Global Regulator & Central Bank News Roundup

Australia's Treasury has published a consultation paper seeking views on policy options to underpin a Sustainable Financial Product Labelling framework for investment products marketed as “sustainable” or similar. The paper positions the regime as a response to inconsistent sustainability claims and greenwashing concerns, with the Government’s Sustainable Finance Roadmap indicating a 2027 commencement target subject to final policy decisions. The consultation sets out proposed design options across four core elements: scope, consumer-facing disclosures, thresholds and evidentiary assessment. For scope, the proposed approach would capture financial products that use sustainability or ESG-related terminology in the product title or marketing materials, leveraging the Corporations Act definition of “financial product” and using a non-exhaustive list of common terms. A consumer-facing disclosure requirement is proposed for products that represent a sustainability-related objective, with alternative design models ranging from prescriptive templates to principles-based or hybrid approaches, alongside an emphasis that broader marketing remains subject to misleading and deceptive conduct provisions. On thresholds, options include prescribing a minimum proportion of aligned assets or requiring disclosure of the proportion aligned, with a further possible constraint that remaining assets must not conflict with the stated sustainability objective. Evidentiary requirements are framed as a principles-based approach requiring robust and credible support for sustainability claims at the time they are made. Responses to the consultation questions are intended to inform ongoing policy development and regulatory engagement, including further consultation with industry and investors and decisions on enforcement and implementation design ahead of the Government finalising its policy position.

Thailand's Ministry of Finance announced plans to upgrade the Thailand Futures Exchange (TFEX) by expanding and refining the permitted underlying products and reference variables under the Futures Purchase Agreement Act B.E. 2546 (2003), with the aim of broadening the domestic derivatives market as Thailand transitions toward a low-carbon and digital economy. Key changes include upgrading carbon credits from a reference variable to a deliverable reference product to support trading in actual deliverable products, adding Greenhouse Gas Emission Rights (allowances) and Renewable Energy Certificates (RECs) as reference products, and adding digital assets (cryptocurrencies and digital tokens) as reference products. The package also broadens the range of reference variables and derivatives, including foreign exchange, metals, freight and commodity-linked exposures such as natural gas or petrochemicals, alongside enhanced monitoring and supervision by the Securities and Exchange Commission.

The Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) signed a memorandum of agreement with the Philippine Space Agency (PhilSA) to use satellite technology to strengthen the BSP’s assessment of climate and environmental risks, with the aim of supporting financial stability. Under the agreement, the BSP will access PhilSA’s satellite imagery and related datasets to identify areas vulnerable to climate-related hazards and evaluate potential impacts on communities and economic activity, with outputs intended to inform monetary policy, financial supervision and sustainability initiatives. The cooperation also covers joint development of tools, research and capacity-building to support the responsible use of satellite data and geospatial analytics in line with each institution’s mandate.

The Securities and Futures Commission (SFC) has issued guidance and a circular expanding virtual asset (VA) trading services under its ASPIRe roadmap. The measures permit licensed corporations providing VA dealing under an omnibus account arrangement to extend securities margin financing to VA dealing for existing margin clients, and set a high-level framework for SFC-licensed virtual asset trading platforms (VATPs) to develop VA-related leveraged products, including perpetual contracts, for offering exclusively to professional investors. VA financing is limited to a VA broker’s securities margin financing clients and is expected to be supported by sufficient securities collateral, with client financial capability assessments required to reflect the price volatility and concentration risks associated with non-fiat assets. Where VA collateral is used as credit risk mitigation, eligible collateral is limited to bitcoin and ether and must be subject to a haircut of 60% or more, alongside documented methodologies, real-time volatility monitoring and operational contingency planning for platform disruptions, with prohibitions on repledging or reusing VA collateral other than enforcing it on client default. Existing requirements for securities margin financing continue to apply, including treatment of VA financing balances as part of the margin loan and the use of prudent margin call and stop-advance triggers. The circular also sets expectations for agency trading via shared order books integrated with global affiliate platforms, including risk assessments, best execution and clear client disclosures, and requires additional risk explanations and express client election before retail clients can access a shared order book. Brokers permitting client VA withdrawals are expected to strengthen authentication, access controls, continuous monitoring and incident escalation, and to coordinate with VATP operators on measures such as withdrawal limits and abnormal withdrawal detection. For licensed VATPs, the guidance permits affiliates to act as market makers on their platforms subject to safeguards to mitigate conflicts of interest and outlines principles for transparent product design, clear disclosures and robust operational controls for leveraged products. The Terms and Conditions for Licensed Corporations or Registered Institutions Providing Virtual Asset Dealing Services under an Omnibus Account Arrangement will be revised to reflect the relaxation, while a consultation on capital requirements for VA-related activities including VA financing is to be launched in due course. Until capital requirements are revised, VA collateral is subject to a 100% haircut under the Securities and Futures (Financial Resources) Rules.

Japan's Financial Services Agency has published draft guidelines setting out a policy to strengthen cybersecurity in crypto-asset exchange service providers, responding to repeated incidents of crypto-asset outflows and increasingly sophisticated attack methods, including social engineering and compromises of outsourced service providers. The draft frames the approach around ensuring firm-level controls are implemented consistently, scaling sector-wide mutual assistance, and deploying targeted public-sector support measures. On firm-level measures, the agency plans to intensify monitoring and, from the 2026 fiscal year, require all crypto-asset exchange service providers to complete a Cybersecurity Self Assessment (CSSA) aligned with the financial sector cybersecurity guideline, followed by supervisory dialogue. It also signals an uplift of expectations in its Office Guidelines (Third Volume: Financial Company Relations) section covering crypto-asset exchange service providers, including criteria for cybersecurity staffing and expertise, the authority of the cybersecurity lead, clearer expectations for external verification covering system risk management and signing-key management, and a comprehensive review of cybersecurity requirements for outsourced providers. For mutual assistance and public support, the policy calls for strengthening the operational capacity of self-regulatory and information-sharing bodies, including more effective monitoring by the self-regulatory organisation and wider participation in JPCrypto-ISAC to accelerate sharing and joint analysis of emerging threats and vulnerabilities, including across the supply chain. The Financial Services Agency will continue its blockchain international joint research and the cross-sector Delta Wall cyber exercise, with a goal of securing participation from all crypto-asset exchange service providers within three years, and plans in 2026 to run a pilot Threat-Led Penetration Testing (TLPT) programme on a small number of firms and feed back findings and common issues to the wider industry.

Bank Negara Malaysia announced that its Digital Asset Innovation Hub has onboarded three initiatives for 2026 testing of real-world applications involving ringgit stablecoins and tokenised deposits. The work will focus on wholesale payment use cases for domestic and cross-border transactions, including enabling settlement of tokenised assets, to help the central bank assess monetary and financial stability implications and shape policy direction. The initiatives will be run in a controlled environment and executed with ecosystem partners, including corporate clients of financial institutions and other regulators, with some use cases also exploring Shariah-related considerations. Bank Negara Malaysia also reported that since the hub’s launch in June 2025 it has engaged more than 30 international and domestic bank and non-bank players to identify and prioritise high-impact use cases. Bank Negara Malaysia aims to provide greater clarity on the use of ringgit stablecoins and tokenised deposits by end-2026, and flagged the testing as a possible precursor to future integration with its work on wholesale central bank digital currency (wCBDC). The hub will continue engaging prospective applicants while prioritising support for the initiatives already onboarded.

Indonesia's Financial Services Authority (OJK), together with the Indonesia Stock Exchange (IDX) and the Indonesian Central Securities Depository (KSEI), published a joint update on implementing its capital market integrity reform programme and following up on MSCI Inc. feedback. The operational focus is on more granular investor classification data, expanded disclosure of share ownership above 1% at issuer level, and a staged increase in the minimum free float threshold for maintaining listed status from 7.5% to 15%. After a February 2 meeting with MSCI, Indonesia submitted proposals covering 28 additional investor subcategories, shareholder disclosure above 1%, and the phased free-float uplift, and formed an OJK–IDX–KSEI special team to drive delivery. KSEI has issued guidelines and templates to reclassify 35,022 Single Investor Identification forms and conducted outreach to exchange members and custodian banks, with data collection targeted for March 2026. On the free-float track, OJK has set the policy direction and IDX is progressing rule changes to its Regulation Number IA, including hearings with capital market associations representing securities firms, pension funds, issuers, corporate secretaries, general insurers and investment managers. KSEI said it is aligning 25 work plans with the eight action plans, including adding institutional investor classifications, providing data on shareholdings above 1% and assessing the potential for increased rights issues by issuers to raise free float. A Draft Government Regulation on stock exchange demutualisation is being developed under Ministry of Finance leadership with OJK involvement, alongside plans to establish a Capital Market Integrity Reform Task Force and an integrated cross-institution action plan. The update also highlighted enforcement activity, including administrative sanctions and or written orders issued on February 6 for PT Multi Makmur Lemindo Tbk and PT Repower Asia Indonesia Tbk and related parties, and sector-wide administrative fines of IDR 542.49 billion imposed on 3,418 parties from 2022 to January 2026, including IDR 240.65 billion for 151 parties linked to stock trading manipulation, alongside five resolved final criminal cases and 42 ongoing investigations into alleged capital market crimes.

Singapore’s Prime Minister and Minister for Finance has announced the establishment of a Growth Capital Workgroup, supported by the Monetary Authority of Singapore (MAS) and the Ministry of Trade and Industry, to develop strategies to strengthen Singapore as a leading centre for growth capital. Chaired by Mr Chee Hong Tat, Minister for National Development and Deputy Chairman of MAS, the workgroup will recommend measures to support the financing needs of companies from Singapore and the region across different growth stages. The review will explore and recommend measures to deepen growth capital markets beyond traditional bank lending, covering venture capital, private equity and private credit as well as securitised assets. It will assess the full financing value chain from deal origination and capital raising and mobilisation to capital recycling, building on work to improve the competitiveness of Singapore’s equities market and complementing recommendations from the Economic Strategy Review Mid-term Update. It aims to complete its review by end-2027 and will provide interim updates on its recommendations.

South Korea's Financial Services Commission (FSC) and the Korea Exchange (KRX) announced a package of measures to tighten KOSDAQ delisting rules to speed the removal of underperforming and unviable listed companies. The plan combines an intensive delisting management period, tougher delisting triggers including quantitative thresholds and disclosure-related criteria, and a shorter delisting review timeline, with several measures also applied to KOSPI. KRX will establish an intensive delisting management unit led by the head of the KOSDAQ market division and run it from February 2026 to June 2027, initially with four delisting review teams and 20 staff. Delisting standards are being tightened in four areas: the market capitalisation threshold increases are being brought forward, moving from KRW15 billion to KRW20 billion on July 1, 2026 and to KRW30 billion on January 1, 2027, while firms placed on the watch list will need to maintain the threshold for 45 consecutive trading days within a 90-trading-day period or face immediate delisting. A new delisting trigger will apply to micro-cap stocks trading below KRW1,000 per share from July 1, 2026, using the same watch-list and 45-day recovery test and preventing avoidance through reverse stock splits by also considering post-consolidation par value. Capital impairment will be assessed on a semi-annual basis, with mid-year total capital impairment subject to a review process, and the delisting threshold for disclosure violations will fall from 15 to 10 demerit points within a year, with serious and intentional violations subject to immediate delisting. Separately, the KOSDAQ delisting review improvement period will be reduced further to one year and cooperation with the judiciary will be increased to accelerate injunction proceedings; a KRX simulation estimates 100 to 220 KOSDAQ-listed companies could be subject to delisting in 2026, versus a prior forecast of about 50. The intensive delisting management period starts immediately. Measures to streamline the delisting process take effect from April 1, 2026 following an update to KRX rules, while the strengthened delisting standards take effect from July 1, 2026.

The Hong Kong Insurance Authority has launched a public consultation on draft amendments to the Insurance (Valuation and Capital) Rules to recalibrate parts of Hong Kong’s risk-based capital regime, including preferential treatment for qualifying infrastructure investments and updated capital requirements for general insurance risks and certain market exposures. The proposals would reduce credit spread and equity stress factors for eligible infrastructure investments held for long term business, with larger reductions where underlying assets are in Hong Kong or the Chinese Mainland and a further incentive linked to Hong Kong Government infrastructure bonds. For general business, the Insurance Authority would lower risk capital amounts for natural catastrophe risk by applying 65% to net annual aggregate loss subject to a floor, introduce adjustments for small portfolios in man-made catastrophe scenarios (with gross premium thresholds of HKD 500 million, HKD 250 million, HKD 150 million and HKD 50 million depending on scenario), cut reserve risk factors for “pecuniary loss—credit and other” to 30%, and expand diversification benefits through correlation changes. It would also add an approval mechanism for certain Hong Kong or designated insurers within non-HK groups to exclude general offshore reinsurance business from prescribed capital amount calculations subject to conditions. Other changes include allowing indexed universal life business to use the matching adjustment, applying a look-through approach to specified stablecoins with counterparty default overlays, bringing crypto assets into the capital base with a 100% downward stress under a new “other risk” module, and refining the equity countercyclical adjustment framework. The amended rules are expected to commence on 31 December 2026 following Legislative Council approval.

The Authority for Anti-Money Laundering and Countering the Financing of Terrorism has published a consultation paper on draft regulatory technical standards that would harmonise how EU supervisors assess AML/CFT breaches and calibrate enforcement outcomes, including pecuniary sanctions, administrative measures and periodic penalty payments. The consultation is aimed at capturing non-financial sector feedback to support consistent and proportionate enforcement across Member States. The draft standards set out a common, stepwise framework: supervisors would assess breaches using a shared list of indicators and classify gravity into four categories, with category three or four treated as “serious, repeated or systematic” for the purposes of the Directive. Indicators cover factors including duration, repetition, conduct, impact on the obliged entity and AML/CFT controls, structural failures, and potential links to criminal activity. The text also specifies criteria that may increase or decrease sanction levels (including cooperation, remedial action, intent, benefit derived, losses to third parties and prior breaches), sets criteria for applying the most severe administrative measures (restriction of business, withdrawal or suspension of authorisation, and governance changes), and introduces procedural rules for periodic penalty payments, including a statement of findings, a written-submissions window of up to four weeks, decision-content requirements, and a five-year limitation period for collection. The consultation builds on earlier work by the European Banking Authority and reopens it to address limited participation from non-financial stakeholders.

The European Banking Authority has launched a public consultation on a Discussion Paper setting out preliminary ideas to simplify and assess the EU credit risk framework, with the aim of identifying potential usability and efficiency improvements that could feed into its future policy work. The Discussion Paper links the initiative to the European Banking Authority’s 2025 review of regulatory and supervisory efficiency, which recommended a systematic review of the authority’s Level 2 and Level 3 products under the Single Rulebook, starting with credit risk given the volume of mandates under the EU Banking Package. It explores possible simplifications across the standardised and internal ratings-based approaches, including streamlining elements of the real estate exposure framework and the use of loss data reported under CRR Article 430a, facilitating pragmatic use of external ratings without implicit government support by relying on existing ECAI mappings where compatible, and improving the readability and consistency of IRB requirements by consolidating and removing duplications across EBA products. The paper also canvasses targeted simplifications to modelling and supervisory review burdens, including potential approaches for continuous model testing, a more consistent facility definition, aligned representativeness concepts across PD, LGD and CCF, and optional fallback approaches in areas such as margins of conservatism, indirect costs, downturn estimation, in-default LGD and aspects of CCF estimation. The consultation runs until 10 May 2026.

The European Central Bank has imposed periodic penalty payments of EUR 7,551,050 on Crédit Agricole, S.A. for non-compliance with a binding supervisory requirement to strengthen the identification of its climate-related and environmental risks. An ECB decision of 8 February 2024 required the bank to conduct a materiality assessment of climate-related and environmental (C&E) risks by 31 May 2024, with periodic penalty payments accruing if the deadline was missed. Crédit Agricole failed to meet the requirement for 75 full days in 2024; the overall amount reflects the materiality of the infringement, the duration of the breach and the bank’s daily turnover, and such penalties accrue per day of infringement. Crédit Agricole may challenge the ECB’s decision before the Court of Justice of the European Union.

The European Banking Authority has published an Opinion advising national competent authorities under the Revised Payment Services Directive (PSD2) on how to supervise Crypto-Asset Service Providers (CASPs) that transact electronic money tokens (EMTs) qualifying as payment services once the nine-month transition period in its June 2025 No-Action Letter expires on 2 March 2026. The Opinion sets out when supervisors should permit continued EMT payment-service activity pending PSD2 authorisation and when they should require firms to stop. The EBA describes three outcomes. Where a CASP has obtained authorisation as a payment institution or electronic money institution, or has partnered with an authorised payment service provider, it may continue EMT transactions in line with that authorisation. Where a CASP has submitted a PSD2 application but is not yet licensed, the EBA advises supervisors to allow continued activity, including cross-border provision, only if the application is complete and assessable, the applicant responds promptly to supervisory queries, checks indicate no material infringements or supervisory measures under MiCA, national virtual asset service provider regimes, or other EU law such as anti-money laundering requirements, and the supervisor expects approval within a very short timeframe. If continuation is allowed, the CASP should stop marketing EMT payment services and should not onboard new clients for those services. Separate treatment applies for entities permitted under national law implementing MiCA transitional regimes. Supervisors are advised to require CASPs that have not applied, or do not meet the conditions for continued activity, to cease providing EMT services that qualify as payment services and to offboard affected clients as of 2 March 2026. For jurisdictions applying the maximum permissible end date for the separate MiCA transition under Article 143(3), the Opinion notes 1 July 2026 as the outer limit for the “very short timeframe” expectation where relevant, or earlier if authorisation is granted or refused under Article 63 of MiCA.

The European Insurance and Occupational Pensions Authority has issued revised Guidelines on the supervisory review process and on the treatment of market and counterparty risk exposures in the Solvency II standard formula, updating the 2015 texts to reflect the Solvency II review and to clarify and streamline supervisory expectations. For the supervisory review process, the revised Guidelines add new sections covering business model analysis, joint on-site inspections, early intervention measures, pre-emptive recovery planning, and supervision of conduct of business. They also set expectations for supervisory authorities to incorporate sustainability risks, ICT and cyber risks, and Supervisory Technology into supervisory review processes, alongside targeted clarifications to the risk assessment framework and supervisory planning. For the standard formula treatment of market and counterparty risk exposures, the revised Guidelines update legal references and simplify the text, including deleting several Guidelines and broadening the application of some existing provisions. A new Guideline clarifies the treatment of leveraged investment funds under the look-through approach, requiring leverage to be reflected in relevant market risk sub-modules and capping losses at 100 percent for highly leveraged funds.

The European Central Bank’s Executive Board has appointed Thomas Broeng Jorgensen as Director General for Specialised Institutions and Less Significant Institutions, making him responsible for the direct supervision of banks with specialised business models and for overseeing national supervisors’ supervision of less significant banks. He will take up the role on 1 March 2026. He succeeds Patrick Amis, who has been appointed Director General Horizontal Line Supervision. Jorgensen has served as Deputy Director General responsible for the direct supervision of systemic and international banks since 2021, after several years as Head of Division in the same area; he joined the ECB in 2014 as Head of Division for supervisory policies and previously held senior roles at the Danish Financial Supervisory Authority and in Denmark’s economy and finance ministries. Bank-specific supervision at the ECB is organised across three directorate generals aligned to supervised banks’ business models: systemic and international banks, universal and diversified institutions, and specialised institutions and less significant institutions.

The European Parliament published a draft report on the proposed “Digital Omnibus on artificial intelligence”, setting out amendments intended to simplify how the EU Artificial Intelligence Act is applied and enforced while maintaining key protections. The proposed changes adjust implementation timelines and clarify selected obligations for companies and authorities to support more consistent application across the EU. A central amendment would postpone certain obligations for high-risk artificial intelligence systems by setting fixed application dates of 2 December 2027 for systems listed in Annex III and 2 August 2028 for systems listed in Annex I, replacing an approach that would have linked application to a future European Commission decision. The report also clarifies that providers and deployers must take measures to promote artificial intelligence literacy among relevant staff, with support from the Commission and member states, and further specifies when sensitive personal data may be processed to detect and correct bias in high-risk systems under strict safeguards. Additional changes aim to improve coordination between authorities, clarify and resource the European AI Office’s role, and strengthen regulatory testing environments, including provisions on regulatory sandboxes and a presumption of compliance with certain cybersecurity requirements where relevant conditions are met.

The Bank of France Governor François Villeroy de Galhau has announced that he will leave his post at the beginning of June 2026 a little more than a year before the end of his mandate to become President of Fondation Apprentis d’Auteuil, succeeding Jean-Marc Sauvé whose term ends at the end of May 2026. As a consequence, he will also step down as Chair of the Bank for International Settlements (BIS) Board of Directors, a position he held since January 2022. The Bank of France’s General Council was consulted on the planned voluntary activity and approved it at its meeting on 6 February 2026. Fondation Apprentis d’Auteuil is described as a public-interest foundation active in child welfare and training for disadvantaged youth, supporting more than 40,000 children and adolescents each year through over 430 sites and more than 8,000 employees. Both the Bank of France and the BIS have noted plans to organize his succession ahead of the June departure.

The Financial Conduct Authority has published final rules and guidance to bring Deferred Payment Credit, an interest-free buy now pay later product currently exempt from regulation, within its regulatory perimeter from 15 July 2026. The package responds to feedback on CP25/23 and largely applies existing Consumer Credit Sourcebook standards and the Consumer Duty to Deferred Payment Credit lenders, supported by targeted new requirements on pre-contract product information, missed payment communications, regulatory reporting and access to redress. Key conduct measures include new product information rules requiring lenders to provide “key product information” before agreement and to give or make available “additional product information”, with withdrawal and cancellation rights, early repayment, Financial Ombudsman access and continuous payment authority explanations moved into the additional set to keep the key set focused on decision-critical content. Creditworthiness requirements under CONC 5.2A will apply to each Deferred Payment Credit transaction, including agreements of less than GBP 50, and new arrears-related rules will require prompt borrower notifications after missed payments and reasonable notice before termination or certain enforcement actions, including signposting to free and impartial money guidance and debt advice when the borrower is in arrears. The FCA will also apply wider Handbook requirements and extend Dispute Resolution rules and the Financial Ombudsman Service’s compulsory jurisdiction to regulated Deferred Payment Credit agreements entered into on or after 15 July 2026 where the activity is carried on from a UK establishment, while not extending Financial Services Compensation Scheme cover and not making the Ombudsman’s voluntary jurisdiction available for Deferred Payment Credit. Ahead of 15 July 2026, firms will need to implement the new requirements and consider authorisation. A Temporary Permissions Regime will be available for eligible firms that were carrying on Deferred Payment Credit activity on 15 July 2025 and notify for registration in the window opening on 15 May 2026 and closing two weeks before 15 July 2026, with a six-month window after 15 July 2026 to apply for full authorisation. Firms without the necessary permissions that do not register for the Temporary Permissions Regime will be prohibited from entering new Deferred Payment Credit agreements after 15 July 2026, while agreements entered into before that date will remain unregulated and may continue to be serviced.

Austria’s Financial Market Authority (FMA) announced that the Administrative Board of the EU Anti-Money Laundering Authority (AMLA) unanimously elected Andreas Schirk, head of the FMA department responsible for anti-money laundering, counter-terrorist financing and sanctions supervision, as co-chair of AMLA’s newly established Internal Committee on Private Sector Standards. The committee will develop harmonised requirements and risk indicators for financial institutions and obliged entities in the non-financial sector, supporting the design of the future supervisory architecture and ensuring national expertise is reflected early in standard-setting. Schirk will co-lead the committee with Rikke Louise Ørum Petersen, a member of AMLA’s Executive Board, for a two-year term.

The Central Bank of Brazil has launched the Geotec project, a training programme on geotechnologies and satellite imagery intended to strengthen monitoring and supervision of rural credit operations and the Agricultural Activity Guarantee Program (Proagro). The initiative drew more than 5,300 registrations and is funded through Germany-Brazil Cooperation via a partnership with Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) under the Sustainable Brazilian Finance Project (FiBraS II). The programme focuses on using remote sensing, geospatial data and the cross-referencing of financial, cadastral and territorial databases to support continuous assessment of productive conditions, land use and territorial compliance, reducing reliance on formal declarations and one-off inspections. It is positioned as a preventive risk tool for rural credit, with an emphasis on detecting potential land and environmental irregularities using open technologies, public data and satellite images, and is intended to build capacity across oversight and control bodies, Central Bank staff and financial institutions. Training activities run from 3 February to 29 May 2026.

The Bermuda Monetary Authority (BMA) issued a stakeholder letter summarising responses to its July 2025 discussion paper on the responsible use of artificial intelligence (AI) in Bermuda’s financial services sector and explaining how the feedback is shaping its ongoing policy work. The BMA confirmed it is not introducing new AI-specific regulatory requirements at this stage and will instead provide guidance on managing AI-related risks within the existing regulatory framework, using an outcomes-based, principles-led and technology-neutral approach. Feedback supported integrating AI risk governance into established requirements covering corporate governance, conduct, enterprise risk management, cyber risk, operational resilience and third-party oversight, with targeted enhancements only where AI introduces materially new or heightened risks. The BMA clarified that proportionality will be applied based on the risk profile and impact of individual AI use cases rather than expected commercial benefits, that mandatory AI governance structures would be unsuitable, and that accountability for AI outcomes remains with boards and senior management. The letter also highlights areas where supervisory clarification may be needed, including board-level AI literacy, delegation and assurance mechanisms, capital markets and market integrity risks associated with AI-enabled behaviours, international alignment for cross-border groups, and third-party AI dependency and concentration risks, including potential mapping of reliance on critical AI-related service providers such as cloud and model and data infrastructure providers. Next steps focus on monitoring how existing governance, risk management, outsourcing, market conduct, cybersecurity and operational resilience frameworks are applied to AI across the sector, alongside continued stakeholder engagement and monitoring of international developments. Any enhancements to the existing regulatory framework would be developed incrementally and proportionately and would follow the BMA’s normal consultation process.

The Central Bank of Bahrain (CBB) has launched a consultation on proposed revisions to the minimum paid-up initial capital requirements for newly licensed, locally incorporated banks and financing companies, aiming to lower entry barriers for new applicants. The proposal would reduce minimum paid-up capital/shareholders’ equity for retail banks (conventional and Islamic) to BHD 2 million from BHD 100 million, for wholesale banks (conventional and Islamic) to BHD 2 million from USD 100 million, and for financing companies to BHD 250,000 from BHD 5 million. The revised thresholds would apply to new licence applicants, while existing licensees would require Central Bank of Bahrain approval for changes to their capital structure. The CBB notes that, despite lowering initial capital thresholds, banks will remain subject to risk-based capital adequacy requirements under the Basel III framework, with capital expectations continuing to reflect institution size, complexity, and risk profile.

The Bank of Ghana has inaugurated Steering and Technical Committees for its Bank Listing Project and tasked them with delivering a practical and credible framework to support orderly bank listings. The stated objectives are to strengthen governance and transparency, mobilise long-term domestic capital into the banking system, and preserve confidence through high prudential and governance standards. In outlining the rationale, Governor Dr. Johnson Pandit Asiama pointed to improving macroeconomic stability, returning confidence, and rapidly growing domestic long-term capital, including pension fund assets exceeding GHS100 billion. He noted that pension funds already hold between 15 and 35 percent of equity in several listed banks, and framed bank listings as a means to embed market discipline and connect long-term savings to bank ownership. The framework is expected to be flexible and sequenced to reflect differences across banks, including those already listed, those predominantly owned by foreign parent groups, and state-linked institutions, while recognising the implications of more market-facing banks for financial stability and monetary policy transmission. The Committees are expected to produce the framework over the coming months, with a dedicated Secretariat providing support and Bank of Ghana management remaining closely engaged as the work progresses.

The Capital Market Authority of Rwanda has launched a public consultation on draft regulations to license and supervise operators of intermediary service platforms that facilitate investors’ access to capital market products, including digital investment advisory and robo-advisory models, building on the regulator’s fintech sandbox framework and its exit pathway. The draft framework applies to digital platforms operating in, or into, Rwanda that facilitate marketing, access, distribution, purchase, sale, saving, investment, or transaction routing in capital market products offered through licensed institutions, and establishes three licence categories: Category I platforms supporting primary subscription, redemption and direct distribution arrangements, Category II platforms enabling access to listed securities through order aggregation and routing, and Category III robo-advisory platforms. It sets minimum paid-up capital of FRW 10,000,000 and minimum liquid capital of FRW 5,000,000, specifies governance and fit-and-proper expectations for boards and key personnel, and introduces operational, conduct and reporting requirements covering technology resilience and cybersecurity, suitability and product governance, disclosure including multilingual requirements, limits on behavioural and gamification features, third-party and cloud outsourcing controls including data residency, and algorithm documentation, testing and bias monitoring for robo-advisers. Transitional provisions would require existing providers to apply for a licence within 12 months of entry into force, with phased implementation timelines of up to 18 months from licensing for full compliance.

The Oman Financial Services Authority held a workshop for compliance officers in the capital market and insurance sectors to discuss key observations from 2025 AML/CFT inspection work and to set expectations for completing the Risk Assessment Questionnaire for licensed companies. The session covered recurring issues identified during inspection visits, major updates to the 2025 financial year data collection questionnaire, clarifications of selected concepts, and common errors when submitting information through the system. Firms were urged to ensure data accuracy and alignment with their operational activities, given its use in the AML/CFT risk matrix. The Authority also highlighted areas for strengthening within firms’ AML/CFT frameworks, including more comprehensive risk assessment reports across customer, geographic, product and service, and delivery channel risks, as well as the due diligence measures applied. Additional emphasis was placed on completeness of account opening and insurance application forms, completion of customer identification documents before account opening, and empowering compliance officers through training, appropriate regulatory authority, effective suspicious transaction awareness and reporting, and full access to relevant customer and transaction records. The workshop forms part of a wider programme of AML/CFT initiatives delivered by the Authority’s AML/CFT Department in cooperation with stakeholders and experts, alongside its ongoing supervisory and inspection activity.

Ghana’s Ministry of Finance announced plans to establish an Independent Fiscal Council to strengthen fiscal oversight and decision-making once the country exits its International Monetary Fund (IMF) programme. The Deputy Finance Minister, Thomas Nyarko Ampem, said the council would comprise locally appointed members and provide advisory support on financial controls and fiscal decision-making, with the aim of strengthening domestic oversight and accountability. He also indicated that IMF programme targets remain on track and that inflation has declined to 3.8 percent. Implementation of the council is planned for after Ghana exits the IMF programme.

The Canadian Securities Administrators (CSA) published its 2025 Systemic Risk Committee (SRC) Annual Report on Capital Markets, analysing recent market trends and potential vulnerabilities in Canadian capital markets and outlining CSA work aimed at mitigating associated risks. While the SRC describes the Canadian financial system as resilient through 2025, it highlights several areas for ongoing attention, including the expanding use of artificial intelligence (AI) in financial markets, rapid growth and concentration in stablecoins, liquidity mismatches in private asset funds, and elevated corporate refinancing needs in 2026. The report points to heightened economic and financial uncertainty linked to trade tensions, alongside strong equity performance and broadly stable liquidity in government and corporate bond markets during 2025. It identifies AI adoption by major institutions, asset managers and market infrastructures as a key structural shift, while noting concentration in a small set of technology providers and potential third-party, operational and cyber dependencies, as well as the risk of correlated behaviour if market participants rely on similar AI models. In crypto markets, global capitalization reached about USD 4.4 trillion in October 2025 before declining more recently, with stablecoins exceeding USD 300 billion and concentrated among a small number of issuers; the SRC highlights potential channels to traditional markets through large holdings of U.S. Treasury bills and operational and cyber risks. For investment funds, the report notes that some private asset funds faced significant liquidity pressure in 2025, with several real estate-focused funds and fund-like entities suspending or restricting redemptions amid liquidity mismatches; it also notes growth in private asset funds to CAD 152 billion in net assets by end-2024. In market infrastructure and derivatives, the SRC reports rising clearing activity and collateral requirements, highlights the successful implementation of CDS’s Post-Trade Modernization project launched on April 28, 2025, and notes regulatory updates including a rewrite of trade reporting rules effective in July 2025 and changes to mandatory clearing rules finalized in September 2025. Next steps flagged in the report include CSA work on proposed rule changes to strengthen liquidity risk management for investment funds, including better alignment of redemption terms with underlying asset liquidity, as well as future regulations to provide details for proposed Canadian legislation to regulate issuance of fiat-backed stablecoins. The mandatory clearing rule changes referenced are expected to take effect in March 2026, and the report notes that the CUSMA review is expected in July 2026.