Global Regulator & Central Bank News Roundup
Edition 112026Week of March 16
Global developments
In a press briefing, the IMF shared a preliminary assessment of the Middle East conflict's impact on the global economy. It noted that the conflict is disrupting energy supply, with the Strait of Hormuz closure cutting off roughly 20 percent of global oil and seaborne liquefied natural gas supplies and damage to regional infrastructure disrupting production. Oil and gas prices have risen by more than 50 percent over the past month to above USD 100 per barrel, while fertilizer shipment disruptions and transport constraints raise risks of higher food prices. The Fund warned that sustained higher energy prices could lift headline inflation and weigh on output.
In an IMF press briefing, Communications Director Julie Kozack outlined the Fund’s early assessment of how the Middle East conflict is affecting the global economy, citing major supply disruptions from the closure of the Strait of Hormuz and damage to regional energy infrastructure. She framed the near-term transmission through three main channels, commodity prices, inflation and inflation expectations, and tightening financial conditions, and said the IMF will provide a comprehensive update in the April World Economic Outlook. Kozack said oil and gas prices had risen by more than 50 percent over the past month to above USD 100 per barrel, with fertilizer shipment disruptions and transport constraints raising risks of higher food prices. As a rule of thumb, she noted that a sustained 10 percent increase in oil prices over a year could add around 40 basis points to global headline inflation and reduce global output by 0.1 to 0.2 percent, while stressing that the overall impact depends on the duration and intensity of the shock. She also pointed to market moves already observed, including declines in global equity prices, higher bond yields across advanced and emerging markets, higher volatility, US dollar appreciation, and weaker emerging market currencies. The IMF reported active engagement with finance ministers, central bank governors, and regional institutions to assess exposures and support needs, and said it stands ready to provide policy advice, capacity development, and financial support, but has not yet received formal requests for emergency financing. On specific economies and programs, Kozack said the Gulf Cooperation Council outlook depends on the extent of export disruption, with some countries potentially partially offsetting lower production through higher prices, while noting wider effects on equity markets and bond spreads. For energy importers in regions such as Europe, the Caribbean, and parts of Sub-Saharan Africa, she highlighted balance of payments and inflation pressures alongside the impact of tighter global financial conditions, with the most vulnerable members facing greater strain due to limited buffers.
INTERPOL published the second edition of its Global Financial Fraud Threat Assessment, warning that artificial intelligence, hybrid scams and the global spread of scam centres are making financial fraud a more severe transnational threat linked to organized crime, human trafficking and cybercrime. The report cites estimated global losses of USD 442 billion in 2025, says AI-enhanced fraud is 4.5 times more profitable than traditional methods.
INTERPOL has published the second edition of its Global Financial Fraud Threat Assessment, warning that financial fraud is becoming more sophisticated, more global and more closely intertwined with organized crime, human trafficking and cybercrime. The report highlights the growing use of artificial intelligence, the spread of hybrid scams including sextortion, and the worldwide expansion of scam centres, with fraud described as one of the most severe and rapidly evolving transnational crime threats. Key findings include an estimate of USD 442 billion in global fraud losses in 2025, AI-enhanced fraud being 4.5 times more profitable than traditional methods, and scam centres now affecting victims and trafficked workers across nearly 80 countries. INTERPOL also reported stronger enforcement cooperation, with fraud-related Notices and Diffusions up 54 per cent since 2024 and support provided in more than 1,500 transnational fraud cases involving lost assets valued at USD 1.1 billion. The assessment also identifies a growing link between fraud and terrorist financing in parts of Africa, especially through crypto-based scams. The assessment was released on the opening day of the 16 to 17 March Global Fraud Summit, jointly organized by INTERPOL and the United Nations Office on Drugs and Crime, where more than 1,300 participants from government, law enforcement, technology companies, financial institutions and civil society met to coordinate responses to fraud. INTERPOL used the summit to launch Operation Shadow Storm, a new task force targeting scam centre-linked fraud, cybercrime and human trafficking, and to issue guidelines on establishing and operating national anti-scam centres. When the summit closed, representatives from 47 countries and organizations had pledged specific follow-up actions and progress reporting, linking the threat assessment to an operational and policy coordination process.
The IOSCO published a consultation report proposing good practices for over-the-counter commodity derivatives markets to strengthen implementation of its Principles for the Regulation and Supervision of Commodity Derivatives Markets, focusing on Principles 12, 15 and 16. The proposals emphasise risk-sensitive access to and aggregation of OTC position data, including beneficial ownership and coverage of critical or significant contracts, alongside stringent safeguards on the use of sensitive data
The International Organization of Securities Commissions (IOSCO) has published a consultation report proposing good practices for over-the-counter (OTC) commodity derivatives markets to support implementation of its Principles for the Regulation and Supervision of Commodity Derivatives Markets. The proposals focus on strengthening the implementation of Principles 12, 15 and 16, particularly around obtaining and aggregating OTC position information and preventing or addressing disorderly market conditions where OTC activity may spill over into exchange-traded markets. The draft good practices envisage regulatory frameworks that enable regulators or exchanges, as appropriate, to obtain relevant OTC derivatives data at the level of the beneficial owner and to deploy such requirements in a way that reflects market characteristics, including through predefined triggers such as market intelligence, unexpected price or volatility changes, or missed margin calls. IOSCO encourages authorities to identify “critical or significant” contracts and to aggregate positions held under common ownership and control across sufficiently related exchange-traded contracts and relevant OTC positions, supported by periodic review of the type, scope and frequency of data collected and stringent safeguards restricting any exchange use of OTC data to oversight and regulatory functions. The report also sets expectations that regulators should have effective powers to intervene in relevant OTC markets and be prepared to act proactively, reactively or during crises, alongside stronger communication and information-sharing arrangements between exchanges and regulators and among regulators, including cross-border mechanisms such as multilateral memoranda of understanding
The International Organization of Securities Commissions updated its Statement on Non-GAAP Financial Measures to clarify how it interacts with IFRS 18 and management-defined performance measures disclosed in the notes to financial statements. It notes that such measures do not automatically become GAAP measures for the purposes of the statement, and issuers remain subject to its disclosure expectations and applicable jurisdictional rules when they are presented outside the financial statements.
The International Organization of Securities Commissions has updated its Statement on Non-GAAP Financial Measures to explain how its disclosure expectations apply alongside accounting standards that require similar management-defined measures in the notes to the financial statements, particularly management-defined performance measures under IFRS 18. It notes that these measures do not automatically become GAAP measures simply because an accounting standard requires note disclosure, and that when they are used outside the financial statements they can still fall within IOSCO’s non-GAAP framework. The update is intended to help issuers present non-GAAP measures in a clear and useful way and reduce the risk of misleading disclosure. The statement continues to apply to non-GAAP financial measures disclosed outside the financial statements under IFRS and other reporting frameworks, and reiterates IOSCO’s main disclosure expectations, including clear definitions and labelling, explanation of why the measure is useful, no greater prominence than the closest GAAP measure, quantitative reconciliation to GAAP figures, consistent presentation over time, caution around describing recurring items as non-recurring, and easy access to supporting information. It also makes clear that compliance with disclosure requirements inside the financial statements under an accounting standard does not by itself satisfy IOSCO’s expectations for disclosures outside the financial statements, or replace any applicable jurisdictional regulatory requirements
The OECD has released a survey through its International Network on Financial Education to assess individuals' knowledge of climate-related financial risks and sustainable finance. Structured into four modules, it aims to provide comparable evidence for policymakers on household preparedness and understanding.
The Organisation for Economic Co-operation and Development (OECD) has released an OECD International Network on Financial Education (OECD/INFE) survey instrument designed to measure individuals’ knowledge, attitudes and behaviours relating to climate-related risks with personal financial implications and to sustainable finance products. The instrument is intended to support comparable evidence for policymakers and other organisations, including to assess household preparedness for climate-related natural hazards, understanding of sustainability characteristics in financial products, and exposure to risks such as greenwashing. The survey package includes a questionnaire and methodological guidance, and is structured into four modules that can be used in full or in part. Modules 1 and 4 (mandatory) capture demographic and socio-economic characteristics, while Module 2 covers experience with climate-related natural hazards, coping strategies, information sources and climate-change risk perceptions, and Module 3 tests sustainable finance understanding (including ESG, green bonds and greenwashing), attitudes, holdings and motivations, as well as trust and behaviours around potential mis-selling and greenwashing. For international comparability, the OECD recommends representative sampling of adults aged 18 to 79 and a minimum achieved sample of 1,000 respondents per country (supported by an initial pool of around 1,700 valid contacts), with guidance on limited national adaptations such as product lists. The questionnaire was developed iteratively in 2024-2025 and piloted across six jurisdictions, with resulting revisions including simplification, shortening and the introduction of the modular structure.
The Basel Committee on Banking Supervision has appointed Ben Gully as its next Secretary General for a three-year term starting 14 August 2026. Gully, currently Deputy Superintendent at Canada's Office of the Superintendent of Financial Institutions, will succeed Neil Esho, who retires on 31 March 2026. Deputy Secretary General Toshio Tsuiki will serve as Acting Secretary General until Gully assumes the role.
The Basel Committee on Banking Supervision has appointed Ben Gully as its next Secretary General, to lead the Committee’s Secretariat in Basel for a three-year term starting 14 August 2026. The Secretary General manages the Secretariat’s operations and supports the Chair’s external representation of the Committee. Mr Gully is currently Deputy Superintendent at Canada’s Office of the Superintendent of Financial Institutions, where he leads the Supervision Sector. He serves as OSFI’s representative to the Basel Committee and co-chairs the Supervisory Cooperation Group, and has previously held senior roles including Chief Risk Officer at the Australian Prudential Regulation Authority. He will succeed Neil Esho, who is retiring on 31 March 2026 after serving as Secretary General since February 2022. Deputy Secretary General Toshio Tsuiki will serve as Acting Secretary General until Mr Gully assumes the role.
The International Monetary Fund published a working paper estimating that United States stablecoin legislation reduced the market value of listed incumbent payment firms by about 18%, or roughly USD 300 billion, indicating that markets expect stablecoins to become a meaningful competitor in payments.
The International Monetary Fund has published a working paper examining how financial markets responded to US stablecoin legislation and concludes that investors expect stablecoins to become a meaningful competitor in payments. Using high-frequency stock price data and prediction market probabilities around the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the paper estimates that the law reduced the market value of listed incumbent payment firms by about 18%, or roughly USD 300 billion. The analysis centres on the House of Representatives vote on July 17, 2025, the final legislative step before the bill was sent to the president for signature. In the five trading hours after that vote, payment firms underperformed other financial firms by about 0.75 percentage points, or 1.3 percentage points on a market capitalization weighted basis, equal to around USD 21.5 billion. The paper links the repricing to the new federal regime for payment stablecoins, which reduces regulatory uncertainty and requires 100% backing with liquid assets, monthly public reserve disclosures and independent audits for larger issuers. It also finds larger losses for firms focused on cross-border payments, while firms protected by network effects or already offering crypto-related services showed little or no significant decline. The paper says this estimated effect is slightly larger than the impact of other recent pro-competitive regulatory shocks affecting payment firms, including the Durbin Amendment and the European Central Bank's digital euro plan, although it is smaller than severe firm-specific regulatory actions. Its overall conclusion is that financial markets expect stablecoins to raise competitive pressure in payments materially, with cross-border providers appearing most exposed.
The Bank for International Settlements published a working paper introducing the BIS Time-series Regression Oracle (BISTRO), a transformer-based foundation model for unconditional macroeconomic forecasting and conditional scenario analysis. It is presented as an off-the-shelf tool fine-tuned on a BIS macroeconomic dataset to produce baseline forecasts and covariate-conditioned projections without task-specific model rebuilding.
The Bank for International Settlements published a BIS Working Paper introducing the BIS Time-series Regression Oracle (BISTRO), a transformer-based foundation model designed to generate both unconditional forecasts and conditional, scenario-style projections for macroeconomic time series without task-specific model rebuilding. The paper positions BISTRO as an off-the-shelf tool that can forecast key aggregates and incorporate covariates to produce alternative paths under user-specified assumptions. BISTRO adapts the MOIRAI multivariate time-series transformer and fine-tunes it on a BIS-maintained macroeconomic dataset covering 4,925 series across 63 economies (1970–2024), with mixed frequencies and reporting lags handled through transformations and daily alignment via forward-filling and lag shifts. In out-of-sample exercises benchmarked against an AR(1) model and MOIRAI across multiple evaluation windows (1995, 2005, 2015 and 2023+), the reported median relative RMSFE results show stronger performance for unemployment and GDP growth than MOIRAI and, at several horizons, improvements over AR(1), while inflation results are more horizon-dependent and MOIRAI deteriorates notably at longer horizons. The release includes operational guidance and pre-compiled scripts, with replication supported via a GitHub repository and Google Colab workflows that allow users to upload their own datasets and generate baseline forecasts and conditional scenarios.
Active global consultations
The Board of the International Organization of Securities Commissions is consulting on proposed good practices to strengthen oversight of over-the-counter commodity derivatives markets by supporting the effective implementation of Principles 12, 15 and 16 on OTC data collection, intervention powers and responses to disorderly markets. The consultation responds to IOSCO’s finding that commodity market participants often hold linked positions across exchange-traded, OTC and physical markets, creating risks to price formation, volatility and market integrity when Market Authorities lack timely visibility over large or concentrated positions, including positions held under common ownership and control. The proposed practices address three areas: collection and aggregation of OTC and exchange trading activity, with a proportionate and risk-sensitive focus on beneficial ownership data, critical or significant contracts, related OTC contracts and factors such as market interdependence, size, liquidity and existing controls; preventing or addressing disorderly markets, including expectations that regulators have effective powers to intervene in relevant OTC markets and that exchanges use available information and position management tools to protect orderly trading; and information sharing and cooperation, including stronger communication between exchanges and regulators, among regulators and through cross-border mechanisms during market stress. The practices also emphasize stringent safeguards for sensitive OTC data and transparent intervention policies so oversight can improve market integrity without unnecessary or duplicative reporting burdens.
The Board of the International Organization of Securities Commissions is consulting on proposed good practices to strengthen oversight of over-the-counter commodity derivatives markets by supporting the effective implementation of Principles 12, 15 and 16 on OTC data collection, intervention powers and responses to disorderly markets. The consultation responds to IOSCO’s finding that commodity market participants often hold linked positions across exchange-traded, OTC and physical markets, creating risks to price formation, volatility and market integrity when Market Authorities lack timely visibility over large or concentrated positions, including positions held under common ownership and control. The proposed practices address three areas: collection and aggregation of OTC and exchange trading activity, with a proportionate and risk-sensitive focus on beneficial ownership data, critical or significant contracts, related OTC contracts and factors such as market interdependence, size, liquidity and existing controls; preventing or addressing disorderly markets, including expectations that regulators have effective powers to intervene in relevant OTC markets and that exchanges use available information and position management tools to protect orderly trading; and information sharing and cooperation, including stronger communication between exchanges and regulators, among regulators and through cross-border mechanisms during market stress. The practices also emphasize stringent safeguards for sensitive OTC data and transparent intervention policies so oversight can improve market integrity without unnecessary or duplicative reporting burdens.
Regional developments
The Bermuda Monetary Authority has introduced a streamlined Approval in Principle (AIP) process to expedite new investment funds by providing a conditional pre-approval pathway. Complete applications are reviewed within eight business days, while AIP applicants may receive pre-approval in two to three days.
The Bermuda Monetary Authority (BMA) has introduced a streamlined Approval in Principle process for new investment funds, creating an expedited pre-approval pathway alongside its standard application review process. Applicants that use the new route and submit the required documentation may receive conditional pre-approval within two to three business days, compared with the usual eight business days for complete new fund applications. The pre-approval process is intended to let sponsors complete operational arrangements and meet outstanding requirements in a more predictable sequence while preserving the Authority’s risk-based oversight approach. Approval in Principle does not amount to registration or authorisation under the Investment Funds Act 2006, and a fund cannot begin investment fund business, accept subscriptions or represent itself as registered or authorised until the Authority has granted formal registration or authorisation and all statutory and regulatory requirements have been met.
Kenya National Treasury has published draft Virtual Asset Service Providers Regulations, 2026 to operationalise the Virtual Asset Service Providers Act, 2025 and establish a licensing and supervisory regime for virtual asset activities conducted in or from Kenya. The draft framework covers exchanges, wallet providers, payment processors, advisers, managers, token issuance platforms, initial coin offerings, tokenised real-world assets and stablecoin issuance, and sets requirements on governance, consumer protection, custody, cyber security and market conduct, among other things.
Kenya National Treasury, through a multi-agency task force and in consultation with the Central Bank of Kenya and the Capital Markets Authority, has published draft Virtual Asset Service Providers Regulations, 2026 and a Regulatory Impact Statement for public consultation. The draft rules would operationalise the Virtual Asset Service Providers Act, 2025 by creating a licensing and supervisory framework for virtual asset activities conducted in or from Kenya, including where a provider derives economic benefit from Kenya without a physical presence. The framework covers exchanges, wallet providers, payment processors, brokers, investment advisers, managers, token issuance platforms, initial coin offerings, tokenised real-world assets and stablecoin issuance. The draft regime sets out licensing conditions as well as expectations in core areas such as governance, fitness and propriety, market conduct, consumer protection and advertising as well as custody, cyber security, and capital. Notable provisions include minimum paid-up capital ranging from KES 2.5 million for virtual asset investment advisers to KES 500 million for stablecoin issuers, a 33.3 percent ownership cap for virtual asset exchanges, stablecoin issuers and wallet providers subject to specified exceptions, and detailed conduct rules on market abuse, conflicts of interest and safeguarding of client assets. Stablecoin issuers would be required to fully back outstanding coins with reserve assets, redeem at par on demand without fees, refrain from paying interest, hold at least 30 percent of issuance funds in segregated Kenyan bank accounts, and publish reserve information and audit reports on an ongoing basis. The draft regulations also provide for a coordination committee bringing together the National Treasury, Central Bank of Kenya, Capital Markets Authority and other public bodies to coordinate supervision and enforcement.
The Bank of Zambia has required all resident and non-resident entities and individuals providing virtual or crypto asset services in Zambia to register as virtual asset service providers as a preliminary step toward a comprehensive, risk-based regulatory framework for the sector. The exercise will support the creation of a central database, assessment of the market and associated risks, monitoring of compliance, and engagement with registered providers.
The Bank of Zambia has issued a public notice requiring all entities and individuals providing virtual or crypto asset services in Zambia to register as virtual asset service providers (VASPs) with the Bank by 27 March 2026, as a preliminary step in developing a comprehensive regulatory framework for the sector. From 30 March 2026, entities regulated by the Bank will not be allowed to facilitate transactions to or from VASPs that are not registered with the Bank. The registration requirement applies to both resident and non-resident providers offering services to individuals and businesses in Zambia, regardless of physical presence. It covers business activities including exchange between virtual assets and fiat currencies, exchange between virtual assets, transfer of virtual assets, safekeeping or administration of virtual assets (or instruments enabling control over them), and participation in or provision of financial services related to an issuer’s offer or sale of a virtual asset. The Bank framed the exercise as a means to build a central database, assess market scale and risks, inform a risk-based framework, monitor compliance with existing laws and international standards, and support consultations with registered VASPs. Registration does not constitute a licence or official approval to operate. The Bank noted that it will release a comprehensive regulatory framework in due course.
The Central Bank of the UAE approved a Financial Institution Resilience Package to reinforce banking sector stability amid widening Iran conflict. The package includes enhanced access to reserve balances, temporary relief in liquidity and capital buffers, and flexibility in retail and corporate loan classification.
The Central Bank of the UAE (CBUAE) has approved a five-pillar Financial Institution Resilience Package to reinforce the stability and resilience of the UAE banking sector and preserve bank liquidity, capital flexibility and credit continuity as the widening Iran conflict hits Gulf economies and transport networks. Notably, the package offers banks access to reserve balances of up to 30% of the cash reserve requirement and term facilities in AED and USD, alongside temporary relief on liquidity and stable funding ratios, temporary release of the Countercyclical Capital Buffer and Capital Conservation Buffer, and flexibility to postpone classification of retail and corporate loans for customers affected by the extraordinary circumstances. It also calls on banks to continue providing financing.
S&P Global Ratings affirmed Kuwait’s sovereign credit ratings at AA-/A-1+ with a stable outlook, citing very large government financial assets as a buffer against the impact of the regional conflict and disruption to oil production and exports. It expects weaker 2026 growth and fiscal and external performance, including real gross domestic product growth of just below 1%, a current account surplus of about 16% of gross domestic product, and a fiscal deficit of 17% of gross domestic product.
S&P Global Ratings has affirmed Kuwait’s long term and short term foreign and local currency sovereign credit ratings at AA-/A-1+ and maintained a stable outlook, reflecting its view that the country’s very large government financial assets should cushion the effects of the regional conflict and temporary disruption to oil production and exports. The agency expects threats to key infrastructure, including oil facilities, to recede after a few weeks, but said the conflict and the effective closure of the Strait of Hormuz will weaken growth and fiscal and external performance in 2026. Kuwait’s fiscal and external buffers remain the central support for the rating. S&P estimates the government’s consolidated net asset position at 490% of gross domestic product in 2026 and liquid assets at about 521% of gross domestic product on average over 2026 to 2029, largely through the Kuwait Investment Authority. At the same time, it said Kuwait has cut oil production by more than half since the conflict began and declared force majeure for affected buyers on cost, insurance and freight contracts only. On that basis, S&P now expects the current account surplus to narrow to about 16% of gross domestic product in 2026 from about 24% in 2025, real gross domestic product growth to slow to just below 1% from about 2%, and the headline fiscal deficit to widen to 17% of gross domestic product in 2026 from an estimated 8% in 2025. The report also notes that the banking sector does not pose significant contingent liability risk to the government, citing 8.5% lending growth in 2025, nonperforming loans of 1.5% at the eight largest banks at year-end 2025, and provisioning buffers of 252%. S&P further said it could lower the ratings if reforms on taxation, expenditure control and diversification lag or if oil export earnings are disrupted for longer, while an upgrade over the next two years would require reforms that deepen domestic capital markets, diversify the economy and preserve strong public finances. The next scheduled publication on Kuwait’s sovereign rating is May 22, 2026.
The India International Financial Services Centres Authority (IFSCA) approved the FinTech Sandbox Framework, enabling FinTech and TechFin innovations testing within the IFSC ecosystem. Eligibility now includes individuals and groups affiliated with recognized academic institutions, incubators, and accelerators in India and Financial Action Task Force compliant jurisdictions.
The India International Financial Services Centres Authority (IFSCA) has approved the IFSCA FinTech Sandbox Framework for applicants seeking access to IFSCA’s sandboxes, setting out how FinTech and TechFin ideas, products and solutions can be tested within the International Financial Services Centre (IFSC) ecosystem. The framework, informed by experience under the 27 April 2022 framework for FinTech entities in IFSCs as well as stakeholder feedback, expands eligibility to include individuals and groups affiliated with recognised academic institutions, incubators and accelerators in India and Financial Action Task Force compliant jurisdictions. Applications must be submitted via the Single Window IT System (SWIT) through a two-stage process, with preliminary applications evaluated within 30 days and final applications within 60 days. It also introduces a two-stage approval mechanism, moving from in-principle approval with prescribed conditions (including, where necessary, onboarding a testing partner) to limited use authorisation once those conditions are met, enables market exploration for developed products within IFSC, and broadens eligible testing to cover all financial services, products and institutions regulated or proposed to be regulated by IFSCA.
The Monetary Authority of Singapore has concluded phase two of Project MindForge with an Artificial Intelligence Risk Management Toolkit for the financial services sector, developed with a consortium of 24 banks, insurers, capital market firms and other industry partners. The toolkit centres on an Operationalisation Handbook aligned with MAS’ proposed Guidelines on AI Risk Management, covering governance, risk materiality, AI inventory, lifecycle controls and organisational enablers, and is supported by a case study supplement.
The Monetary Authority of Singapore (MAS) has concluded phase two of Project MindForge with the publication of an Artificial Intelligence Risk Management Toolkit for the financial services sector. The toolkit was developed with a consortium of 24 banks, insurers, capital market firms and other industry partners, and is intended to support financial institutions in managing risks arising from traditional artificial intelligence, generative artificial intelligence and emerging agentic artificial intelligence. Its main component is an AI Risk Management Operationalisation Handbook that provides practical guidance on implementing AI risk management frameworks, supported by a supplement compiling case studies from financial institutions on challenges, approaches and lessons learned. The handbook is structured in four sections aligned with MAS’ proposed Guidelines on AI Risk Management, covering scope and oversight, AI risk management, AI lifecycle management, and organisational enablers. Across those areas, it addresses issues including AI governance frameworks and role clarity, identification of AI usage and risk materiality, AI inventorisation through systems and procedures, controls across the full lifecycle of AI use, and the capabilities, infrastructure and resources needed to support ongoing responsible use. The handbook is accompanied by a supplement compiling AI case studies that set out financial institutions’ experiences and lessons learned. In addition to these resources, MAS announced plans to establish an AI risk management workgroup under the BuildFin.ai initiative to develop implementation resources, facilitate knowledge sharing and build industry capabilities for managing risks from newer AI technologies such as agentic artificial intelligence.
The Australian Securities and Investments Commission has launched an interactive Internal Dispute Resolution data dashboard that for the first time allows public comparison of complaints reported by individual financial firms. It covers products including home loans, credit cards, insurance and financial advice, and shows complaint volumes, outcomes, resolution times and monetary remedies.
The Australian Securities and Investments Commission (ASIC) has launched an interactive Internal Dispute Resolution data dashboard that gives public access to consumer complaints data and, for the first time, allows users to compare complaints reported by individual financial firms. The dashboard covers complaints linked to products including home loans, credit cards, life and general insurance, and financial advice, and is intended to increase visibility of complaint volumes, trends and potential consumer harm across the financial services industry. Key features include reporting period views of complaint volumes and trends, breakdowns by issue and complaint outcome, firm level complaint resolution times, and information on monetary remedies paid. The dashboard also includes guidance on navigation, data interpretation, key definitions and methodology. ASIC said the dataset will support regulatory decision making and help identify trends such as why complaints are lodged, how handling times are changing and which products attract the most complaints
The Australian Prudential Regulation Authority will consult on staged reforms to the capital and liquidity frameworks for authorised deposit-taking institutions, alongside a simplified implementation of the Basel Committee’s Fundamental Review of the Trading Book. The package would make settings more risk sensitive through targeted credit risk and liquidity changes, while reducing the compliance burden of market risk reforms.
The Australian Prudential Regulation Authority (APRA) will consult on a package of reforms to the capital and liquidity frameworks for authorised deposit-taking institutions, with separate workstreams on credit risk, liquidity risk and market risk. The package is intended to keep the banking system resilient while making settings more risk sensitive and better aligned with international practice. APRA expects the overall effect to be broadly cost neutral across the banking industry, with small banks that rely on more stable funding sources expected to see some cost savings from the liquidity changes. On capital, APRA plans targeted amendments to the standardised framework to lower or refine risk weights for selected exposures, including large domestic public infrastructure, high quality unrated corporates and more residential property development exposures, and expects this to provide greater flexibility for internal ratings-based ADIs bound by the standardised floor. On liquidity, the proposals include measures for Liquidity Coverage Ratio banks to address risks not captured by current minimum requirements, including possible Pillar 2 liquidity requirements, stronger Internal Liquidity Adequacy Assessment Process expectations, broader high-quality liquid asset eligibility including covered bonds subject to ceilings and haircuts, and a review of the Liquidity Coverage Ratio treatment of foreign branches in Australia. For Minimum Liquidity Holdings banks, APRA plans a more risk-sensitive framework and a transparent limit on bank debt securities and other lower quality liquid assets. On market risk, APRA will consult on a simplified implementation of the Basel Committee’s Fundamental Review of the Trading Book that would omit the non-modellable risk factor framework and the modelled approach for default risk capital, streamline internal risk transfer rules, and adjust profit and loss attribution and trading-desk requirements while reusing parts of the existing traded market risk framework. Consultation will be staggered by workstream, with informal industry engagement due to begin in the coming weeks. The first formal consultation is planned for the first half of 2026 and will cover changes to standardised risk weights for credit risk.
he Australian Treasury is consulting on a new qualifications standard for financial advisers that would replace the current approved degree requirement with a completed Bachelor degree or higher in any discipline, four subjects in financial concepts at Australian Qualifications Framework Level 7 or higher, and four accredited financial advice subjects. The financial adviser exam, professional year and continuing professional development requirements would remain unchanged.
The Australian Treasury has published a consultation paper on a new qualifications standard for financial advisers that would replace the current requirement to complete an approved degree listed on the existing determination. Under the proposed model, new entrants would need a completed Bachelor degree or higher in any discipline, at least four Australian Qualifications Framework (AQF) Level 7 or higher subjects in financial concepts, and four prescribed and accredited financial advice subjects. The financial adviser exam, professional year and continuing professional development requirements would remain unchanged. The proposal would shift accreditation from whole degrees to individual subjects and reduce the prescribed curriculum from 223 learning outcomes and topics across 11 subjects to 20 across four accredited subjects: Ethics for Professional Advisers, Financial Advice Regulatory and Legal Obligations, Client and Consumer Behaviour, and a new Financial Advice Fundamentals subject. The financial concepts list would be broader and include areas such as fintech, trust law and mathematics or quantitative analysis, while taxation and commercial law would be removed from the core curriculum because not all advisers provide tax financial advice. Australian financial services licensees would continue to assess adviser competence and qualifications while the Treasury would continue foreign and certain domestic qualification assessments.
The Reserve Bank of New Zealand has confirmed changes to its Open Market Operations and outlined in-principle design choices for the forthcoming Committed Liquidity Facility. It will move to weekly full allotment reverse repo operations with 7-day and 28-day tenors and pricing at the Official Cash Rate plus 10 basis point, while the Committed Liquidity Facility will use a cap-based sizing approach and a composition-based standing fee.
The Reserve Bank of New Zealand (RBNZ) has published its summary of submissions and key decisions from the Liquidity Management Review, confirming changes to its Open Market Operations (OMO) and setting out in-principle design choices for the forthcoming Committed Liquidity Facility (CLF). For OMOs, the Bank will move to a full allotment approach centred on weekly reverse repo operations to support liquidity provision, with 7-day and 28-day tenors, while keeping the overnight deposit rate at the Official Cash Rate (OCR). For the CLF, feedback informed initial decisions on access, sizing, fees, eligible securities, operationalisation, monitoring and annual review, but several elements remain subject to further work. The revised OMO framework is expected to take effect on 2 April 2026, subject to additional liaison on operational feasibility. Regular operations will be held on Thursdays, announced at 11.30am NZT, and will use reverse repos only, with other operations available on an ad hoc basis if needed. Initial pricing is set at OCR plus 10 basis points on a floating-rate basis, although the Bank is seeking further feedback on that feature. Eligible collateral will be limited to New Zealand Government Bonds, Reserve Bank Bills, approved Kauri securities and Local Government Funding Agency bonds. On the CLF, the Bank has made several in-principle decisions. It will explore extending access to all deposit takers covered by the Liquidity Standard, use the proposed cap-based approach to size the facility, and apply a composition-based standing fee. It also plans to treat all Reserve Bank repo-eligible securities as eligible for the CLF, execute drawdowns through the Overnight Reverse Repo Facility, monitor collateral through monthly prudential liquidity returns, and review the facility annually. Detailed CLF development will continue through 2026, including review of domestic markets counterparty criteria and collateral haircuts, followed by finalisation of the CLF terms and conditions when the Liquidity Standard is issued in May 2027. The facility remains on track to be operational in December 2028, when the Deposit Takers Act standards come into effect.
The Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency have proposed a recast of the US bank capital framework for banks of all sizes, including a single expanded risk-based approach for Category I and II firms and a recalibrated standardized approach for other banks. Separately, the Federal Reserve Board would revise the global systemically important banking organization surcharge framework.
The Federal Reserve Board, Federal Deposit Insurance Corporation and Office of the Comptroller of the Currency have requested comment on three proposals to recast the US bank capital framework for banks of all sizes. The package would replace the dual risk based capital calculations for Category I and II firms with a single expanded risk based approach, revise the Federal Reserve Board’s global systemically important banking organization surcharge framework, and recalibrate the standardized approach for other banks. Across the package, the agencies frame the changes as a simplification that better aligns capital with risk while preserving safety and soundness, with estimated aggregate common equity tier 1 requirements falling by 2.4 percent for Category I and II firms from the Basel III and GSIB proposals alone and by 4.8 percent when proposed stress testing changes are included. For the largest and most internationally active firms, the expanded risk based approach would cover credit, operational, market and credit valuation adjustment risk, remove the advanced approaches, and end use of the standardized approach for Category I and II firms. The proposals would also revise market risk for firms with significant trading activity, allow other banking organizations to opt into the expanded approach, and change mortgage servicing assets from a deduction from common equity tier 1 capital to a 250 percent risk weight. For banks using the standardized approach, the agencies would introduce loan to value based risk weights for certain residential mortgages, reduce the risk weight for corporate exposures to 95 percent and for unassigned assets to 90 percent, and require Category III and IV firms to recognize most accumulated other comprehensive income in regulatory capital with a five year transition. Separately, the Federal Reserve Board’s GSIB proposal would update method 2 coefficients, add annual indexation for growth and inflation, remove the risk weighted assets denominator from the short term wholesale funding indicator, move certain systemic indicators to annual average reporting, and assign surcharges in 10 basis point increments rather than 50 basis point steps. Comments on all three proposals are due by mid-June.
interpretation clarifying how federal securities laws apply to certain crypto assets and related transactions, and how the Commodity Exchange Act will be administered consistently with that approach. It sets out a crypto asset taxonomy, explains when a non-security crypto asset can become subject to and cease to be subject to an investment contract, and states that protocol mining, protocol staking, wrapping of non-security crypto assets, and certain airdrops do not involve securities offerings.
The US Securities and Exchange Commission (SEC), with parallel guidance from the Commodity Futures Trading Commission (CFTC), published an interpretation on how the federal securities law definition of “security” applies to certain crypto assets and related transactions. The interpretation establishes a five-part taxonomy of crypto assets based on their characteristics, uses, and functions: (1) digital commodities, (2) digital collectibles, (3) digital tools, (4) stablecoins, and (5) digital securities. It states that digital commodities, digital collectibles, and digital tools are not themselves securities, while digital securities are securities, and stablecoins may or may not be securities depending on their features, with certain payment stablecoins excluded by statute or treated as non-securities. The interpretation further explains that a non-security crypto asset can nonetheless be offered or sold as part of an investment contract where an issuer’s representations or promises create a reasonable expectation of profits from the issuer’s essential managerial efforts, but that link can later fall away once those promises are fulfilled or abandoned. It also states that covered protocol mining, protocol staking, certain staking receipt tokens, certain wrapped tokens, and covered airdrops of non-security crypto assets generally do not involve securities transactions.
The Canadian Investment Regulatory Organization has announced a Disgorgement Distribution Program that will in certain cases allow money collected under disgorgement orders to be returned to investors who suffered direct financial harm from registrant misconduct.
The Canadian Investment Regulatory Organization (CIRO) has announced a Disgorgement Distribution Program that will, from April 1, 2026, allow it in certain cases to distribute money collected under disgorgement orders to investors who suffered direct financial harm from registrant misconduct. The change adds a distribution mechanism to CIRO’s existing disciplinary framework, under which hearing panels can order wrongdoers to repay funds, gains or other value obtained through misconduct. Investors previously could not receive payments through CIRO for losses even when disgorgement was ordered in disciplinary proceedings. The new program introduces eligibility criteria, governance controls and oversight mechanisms for distributions, and aligns CIRO with other Canadian securities regulators that have adopted similar arrangements.
The Commodity Futures Trading Commission (CFTC) and Major League Baseball (MLB) have signed a Memorandum of Understanding (MOU) to facilitate cooperation and information exchange on issues like safeguarding the integrity of professional baseball and related prediction markets.
The US Commodity Futures Trading Commission (CFTC) and Major League Baseball have signed a memorandum of understanding establishing a framework to discuss, cooperate and exchange information on issues of common interest, centred on protecting the integrity of professional baseball and related event contract markets. The release describes it as the first agreement of its kind between the CFTC and a professional sports league. The arrangement is intended to support faster responses to incidents and better anticipation of emerging trends through ongoing informal consultations, periodic meetings, written requests and other practical arrangements. Representatives of the two parties are expected to meet as needed but at least monthly. The announcement comes just a week after the CFTC's Division of Market Oversight issued a staff advisory on prediction markets setting out its current views on how designated contract markets should list and oversee event contract derivatives as these products grow in popularity. The guidance stressed that designated contract markets should only list event contracts that are not readily susceptible to manipulation and should maintain robust real-time surveillance, investigation processes, and enforcement practices to detect and address disorderly trading and abusive conduct, including risks linked to misuse of confidential information. It highlighted manipulation and price distortion risks in cash-settled event contracts, with particular focus on sports-related contracts where settlement outcomes may be influenced by a single individual or a small group, such as officiating decisions, injuries, or unsportsmanlike conduct, and calls for clear settlement methodologies supported by reliable, objective data sources.
European Union's Anti-Money Laundering Authority (AMLA) launched a data collection and testing exercise for sampled credit and financial institutions and published the reporting package for participant submissions. The exercise will test and calibrate AMLA’s risk assessment models to support the 2027 selection of up to 40 entities for direct supervision from 2028 and to promote consistent EU-wide assessment of money laundering risks.
The European Union's Anti-Money Laundering Authority (AMLA) has launched its data collection and testing exercise for sampled credit and financial institutions, publishing the reporting package that participants must use to submit information for model calibration. The exercise will test and calibrate AMLA’s risk assessment models to support the 2027 selection of up to 40 entities for AMLA’s direct supervision from 2028 and to support consistent assessment of money laundering risks by supervisors across the EU. Participation is limited to entities already notified by their national competent authorities, with the reporting population drawn from two groups: institutions that may be eligible for AMLA direct supervision and a representative sample expected to remain under national supervision, based on lists provided by national supervisors. The reporting package provides templates, instructions and an Excel workbook with embedded validation checks. The package requires reporting at solo level for each separate establishment/entity rather than on a consolidated basis. Each branch and subsidiary must report separately to the national financial supervisor in its country of establishment, while the head office/legal entity reports only its own data and excludes cross-border branches and subsidiaries to avoid double counting. AMLA indicates participation is mandatory for sampled entities and that exemptions from reporting will not be granted, except for entities that ceased operations before 22 April 2026. Submissions are to be provided to national supervisors as soon as possible and no later than 22 April 2026, after which supervisors perform first-level checks and transmit validated files to AMLA via the European Banking Authority channel. Following calibration, AMLA will establish the final list of entities eligible for direct supervision, with national supervisors expected to collect further data points from eligible entities in early 2027 to inform AMLA’s 2027 selection.
The Prudential Regulation Authority and the Financial Conduct Authority have finalised aligned rules and guidance for operational incident and material third-party reporting, with standardised templates and coordinated submission routes. Firms must report qualifying crystallised incidents and notify and annually register material third-party arrangements through the Financial Conduct Authority, with information shared with the Prudential Regulation Authority and the Bank of England where relevant.
The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) have published final rules and guidance for operational incident reporting and material third-party reporting, establishing a standardised reporting framework with aligned templates and coordinated submission routes. The regime is designed to support timely, consistent reporting of qualifying incidents and structured notification and registration of material third-party arrangements. For operational incidents, both authorities use an aligned definition focused on crystallised events, including single events or a series of linked events, that disrupt service delivery to an end user external to the firm or compromise the availability, authenticity, integrity, or confidentiality of related data. Reporting is triggered when a firm reasonably believes an incident meets the relevant threshold tests tied to each regulator’s objectives, with the FCA framing these around consumer harm, safety and soundness, and market stability, market integrity or confidence in the UK financial system, and the PRA framing them around safety and soundness, financial stability and, for insurers, policyholder protection. Firms are expected to report as soon as reasonably practicable and generally within 24 hours of determining the threshold is met. For PRA reporting, and for FCA enhanced reporting, firms use a single report that is updated across the initial, intermediate and final phases where required, with final information expected within 30 working days of resolution and limited extension to 60 working days in specified circumstances. The FCA distinguishes between standard reporting, which is a one-off submission, and enhanced reporting, which follows phased updates, and maintains a faster initial reporting expectation for payment service providers of 4 hours from first detection. Dual-regulated firms are expected to use a single report to address both regulators where applicable and update the same report if an incident later meets the other regulator’s thresholds. For material third-party reporting, the framework requires firms to identify material third-party arrangements, notify planned new arrangements or significant changes, and maintain an annual register of material third-party arrangements using standardised templates, with notification submitted to the FCA through FCA Connect and the annual register submitted through FCA RegData, in each case shared with the PRA and the Bank of England where relevant. Both frameworks generally limit reporting of intragroup arrangements to cases where there is an external third-party dependency, with stated exceptions for ring-fenced bodies and UK recognised investment exchanges. Notifications are expected at an early stage, sufficiently before internal or external commitments, but neither regulator treats notification as an approval process or sets prescriptive review timelines.
Switzerland's Federal Council has approved the country’s first comprehensive strategy on combating money laundering and terrorist financing, creating a common national framework built around prevention and supervision, investigation, prosecution and punishment, asset recovery, and terrorist financing. Planned measures include inter alia a new beneficial ownership register, expanded due diligence obligations for higher-risk activities, stronger risk-based supervision, and electronic-only suspicious activity reporting.
Switzerland's Federal Council has approved the country’s first comprehensive strategy on combating money laundering and terrorist financing, setting a common national framework for how the existing defence system should be developed and applied. The strategy is built around four areas of action: prevention and supervision, investigation prosecution and punishment, asset recovery, and terrorist financing. It is intended primarily to guide the federal authorities in the coordination group on combating money laundering, the financing of terrorism and the financing of proliferation in developing concrete risk-based measures. On prevention and supervision, the strategy foresees a full update of the national risk assessment in 2026. It also provides for the federal beneficial ownership register to become operational in the second half of 2026, with a control body due to start work by the end of 2026. New due diligence obligations will apply to higher-risk activities, including certain advisory work by lawyers and notaries and cash payments in precious metals and real estate. Risk-based supervision is also set to be reinforced. On investigation, prosecution and punishment, the strategy points to more resources and better data for the Money Laundering Reporting Office Switzerland. Suspicious activity reports are to be submitted only electronically from summer 2026. The planned 2027 too-big-to-fail package could also give the Swiss Financial Market Supervisory Authority additional sanctioning powers. On asset recovery, the strategy envisages further work to speed up the freezing, confiscation and repatriation of illicit assets. On terrorist financing, it highlights targeted preventive measures and tailored criminal law tools within the broader framework. Federal agencies in the coordination group will develop and implement specific measures. The Federal Council will review the strategy against the 2026 risk assessment update and the Financial Action Task Force mutual evaluation report planned for 2028.
The Prudential Regulation Authority is consulting on targeted changes to the UK prudential liquidity framework that would strengthen firms’ assessment of liquidity resource composition, monetisation risk and readiness for sudden outflows. The proposals would remove the Level 1 asset exemption from Liquidity Coverage Ratio monetisation testing, clarify the role of central bank facilities in liquidity management, and require monitoring of pre-positioned collateral and drawing capacity.
The UK Prudential Regulation Authority (PRA) has launched a consultation on targeted changes to the UK prudential liquidity framework, focused mainly on Pillar 2 requirements under the Internal Liquidity Adequacy Assessment. For PRA-authorised UK banks, building societies, PRA-designated UK investment firms and relevant parent undertakings, the package would require firms to assess not only the amount but also the composition of liquidity resources, run a firm-specific stress scenario with sudden and severe outflows concentrated in the initial days of a stress, and assess monetisation frictions so supervisors get a clearer view of whether assets can be turned into cash quickly enough. The proposals are intended to address faster liquidity runs linked to digital banking and to align firms' liquidity management with the Bank of England's move to a demand-driven, repo-led reserves framework. Key proposals would remove the existing exemption for Level 1 assets, including sovereign bonds, from the Liquidity Coverage Ratio operational requirement for annual monetisation testing, replace the narrower concept of marketable asset risk with monetisation risk in internal stress testing, and stop requiring firms to complete the monetisation assumptions section of PRA110 once final rules are made. The PRA also proposes to clarify that drawings from central bank facilities regularly available at published terms may be included in firms' overall liquidity adequacy assessments and internal stress tests, provided firms are operationally ready to use them. Emergency liquidity assistance, on the other hand, would remain excluded. Firms would additionally have to monitor pre-positioned collateral and central bank drawing capacity after haircuts, and estimate additional eligible but non-pre-positioned assets and related mobilisation frictions.
The Financial Conduct Authority and the Financial Ombudsman Service published a joint package to modernise the redress system, consulting on a pre-registration stage for complaints, broader dismissal powers, and changes to the Financial Ombudsman’s fair and reasonable test so it reflects standards applicable at the time of the act or omission.
The Financial Conduct Authority (FCA) and the Financial Ombudsman Service have published a joint package to modernise the redress system. The consultation covers a new pre-registration stage so only in-scope and sufficiently evidenced complaints move to full investigation, broader powers for the Financial Ombudsman to dismiss complaints that are better dealt with by courts or other processes or where there is no material financial loss, distress or inconvenience, and changes to the fair and reasonable test so it only reflects standards applicable at the time of the act or omission. Notably, under the proposed model, only sufficiently evidenced complaints would move to full investigation, with cases able to be held in pre-registration where wider legal or regulatory issues are in play. The dismissal proposals would also cover complaints already addressed under regulatory reviews or redress schemes, matters already before comparable schemes, regulators, law enforcement or courts, complaints more suitable for court or arbitration, certain employment, investment performance and trust-related disputes, and cases involving unreasonable complainant behaviour. The FCA has also finalised related guidance and rule changes, including new SUP 15 guidance on when firms should report emerging redress issues to the regulator, updated guidance on identifying and rectifying harm, and certain operational efficiency-related changes for the Financial Ombudsman and the Financial Services Compensation Scheme.
Monetary policy developments
Rate decisions during the week of 16 March continued to be largely dominated by hold decisions - with the U.S. Federal Reserve Board (FRB), the Bank of Canada, the European Central Banks (ECB) and the Bank of England (BoE) all maintaining rates, citing heightened uncertainty and a preference to assess the evolving inflation outlook and transmission—particularly given the near-term lift from energy prices—alongside still-subdued or softening activity signals in parts of their economies. Notable exceptions included the Reserve Bank of Australia, which raised the cash rate by 25 bp to 4.10%, and the Central Bank of Iceland, which likewise increased rates by 25 bp; by contrast, selective easing continued in a small number of cases, including Brazil (-25 bp to 14.75%) and Ghana (-150 bp to 14.0%) as domestic disinflation and high real rates provided room to calibrate policy lower. Across decisions, the ongoing Middle East conflict continued to feature increasingly prominently as a conditioning factor, mainly through its implications for energy and commodity prices, financial conditions, and the risk of second-round effects. The BoE noted that the conflict had driven a “significant” rise in global energy and other commodity prices and said it was alert to potential second-round effects in wage and price-setting. The ECB similarly flagged that the war has made the outlook “significantly more uncertain,” creating upside risks to inflation and downside risks to growth, with a “material” near-term inflation impact via higher energy prices. The Bank of Canada pointed to sharply higher oil and natural gas prices and tighter global financial conditions, while emphasising that the breadth and duration of the conflict—and therefore its macroeconomic effects—remain highly uncertain.