • SAMA licensed “Awn Alraidah” company to conduct consumer microfinance activities through financial technology. This initiative supports SAMA’s strategy to enhance the efficiency of financial transactions, promote innovative financial solutions, and advance financial inclusion.

Source: SAMA

Capital Market Authority (CMA)

• CMA Approves Regulation for Close-Out Netting and Financial Collateral Arrangements

  • The CMA approved regulations governing the enforcement of close-out netting and related financial collateral arrangements in the event of default by qualified financial contract parties. The framework aims to strengthen financial stability, protect investors, and improve the capital market structure in alignment with the Bankruptcy Law.

Source: CMA

• CMA Approves Framework for Issuance of Depositary Receipts Corresponding to Foreign Shares

  • The CMA approved a regulatory framework for issuing depositary receipts in the Saudi capital market corresponding to foreign shares. This initiative is designed to deepen the market, boost capital formation, and diversify investment options for both domestic and international investors.

Source: CMA

• CMA Enhances Regulations for Investment Funds in the Kingdom

  • The CMA approved significant updates to investment fund regulations, focusing on improved governance, greater transparency, and expanded distribution channels. The changes include relaxed REIT regulations, enhanced fund closure controls, and broader digital access for investors.

Source: CMA

• CMA Eases Rules for Opening Investment Accounts for Various Investor Categories

  • The CMA approved amendments that allow individual foreign investors, including current and former GCC residents, to directly open investment accounts and trade Main Market shares. These amendments also simplify account-opening processes for multiple investor types, aiming to boost foreign investment and market liquidity.

Source: CMA

• CMA Approves Public Offering of “Dinar US Equity Fund”

  • The CMA approved the public offering of “Dinar US Equity Fund” by Dinar Investment Company. Investors are urged to carefully review the fund’s Terms and Conditions, including its strategy and associated risks, before making investment decisions. CMA approval confirms regulatory compliance but is not an investment recommendation.

Source: CMA

• CMA Introduces Incentive for Credit-Rated Debt Instruments

  • The CMA introduced a priority review process for public debt offering applications with a credit rating from a CMA-licensed agency. This incentive, available until the end of 2026, aims to enhance market efficiency, attract institutional investors, and deepen the debt market in alignment with Saudi Vision 2030 objectives.

Source: CMA

Qatar

Qatar Central Bank (QCB)

• QCB Bills Auction Totals QAR 5 Billion

  • QCB conducted a bills auction where bids from banks reached QAR 5 billion, reflecting strong demand for QCB’s short-term liquidity instruments.

Source: QCB

• QCB International Reserves Reach QR 258.9 Billion in June 2025

  • QCB announced that its international reserves and foreign currency liquidity grew to QR 258.9 billion as of June 2025, highlighting continued financial stability and robust foreign currency holdings.

Source: QCB

• QCB Maintains Current Interest Rates

  • The Monetary Policy Committee of QCB resolved to maintain the current interest rates for the QCB Deposit Rate, Lending Rate, and Repo Rate, aligning with its monetary policy objectives to ensure stability.

Source: QCB

• QCB Bills Auction Totals QAR 4.4 Billion

  • QCB conducted a bills auction where bids from banks amounted to QAR 4.4 billion, marking continued active participation in liquidity management operations.

Source: QCB

Kuwait

Capital Markets Authority (CMA) Kuwait

• CMA Kuwait Launches Emerging Companies Market

  • The CMA issued Resolution No. 108/2025 to establish a new Emerging Companies Market on Boursa Kuwait, featuring lighter listing requirements and strengthened ongoing compliance rules. The initiative aims to improve liquidity and bolster investor protection.

Source: CMA

• CMA Kuwait Introduces “Qualified Broker” Framework and Grants First CCP License

  • CMA Kuwait created a new licensed category for qualified brokers and granted Kuwait’s first Central Counterparty (CCP) license. This move enhances post-trade clearing infrastructure to improve risk management, settlement efficiency, and investor confidence.

Source: CMA

• CMA Kuwait Enhances Market Access via Bond Market Automations and Online Services

  • CMA Kuwait approved the automation of trading systems for bonds, sukuk, and Islamic repo, along with expanding online investor services such as inquiries, pre-authorization, and SMS alerts. The changes are designed to improve efficiency, transparency, and accessibility.

Source: CMA

• CMA Kuwait Launches Securities-Based Crowdfunding with First Registered Platform

  • CMA Kuwait registered Al Mowazi Capital Company as the first entity in its Securities-Based Fintech Services Register, marking the launch of Module Nineteen regulations. The framework supports SME and entrepreneur financing, enhancing financial inclusion and innovation.

Source: CMA

• CMA Kuwait Signs MoU with Financial Intelligence Unit on AML/CFT Cooperation

  • CMA Kuwait signed a Memorandum of Understanding with the Kuwait Financial Intelligence Unit to strengthen cooperation against money laundering, associated crimes, and terrorism financing. The agreement establishes mechanisms for information sharing, joint training, and coordinated supervision.

Source: CMA

Bahrain

Central Bank of Bahrain (CBB)

• CBB Issues Framework for Regulating Stablecoin Issuance

  • The Central Bank of Bahrain published a regulatory framework for licensed stablecoin issuers, mandating full fiat currency backing (such as the Bahraini Dinar) and setting rules on issuance, investor protection, cybersecurity, and transparency. This framework aims to safeguard market integrity while encouraging responsible innovation in digital assets.

Source: CBB

• CBB Maintains Overnight Interest Rate at 5%

  • Following its regular review, the Central Bank of Bahrain decided to keep the overnight interest rate unchanged at 5%. The decision is part of ongoing efforts to ensure monetary and financial stability in the Kingdom amid evolving global market conditions.

Source: CBB

Asia-Pacific Regulatory Develpments

Australia

Australian Securities and Investments Commission (ASIC)

• Proposed Update to RG 183 Guidance for Industry Codes of Conduct (CS 26)

  • ASIC has released a consultation proposing updates to Regulatory Guide 183 to align with post-Hayne reforms, clarify the code approval process, and incorporate practical experience from industry application.

Source: ASIC

• Proposed Update to ASIC’s Guidance on Product Disclosure Statements (CS 22)

  • ASIC is consulting on revisions to RG 168 to simplify and consolidate product disclosure statement guidance, incorporating principles from older INFO sheets and guides.

Source: ASIC

• Proposed Remake of Deposit Product Disclosure Relief Instrument (CS 21)

  • ASIC is seeking feedback on the proposed remake of Instrument 2015/683, which provides relief from certain disclosure requirements for ADIs offering deposit products.

Source: ASIC

• ASIC Corporations (Amendment) Instrument 2025/456

  • This amendment extends the incidental retail cover period under Instrument 2022/716 from 16 August 2025 to 16 August 2030.

Source: ASIC

• ASIC Seeks Feedback on Proposed Updates to Conflicts Management Guidance (CP 385)

  • ASIC is consulting on proposed updates to RG 181, focusing on managing conflicts of interest, aligning with modern law, and incorporating recent surveillance findings.

Source: ASIC

• Reissue of Regulatory Guide RG 16 (External Administrators and Controllers)

  • ASIC has reissued RG 16, providing updated guidance for external administrators, receivers, and controllers on reporting misconduct via the ASIC Regulatory Portal.

Source: ASIC

Reserve Bank of Australia (RBA)

• Statement on the Conduct of Monetary Policy

  • The RBA and the Government issued a joint statement reaffirming the independence, transparency, and accountability of monetary policy.

Source: RBA

• Memorandum of Understanding Came into Effect

  • A revised MoU between the RBA and APRA replaces the 1998 version, outlining cooperation and review protocols.

Source: RBA

Australian Prudential Regulation Authority (APRA)

• APRA Consults on Amendments to Phase Out AT1 Capital

  • ASIC has released a consultation proposing updates to Regulatory Guide 183 to align with post-Hayne reforms, clarify the code approval process, and incorporate practical experience from industry application.

Source: APRA

• APRA’s New Prudential Standard on Operational Risk Management Comes into Force

  • ASIC is consulting on revisions to RG 168 to simplify and consolidate product disclosure statement guidance, incorporating principles from older INFO sheets and guides.

Source: APRA

China

People’s Bank of China (PBOC)

• Loan Prime Rate Announcement – July 21, 2025

  • The PBOC announced the Loan Prime Rates for July 2025, setting benchmark lending rates for 1-year and 5-year (or longer) terms.

Source: PBC

• Joint Public Notice on Preventing Risks of Fundraising via Illegal Online Platforms

  • Authorities issued a public warning about the risks of illicit fundraising via illegal online platforms, providing guidance for investor protection.

Source: PBC

Hong Kong

Securities and Futures Commission (SFC)

• FSTB and SFC Consult on Proposed Regimes to Regulate Virtual Asset Dealers and Custodians

  • The SFC and FSTB issued a joint consultation outlining regulatory standards for virtual asset trading and custody in Hong Kong. Key requirements include robust custody arrangements, proper client asset segregation, and enhanced risk management controls to safeguard investors and strengthen market integrity.

Source: SFC

• Anti-Scam Consumer Protection Charter 3.0

  • Launched jointly with major technology and telecom companies, the Charter outlines six principles to combat scams, including reporting channels, regulator access, advertiser due diligence, monitoring, enforcement of terms, and public awareness campaigns. Participants include Google, Meta, Microsoft, and TikTok.

Source: SFC

• SFC Consults on Financial Resources Rule Enhancements

  • The SFC has launched a consultation on amending the Financial Resources Rules and related guidance to support growth in OTC derivatives and other products. Proposals focus on modernising capital and reporting requirements. Industry feedback is invited.

Source: SFC

Insurance Authority (IA)

• GL24: Guideline on Continuing Professional Development for Licensed Insurance Intermediaries

  • The IA updated its CPD guideline for licensed insurance intermediaries, effective 1 August 2025. Changes include an additional 2 CPD hours for Responsible Officers, full recognition of structured virtual classroom activities, removal of e-learning limits, and expanded recognition of qualifications such as FASHK and FCAS.

Source: IA

India

Reserve Bank of India (RBI)

• BNM Enhances Flexibility for Corporates with Full Rollout of Qualified Resident Investor Programme

  • Effective 1 January 2026, new directions introduce the concept of ATOs and mandate onboarding due diligence, risk management, and compliance measures for Aadhaar Enabled Payment System Touchpoint Operators by acquiring banks.

Source: RBI

Securities and Exchange Board of India (SEBI)

• Master Circular for Portfolio Managers

  • This updated master circular consolidates all portfolio manager guidelines as of 31 March 2025, replacing the June 2024 version. It covers registration, disclosures, fee structures, performance reporting, cybersecurity, and grievance redressal.

Source: SEBI

• Master Circular for Stock Brokers

  • The updated master circular consolidates over 130 previous circulars and provides unified compliance for stock brokers, including new measures for tagging client accounts, real-time margin monitoring, audits, and social media oversight.

Source: SEBI

Indonesia

Otoritas Jasa Keuangan (OJK)

• OJK Strengthens Governance with Integrated SI-GRC System

  • The OJK has launched an integrated Governance–Risk–Compliance (SI-GRC) information system designed to strengthen internal audit, risk management, quality control, and integrity enforcement functions. This digital platform aims to enhance regulatory oversight, streamline organisational governance, and improve coordination across supervisory processes.

Source: OJK

Bank Indonesia (BI)

• Bank Indonesia Lowers BI-Rate by 25 bps to 5.25%

  • Following its 15–16 July 2025 monetary policy meeting, Bank Indonesia reduced the BI-Rate by 25 basis points to 5.25%. Deposit Facility and Lending Facility rates were also adjusted accordingly. The decision reflects the central bank’s commitment to supporting economic growth while maintaining inflation stability amid evolving domestic and global conditions.

Source: BI

Malaysia

Bank Negara Malaysia (BNM)

• BNM Enhances Flexibility for Corporates with Full Rollout of Qualified Resident Investor Programme

  • Effective 1 July 2025, the Qualified Resident Investor (QRI) Programme allows eligible corporates to freely convert foreign currency investment proceeds into ringgit and reconvert for reinvestment abroad without prior approval, supporting onshore FX market flows.

Source: BNM

Securities Commission Malaysia (SC Malaysia)

• SC Issues Product Governance Guidelines to Promote Responsible Innovation and Strengthen

  • The SC has released guidelines requiring issuers and distributors of unlisted capital market products to integrate investor interests across the product lifecycle through robust internal controls and governance.

Source: SC

Singapore

Monetary Authority of Singapore (MAS)

• MAS Clarifies Regulatory Regime for Digital Token Service Providers

  • Effective 30 June 2025, any Singapore-incorporated entity offering digital token services solely to overseas clients must obtain a licence under the Financial Services and Markets Act 2022 or cease operations. The move targets money laundering and terrorism financing risks. MAS stated it will generally not grant licences for fully offshore activities.

Source: MAS

• MAS Proposes to Enhance Product Highlights Sheets and Streamline Framework for Complex Products

  • MAS has launched a public consultation (closing 1 September 2025) on enhancements to Product Highlights Sheets (PHS) and a simplified framework for complex investment products. Key proposals include a redesigned first-page Q&A format, red labelling for complex products, extending requirements to Investment-Linked Policies (ILPs), and mandating standard templates via legislation for clarity and consistency.

Source: MAS

Japan

Financial Services Agency (FSA)

• Updated Guidebook for Registration of Investment Management Business and Other Financial Instruments Businesses

  • The FSA issued an updated guidebook for the registration of investment management and other financial instruments businesses, providing revised licensing and compliance guidance.

Source: FSA

Bank of Japan (BoJ)

• Statement on Monetary Policy – July 31, 2025

  • The BoJ released its latest statement on monetary policy following the 30–31 July Monetary Policy Meeting.

Source: BoJ

• Warning – Scams Using the Bank of Japan Name

  • The BoJ issued a public warning about fraudulent schemes misusing its name.

Source: BoJ

European Union Regulatory Developments

European Central Bank (ECB)

• ECB to adapt collateral framework to address climate-related transition risks

  • From the second half of 2026, the Eurosystem will introduce a “climate factor” haircut on marketable assets issued by non-financial corporates when pledged as refinancing collateral. The haircut will be determined using climate stress-test data, the issuer’s Corporate Sector Purchase Programme (CSPP) climate score, and bond maturity. This measure aims to create a forward-looking buffer against potential transition risk losses. The calibration will be reviewed regularly to integrate improved data and modelling, while maintaining sufficient collateral availability.

Source: ECB

European Securities and Markets Authority (ESMA)

• ESMA prepares for switch toward single volume cap in October 2025

  • From October 2025, ESMA will replace the current double volume cap (DVC) with a single volume cap for equity and equity-like instruments as part of MiFIR Review reforms. The new limit will restrict trading under the reference price waiver to 7% of total EU trading volume per instrument over the previous 12 months, triggering a three-month suspension if breached. Calculations will be based on transaction reporting data from national authorities, and the current DVC mechanism will be phased out by January 2026. First results will be published on 9 October 2025.

Source: ESMA

• Knowledge and competence of staff providing information on crypto-assets – ESMA criteria published

  • ESMA has issued final MiCA guidelines detailing the criteria for assessing staff knowledge and competence in providing information or advice on crypto-assets. The requirements include minimum qualification thresholds, continuous professional development (CPD) obligations, and organisational standards to ensure informed and compliant client interactions.

Source: ESMA

European Banking Authority (EBA)

• A careless use of innovative compliance products can lead to money laundering and terrorism financing risks, the EBA says in its Opinion

  • In Opinion EBA/Op/2025/10, the EBA warns that the unregulated or poorly governed deployment of innovative compliance tools—such as RegTech, FinTech, crypto-assets, and AI—can heighten money laundering and terrorism financing risks. Over 70% of competent authorities report increased financial-crime risks in the FinTech sector, while more than half of serious compliance breaches logged in the EuReCA database involve RegTech misuse. The Opinion stresses that innovation must be matched by robust oversight and governance to safeguard AML/CFT integrity.

Source: EBA

• ESAs sign Memorandum of Understanding with AMLA for effective cooperation and information exchange

  • The ESAs and AMLA have signed an MoU to strengthen collaboration, improve information sharing, and promote supervisory convergence in AML/CFT oversight across EU financial markets. The agreement establishes a formal framework for cooperation to enhance efficiency and harmonisation in combating financial crime.

Source: EBA

Switzerland

Swiss Financial Market Supervisory Authority (FINMA)

• FINMA Launches Consultations on Ordinances Concerning Risk Diversification and Liquidity for Banks and Securities Firms

  • FINMA has issued a consultation paper on two newly created ordinances: the Risk Diversification Ordinance (RDO-FINMA) and the Liquidity Ordinance (LiqO-FINMA) for banks and securities firms. These will replace Circulars 2019/1, 2013/7, and 2015/2. The consultation closes on 29 September 2025, with the rules scheduled to take effect on 1 January 2027.

Source: FINMA

United Kingdom Regulatory Developments

Financial Conduct Authority (FCA)

• Market Watch 82 – Market Conduct and Transaction Reporting Issues

  • The FCA’s Market Watch 82 newsletter addresses transaction reporting themes including breach notifications, back-reporting, and remedial action timelines.

Source: FCA

• FCA Sets Faster Targets for Authorisations

  • New FCA measures shorten statutory and voluntary timelines for firm authorisation to improve efficiency and support market entry.

Source: FCA

• Treatment of Politically Exposed Persons

  • Finalised guidance FG25/3 clarifies PEP identification and handling, confirming that non-executive board members of UK civil service departments are not considered PEPs.

Source: FCA

Prudential Regulation Authority (PRA)

• Other Systemically Important Institutions (O-SII) Buffer Rates for Ring-Fenced Banks and Large Building Societies

  • Following the Financial Policy Committee’s review of the O-SII buffer framework, the PRA republished the 2024 buffer rates indexed to a larger banking system, confirming they will apply from 1 January 2026. Lloyds remains at 2.0% of RWAs, NatWest at 1.5%, and Barclays, HSBC, Santander UK, and Nationwide at 1.0%. Where the O-SII buffer exceeds a group’s G-SIB buffer, the PRA buffer and leverage ratio add-on will also increase.

Source: BoE

• PS9/25 – Changes to the UK ISPV Regulatory Framework

  • Policy Statement PS9/25 introduces reforms to accelerate the UK Insurance Special Purpose Vehicle (ISPV) authorisation process, including a fast-track route with a 10-working-day target for eligible firms, updated application materials, and a new reporting taxonomy (v2.1) effective 31 December 2025. These changes aim to boost UK competitiveness in the insurance-linked securities market.

Source: BoE

• SS2/25 – Prudential Considerations for Insurance and Reinsurance Undertakings When Transferring Risk to SPVs

  • Supervisory Statement SS2/25 outlines expectations for insurers and reinsurers transferring risk to Special Purpose Vehicles (SPVs), including legal enforceability, concentration risk management, solvency capital implications, and portfolio risk governance. It supplements Solvency II requirements and emphasises conservative accounting for reinsurance recoverables.

Source: BoE

• The Minimum Requirement for Own Funds and Eligible Liabilities (MREL) – Buffers and Threshold Conditions

  • Updated Supervisory Statement 16/16 clarifies the interaction between MREL and capital/leverage buffers. It warns that breaching MREL could affect Threshold Conditions and trigger supervisory action. CET1 capital must not be double-counted towards both buffers and MREL.

Source: BoE

• Update on the 2026 Dynamic General Insurance Stress Test (DyGIST)

  • The PRA confirmed that the 2026 DyGIST will begin in May 2026. The live three-week exercise will simulate sequential adverse events for over 80% of the general insurance market. A preparatory workshop will be held in September 2025.

Source: BoE

• The PRA’s Approach to Waivers and Permissions Under Own Funds (CRR)

  • New Statement of Policy outlines criteria for PRA-authorised firms applying for waivers or modified application of Own Funds rules under FSMA 2000 section 138BA.

Source: BoE

• PS14/25 – Amendments to the Large Exposures Framework – Part 1

  • Policy Statement PS14/25 implements changes to the Large Exposures framework, including removal of certain exemptions, integration of “groups of connected clients” (GCCs) definitions, and updated reporting templates. Effective 1 January 2026.

Source: BoE

• PS12/25 – Restatement of CRR and Solvency II Requirements in PRA Rulebook – 2026 Implementation

  • Restates EU CRR and Solvency II provisions into the PRA Rulebook for 1 January 2026, updating credit quality mapping, securitisation rules, and capital definitions to reflect UK autonomous standards.

Source: BoE

• SS3/25 – Identification of Groups of Connected Clients for Large Exposures Purposes Date: July 17, 2025

  • Supervisory Statement SS3/25 provides guidance for identifying GCCs under the Large Exposures framework, including governance, documentation, and treatment of control/economic dependency scenarios.

Source: BoE

• FCA and PRA Cut Senior Manager Regime Red Tape to Help Boost Growth

  • Phase 1 SM&CR reforms include streamlined application processes, extended deadlines, and fewer duplicate certification roles while retaining accountability measures.

Source: BoE

• The PRA’s Approach to Identifying Global Systemically Important Institutions (G-SIIs) and Setting G-SII Buffers

  • Statement of Policy outlines methodology for identifying UK G-SIIs and assigning buffers, aligning with Basel standards and using weighted scoring across key systemic risk factors.

Source: BoE

United States Regulatory Developments

Securities and Exchange Commission (SEC)

• SEC Permits In-Kind Creations and Redemptions for Crypto ETPs

  • Press Release 2025-101 announces Commission orders allowing bitcoin- and ether-based exchange-traded products (ETPs) to create and redeem shares with the underlying cryptocurrency instead of cash, aligning crypto ETP operations with established gold ETP practices. The decision also approved options on certain spot-bitcoin ETPs and sought public comment on mixed BTC/ETH funds and higher position limits.

Source: SEC

Office of the Comptroller of the Currency (OCC)

• Agencies Issue Joint Statement on Risk-Management Considerations for Crypto-Asset Safekeeping

  • The OCC, FDIC, and FRB issued a joint bulletin reaffirming that banks offering crypto-asset custody services must operate within safe, sound, and risk-managed frameworks consistent with existing laws and regulations. The statement clarifies that no new expectations have been introduced but emphasises adherence to established supervisory principles.

Source: OCC

Financial Industry Regulatory Authority (FINRA)

• FINRA Adopts Exemption From FINRA Rules 5130 and 5131 for Business Development Companies

  • FINRA approved amendments exempting business development companies (BDCs) from Rules 5130 and 5131, which restrict certain allocations in initial public offerings (IPOs). Effective immediately, the changes aim to allow BDCs broader participation in IPO allocations while maintaining protections for market fairness and integrity.

Source: FINRA

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