Global Regulator & Central Bank News Roundup
Edition 152026Week of April 13
Global developments
The International Monetary and Financial Committee warned at the International Monetary Fund Spring Meetings in April 2026 that the war in the Middle East is a major new global shock, and adopted the Diriyah Guiding Principles to guide quota and governance reform discussions under the Seventeenth General Review of Quotas. The World Economic Outlook presented a "reference forecast" assuming disruptions fade by mid-2026, projecting global growth of 3.1% in 2026 and 3.2% in 2027, with global headline inflation at 4.4% in 2026 before easing to 3.7% in 2027, while warning of downside risks if the conflict persists or widens. The committee urged central banks to prioritise price stability and discussed potential International Monetary Fund financing demand of USD 20bn to USD 50bn, alongside the World Bank’s planned liquidity support of up to USD 25bn.
Against the backdrop of the IMF Spring Meetings in April 2026, the International Monetary and Financial Committee warned that the war in the Middle East is a major new global shock and agreed on a policy agenda to reinforce macroeconomic and financial stability. In parallel, members unanimously adopted the Diriyah Guiding Principles to frame future IMF quota and governance reform discussions, including under the Seventeenth General Review of Quotas. The committee and IMF management highlighted that infrastructure damage and transport disruptions could keep fuel and fertilizer prices elevated, disrupt key inputs, and tighten financial conditions, with the heaviest burden falling on the poorest and most vulnerable. Reflecting the uncertainty, the World Economic Outlook presented a "reference forecast" assuming disruptions fade by mid-2026, with global growth projected at 3.1 percent in 2026 and 3.2 percent in 2027, and global headline inflation expected to rise to 4.4 percent in 2026 before declining to 3.7 percent in 2027. Downside scenarios point to lower growth and higher inflation if the conflict lasts longer or expands. To respond to the war-driven supply shock and the associated risks of higher energy and fertilizer prices, inflation pressures, and tighter financial conditions, the committee emphasized policy settings that protect stability without adding to price pressures. Central banks were urged to stay focused on price stability within their mandates, supported by independence and clear communication to keep inflation expectations anchored. Fiscal responses to the new shock were framed around credible medium-term frameworks to safeguard debt sustainability, with any support designed to be temporary and targeted to vulnerable groups where fiscal space exists. IMF management also cautioned against untargeted measures, including export controls and broad-based tax cuts, that could prolong the pain of high prices. To help members manage conflict-related strains, discussions focused on how the IMF could provide financial support through augmentations of existing programs or new financing, with indicative potential demand described in a USD 20 billion to USD 50 billion range. IMF management said it had discussed possible additional support with about a dozen countries, with most potential new programs in Africa, and that five to eight existing programs could require augmentation depending on developments. Coordination with the World Bank and other development banks was also flagged, including the World Bank’s planned liquidity support of up to USD 25 billion, alongside renewed calls for members to provide assurances to fully fund the Poverty Reduction and Growth Trust. Alongside these conflict-related priorities, the IMFC reiterated a broader agenda to strengthen resilience in a shock-prone environment and amid structural transformations. This included strengthening surveillance of systemic risks stemming from artificial intelligence, non-bank financial institutions, and digital assets while harnessing the benefits of financial and technological innovation, advancing structural reforms to raise productivity and safeguard energy security, and continuing work to improve sovereign debt restructuring outcomes through the Common Framework and the Global Sovereign Debt Roundtable’s updated “Restructuring Playbook”.
Financial Stability Board Chair Andrew Bailey warned G20 Finance Ministers and Central Bank Governors that the Middle East conflict has tightened financial conditions and could trigger multiple existing vulnerabilities at once, despite the financial system having absorbed the initial shock so far. He identified stretched valuations, concentrated leverage in non-bank finance, liquidity mismatches and opacity in some markets, notably private credit, as key transmission channels.
In its latest letter to G20 Finance Ministers and Central Bank Governors, Financial Stability Board Chair Andrew Bailey warned that the conflict in the Middle East has tightened financial conditions and increased the risk that several existing vulnerabilities could crystallise at the same time, even though the financial system has so far absorbed the shock. The letter identifies stretched asset valuations, concentrated leverage in non-bank finance, liquidity mismatches and opacity in some markets, notably private credit, as the main channels through which the shock could threaten financial stability and the provision of critical financial services. Bailey highlights that sovereign bond markets are exposed because historically large issuance coincides with high leverage by a limited number of funds pursuing similar strategies across jurisdictions, raising the risk of disorderly unwinds and cross-border spillovers. He also notes that risk premia in global equity and debt markets remain compressed by historical standards, that some AI-related sectors entered the shock with particularly stretched valuations, and that private credit had already seen weaker sentiment, redemption requests and in some cases activation of structural redemption limits. A worsening economic outlook could increase debt-servicing pressure on leveraged borrowers, weaken asset quality and, given the opacity of private credit structures, trigger a wider loss of confidence.
Finance ministers from 12 countries have published a joint statement welcoming the ceasefire between the United States, Israel and Iran, warning that renewed hostilities or disruption in the Strait of Hormuz would heighten risks to global energy security, supply chains and financial stability. The ministers committed to a coordinated, fiscally responsible response, support for open, rules-based energy trade and accelerated diversification, and called on the IMF, World Bank and IEA to assess global impacts and prepare emergency support.
Finance ministers from 12 countries including the United Kingdom, Australia, Japan, Sweden, Netherlands, Finland, Spain, Norway, the Republic of Ireland, Poland and New Zealand have published a joint statement welcoming the announced ceasefire between the United States, Israel and Iran and calling for full implementation. The ministers warned that renewed hostilities, continued disruption in the Strait of Hormuz or a widening of the conflict would increase risks to global energy security, supply chains, and economic and financial stability, and noted that impacts on growth, inflation and markets will persist even with a durable resolution. The statement commits governments to a coordinated approach to managing the economic response and recovery, with any domestic measures to be fiscally responsible and targeted at those most in need given constrained public balance sheets. It reaffirms support for open, rules-based trade in energy products and commits to avoiding protectionist actions, including unjustified export controls, stockpiling and other trade barriers in hydrocarbon and other affected supply chains, alongside continued reforms to strengthen resilience and accelerate long-term energy diversification through the clean energy transition and improved energy efficiency. It also encourages the IMF-World Bank-International Energy Agency coordination group to develop a shared assessment of global economic impacts, and calls on the International Monetary Fund and World Bank to provide a coordinated emergency support offer for countries in need, tailored to circumstances and drawing on the full range of available tools. Separately, the ministers reaffirmed support for Ukraine and stated they will continue collaborating on ways to increase economic pressure on Russia as market conditions allow without exacerbating supply chain and energy price disruptions.
The Bank for International Settlements’ Financial Stability Institute published a Brief on how authorities are using cyber risk stress tests to assess banks’ preparedness for severe operational disruptions and to identify weaknesses in response and recovery arrangements. It distinguishes between system-focused and firm-focused exercises, and outlines key design choices on scope, scenarios, data collection, supervisory follow-up and disclosure
The Bank for International Settlements’ Financial Stability Institute (FSI) published an FSI Brief analysing how authorities are using cyber risk stress tests to assess banks’ preparedness for severe operational disruptions and to identify vulnerabilities in response and recovery arrangements. Drawing on recent public disclosures by the Bank of England, the Danish Financial Supervisory Authority and ECB Banking Supervision, the Brief distinguishes between two main designs: (1) system-focused exercises aimed at understanding potential financial stability impacts and (2) firm-focused exercises aimed at identifying deficiencies in individual banks’ operational resilience frameworks. System-focused tests tend to emphasise comparability for a defined market activity and may involve a smaller, often voluntary, set of systemic firms plus other financial sector participants and financial market infrastructures, whereas firm-focused tests can cover a broad population of supervised banks and support peer benchmarking and supervisory follow-up, while still generally avoiding automatic capital or liquidity add-ons. The Brief sets out decision points that shape each approach: scope of participating firms and activities, scenario design, resource requirements, data collection, supervisory follow-up and public disclosure. It stresses the largely qualitative nature of these exercises, reliance on tabletop formats, the importance of conservative recovery-time assumptions, and the need for close cooperation between prudential, financial-stability and cyber-security authorities. It further points out that confidentiality concerns limit public reporting to high-level findings but that shared insights can help firms internalise system-wide externalities and guide supervisory engagement.
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 Central Bank of Brazil announced that governors and presidents of central banks from Portuguese-speaking countries have created the Network of Central Banks of Portuguese-speaking Countries (BCPLP) to deepen cooperation, including knowledge sharing and coordination in international fora. Members are the central banks of Angola, Brazil, Cape Verde, West African States (Guinea-Bissau), Mozambique, Portugal, São Tomé and Príncipe, and Timor-Leste. The network will have an annual rotating presidency, regular senior-level meetings, technical working groups and an economic policy committee.
The Central Bank of Brazil announced that governors and presidents of central banks from Portuguese-speaking countries have agreed to establish the Network of Central Banks of Portuguese-speaking Countries (BCPLP) to formalise and deepen ongoing cooperation, including knowledge sharing and coordination of positions in international and multilateral fora. The agreement was reached on the sidelines of the International Monetary Fund and World Bank Group Spring Meetings and involves the National Bank of Angola, Central Bank of Brazil, Bank of Cape Verde, the Central Bank of West African States (represented by its National Director for Guinea-Bissau), Bank of Mozambique, Bank of Portugal, Central Bank of São Tomé and Príncipe and Central Bank of Timor-Leste. The network will operate with an annual rotating presidency, regular senior-level meetings, technical working groups to discuss agenda topics, and a new economic policy committee to analyse and debate issues and policies of common interest. The first official BCPLP meeting is scheduled for November 2026 in Luanda, and the first presidency will be held by the Bank of Portugal during 2027.
The Central Bank of the UAE is developing a nationwide unified electronic Know Your Customer platform under its Financial Infrastructure Transformation Programme, in partnership with Norbloc AB, to streamline KYC/Know Your Business processes and lower compliance and operational costs. The platform will automate workflows, integrate trusted data sources, and support anti-money laundering and combatting the financing of terrorism frameworks using a privacy-by-design, consent-based data-sharing model for financial institutions and fintech companies.
The Central Bank of the UAE (CBUAE) announced it is developing a nationwide unified electronic Know Your Customer (e-KYC) platform after signing a technical partnership agreement with Norbloc AB. The project is positioned as a core pillar of the Financial Infrastructure Transformation (FIT) Programme and is intended to reduce duplicated customer due diligence across the market, lower compliance and operational costs, and improve the efficiency of digital onboarding for individuals and businesses. The platform is designed to enhance Know Your Customer and Know Your Business (KYC/KYB) processes and due diligence through automated workflows and the integration of trusted data sources, supporting alignment with anti-money laundering and combatting the financing of terrorism (AML/CFT) frameworks. It will use a privacy-by-design approach and enable secure data sharing based on explicit customer consent, with the stated aim of supporting both financial institutions and fintech companies while reducing turnaround times. Future phases are expected to expand the platform’s capabilities and deepen integration with relevant stakeholders.
The Capital Market Authority of the United Arab Emirates issued a Virtual Assets Framework, a five-module regime covering general requirements, conduct of business, alternative trading systems, anti-money laundering and counter-terrorist financing, and prudential requirements. It expands regulated activities from three to eight, covering dealing in virtual assets as principal or agent, providing and arranging custody, arranging investment deals, providing investment advice, portfolio management, and operating a multilateral trading facility.
The United Arab Emirates Capital Market Authority has issued a Virtual Assets Framework to establish an integrated regulatory regime for virtual asset activities, aligned with international standards including those of the International Organization of Securities Commissions and the Financial Action Task Force, structured across five modules covering general requirements, conduct of business, alternative trading systems, anti-money laundering and counter-terrorist financing, and prudential requirements. The framework expands the scope of regulated activities from three to eight, covering dealing in virtual assets as principal or agent, providing and arranging custody, arranging investment deals, providing investment advice, portfolio management, and operating a multilateral trading facility. The general module sets processes for registration and recognition of virtual assets and addresses token types including privacy tokens, algorithmic tokens, utility tokens and non-fungible tokens, alongside licensing categories and capital requirements. Six licensing categories set minimum capital floors ranging from AED 500 thousand for operating a multilateral trading facility to AED 4 million for dealing as principal and AED 3 million for custody, with minimum capital also benchmarked to expected or audited annual expenses and higher requirements applying in certain cases where client assets are held. The alternative trading system module is designed to regulate trading facilities beyond virtual-asset-only venues, extending to conventional multilateral trading facilities for securities and multilateral trading facilities dedicated to tokenised securities.
The Central Bank of Seychelles has published a Climate-related Financial Risk Supervision Strategy to strengthen the identification, monitoring and management of climate-related financial risks across Seychelles’ banking sector. The strategy is intended to embed these risks into prudential risk-based supervision and align supervisory practices with evolving international standards.
The Central Bank of Seychelles has published a Climate-related Financial Risk Supervision Strategy setting out how it will strengthen the identification, monitoring and management of climate-related financial risks across Seychelles’ banking sector. The strategy is intended to embed climate-related financial risks into the central bank’s prudential risk-based supervision and align supervisory practices with evolving international standards. The strategy covers commercial banks, credit unions and non-bank credit granting institutions, and focuses on supervisory expectations for risk management and disclosures, strengthened supervisory techniques and tools, improved data collection, and capacity building within both CBS and the sector. Planned activities include identifying transmission channels for physical and transition risks, assessing governance and risk management arrangements and related disclosures, and analysing exposures and potential losses where data allow, supported by coordination with other regulators and stakeholders. An accompanying action plan highlights near-term deliverables including publication of a strategy to bridge climate-related data gaps and a banking sector climate risk exposure assessment in April 2026 and a summary report on climate-related financial risk exposures in May 2026 among other things. Additionally, the Roadmap on Sustainable Finance for Seychelles is anticipated for 2027/8.
The Central Bank of Bahrain has issued directives to all retail banks and financing companies on deferring loan instalments and credit card payments under its loan deferral and liquidity support program. The three-month deferral covers both principal and interest for eligible individual and corporate customers, with firms required to communicate the deferral procedures to facilitate access and implementation.
The Central Bank of Bahrain has issued directives to all retail banks and financing companies on deferring loan instalments and credit card payments under its loan deferral and liquidity support program. The deferral option applies for three months and covers both principal and interest, with eligibility extending to individuals and corporates. Retail banks and financing companies are expected to communicate the deferral procedures to customers to support access to the program and its implementation.
The Central Bank of the United Arab Emirates has issued updated anti-money laundering, counter-terrorist financing and counter-proliferation financing guidance for licensed financial institutions and registered hawala providers, aligning expectations with Financial Action Task Force standards and the UAE National Strategy 2024–2027. The package comprises four guidance documents on proliferation financing risk, trade-based money laundering and transshipment, correspondent banking risk management, and customer due diligence, know your customer and record-keeping, plus two best-practice manuals on risk-based approaches, institutional risk assessments and role-based training.
The Central Bank of the United Arab Emirates has issued an updated package of guidance on anti-money laundering, combating the financing of terrorism and countering proliferation financing for licensed financial institutions and Registered Hawala Providers. The package is positioned as aligning with international best practices, the Financial Action Task Force requirements, and the UAE National Strategy 2024–2027, with a focus on strengthening the effectiveness of firms’ compliance systems and supervisory outcomes. The update comprises four regulatory guidance documents covering proliferation financing risk frameworks, trade-based money laundering and transshipment risks, expectations for managing correspondent banking relationships, and customer due diligence, know your customer and record-keeping requirements. It also includes two best-practice manuals addressing implementation of a risk-based approach and institutional risk assessments, and role-based AML/CFT/CPF training frameworks intended to build staff and senior management capability and support earlier detection of suspicious activity."
The Central Bank of Iraq has issued supervisory controls establishing a Basel Committee on Banking Supervision- and Islamic Financial Services Board Standard 15-aligned capital adequacy framework for Iraqi Islamic banks, including foreign branches. Banks must meet minimum Common Equity Tier 1, Tier 1 and total capital ratios of 4.5%, 6.0% and 10% respectively, plus a 2.5% capital conservation buffer in Common Equity Tier.
Central Bank of Iraq has issued supervisory controls setting a capital adequacy framework for Iraqi Islamic banks aligned with Basel Committee on Banking Supervision requirements and Islamic Financial Services Board Standard 15, covering the calculation of risk-weighted assets and minimum regulatory capital. The rules apply to all Islamic banks, including branches of foreign Islamic banks operating in Iraq, and define eligible regulatory capital as Common Equity Tier 1, Additional Tier 1 and Tier 2, including Sharia-compliant instruments such as sukuk. Banks must maintain at least 4.5% Common Equity Tier 1, 6.0% Tier 1 and 10% total capital against risk-weighted assets, and hold a 2.5% capital conservation buffer in Common Equity Tier 1, which lifts the corresponding ratios to 7.0%, 8.5% and 12.5%. The framework also sets standardized approaches for credit and market risk and a basic indicator approach for operational risk, and allows the Central Bank of Iraq to require higher ratios and apply profit distribution constraints where the buffer is not met. Banks are required to run the previous and updated capital adequacy calculations in parallel for periods ending 31 December 2025, 31 March 2026 and 30 June 2026, with the updated framework becoming the sole basis for compliance from the third quarter of 2026. If the new-model ratio falls below the regulatory requirement, the bank must submit corrective measures in line with the banking reform plan.
The Oman Financial Services Authority held a specialised programme on investigating cryptocurrency-related money laundering, focusing on analytical and transaction-tracking methods to detect suspicious activity. The programme covered core concepts, practical investigative methodologies, law-enforcement challenges, and international best practices for handling digital evidence to strengthen national capabilities and regulatory readiness.
The Oman Financial Services Authority, working with the Public Prosecution, held a specialised programme on investigating money laundering crimes involving cryptocurrencies, focusing on analytical and transaction-tracking methods used to detect and trace suspicious activity. Delivered by a representative from the Public Prosecution, the session covered core concepts of crypto-related money laundering, practical methodologies for analysis and tracking, and challenges faced by law enforcement agencies. It also discussed international best practices for handling digital evidence.
South Africa's National Treasury has published draft Capital Flow Management Regulations, 2026 to replace the Exchange Control Regulations, 1961, introducing a threshold-based permissions and exemptions framework for cross-border flows in foreign currency, gold, securities and crypto assets. The draft restricts above-threshold dealings and outward transfers and expands enforcement through administrative sanctions, attachment, account blocking and forfeiture powers
South Africa's National Treasury has issued draft Capital Flow Management Regulations, 2026 for public comment, proposing to repeal and replace the Exchange Control Regulations, 1961 under the Currency and Exchanges Act, 1933. The draft establishes a threshold-based permissions and exemptions regime for cross-border transactions that amount to the import or export of capital, expressly covering foreign currency, gold, securities and crypto assets, and formalises the roles of authorised dealers and authorised crypto asset service providers. Substantively, the draft would restrict buying, selling, borrowing or lending foreign currency, gold or crypto assets above a “determined threshold” except through the relevant authorised channel or with National Treasury permission, and would limit the export or outward transfer of currency, crypto assets, gold and securities, as well as certain outward payments and financial assistance arrangements involving non-residents or “affected persons” (defined by a 75% or more non-resident interest or control test). It introduces declaration requirements for foreign currency or crypto assets (and rights to receive them) and for foreign assets or crypto assets, with disposal typically requiring permission. Enforcement tools include border declaration and seizure powers, controlled accounts where outward transfers are blocked, administrative sanctions for regulated entities, and powers to attach, block and forfeit money, crypto assets and property. Contraventions can trigger criminal penalties of up to ZAR 1,000,000 and/or up to five years’ imprisonment (or a higher fine linked to value), alongside an administrative relief process that can regularise contraventions subject to conditions and potential levies.
Kenyan authorities, through the Joint Financial Sector Regulators Forum, have invited feedback on a draft Financial Consumer Protection Framework to establish common consumer protection and market conduct standards across the financial sector. The framework is built around six principles and proposes minimum standards on marketing, consent, disclosure, product suitability, protection of consumer assets, complaints handling and data privacy.
Authorities in Kenya including the Central Bank, the Capital Markets Authority, the Insurance Regulatory and others, operating through the Joint Financial Sector Regulators Forum, have invited public and industry feedback on a draft Financial Consumer Protection Framework for Kenya intended to set common consumer protection and market conduct standards across the financial sector. The draft framework is built around six principles covering fair treatment, transparency, product suitability, protection of consumer assets, accessible complaints handling, and data privacy. It proposes minimum standards for financial service providers and their representatives spanning marketing and consent and advertising rules, including a ban on sending product offers unless the consumer has given informed consent and a requirement to provide an easy opt-out from advertisements and promotions, cooling-off rights for prescribed products, restrictions on unfair contract terms and tied selling, limits on undisclosed fees, and requirements for Key Facts Statements and plain-language disclosure. It also covers product governance and suitability assessments, including a prohibition on reckless lending, controls to mitigate frauds and scams and to address mistaken transactions, as well as governance expectations including board and senior management accountability. Finally, the framework also sets out an approach to strengthened market conduct supervision, enhanced coordination and information-sharing among regulators, and expectations for complaint-handling functions and escalation mechanisms.
The Hong Kong Institute for Monetary and Financial Research published an applied research report, “Navigating the Green Shift: Opportunities and the Evolving Landscape of Transition Finance”, reviewing the global transition finance landscape and the role of multistakeholder collaboration and international practices in preventing greenwashing and maintaining transparency. The report finds 60% of surveyed respondents are active in or exploring transition finance, while 74% expect the global market to be stable or grow over the next three years, with equity and fund investments (59%) and debt instruments (55%) the most commonly used channels.
The Hong Kong Institute for Monetary and Financial Research, the research arm of the Hong Kong Academy of Finance, has published an applied research report titled “Navigating the Green Shift: Opportunities and the Evolving Landscape of Transition Finance”. The report reviews the global transition finance landscape and discusses the role of multistakeholder collaboration and international practices in maintaining transparency and preventing greenwashing, drawing on a survey and in-depth interviews with global stakeholders. The study finds that 60% of survey respondents were already active in or exploring transition finance, while 74% expected the global transition finance market to remain stable or grow over the next three years, with the most positive outlook in Asia-Pacific (91%) and North America the only region where fewer than 60% expected stability or growth. Equity and fund investments (59%) and debt instruments (55%) were the most commonly used channels, while the most frequently cited constraints were limited client interest or market demand (46%), lack of comparable data or metrics (33%), risk-return mismatches for large projects (31%) and insufficient internal capabilities (27%). Respondents identified the expansion of digital tools and platforms for data collection, monitoring and verification (42%), the development of transition taxonomies, guidance and standards (37%), and wider adoption of credible corporate transition plans (34%) as key trends shaping the ecosystem. For Hong Kong, the report sets out considerations aimed at fostering a robust transition finance ecosystem, including maintaining regulatory and policy clarity, deepening regional partnerships to improve interoperability, deploying de-risking mechanisms to mobilise private capital, strengthening verification and data governance, and accelerating the integration of digital and green technologies
The Reserve Bank of New Zealand has opened consultation on an exposure draft Bill to amend the Insurance (Prudential Supervision) Act 2010, implementing Cabinet-approved reforms to modernise insurance prudential supervision. Key proposals include expanding the use of enforceable prudential standards and a published proportionality framework, updating the licensing perimeter, introducing pre-approval for director and relevant officer appointments, and streamlining transaction approvals with a 25% voting rights threshold.
The Reserve Bank of New Zealand has opened consultation on an exposure draft Bill to amend the Insurance (Prudential Supervision) Act 2010, inviting feedback on whether the proposed provisions are workable in practice and reflect Cabinet-approved reforms to modernise the prudential framework for insurers. The exposure draft would shift the regime towards clearer, rules-based prudential obligations through a broader suite of enforceable standards and updated licence conditions, alongside a requirement to prepare and publish a proportionality framework for how standards would be developed. Proposed perimeter and licensing changes include licensing all New Zealand-incorporated insurers regardless of whether they have New Zealand policyholders, and removing licensing requirements for overseas reinsurers and overseas captive insurers. Governance and control reforms would introduce a pre-approval regime for appointing directors and relevant officers, with a requirement for the Reserve Bank to notify decisions within 20 working days of receiving all required information, and would streamline transaction controls into a single significant transactions approvals regime with a 25% voting rights threshold or where a person can appoint at least 50% of directors. Supervision and enforcement proposals would expand monitoring and intervention tools, including infringement notices for low-level breaches, broader information-gathering powers including on-site inspections without notice, breach reporting for material contraventions, remediation notices, enforceable undertakings, and a revised penalties framework spanning criminal, civil and infringement tiers, with indicative maximum penalties in the consultation paper including civil pecuniary penalties up to NZD 2.5 million for bodies corporate and NZD 300,000 for individuals. Distress management proposals would replace the current statutory management approach with a Deposit Takers Act-style resolution regime, make the Reserve Bank the resolution authority, extend direction powers including on contract renewals and dividend policies, adjust the resolution trigger, and introduce a restriction on resolution-trigger clauses and a short stay on certain derivatives rights. Ministerial and Cabinet decisions are expected in the first quarter of 2027 ahead of a planned Parliamentary process through 2027 and 2028. The consultation paper also flags two policy areas where further Cabinet approval would be sought after consultation, covering whether to proceed with licensing non-operating holding companies and whether to pause prudential changes for multi-cell captive insurers, with Cabinet consideration anticipated in the first quarter of 2027. The Amendment Bill is expected to come into force in the fourth quarter of 2028.
The Ministry of Finance and Economy said its pilot to execute government business expenses using deposit tokens and blockchain-based digital currency has been selected as a 2026 planned regulatory sandbox project overseen by the Office for Government Policy Coordination, enabling deposit-token payments for costs otherwise required to be settled via government purchasing cards under the National Treasury Management Act. The pilot will apply blockchain-based controls, including pre-set spending times and business sectors, to increase transparency and remove intermediaries to reduce fee burdens for small merchants.
The Ministry of Finance and Economy of South Korea announced that its pilot project to execute government business expenses using deposit tokens and blockchain-based digital currency has been selected as a 2026 planned regulatory sandbox project overseen by the Office for Government Policy Coordination. The sandbox allows the Ministry to test deposit-token payments for operational expenses that are currently required to be paid via government purchasing cards under the National Treasury Management Act. The project is the second use of digital currency and deposit tokens for state fund execution, following a pilot for state subsidies to build electric vehicle charging facilities undertaken with the Ministry of Climate, Energy and Environment. It will use blockchain-based controls, including pre-setting permissible spending times and business sectors, to increase transparency over expense execution and is expected to reduce fees for small merchants by removing intermediaries. The Ministry described it as its first planned regulatory sandbox case in which it leads the process end to end, covering institutional review, operator selection and operation. Next, participating businesses will be selected and the demonstration scope will be finalised with relevant agencies and firms, with the pilot targeted to launch in the fourth quarter of 2026. Initial implementation will focus on Sejong City, with planned gradual expansion and parallel work to extend the approach to other fiscal programmes and revise relevant laws and regulations.
ASEAN finance ministers and central bank governors issued a joint statement reaffirming vigilance amid global uncertainty and endorsing regional finance initiatives to deepen capital markets, strengthen payments connectivity, and promote financial health. They adopted the ASEAN Finance Sectoral Plan 2026–2030, endorsed ASEAN Banking Integration Framework Guidelines 2.0, and welcomed the re-establishment of the ASEAN Swap Arrangement as a short-term foreign exchange liquidity backstop.
ASEAN finance ministers and central bank governors published a joint statement from the 13th ASEAN Finance Ministers’ and Central Bank Governors’ Meeting, reaffirming vigilance amid global uncertainty and endorsing a package of regional finance track deliverables aimed at deepening capital markets, expanding regional payments connectivity, and promoting financial health. The meeting adopted the ASEAN Finance Sectoral Plan 2026–2030, with milestones including completion of the ASEAN Taxonomy’s technical screening criteria and the launch of an ASEAN Capital Markets Forum action plan. Officials also endorsed ABIF Guidelines 2.0 following a review of the ASEAN Banking Integration Framework, welcomed the re-establishment of the ASEAN Swap Arrangement as a short-term foreign exchange liquidity backstop, and agreed to develop a regional financial health measurement framework. On payments, the statement noted 29 QR and person-to-person instant payment linkages as of December 2025, with 2025 cross-border QR payments of 36.2 million transactions worth USD 716.4 million and P2P transfers of 1.6 million transactions worth USD 305.7 million. Next steps highlighted in the statement include completion of a regulatory comparison dashboard to support payments interoperability, implementation work in 2027 on governance and process streamlining recommendations under Project Revive, Viet Nam’s implementation of the ASEAN Authorised Economic Operator Mutual Recognition Arrangement in June 2026, and a pilot of railway mode under the ASEAN Customs Transit System by end-2026.
Canada’s Office of the Superintendent of Financial Institutions published its Annual Risk Outlook for fiscal 2026–27, prioritising real estate secured lending and mortgage risk, non-bank financial institution risk, and liquidity and funding risk, and signalling possible adjustments to capital risk weights. An annex also summarises planned quarterly policy releases and supervisory strategies for the banking, insurance and pension sectors.
Canada's Office of the Superintendent of Financial Institutions (OSFI) published its Annual Risk Outlook for fiscal 2026–27, setting supervisory and guidance priorities for federally regulated financial institutions and pension plans for the period April 1, 2026 to April 1, 2027. The outlook ranks real estate secured lending and mortgage risk, non-bank financial institution (NBFI) risk, and liquidity and funding risk as its main prudential priorities, and signals further calibration of regulatory capital requirements, including risk weights, to keep capital aligned with changing risk conditions. On housing, OSFI links trade uncertainty, employment risks, and weaker confidence to higher listings and falling sales and prices, with particular stress in Toronto and Vancouver condos and in variable rate mortgages with fixed payments (VRMFPs). It notes that 3.1 million mortgages, or 52% of the total, are expected to renew by end‑2027, including 1.3 million, or 22% of the total, first originated in the low‑rate period of 2021–22, and expects material payment increases at renewal. As of December 2025, VRMFP originations and renewals represented 36% of mortgage flows. Supervisory work will continue to test lenders against Guideline B‑20, maintain the portfolio limits introduced in 2025 on uninsured mortgages above a 4.5x loan‑to‑income ratio, and consolidate mortgage and counterparty expectations into a new principles‑based Credit Risk Management Guideline. NBFI work will focus on exposures to leveraged hedge fund strategies, growing links to private capital firms, and synthetic risk transfers, supported by supervisory reviews and expanded use of OSFI’s loan‑level wholesale data return to assess governance, stress testing and counterparty credit risk management. For liquidity, OSFI will review contingency funding and recovery plans, sharpen expectations for timely liquidity reporting including cross‑border positions, and progress updates to the Liquidity Adequacy Requirements Guideline and proposed internal liquidity adequacy assessment process guidance. Revisions to liquidity adequacy requirements take effect May 1, 2026 for specific retail deposit categories, with further updates planned for consultation in the May 21, 2026 quarterly release, alongside a draft internal liquidity adequacy assessment process guideline. The outlook also maintains work on wholesale credit and commercial real estate, cyber and technology, third‑party risk, artificial intelligence, and integrity and security.
The U.S. Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System issued revised, non-prescriptive model risk management guidance based on principles proportionate to a banking organization’s size, complexity, and model risk profile. The guidance covers model development, validation, monitoring, and governance, including third-party products, and is expected to be most relevant for firms with more than USD 30 billion in total assets.
The U.S. Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, and the Board of Governors of the Federal Reserve System issued revised model risk management guidance that sets out non-prescriptive principles for managing model risk in a way that is commensurate with a banking organization’s size, complexity, and model risk profile. The guidance discusses the drivers of model risk and the features of effective model development and use, validation and monitoring, and governance and controls, including considerations for vendor and other third-party products. The agencies indicate the guidance is expected to be most relevant for banking organizations with more than USD 30 billion in total assets, while noting it may also be relevant to smaller firms with significant exposure to model risk due to the prevalence and complexity of their models or activities outside traditional community banking. For the purposes of the document, a “model” is a complex quantitative method, system, or approach grounded in statistical, economic, or financial theories, and it excludes simple arithmetic calculations such as those found in spreadsheets as well as deterministic rule-based processes and software with no such theoretical underpinning. The text also notes generative AI and agentic AI models are not within scope, while the principles apply to traditional statistical and quantitative models and non-generative, non-agentic AI models. For vendor and other third-party products, the guidance underscores that banking organizations remain responsible for validating these products, developing sufficient understanding despite proprietary constraints, and conducting ongoing monitoring and outcomes analysis, including documenting and evaluating any customisation adjustments. The agencies state the guidance does not establish enforceable standards or prescriptive requirements and that non-compliance will not, by itself, result in supervisory criticism.
The European Union’s Authority for Anti-Money Laundering and Countering the Financing of Terrorism published a package of updates on its forthcoming direct supervision regime and Anti-Money Laundering Regulation rulemaking, including draft measures on business-wide risk assessments and group-wide Anti-Money Laundering and Countering the Financing of Terrorism frameworks. It is also developing a common methodology for non-financial sector supervisors to assess money laundering and terrorist financing risks. Separately, it updated data tools for the 2027 selection exercise for direct supervision, including changes to the 2026 testing and calibration template covering Kosovo and credit providers.
The European Union's Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA) has published a package of updates spanning its upcoming direct supervision regime and its rulemaking on risk management, including draft instruments on business-wide and group-wide AML/CFT requirements, as well as updated data tools supporting the 2027 selection exercise for direct supervision starting in 2028. On risk management, AMLA opened public consultations on draft Guidelines on business-wide risk assessment under Article 10(4) of the Anti-Money Laundering Regulation (AMLR), setting minimum expectations for all obliged entities across financial and non-financial sectors with proportionality to size, business model and risk profile. It also consulted on draft regulatory technical standards under AMLR Articles 16(4) and 17(3) specifying minimum standards for group-wide AML/CFT frameworks, including cross-border situations and operations in third countries, to support a consolidated view of risks and corresponding policies, procedures and controls. In parallel, AMLA is developing a common methodology for EU non-financial sector AML/CFT supervisors to assess money laundering and terrorist financing risks and is convening an online stakeholder roundtable to gather early input, with the methodology intended to inform supervisory prioritisation and the frequency and intensity of inspections. For the 2027 selection exercise, AMLA noted the European Banking Authority's publication of a draft data model and taxonomy as part of its reporting framework release 4.3 on April 16 to support AMLA’s methodology for identifying obliged entities for direct supervision. AMLA also updated the data collection template for its 2026 testing and calibration exercise (launched 16 March 2026) for entities that are credit providers and or have activities in Kosovo, correcting omissions by adding Kosovo to the country list and credit providers to the entity types.
The European Banking Authority published a report benchmarking banks’ “dry run” testing of recovery plans, concluding that well-designed exercises strengthen operationalisation and crisis readiness while maturity varies widely across firms. The review covers submissions from 16 European cross-border banking groups across 10 EU countries, with around two-thirds having conducted dry runs and some not conducting any.
The European Banking Authority published a report comparing how banks test the implementation of their recovery plans through “dry runs”, concluding that well-designed exercises can strengthen the operationalisation of recovery plans and improve institutions’ crisis readiness, while noting that practices and maturity vary significantly across firms. The benchmarking is based on recovery plan submissions from 16 European cross-border banking groups across 10 EU countries. The report finds that around two-thirds of banks in the sample have conducted dry runs, with approaches ranging from annual or biennial programmes to ad hoc exercises and, in some cases, none at all. Testing most often focuses on the operational feasibility of implementing recovery options, particularly liquidity-related actions such as collateral mobilisation, debt issuance and asset sales, and on escalation and decision-making processes linked to recovery plan indicators. Internal and external communications are tested less frequently, and no institution tested the full recovery plan in a single exercise. Observed good practices include multi-year roadmaps with clear ex-ante scope and objectives, formalised roles and responsibilities, sufficient preparation time (especially for operational tests involving subsidiaries), comprehensive but focused documentation of outcomes, and structured lessons learned translated into action plans with owners and timelines. The report also points to potential benefits from stronger synergies between recovery and resolution testing, including consistent assumptions and inputs.
The European Insurance and Occupational Pensions Authority is consulting on proposals to shorten 13 sets of Solvency II Guidelines, deleting 83 of 294 individual guidelines across Pillar I and Pillar II topics to simplify the revised framework and reduce administrative burdens. The changes are intended for streamlining only, without new interpretations or lower supervisory expectations.
The European Insurance and Occupational Pensions Authority has launched a public consultation on proposals to shorten 13 sets of Solvency II Guidelines, with 83 of 294 individual guidelines marked for deletion across Pillar I and Pillar II topics including internal models, outwards reinsurance, long-term guarantee measures, system of governance and the Own Risk and Solvency Assessment. The package is intended to simplify the revised Solvency II framework and reduce administrative burdens before the new regime takes effect, delivering an overall 28% reduction against EIOPA’s minimum 25% simplification target. Proposed deletions are based on two grounds: provisions seen as redundant because the substance is already captured in Level 1 or Level 2 legislation, and guidelines judged to provide limited added value. The amendments are presented as clarification and streamlining only, without new interpretations of the legal framework or any intended reduction in supervisory expectations. No major gaps requiring immediate new or amended guidelines were identified at this stage, although further changes may be considered through the ongoing fitness check of the rulebook’s consistency and effectiveness. National competent authorities are expected to update national frameworks to remove deleted guidelines while maintaining a level playing field and a single rulebook.
The European Securities and Markets Authority has launched a call for evidence on restricted subscription and private credit ratings as it examines their growing use, particularly in private markets, and whether the Credit Rating Agencies Regulation may need clarification or adjustment. It is seeking evidence on how these ratings are used and distributed, who commissions and receives them, and whether their governance and controls are comparable to those applied to public ratings.
The European Securities and Markets Authority has launched a call for evidence on restricted subscription and private credit ratings as it assesses how these products are being used in practice and whether the Credit Rating Agencies Regulation may need clarification or adjustment. The review reflects ESMA’s view that these ratings are becoming more common, particularly in private markets, raising questions about their purpose, distribution, safeguards and the risks linked to selective access to rating information. ESMA is seeking evidence on product characteristics and use cases, the types of parties that commission and receive these ratings, their prevalence across credit rating agencies and asset classes, and whether their analytical processes, governance arrangements and internal controls are comparable to those applied to public ratings. For the purposes of the exercise, restricted subscription ratings are selectively distributed to a limited group of subscribers with an economic interest and can be used for regulatory purposes, while private credit ratings are client-specific, fall outside the scope of the regulation, and may be shared confidentially with up to 150 persons. Responses are due by 31 May 2026. ESMA will review them in the second quarter of 2026 and may consider regulatory clarifications or adjustments, including discussions with the European Commission, the European Banking Authority and the European Insurance and Occupational Pensions Authority.
The European Banking Authority has launched an open selection procedure to recruit a new Executive Director following François‑Louis Michaud’s appointment as Chair. In the interim, Jonathan Overett Somnier, Head of the Legal and Compliance Unit, has been appointed Acting Executive Director.
The European Banking Authority (EBA) has launched an open selection procedure to recruit a new Executive Director to complete its leadership team following François‑Louis Michaud taking up the role of Chair on 16 April. The Executive Director will work directly with the Chairperson and be responsible for the Authority’s operational management, including developing and implementing the work programme and preparing Management Board meetings. Selection will be based on merit, skills and experience, particularly in financial supervision and regulation, through an open and transparent process, with the successful candidate selected by the EBA Board of Supervisors and appointed after confirmation by the European Parliament. In the interim, Jonathan Overett Somnier, Head of the EBA’s Legal and Compliance Unit, has been appointed Acting Executive Director.
The UK Financial Conduct Authority is consulting on draft perimeter guidance to help firms assess whether they will need authorisation under the UK’s future cryptoasset regime, which will bring specified cryptoasset activities into the Financial Services and Markets Act perimeter from 25 October 2027. The guidance sets out the Authority’s interpretation of regulated activities including issuing qualifying stablecoin, operating qualifying cryptoasset trading platforms, dealing in and arranging deals in qualifying cryptoassets, safeguarding cryptoassets and staking, including where technical services may fall outside scope
The UK Financial Conduct Authority is consulting on draft perimeter guidance to help firms assess whether they will need authorisation under the UK’s future cryptoasset regime, which will bring specified cryptoasset activities into the Financial Services and Markets Act perimeter from 25 October 2027. The FCA is seeking feedback on its interpretation of the regulated activities covering: issuing qualifying stablecoin, operating qualifying cryptoasset trading platforms, dealing in and arranging deals in qualifying cryptoassets, safeguarding cryptoassets, and staking. On stablecoins, the FCA treats “issuing qualifying stablecoin in the UK” as a composite activity requiring a UK-established issuer to offer the stablecoin, undertake redemption and hold backing assets from a UK establishment, with performing only one limb (or providing technology/infrastructure alone) not normally amounting to issuance. A qualifying cryptoasset trading platform is framed as a rules-based system that brings together multiple third-party buying and selling interests and results in contracts to exchange qualifying cryptoassets for money (including e-money) or other qualifying cryptoassets, distinguishing this from bulletin-board or general communications tools. Dealing and arranging mirror existing Regulated Activities Order concepts and are interpreted broadly, including both “bringing about” transactions and ongoing arrangements that facilitate trading, with no general ‘technical services’ exclusion for arranging. Safeguarding focuses on acting on behalf of another with “control” defined as the ability to bring about a transfer of the benefit of the cryptoasset (not merely blocking transfers) and can apply irrespective of whether the customer is the beneficial owner. Staking is framed as intermediation that enables blockchain validation, including pooling and reward distribution, while purely technical services may be excluded if the provider does not hold itself out as arranging staking. Responses are due by 3 June 2026, with final guidance planned for September 2026.
The Prudential Regulation Authority published its 2026/27 Business Plan, prioritising insurer liquidity reporting, reforms to the bank liquidity framework and further measures on life insurers’ funded reinsurance. For banks, it will support Basel 3.1 implementation ahead of 1 January 2027, including an off-cycle review of firm-specific Pillar 2 capital, and will implement the Strong and Simple simplified capital and reporting regime for Small Domestic Deposit Takers from 1 January 2027.
The Prudential Regulation Authority (PRA) has published its Business Plan for 2026/27, setting out planned supervisory and policy work. The plan maintains a forward-looking focus on current and emerging risks, including embedding newly introduced liquidity reporting for insurers, taking forward work to modernise the bank liquidity framework in response to faster runs experienced in 2023, and developing further measures to ensure the use of funded reinsurance structures by life insurers does not compromise policyholder protection or financial stability. For banks, the PRA will continue implementing the United Kingdom’s remaining elements of Basel III (Basel 3.1) and will support firms’ build‑out ahead of the 1 January 2027 implementation date, including an off‑cycle review of firm-specific Pillar 2 capital requirements. The Strong and Simple programme for Small Domestic Deposit Takers continues, with the simplified capital regime and associated reporting requirements due to take effect from 1 January 2027, following earlier simplifications to liquidity and internal process expectations introduced in January 2026. Regulatory reporting streamlining remains a core deliverable via the Future Banking Data Programme, and supervision is set to become more efficient through moving Periodic Summary Meetings to a two‑year cycle for all firms and further improvements to authorisations timeliness. Planned consultations and follow‑on policy work include a consultation on updating regulatory thresholds (including potential automatic indexation) in 2026 H2, a consultation later in 2026 on a proportionate authorisation and regulatory regime for UK captive insurers, and further policy development during 2026/27 on alternative life capital and the prudential treatment of funded reinsurance. The operational incidents and outsourcing and third‑party reporting regime is scheduled to come into force in March 2027. Jointly with the Financial Conduct Authority, the PRA will also implement a single, standardised regime for reporting operational incidents and material third‑party dependencies. Internally, the PRA set out efficiency measures including a headcount reduction of around 140 staff. It also noted that Chief Executive Sam Woods’ term will conclude in June with Katharine Braddick due to take up the role in July.
The United Kingdom Environmental Audit Committee has launched an inquiry and call for evidence on how HM Treasury shapes the government’s approach to climate change, nature loss and environmental sustainability. It will examine whether fiscal rules, spending decisions and Treasury frameworks support environmental objectives and legal obligations, including through the treatment of natural capital, implementation of the Dasgupta Review, management of climate and nature-related financial risks, and support for a low-carbon, nature-positive economy.
The United Kingdom Environmental Audit Committee has launched an inquiry and call for evidence on how HM Treasury shapes the government's approach to climate change, nature loss and environmental sustainability. The inquiry will examine whether fiscal rules, spending decisions and Treasury economic frameworks support environmental objectives and legal obligations, and how the department assesses long-term economic risks from climate change and biodiversity loss. Specific questions include how fiscal rules, tax policy and spending constraints affect climate and environmental investment, whether HM Treasury gives sufficient weight to sustainability, natural capital and broader measures of inclusive wealth alongside gross domestic product, and how far frameworks such as the Green Book and duties under the Environmental Principles Policy Statement shape decisions in practice. MPs will also examine what progress the government has made in implementing the Dasgupta Review, whether Treasury processes support effective cross-government coordination, how transparent and auditable funding decisions are, what role financial regulators and public financial institutions play in managing climate and nature-related financial risks, and how far HM Treasury is supporting the transition to a low-carbon, nature-positive economy. Submissions are due by the end of May.
Spain's National Securities Market Commission has published a research paper finding that unsupervised use of large language models for stock-investment recommendations can produce recurring reasoning failures and outdated or hallucinated information that may mislead investors. Benchmarking ChatGPT, Gemini, DeepSeek and Perplexity shows performance improves with structured prompting and is strongest with iterative human oversight.
Spain's National Securities Market Commission (CNMV) has published a research paper assessing whether large language models (LLMs) can generate reliable stock-investing predictions, concluding that using these tools without human supervision can produce recurring reasoning failures, errors and outdated or hallucinated information that may mislead investors and contribute to losses. The paper benchmarks ChatGPT, Gemini, DeepSeek and Perplexity across naïve, structured and chain-of-thought prompting strategies in a live ten-month evaluation (April 2025 to January 2026) using Ibex 35 stocks, and documents a taxonomy of failures spanning live data retrieval issues, misinterpretation of financial ratios, computational/aggregation mistakes, and weak self-correction and transparency. It finds naïve prompts deliver weak and inconsistent investment performance, while structured prompts improve outcomes, and the strongest results arise when outputs are iteratively reviewed and corrected with human oversight. Grounding recommendations in official regulatory filings is presented as a material quality enhancer, improving forecasting accuracy and risk-adjusted performance by anchoring models in standardised supervisory disclosures, although model limitations in processing long attachments can undermine benefits for some systems. The authors also outline mitigation principles for practical deployment, including requiring “show your work”, verifying data provenance, performing iterative validation checks, and embedding human-in-the-loop oversight.
The Bank of England told the House of Commons Treasury Committee it is developing AI-specific stress and scenario analysis, including tests for correlated behaviour by AI trading agents and their potential to amplify market stress. Its programme also covers scenario analysis of macroeconomic and core market outcomes linked to AI investment and adoption, incorporation of AI scenarios into cyber and operational testing, and international simulation work on agentic AI in financial markets.
In responses published by the House of Commons Treasury Committee on AI in financial services, the Bank of England has set out plans to develop AI-specific stress and scenario analysis, including work to test how AI trading agents could exhibit correlated behaviour or “herding” and amplify market stress. The Financial Conduct Authority (FCA) also committed to provide firms with clearer practical insight on using AI within the existing regulatory framework by sharing additional examples of good and poor practice. The Bank of England’s programme includes scenario analysis on macroeconomic and core financial market outcomes linked to AI investment and adoption, the incorporation of AI scenarios into cyber and operational testing, and simulation work with international counterparts focused on agentic AI in financial markets. It also reiterated that the Financial Policy Committee (FPC) will continue monitoring the Critical Third Parties (CTP) regime and its effectiveness for UK financial stability. HM Treasury indicated it expects to make initial CTP designation decisions this year but did not commit to bringing major AI and cloud providers into the regime by the end of 2026. Next steps flagged across the responses include a further Bank of England and FCA survey of AI adoption by regulated firms, publication of an AI Consortium report this year, and an FCA evaluation report on AI Live Testing towards the end of this year or early 2027.
The National Bank of Georgia has opened its regulatory sandbox on tokenized bonds to supervised brokerage companies to test new models for bond issuance, recording, and trading using digital tokens and to inform future regulation. Tokenized bonds are positioned as programmable digital equivalents of traditional bonds intended to improve issuance efficiency, automate servicing, increase liquidity, reduce transaction costs, and broaden access for corporate issuers and small investors, without implying any licensing or regulatory pre-commitment.
The National Bank of Georgia has opened participation to brokerage companies under its supervision in a regulatory sandbox project focused on tokenized bonds, aiming to test new models for bond issuance, recording, and trading using digital tokens while informing the development of an appropriate regulatory framework. Tokenized bonds are described as a digital equivalent of traditional bonds in which issuer obligations are represented as programmable tokens, intended to enable more efficient issuance and automated servicing. The central bank expects the project to support the development of financial instruments, simplify investment processes, increase liquidity, reduce transaction costs, and diversify the financial ecosystem, and notes potential appeal for both corporate issuers and small and medium-sized investors.
The Netherlands Authority for the Financial Markets published a supervisory report finding that crypto-asset service providers’ advertising and cost disclosures remain too often incorrect, unclear or misleading and may breach Article 66 of the Markets in Crypto-Assets Regulation. Reviewing advertisements from August to October 2025 and cost information for 33 MiCAR-licensed CASPs, it flagged misleading claims, weak risk warnings, and cost information that is hard to find or insufficiently specific, including limited transparency on implicit charges.
The Netherlands Authority for the Financial Markets has published a supervisory report on crypto-asset service providers’ (CASPs) advertising and cost information, concluding that while some improvements have been made, consumer-facing disclosures are still too often incorrect, unclear or misleading and may breach the information standards in Article 66 of the Markets in Crypto-Assets Regulation (MiCAR). The review assessed crypto advertisements published between August and October 2025 and publicly available cost information for 33 CASPs that obtained a MiCAR licence in 2024 or 2025, including both Netherlands-licensed firms and firms licensed in other EU member states serving the Netherlands. The AFM identified recurring issues across both advertising and cost disclosures. These included unclear or potentially misleading claims (for example using terms such as “safe trading” without explanation, or presenting “commission-free” or “free” trading without clarity on additional costs or limitations), insufficiently balanced risk warnings for volatile or complex products, and cost information that was missing, hard to find, or presented in an incomplete and non-specific way including omission of common fees such as deposit, withdrawal and ongoing charges, and limited transparency on implicit costs such as spreads, mark-ups or risk margins. In total, the AFM found deficiencies in advertising standards at 14 firms and in cost information at 19 firms.
The Swedish Financial Supervisory Authority has launched a mapping exercise to assess how banks fulfil their obligation to offer payment accounts to consumers, amid concerns that anti-money laundering controls may be leading to unwarranted refusals or closures. The review will examine whether banks consider alternative risk-reducing measures before denying or terminating accounts and will be accompanied by guidance on balancing account access obligations with requirements to counter money laundering and other financial crime.
Sweden's Finansinspektionen (FI) has launched a mapping exercise of how banks fulfil their obligation to offer payment accounts to consumers, amid concerns that anti-money laundering controls may be leading to unnecessary refusals or account closures. The work is intended to produce a comprehensive picture of how the obligation is handled across the market. FI observes that consumers can be caught between these obligations where banks deny or terminate accounts on broad, general grounds. The review builds on earlier follow-ups that assessed whether banks consider alternative risk-reducing measures before refusing or closing an account, such as enhanced transaction monitoring or offering accounts with restrictions on amounts and services. In parallel with the review, FI will develop guidance to clarify how banks should balance the duty to provide payment accounts with requirements to counter money laundering and other financial crime.
Monetary policy developments
Not applicable