Global Regulator & Central Bank News Roundup
Edition 12026Week of January 5
Global developments
The IAIS confirmed its new Committee structure took effect on 1 January 2026, establishing the Monitoring and Risk Assessment Committee (MRC), Standards and Supervisory Practices Committee (SSC), and Implementation Assessment Committee (IAC). The update also introduces flexible subcommittee reporting aligned with the IAIS annual Roadmap.
The International Association of Insurance Supervisors (IAIS) announced that its new Committee-level structure, previously communicated last year, became effective from 1 January 2026. The change brings three committees into operation: the Monitoring and Risk Assessment Committee (MRC), the Standards and Supervisory Practices Committee (SSC), and the Implementation Assessment Committee (IAC). Under the updated structure, MRC continues to oversee IAIS work on monitoring and assessing global insurance sector developments and risks, including detecting potential systemic risk build-up, chaired by Dieter Hendrickx (Head of Insurance Supervision, National Bank of Belgium). SSC is responsible for setting and maintaining IAIS global standards and supporting Members in implementation and supervisory practices, co-chaired by Farzana Badat (Deputy Commissioner, Financial Sector Conduct Authority, South Africa) and Judi French (Director, Ohio Department of Insurance, USA). IAC will focus exclusively on assessing globally consistent and comprehensive implementation of IAIS standards, chaired by Vicky White (Director of Insurance and Cross-Sectoral Policy, Prudential Regulation Authority, UK). A more flexible reporting structure for subcommittees is now also in place, with subcommittees reporting to one or more committees on a project or activity basis as determined by the annual Roadmap.
The OECD/G20 Inclusive Framework, with 147 members, agreed on a package to support coordinated global minimum tax implementation. Among other things, it includes simplification measures, new and substance-based tax incentive safe harbour, and an evidence-based stocktake process.
The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), comprising 147 countries and jurisdictions, agreed key elements of a comprehensive package setting a course forward for the co-ordinated operation of global minimum tax arrangements in a digitalised and globalised economy. The package establishes a “side by side” arrangement and comprises five components: simplification measures to reduce compliance burdens for multinational enterprises (MNEs) and tax authorities in calculating and reporting under the global minimum tax rules; a new targeted substance-based tax incentive safe harbour to further align the treatment of tax incentives globally; new safe harbours for MNE Groups with an ultimate parent entity located in an eligible jurisdiction meeting minimum taxation requirements; an evidence-based stocktake process intended to maintain a level playing field for all Inclusive Framework members; and reinforcement of the objective that qualified domestic minimum top-up tax regimes remain a primary mechanism in the global minimum tax framework for protecting local tax bases, particularly in developing countries. Additional implementation tools and fact sheets are to be made available in the coming weeks, alongside an OECD-hosted webinar scheduled for 13 January 2026.
The IMF released a Departmental Paper outlining good practices in cyber risk regulation and supervision, drawing on its work since 2017. It highlights USD 2.5bn in reported losses from 2020–2023 and a 500% spike in 2020, emphasizing unified regulation, proportionate oversight, and third-party risk management as key focus areas.
The International Monetary Fund (IMF) published a new Departmental Paper on "Good Practices in Cyber Risk Regulation and Supervision", consolidating lessons from the IMF’s cyber risk work program since 2017 across advanced, emerging, and developing economies. The paper targets financial sector regulators, supervisors, and oversight authorities, and frames cyber risk as a key financial stability concern given the growing frequency and cost of cyber incidents and the systemic implications of disruption at systemically important financial institutions (FIs) and financial market infrastructures (FMIs). Notably, it highlights that approximately 20 percent of reported cyber incidents over the past two decades affected the financial sector, and that reported direct losses from cyber incidents impacting the sector totaled USD 2.5 billion from 2020 to 2023. On regulation, the paper sets out a structured development process and promotes integrating ICT and cyber risk into a coherent technology-risk-management framework; balancing principles-based and prescriptive requirements based on sector maturity; and applying proportionality by size, complexity, and systemic importance. It highlights governance and internal controls, cyber incident reporting, cybersecurity testing (including penetration testing and threat-led penetration testing), crisis simulation exercises, and third-party/technology service provider risk management (including contractual audit rights) as particularly impactful expectations. On supervision and oversight, the paper emphasizes continuous offsite monitoring and periodic onsite examinations, thematic reviews, and active follow-up on remediation, supported by adequate specialist resourcing and capacity building. It also points to system-wide tools such as cyber mapping, sector-wide incident reporting and analysis, and stress testing using severe-but-plausible scenarios, and flags the need to bring critical third-party technology providers under cyber risk oversight frameworks.
A new BIS Bulletin reports AI-related IT investment at 5% of GDP, with private credit to AI firms exceeding USD 200bn and potentially reaching USD 600bn by 2030. It highlights a shift to external financing and flags moderate stability risks from leverage and opaque structures.
The Bank for International Settlements published the “Financing the AI boom: from cash flows to debt”, examining the macroeconomic and financing implications of surging AI-related investment. The Bulletin reports that by mid-2025, expenditures on IT manufacturing facilities and data centres(including construction and equipment were equivalent to 1% of GDP, and that total IT-related investment rose to 5% of GDP. It estimates semiconductor manufacturing facilities and data centres contributed on average 0.4 percentage points to US GDP growth over the three years after 2022, and notes that total IT investment has accounted for almost half of GDP growth in recent quarters. On financing, the Bulletin describes a shift among major IT firms from internal cash flows towards external funding as capital expenditures rise and free cash flows in some cases lag capex; it highlights debt financing via corporate bonds, leasing arrangements or loans, while noting that construction, power availability and tenant concentration risks can push financing outside traditional bank and bond channels. Private credit is identified as a fast-growing source: outstanding direct loans to AI-related companies increased from near zero to over USD 200bn, and the share of private credit loans to AI-related companies rose from less than 1% of outstanding volumes to almost 8%. Based on projected AI-investment growth of 50–300%, the authors estimate outstanding private credit to AI firms could reach around USD 300–600bn by 2030. Reported loan terms to AI-related companies are broadly similar to other sectors in secured share (46% vs 48%), maturity (4.7 vs 4.8 years) and rate spreads (6.2 vs 6.1 percentage points), though average loan size is larger (USD 169m vs USD 90m). On stability implications, the Bulletin states that macroeconomic and financial stability risks “appear moderate” but argues sustainability hinges on AI firms meeting high earnings expectations, noting a disconnect between equity valuations and debt market pricing. It also flags potential vulnerabilities from higher leverage, rapid growth in less transparent private credit markets, circular financing within the AI ecosystem, and financing structures that may move leverage off balance sheet, alongside investor concerns about the long-term value of collateral such as data centres.
Active global consultations
The Board of the International Organization of Securities Commissions is consulting on proposed updates to its standards for valuing collective investment schemes, replacing its 2013 principles for these schemes and its 2007 principles for hedge fund portfolios with one set of 13 Recommendations. The consultation reflects market changes since those standards were issued, including more collective investment schemes holding less liquid and illiquid assets, including private assets; greater retail investment in such schemes; and valuation challenges during periods of market stress. The proposed Recommendations focus on registered, authorized or public open-ended funds. They may also serve as good practices for other funds, while money market funds are excluded. The Recommendations cover valuation policies and governance, including independent oversight and arrangements for stressed markets; conflicts of interest and related disclosure; valuation methodology, including fair value, back testing, calibration, price overrides and consistent application; and the use and oversight of third party valuation service providers. They also address forward pricing, alignment of valuation and dealing frequency, controls for stale valuations, net asset value and valuation disclosures, detection and correction of pricing errors, investor compensation where material harm occurs, and record keeping to support compliance, audits and regulatory oversight.
The Board of the International Organization of Securities Commissions is consulting on proposed updates to its standards for valuing collective investment schemes, replacing its 2013 principles for these schemes and its 2007 principles for hedge fund portfolios with one set of 13 Recommendations. The consultation reflects market changes since those standards were issued, including more collective investment schemes holding less liquid and illiquid assets, including private assets; greater retail investment in such schemes; and valuation challenges during periods of market stress. The proposed Recommendations focus on registered, authorized or public open-ended funds. They may also serve as good practices for other funds, while money market funds are excluded. The Recommendations cover valuation policies and governance, including independent oversight and arrangements for stressed markets; conflicts of interest and related disclosure; valuation methodology, including fair value, back testing, calibration, price overrides and consistent application; and the use and oversight of third party valuation service providers. They also address forward pricing, alignment of valuation and dealing frequency, controls for stale valuations, net asset value and valuation disclosures, detection and correction of pricing errors, investor compensation where material harm occurs, and record keeping to support compliance, audits and regulatory oversight.
The Financial Stability Board is seeking feedback on draft guidance for identifying the insurers that should fall within recovery and resolution planning requirements under the Key Attributes of Effective Resolution Regimes for Financial Institutions. The consultation follows the end of the annual global systemically important insurer identification process and sets out how national resolution or supervisory authorities should decide whether an insurer could be systemically significant or critical upon failure, or could affect financial stability if it fails. The draft guidance proposes that authorities apply established criteria covering an insurer’s nature, scale, complexity, substitutability, cross-border activities and interconnectedness, supported by explanatory comments and illustrative indicators that allow for consistent assessment while preserving flexibility for different markets, legal frameworks and supervisory practices. It also specifies cases where recovery and resolution planning should apply regardless of the broader criteria assessment, including when an insurer performs a critical function that cannot be replaced within a reasonable time and cost, or when its failure is likely to significantly affect the financial system or the real economy, including through material harm to policyholders, systemic disruption or loss of confidence. The consultation further proposes aligning Financial Stability Board guidance on critical functions so that a material impact on either the financial system or the real economy would be enough to bring the function within scope.
The Financial Stability Board is seeking feedback on draft guidance for identifying the insurers that should fall within recovery and resolution planning requirements under the Key Attributes of Effective Resolution Regimes for Financial Institutions. The consultation follows the end of the annual global systemically important insurer identification process and sets out how national resolution or supervisory authorities should decide whether an insurer could be systemically significant or critical upon failure, or could affect financial stability if it fails. The draft guidance proposes that authorities apply established criteria covering an insurer’s nature, scale, complexity, substitutability, cross-border activities and interconnectedness, supported by explanatory comments and illustrative indicators that allow for consistent assessment while preserving flexibility for different markets, legal frameworks and supervisory practices. It also specifies cases where recovery and resolution planning should apply regardless of the broader criteria assessment, including when an insurer performs a critical function that cannot be replaced within a reasonable time and cost, or when its failure is likely to significantly affect the financial system or the real economy, including through material harm to policyholders, systemic disruption or loss of confidence. The consultation further proposes aligning Financial Stability Board guidance on critical functions so that a material impact on either the financial system or the real economy would be enough to bring the function within scope.
Regional developments
The Monetary Authority of Singapore is consulting on proposed changes to the Securities and Futures Act and draft regulations to support dual listings on the upcoming Global Listing Board. Key measures include streamlined prospectus requirements, IPO timeline alignment with the U.S., and safe harbour provisions for forward-looking statements and issuer activities.
The Monetary Authority of Singapore (MAS) is seeking feedback on proposed amendments to the Securities and Futures Act 2001 (SFA) and draft regulations intended to facilitate dual listings on the planned Global Listing Board (GLB), a framework announced on 19 November 2025 for dual listings on SGX and Nasdaq. The package is designed to reduce friction by enabling the use of a single prospectus, aligning initial public offering (IPO) timelines between the U.S. and Singapore, and permitting certain issuer activities in a manner similar to U.S. practices, including the publication of forward-looking statements. The proposed regulations would streamline the listing process by requiring the Singapore prospectus to contain information in line with that already required for U.S. listing, and by shortening the prospectus registration process in Singapore to support IPO timeline alignment. They would also introduce safe harbour provisions aligned with U.S. market practices to facilitate forward-looking statements, share repurchases, and the execution of pre-determined trades, subject to conditions; these safe harbours would not provide a defence against fraud or dishonesty. Separately, MAS proposes amendments to facilitate the offering process for all listings, including permitting earlier engagement of retail investors during the IPO process to support bookbuilding and provide more time for investor familiarisation. For GLB issuers, this is intended to align retail engagement timing across the U.S. and Singapore. In parallel, SGX RegCo issued a consultation paper dated 9 January 2026 on the GLB listing rule book.
Indonesia’s OJK issued Regulation No. 34 of 2025 and its implementing rule to strengthen IT governance and risk management for BPR and BPR Syariah, mandating domestic data centers, cyber resilience, DRP maintenance, and clear board responsibilities.
The Indonesia Financial Services Authority (OJK) issued OJK Regulation No. 34 of 2025 on the Administration of Information Technology by Rural Banks and Sharia Rural Banks (POJK PTI BPR/S) and its implementing rule, setting a revised framework for information technology (IT) governance and risk management for BPR and BPR Syariah. The framework requires end-to-end strengthening of information security through IT governance and IT risk management, including assignment of authority and responsibilities for the Board of Directors and Board of Commissioners. It also covers IT architecture for BPR and BPR Syariah providing digital services; IT risk management measures related to information security, cooperation with Information Technology Service Providers (PPJTI), and maintaining a Disaster Recovery Plan (DRP); mandatory placement of electronic systems on data centres and disaster recovery centres located within Indonesia; and cyber resilience and security measures in response to increased connectivity with third parties. The release also underscores prudential principles and customer protection expectations in developing IT systems, whether built in-house or via IT vendors.
The Securities and Exchange Board of India has set up a Working Group to develop a five-year and ten-year Technology Roadmap for Market Infrastructure Institutions, focusing on technologies such as AI/ML, distributed ledger, cloud, SupTech, RegTech, tokenisation, and quantum-safe systems
The Securities and Exchange Board of India (SEBI) has constituted a Working Group to formulate a short-term (five-year) and long-term (10-year) Technology Roadmap for Market Infrastructure Institutions (MIIs). The roadmap is intended to take a holistic view of MIIs’ adoption of emerging technologies relevant to market operations, surveillance, risk management, investor protection, and regulatory oversight. Areas identified for consideration include AI/ML, distributed ledger technology, cloud computing, SupTech and RegTech solutions, tokenisation, and quantum-safe systems. The Working Group is chaired by Dr. D.B. Phatak, Professor Emeritus at IIT Bombay, and includes the chairpersons of the Standing Committee on Technology (SCOT) of MIIs, senior officials from stock brokers and Registrars and Transfer Agents (RTAs), and technology and securities market experts.
Finanstilsynet confirmed that Norwegian undertakings may apply the EU taxonomy simplifications adopted by the European Commission on 4 July 2025 when reporting for financial year 2025, despite pending incorporation into the EEA Agreement.
The Norwegian Finanstilsynet outlined that simplifications to the EU taxonomy framework for sustainable economic activity apply from 1 January 2026 in the EU, and that Norwegian undertakings may use these simplifications when reporting for financial year 2025 even though the rules have not yet been incorporated into the EEA Agreement or implemented in Norwegian law. The European Commission adopted a Commission Regulation on 4 July 2025 to simplify the taxonomy framework, with the stated purpose of reducing the administrative burden for European undertakings. The changes were published in the EU Official Journal on 8 January 2026 and are to apply from financial year 2025; undertakings may choose to report under the previous rules for financial year 2025 if they wish. Norway, the Commission Regulation must be incorporated into the EEA Agreement and implemented in regulations before the simplifications can formally enter into force, and the Ministry noted that the timing is uncertain. Finanstilsynet will nevertheless treat Norwegian undertakings’ financial year 2025 reporting as permitting use of the simplifications on the same basis as undertakings in the EU.
The European Supervisory Authorities issued Joint Guidelines on ESG stress testing to harmonise integration of ESG risks into supervisory stress tests. Targeting national competent authorities, the guidance covers test design, governance, materiality assessment, and scenario development among other things.
The European Supervisory Authorities have issued Joint Guidelines on environmental, social and governance (ESG) stress testing to support consistent integration of ESG risks into supervisory stress tests across the EU financial system. The text targets national competent authorities and sets common standards for ESG-inclusive stress test design, alongside organisational and governance arrangements, while not introducing a new requirement for competent authorities to run ESG-focused supervisory stress tests. The framework covers integration of ESG risks into established supervisory stress-testing methodologies or complementary assessments of ESG impacts under adverse scenarios, where applicable under sectoral legislation. It emphasises a risk-based materiality assessment and expects competent authorities to define coverage across portfolios, sectors, geographies and activities; it also distinguishes short-term exercises assessing capital and liquidity robustness (e.g., up to five years) from longer-horizon resilience analysis of strategy and business model (at least 10 years). Methodological guidance includes scenario design drawing on recognised scientific and policy sources, consideration of compound risks and second-round effects, choices between top-down, bottom-up or hybrid approaches, and proportionality in expectations given data and modelling limitations; initial implementation may prioritise climate and environmental risks (physical and transition), with potential extension to other ESG factors as tools and data mature.
On 15 January 2026, the European Parliament’s ECON committee will discuss the ECB’s 17 final simplification recommendations. Proposals include revised capital buffer categories, a streamlined leverage ratio framework, expanded treatment of AT1/T2 instruments, and closer MREL-TLAC alignment at current EU calibration levels.
The European Parliament’s Committee on Economic and Monetary Affairs (ECON) will hold an exchange of views on 15 January 2026 with Luís de Guindos, Vice President of the European Central Bank (ECB) and chair of the ECB High-Level Task Force on Simplification. The ECB Governing Council established the task force in March 2025 to identify areas where the EU prudential regulatory, supervisory and reporting framework could be simplified, and the ECB published the final recommendations on 11 December 2025. The task force report sets out 17 recommendations spanning the regulatory, supervisory and reporting frameworks, including proposals to consolidate elements of the risk-weighted capital buffer structure into “non-releasable” and “releasable” categories, and to simplify the leverage ratio framework towards a minimum requirement and a leverage ratio buffer. Other recommendations described in the briefing include changes to the role or recognition of Additional Tier 1 and Tier 2 instruments, an expansion of the small and non-complex institutions regime beyond the current eligibility threshold of less than 5 billion in total assets, and automatic reciprocation of macroprudential measures up to a predefined threshold supported by harmonised reporting templates. On resolution-related requirements, the report considers closer alignment between Minimum Requirement for Own Funds and Eligible Liabilities (MREL) and Total Loss-Absorbing Capacity (TLAC), with TLAC in EU law calibrated at 18% of total risk exposure amount and 6.75% of leverage exposure measure.The recommendations are expected to feed into a European Commission report assessing the overall situation of the banking system in the Single Market.
ESMA published non-binding principles for risk-based supervision to guide itself and NCAs across all mandates. The framework promotes consistent EU-wide practices for identifying, assessing, prioritising, and addressing risks using entity-based and adaptable approaches.
The European Securities and Markets Authority (ESMA) published principles for risk-based supervision, setting out key concepts and foundational elements intended for use by ESMA and National Competent Authorities (NCAs). The principles aim to support a common EU-wide supervisory culture by providing a structured framework for identifying, assessing, prioritising and addressing risks in a consistent and proportionate way across the Union.The document applies to ESMA and NCAs when carrying out direct supervision and is intended to cover all mandates (markets, entities and products) under an authority’s remit. It introduces an entity-based approach—adaptable to other models such as transaction- or product-based identification—and describes underlying phases including industry-wide and entity-based risk identification, risk assessment using probability and impact scoring, aggregation and reporting, and risk prioritisation and treatment. Foundational elements include supervisory strategy, governance arrangements for the risk-based process, methodologies and risk models, and parameters for categorising entities and sectors; the principles are non-binding, are not a one-size-fits-all model or a fully fledged manual, and are intended to complement existing frameworks while relying on supervisory judgement and national market-specific considerations.
ESMA issued a factsheet advising finfluencers on responsible financial promotions, highlighting legal liability for misleading content and consumer harm. It stresses clear disclosures of payments, holdings, and high-risk instruments, and warns that investment advice may trigger regulatory requirements.
The European Securities and Markets Authority (ESMA) published a factsheet for “finfluencers” setting out practical guidance for promoting financial products and services on social media, emphasising that individuals can be legally responsible for misleading or reckless content and related consumer harm. The guidance calls for prominent disclosure of payments, gifts or other benefits tied to promotions (using clear labels such as “Ad”, “Paid partnership” or “Sponsored”, or platform ad banners), and also disclosure where the poster already invests in—or could benefit from—what is being promoted. It flags that commonly promoted instruments such as contracts for difference, forex, futures, certain crowdfunding initiatives and volatile cryptocurrencies can involve very high risk, including the possibility of losing 100% of invested capital, and stresses that communications should be true, fair, clear and not misleading, distinguishing facts from opinions. ESMA warns that telling people what to buy, sell or hold—or even promoting an investment strategy or opining on price direction—can amount to investment advice or an investment recommendation, potentially triggering applicable rules and licensing by national competent authorities; generic disclaimers such as “This is not investment advice” are not presented as protective in those circumstances. The factsheet also instructs finfluencers to avoid creating urgency or “get rich fast” messaging, to verify whether firms or platforms are authorised before promoting them, and to avoid presenting themselves as experts when they do not fully understand the product.
Bulgaria adopted the euro on 1 January 2026, becoming the 21st euro area member at a conversion rate of BGN 1.95583 per EUR. The Bulgarian National Bank joined the Eurosystem and ECB Governing Council, became a full SSM member, and now shares supervisory responsibilities with the ECB over 21 institutions.
The euro entered into circulation in Bulgaria on 1 January 2026, making Bulgaria the 21st euro area member following a formal decision in July that set the official conversion rate at BGN 1.95583 per EUR 1. With accession, the Bulgarian National Bank became part of the Eurosystem and its Governor gained a seat on the European Central Bank (ECB) Governing Council. The Bulgarian National Bank also became a full member of the Single Supervisory Mechanism (SSM) after participating in the close cooperation framework since October 2020. In Bulgaria, the ECB is responsible for directly supervising four significant institutions and overseeing 17 less significant institutions, and for licensing banks and assessing buyers of qualifying holdings in all banks. The Bulgarian National Bank has a representative on the ECB’s Supervisory Board. Bulgarian counterparties will be able to participate in ECB open market operations announced after 1 January 2026.
The Liechtenstein FMA outlined 2026 supervisory priorities. Outlined priorities include among other things crisis prevention and management, further evaluation of 2023 mortgage measures, and work on crisis liquidity tools alongside continued focus on ICT/cyber reviews under DORA and AML/CFT.
The Liechtenstein Financial Market Authority (FMA) published its “Trends, risks and supervisory priorities 2026”, setting cross-sector supervisory focus areas for 2026 and beyond based on its risk assessment of macrofinancial conditions and the Liechtenstein financial sector. Priorities include crisis prevention and crisis management, with continued monitoring of macrofinancial risks; further monitoring of borrower-based mortgage measures revised in 2023 following a first evaluation; and work on crisis liquidity access instruments given Liechtenstein has no central bank, alongside continued discussions with relevant domestic actors and international partners, particularly Switzerland. In bank resolution, the 2026 focus shifts toward authority-side preparation to operationalise the bail-in instrument and developing a coherent strategy for three-year-cycle resolvability testing, with attention to management information systems and processes for loss absorption and recapitalisation. The FMA also prioritises improving regulatory reporting data quality to strengthen risk-based supervision; starting conceptual work/initial analysis on inter-sector and cross-border interconnectedness; and enhancing stress tests, including exploring practical approaches with international partners such as the International Monetary Fund. Foreign-sanctions risk management will remain embedded in governance and control reviews, while AML/CFT supervision will emphasise MONEYVAL-related measures and National Risk Analysis III findings, including transaction monitoring, FIU reporting processes and risk assessment quality. On ICT and cyber, the FMA will build on initial DORA work for the 2025 financial year and conduct risk-based reviews and on-site inspections in 2026, including a focus on data quality in DORA incident reporting.
Latvijas Banka has set supervisory priorities for 2026, planning 12 on-site inspections and 11 thematic off-site reviews focused on resilience, transparency, and accessibility. Key areas include AML, ICT, fintech compliance, digital resilience, and tax crime risk via a horizontal review.
Latvijas Banka has published its supervisory priorities and inspection plan for 2026, focusing on the financial and operational resilience of financial market participants and the accessibility and transparency of financial services. The plan includes 12 on-site inspections and a range of off-site activities, underpinned by a risk-based approach that reduces the involvement burden on supervised entities. The 12 planned on-site inspections comprise 4 in prudential supervision, 2 in investment services, 3 in anti-money laundering and sanctions compliance, and 3 in ICT. Inspections will target 5 credit institutions, 1 insurer, 2 payment service providers, 3 investment firms, and 1 private pension fund. Off-site supervision includes 11 thematic inspections, supervisory dialogues, and surveys. The 2026 agenda also includes ECB-led inspections of significant institutions, with participation from Latvijas Banka. Segment-specific supervisory focus areas include credit underwriting standards and profitability in credit institutions, claims settlement practices in insurance, valuation of alternative investments, and governance and risk management in investment firms. Fintech oversight will cover compliance with the Digital Operational Resilience Act and preparation for PSD3 and PSR. Across all sectors, emphasis will be placed on digital resilience, outsourcing, AML/sanctions risk management, and addressing tax crime risks through a planned horizontal review.
"The MFSA reported 73% completion of its 27 strategic priorities and extended its 2023–2025 strategy through 2026. The update highlights MiCAR and DORA implementation, new rulebooks, digitalisation, and EU cooperation, with specific 2026–2027 deliverables and consultations on investment rules and bank insolvency legislation.
The Malta Financial Services Authority (MFSA) published a Strategic Update reporting a 73% completion rate, as of June 2025, across 27 strategic priorities and confirming that its strategy—initially covering 2023–2025—has been extended through 2026, with further progress recorded by year-end. The update cites milestones including implementation of the Markets in Crypto-Assets Regulation (MiCAR) and the Digital Operational Resilience Act (DORA); new rulebooks for credit institutions and company service providers; supervisory digitalisation; sustainable finance work; and enhanced cooperation with European and global authorities. It also sets out specific regulatory and supervisory deliverables and timelines, including: repeal of Banking Rule 24 Annex 1 and Banking Notice 05 effective 1 March 2026 as part of the Conduct of Business Rulebook for Credit Institutions; progressive extension of a “single return” reporting approach to other local returns throughout 2026–2027; and MFSA–Central Bank of Malta automatic sharing of the ECB Funds return from 2026 to reduce duplication for the MFSA Annual Fund Return over two years. The MFSA also noted completion of national legislative measures to implement DORA and steps toward implementing a Threat-Led Penetration Testing framework aligned with TIBER-EU. Forward-looking items include a planned stakeholder consultation on proposed amendments to Section 13 of Part A of the Investment Services Rules for Investment Services Providers (covering contracts for difference and rolling spot forex under MiFID), a public consultation on a draft Administrative Bank Insolvency Law after internal review, continued transposition of EU instruments with deadlines ranging from 2025 to 2027, and work in 2026 to shape the MFSA’s next Strategic Statement.
The Central Bank of The Bahamas has reappointed John A. Rolle as Governor for a two-year term starting 1 January 2026. Rolle, who first became Governor in 2016 and was reappointed in 2021, previously held senior roles at the IMF and the Ministry of Finance.
The Central Bank of The Bahamas announced the reappointment of Mr. John A. Rolle as Governor for a two-year term beginning 1 January 2026. Rolle first assumed the Governor role on 1 January 2016 and was reappointed for a further five years on 1 January 2021. He joined the institution in 1990 and progressed through the Research Department, with a secondment to the International Monetary Fund (IMF) from 2009 to 2012 as a member of the Executive Board and Senior Advisor to the Executive Director for Canada, Ireland and the Caribbean. He also served as Financial Secretary in The Bahamas Ministry of Finance from 2013 to 2015 before returning to the Central Bank.
The Dubai Financial Services Authority shared findings from a thematic review of 710 Authorised Firms in the DIFC, revealing inconsistent management of conflicts of interest. Findings indicate that despite widespread policy adoption, many lacked clarity, governance, and risk assessment.
The Dubai Financial Services Authority (DFSA) published a thematic review examining how Authorised Firms in the Dubai International Financial Centre (DIFC) identify, manage and mitigate conflicts of interest risk. The cross-sectoral work covered 710 firms (excluding Representative Offices) and was conducted in two phases: a 32-question industry survey sent in February 2025 (with a 97% response rate), followed by desk-based reviews and on-site visits to a sample of 25 firms, with the review carried out during 2025. The DFSA found wide variation in standards, from material deficiencies to good practice, and concluded there is a need for firms to improve conflicts of interest policies, procedures and controls. While over 90% of firms had conflicts policies and procedures, most lacked clarity or did not sufficiently cover conflicts-related risk management; more than a third did not assess whether their business and operating model exposes them to conflicts risks. The review also observed governance weaknesses (including limited board-level oversight and inconsistent escalation), over-reliance on periodic employee disclosures, informal decision-making with limited documentation, gaps in second- and third-line monitoring, incomplete conflicts registers, and variable training and awareness; three quarters of respondents reported identifying no conflicts of interest in the preceding 24 months. The report also sets out DFSA expectations under the DFSA Rulebook (including General Module Principle 7 and requirements in the Conduct of Business Module) and describes good practices such as tailored policies, board reporting with sufficient detail, scenario-based training, independent testing via compliance monitoring and internal audit, and the use of technology to record and monitor conflicts.
The Central Bank of Jordan issued a sectoral roadmap for the financial and banking sectors to transition to quantum-resistant cryptography, outlining phased migration steps including risk integration, governance enhancements, asset identification, and pilot testing.
The Central Bank of Jordan announced the issuance of a sectoral roadmap for the financial and banking sectors to transition to quantum-resistant cryptography, positioning it as a structured approach to address emerging cybersecurity and operational risks associated with advances in quantum computing. The roadmap sets out a phased migration path, including integrating quantum-computing risks into institutions’ risk registers, strengthening governance, and building institutional capabilities. It also covers identifying cryptographic assets, prioritising migration based on risk assessment, maintaining effective change management to support business and service continuity, conducting pilot tests of quantum-resistant cryptographic solutions in virtual and non-operational environments, and moving to full adoption of quantum-resistant cryptographic systems within a defined timeframe. The Central Bank of Jordan highlighted the need for coordination across stakeholders, including financial institutions, suppliers and technology partners. Copies of the roadmap are available via FinCERT.PKI@cbj.gov.jo.
The Central Bank of Kuwait launched the Kuwait Automated Clearing House (KACH) System as part of the second version of the Kuwait National Payments System. KACH enables 24/7 secure low-value interbank transactions via CBK-NET, supports ISO 20022 and Straight Through Processing, and integrates with KASSIP for settlement.
The Central Bank of Kuwait (CBK) announced the launch of the Kuwait Automated Clearing House (KACH) System, describing it as the second version of the Kuwait National Payments System and positioning it as a step to develop Kuwait’s payments infrastructure. KACH is designed as a unified platform for quick, reliable, low-value and repetitive financial transactions among participating banks for customers of local banks. The system operates around the clock, including during public holidays, and generates final net settlement files automatically after the end of each clearing session for transmission to Kuwait’s Automated Settlement System for Inter-Participant Payments (KASSIP) for reflection in participating banks’ accounts. CBK stated that KACH uses a secure closed network (CBK-NET) based on virtual private network (VPN) technology as the communication channel between the system and participating banks’ systems, providing an encrypted environment for exchanging payment messages. The system also complies with ISO 20022 for exchanging financial transactions and supports automated and instant transfer of financial data via Straight Through Processing; CBK indicated that further systems are expected in later stages of the National Payments System v2, including the Kuwait Dispute Management System, the Kuwait Wages Protection System, and the Kuwait Electronic Bill Presentment and Payment System.
The Board of the Capital Market Authority Rwanda appointed Mr. Eric Ngabonziza Karekezi as Acting CEO, effective immediately. Mr. Karekezi brings over 20 years of experience, most recently serving as Head of Market Development at the CMA and previously advising the National Bank of Rwanda
The Board of Directors of the Capital Market Authority (CMA) Rwanda appointed Mr. Eric Ngabonziza Karekezi as Acting Chief Executive Officer, effective immediately, to ensure continuity of leadership while the Board progresses its process to select and appoint a permanent CEO. Mr. Karekezi brings more than twenty years of experience across global financial institutions and public-sector roles, including positions at J.P. Morgan, HSBC, BNP Paribas, and UBS, spanning market infrastructure, securities services, custody operations, innovative financing, and digital finance. He most recently served as Head of Market Development at CMA and previously was a Technical Advisor in the Office of the Deputy Governor at the National Bank of Rwanda, supporting digital transformation and market development priorities, including work on Central Bank Digital Currency and broader digital finance strategy.
Monetary policy developments
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