Edric Jennings’ Post

Stay ahead of the compliance curve with this week's edition of CompliNEWS. Our comprehensive coverage ensures you're well-informed on the latest financial compliance, legislation, market developments, and more. With our insights, earning your CPD hours before the 31 May 2024 deadline has never been easier. Here's what we've highlighted in the latest issue: New Regulations and Developments: Enhanced Deposit Insurance: Discover the latest regulations for monthly bank data submissions, a crucial step towards bolstering South Africa's deposit insurance scheme and enhancing financial stability. Krugerrand Transactions: The JSE's new equities rules for Krugerrand transactions promise increased security and transparency, marking a significant advancement for traders and investors alike. Legislative Changes: NHI Costs Unclear: The Finance Minister's sidestepping on NHI costs and the implications for South Africa's healthcare financing are thoroughly examined. Banking Sector Evolution: The upcoming cessation of domestic EFT transactions with CMA countries represents a pivotal shift in regional banking practices. Environmental, Social, & Governance (ESG) Initiatives: AI for Climate Risk Analysis: Central banks are leveraging artificial intelligence to assess climate risks, signaling a new era of tech-driven environmental governance. JSE Carbon Offsets: The imminent trading of carbon offsets on the JSE is set to position South Africa as a leader in climate finance. Sustainable Finance Roadmap 2024: The FSCA's publication of its Sustainable Finance Consumer Risk report and roadmap for 2024 is a landmark development, outlining a strategic vision for integrating sustainable practices across South Africa's financial sector. Anti-Money Laundering (AML) and Enforcement: Global Enforcement: Coverage includes EU sanctions against Russian officials and South Africa's progress in addressing state capture, reflecting a rigorous approach to global and local AML enforcement. Market Abuse Probe: The FSCA's R475 million penalty on Markus Jooste for market abuse underscores a stringent stance on maintaining market integrity. Regulatory Updates and Compliance Focus: AI Regulatory Pathways: With the European Parliament's enactment of the first AI Act, International Perspectives and Local Insights: FCA's Social Media Advertising Rules: The UK's new regulations aim to protect consumers in the digital age, setting a precedent for global financial marketing standards. Lombard International Assurance Fined: A substantial fine for AML and CTF compliance failures in Luxembourg sheds light on the importance of stringent compliance measures. This week's CompliNEWS not only brings you the latest news but also ensures you're at the forefront of sustainable finance and regulatory compliance. Subscribe today and transform how you stay informed and earn your CPD hours. #ComplianceNews #SustainableFinance #RegulatoryUpdates #CPDHours #FinancialCompliance

Financial Regulation Weekly Update (UK, US & EU) UNITED KINGDOM FRCC: Safe Hands complaints update HMT: Final TWG report – AI usage in investment management DBT: New trade sanctions unit launched – OTSI CFRF publishes three new guides Draft SI: The Consumer Composite Investments (Designated Activities) Regulations 2024 FCA: Multi-firm review of payments firms' implementation of Consumer Duty FCA: Market Watch 80 FCA Chair discusses enhancing the vibrancy of capital markets FCA: Market abuse surveillance Techsprint The Payment Services (Amendment) Regulations 2024 FCA: Expectations for banks and building societies in respect of APP fraud FCA CEO discusses 'predictable volatility' PRA consults on amendments to reporting and disclosure dates for resolution assessments FCA sets out expectations for financial advisers and investment intermediaries PSR announces start of mandatory reimbursement for APP scam victims HMT: PS on treatment of OIEs for CRR EUROPE ESMA report: Sanctions and measures imposed by NCAs in 2023 ESMA Q&As – AIFMD, MiCAR EBA Q&As – PSD2, CRR, EMD2 EIOPA Q&A – SCR EBA: Guidelines on redemption plans under MiCAR EPC publishes first VOP scheme rulebook EC consults on the functioning of the EU securitisation framework ESMA: Accounting for carbon allowances in financial statements EBA: AML/CFT roundtable – call for expressions of interest ECB: Using peripheral vision for better supervision SRB: Crisis readiness for LSIs Council: Listings on European stock exchanges Council: The multiple-vote share structures directive ESAs: 2025 Work Programme ESMA: EU carbon markets 2024 EIOPA: Methodology on Value for Money Benchmarks ECB speech: Towards a digital capital markets union UNITED STATES SEC issues $12m award to whistleblowers SEC Chair Gensler video: Fraud and deception in AI SEC: Settled charges regarding AI statements FDIC extends comment period on RFI on deposits FDIC extends comment period for proposed changes to its brokered deposit regulations OCC solicits research on AI in banking and finance CFTC Staff: No-action position related to reporting and recordkeeping requirements for fully collateralized binary options Agencies announce dollar thresholds for smaller loan exemption from appraisal requirements for higher-priced mortgage loans Agencies announce dollar thresholds for applicability of Regulation M and Regulation Z INTERNATIONAL BCBS: Progress report on 2023 banking turmoil and liquidity risk GFXC: Request for feedback on proposed FX Global Code and Disclosure Cover Sheets amendments IOSCO: Final Report – Investor Education on Cryptoassets IOSCO Chair discusses role of international regulators and ongoing priorities UNEPFI: Responsible Banking Blueprint BCBS: Basel III Monitoring Report

➡️In the modern financial landscape, regulatory compliance plays a crucial role in ensuring transparency, stability, and accountability. Several regulatory frameworks have been established worldwide to address the challenges of systemic risks, market abuse, and tax evasion. Key among these are the Dodd-Frank Act (USA), MiFID (EU), EMIR (EU), and FATCA (USA). Each regulation serves a unique purpose, emphasizing the need for stringent compliance measures to protect financial markets and promote fairness. 1️⃣ Dodd-Frank Act : The Dodd-Frank Wall Street Reform and Consumer Protection Act was introduced in the United States in 2010 after the 2008 financial crisis. ⬆️ From a compliance perspective: • It established the Consumer Financial Protection Bureau (CFPB) to monitor consumer financial products. • Introduced the Volcker Rule to limit banks' speculative investments. • Mandated stricter reporting and transparency for over-the-counter (OTC) derivatives through clearing and trade repositories. 2️⃣ MiFID : The Markets in Financial Instruments Directive (MiFID), implemented in the European Union, governs investment services. MiFID I (2007) and MiFID II (2018) aim to enhance market efficiency and investor protection. ⬆️Compliance requirements include: • Pre- and post-trade transparency for financial instruments. • Rigorous suitability assessments for client investment advice. • Strengthened reporting obligations for transaction records and market activity. 3️⃣ EMIR : The European Market Infrastructure Regulation (EMIR) focuses on reducing systemic risks in OTC derivatives markets within the EU. ⬆️Key compliance requirements are: • Mandatory clearing of standardized OTC derivatives through central counterparties (CCPs). • Reporting of all derivative transactions to trade repositories. • Risk mitigation measures for non-cleared derivatives, including timely confirmation and collateral requirements. 4️⃣ FATCA : The Foreign Account Tax Compliance Act (FATCA), enacted by the United States, combats tax evasion by U.S. citizens holding assets in foreign accounts. ⬆️From a compliance standpoint: • Requires foreign financial institutions (FFIs) to identify and report U.S. account holders to the IRS. • Enforces withholding taxes on FFIs that fail to comply. ✔️ Conclusion : Regulatory frameworks like the Dodd-Frank Act, MiFID, EMIR, and FATCA represent global efforts to maintain the integrity of financial systems and mitigate risks. From a compliance perspective, these regulations demand meticulous attention to detail, effective risk management, and comprehensive reporting mechanisms. Organizations must prioritize building robust compliance programs, leveraging technology for data management, and fostering a culture of accountability to meet these regulatory requirements effectively. In doing so, they not only avoid penalties but also contribute to a safer, more transparent financial ecosystem.

Financial Regulation Weekly Update (UK, EU & US) UNITED KINGDOM FCA: FG24/6 – Guidance for firms that enables a risk-based approach to payments FCA: Multi-firm review of life insurers’ bereavement claim process PSR: Stakeholder submissions to MR22/1.6 SI: The Packaged Retail and Insurance-based Investment Products (Retail Disclosure) (Amendment) Regulations 2024 SI: The Securitisation (Amendment) (No. 2) Regulations 2024 FCA charges four individuals with fraud offences relating to failed credit union FCA proposes time extension for complaints handling in relation to non-DCAs for motor finance PSR: Impact of APP fraud on UK customers Lords: CfE on Property (Digital Assets etc) Bill Lords: Answer to written question on money laundering and PEPs  FCA: Revision of MCS methodology BoE consults on new Fundamental Rules for FMIs TSC: Letter from FCA Chief Executive on motor finance FCA bans a director from working in financial services and cancels firm's permissions FSCS Report: Outlook November 2024 UK Finance report: Information Sharing Pilot (ICO Sandbox) EUROPE EU agencies respond to EC consultation on macroprudential policies for NBFI Council of the EU: closure of the ODR platform and its replacement ECB: Building a solid cyber defence for the new geopolitical season ESMA consults on the active account requirement - EMIR 3 EBA: Common Equity Tier 1 instruments ESAs: Guidelines on system for exchange of information relevant to F&P assessments ECB: Financial Stability Review – November 2024 ESMA: Final report –Technical advice on CSDR penalty mechanism ESAs: Fit-For-55 climate scenario analysis ECB: Taking account of nature, naturally Council adopts new ESG ratings regulation Council adopts revamped rules for EU clearing services OJ: Commission Implementing Regulation to Solvency II ESMA: Shortening of the settlement cycle in the EU ECB: Financial Stability Review article – diversification in funding ECB: Administrative Board of Review - Ten years of experience UNITED STATES NY Fed research into bank failures Fed: Supervision and Regulation Report and testimony by the Vice Chair for Supervision OCC: Acting Comptroller addresses House Financial Services Committee Fed issues enforcement actions with a bank and bank holding company DoJ: Former senior manager of Richmond Fed pleads guilty to insider trading and making false statements SEC charges crypto mining company with FCPA violations in connection with scheme to influence members of Japan's Parliament FDIC announces extension of comment period for deposit insurance recordkeeping rule for banks’ third-party accounts CFTC DCR staff advisory related to clearing of options of spot commodity ETFs

🚨𝗡𝗲𝘄 𝗕𝗹𝗼𝗴 𝗣𝗼𝘀𝘁 𝗔𝗹𝗲𝗿𝘁! 𝗦𝘁𝗮𝘆 𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝘁 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗟𝗮𝘁𝗲𝘀𝘁 𝗠𝗶𝗙𝗜𝗥 𝗖𝗵𝗮𝗻𝗴𝗲𝘀 🚨   Are you aware of the 𝗹𝗮𝘁𝗲𝘀𝘁 𝗰𝗵𝗮𝗻𝗴𝗲𝘀 brought by Regulation 2024/791 𝗮𝗺𝗲𝗻𝗱𝗶𝗻𝗴 𝗠𝗶𝗙𝗜𝗥? Do you know 𝘄𝗵𝗶𝗰𝗵 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗶𝗻𝘀𝘁𝗿𝘂𝗺𝗲𝗻𝘁𝘀 𝗮𝗿𝗲 𝗻𝗼𝘄 𝗰𝗮𝗽𝘁𝘂𝗿𝗲𝗱 𝘂𝗻𝗱𝗲𝗿 𝘁𝗵𝗲 𝗘𝗨 𝗠𝗶𝗙𝗜𝗥 𝗿𝗲𝗽𝗼𝗿𝘁𝗶𝗻𝗴 𝗼𝗯𝗹𝗶𝗴𝗮𝘁𝗶𝗼𝗻 𝗯𝘂𝘁 𝗻𝗼𝘁 𝘂𝗻𝗱𝗲𝗿 𝘁𝗵𝗲 𝗨𝗞’𝘀 𝗿𝗲𝗾𝘂𝗶𝗿𝗲𝗺𝗲𝗻𝘁𝘀?   Our latest blog post breaks down these critical changes and how they might impact your reporting processes. Key points include: 🗸 Specific amendments to the obligation to report transactions under Article 26.2. 🗸  The types of financial instruments newly captured by EU MiFIR reporting. 🗸  Examples of captured and references. 🗸  How will these changes impact your reporting processes? 🗸  Are you prepared to adjust your compliance strategies accordingly?   Read full article 👉 https://lnkd.in/dR69WZqe   Need help navigating these changes? MAP FinTech offers a seamless #MiFIR #TransactionReporting service through our award-winning Polaris Platform ensuring efficient, validated, and compliant transaction reporting, directly or through an Approved Reporting Mechanism! 📧  Arrange a demo with our team at 𝗶𝗻𝗳𝗼@𝗺𝗮𝗽𝗳𝗶𝗻𝘁𝗲𝗰𝗵.𝗰𝗼𝗺.   #MiFIR #Regulation2024 #Compliance #FinancialReporting #regtech #fintech #regulatorycompliance #compliance

KPMG in the UK has developed a programme of digital modules on the core components of Prudential Regulatory Reporting to help clients stay on top of the latest banking regulatory reporting requirements. For more about this and many other hot topics (AI regulation, arrears and collections management), read the article here: #regulatoryreporting #financialservices

The latest issue of European Regulatory Radar is out, bringing crucial updates for financial services providers in the region. Here are some key topics covered: 🏛 **Banks** — The European Council has adopted rules implementing the #final #Basel_III standards in the #EU. The CRR will be effective from 1 January 2025, with draft technical standards or guidelines under consultation for various aspects of credit risk treatment. The #EBA and #ECB have joined forces to establish the #Joint_Bank_Reporting_Committee (JBRC) to harmonize reporting standards and enhance #data_reporting_efficiency. The ECB has announced more intrusive supervisory treatment for banks following significant reforms to its Supervisory Review and Evaluation Process (#SREP), including deploying advanced technology and analytics. ⚙ **Operational resilience** — The ESAs are consulting on RTS for oversight activities under the Digital Operational Resilience Act (#DORA) and conducting a voluntary dry-run exercise for required information registers. 💱 **Digital finance** — The EBA has initiated consultations under the Markets in #Cryptoassets_Regulation (#MiCAR) on guidelines for token issuer redemption plans and on RTS for complaints handling procedures. Exciting developments lie ahead with the formal adoption of the #AI_Act, making it the first AI law in a major jurisdiction. ESMA has also provided initial guidance on the use of AI in retail investment services. Stay informed and updated with the latest insights from European Regulatory Radar

Financial sector calls on EU policymakers to reassess the Financial Data Access (#FiDA) Regulation to ensure innovation, security, and competitiveness. Today, Europe’s insurance, banking, and asset management industries issued a joint statement urging co-legislators to uphold their commitments to boost European competitiveness. The signatories stress that the Financial Data Access (FiDA) Regulation should not be finalized before a thorough assessment of its impact across the entire value chain is completed. The statement warns that rushing into implementation without addressing key concerns could undermine both European competitiveness and data protection. The joint statement highlights the need for: 👉 Evidence-backed policymaking to prioritize customer benefits and market demand. 👉 Stronger safeguards for data privacy and security, ensuring new data-sharing entities (FISPs) are held to the same regulatory standards as financial institutions. 👉 Legal clarity to build a workable framework that drives Open Finance in Europe. While supporting the ambition to foster data-driven innovation, the signatories emphasize that any framework must carefully consider its broader impact on consumers, businesses, and the financial ecosystem. The statement was co-signed by the AFME (Association for Financial Markets in Europe), the European Association of Co-operative Banks, the European Banking Federation, EFAMA, WSBI-ESBG and Insurance Europe 📩 Ali-Ashraf Rajabli

PRA Consultation on Definition of Capital: restatement of CRR requirements in PRA Rulebook The Bank of England’s Prudential Regulation Authority (PRA) has launched a consultation paper, CP8/24, focused on the restatement of Capital Requirements Regulation (CRR) rules into the PRA Rulebook. This move is part of the shift toward the Financial Services and Markets Act (FSMA) 2023 model of regulation. Key Highlights: 🔹The PRA aims to restate most capital requirements without major changes, ensuring alignment with its objectives of safety and soundness for regulated firms. 🔹Minor Adjustments: These include changes to proportionality, pre/post-issuance notifications, and treatment of Additional Tier 1 and Tier 2 instruments. 🔹Capital Simplifications: The proposals complement other ongoing simplification efforts, particularly for Small Domestic Deposit Takers (SDDTs) under the Strong and Simple Framework. 📅 The consultation is open to feedback from stakeholders, with implementation details available in the appendices. https://lnkd.in/e5xG6wmM #PRA #CapitalRules #Basel3_1 #FinancialRegulation #Banking #FSMA2023 #StrongAndSimpleFramework #Consultation

A Transformative Year for Regulatory Reporting: EMIR / FCA / ASIC / MAS Rewrites and Global Changes The financial industry has witnessed a monumental shift in 2023-24, with a series of major regulatory updates reshaping the way firms approach trade reporting. These changes, driven by frameworks such as the EMIR Refit, FCA, ASIC, and MAS reporting updates, are not just compliance requirements—they mark a fundamental evolution in how transparency and accuracy are embedded into the financial ecosystem. Key Highlights of the 2023-24 Regulatory Evolution 1. EMIR Refit: - The EMIR Refit introduced significant enhancements to data fields, reconciliation requirements, and counterparty classifications, demanding a higher degree of precision in reporting. - With over 200 data fields now required, firms had to adopt robust systems to ensure compliance. 2. FCA Reporting Updates: - The UK's Financial Conduct Authority made strides in aligning with international standards while addressing regional specifics. - The emphasis on improved validation rules ensures cleaner, more reliable data submissions. 3. ASIC and MAS Reforms: - In Australia and Singapore, regulatory bodies focused on standardizing derivative reporting formats, making cross-border trade transparency a reality. - These reforms push firms towards better data governance and operational resilience. What Do These Changes Mean for the Industry? The common thread across these updates is transparency. Regulators are increasingly focused on fostering trust in financial markets by ensuring that the data reported is accurate, complete, and consistent across jurisdictions. For firms, this has meant rethinking their operational processes. Legacy systems are no longer enough to handle the complexity of new requirements. Advanced *RegTech* solutions, enhanced data management, and closer collaboration with trade repositories have become essential. Looking Ahead While 2023-24 brought significant challenges, it also set the stage for a more transparent and efficient regulatory framework. As firms continue to adapt, the ultimate beneficiaries will be the markets themselves, with reduced systemic risk and increased investor confidence. The journey is far from over, but this year has undoubtedly marked a turning point. #RegulatoryReporting #EMIRRefit #Transparency #FinancialMarkets #RegTech #DataManagement