The global financial services regulation in April 2022 mainly includes several important matters:
In terms of supervision methods, the bank for International Settlements published a paper on the supervision practice of assessing the sustainability of bancassurance, introducing a series of supervision practices related to business model analysis; The ECB updated its policy on how to exercise options and discretion in supervising banks, and clarified how the ECB exercises options and discretion brought about by the recent changes in EU banking rules, so as to ensure the consistent and transparent implementation of the rules applicable to banks; The financial conduct authority issued a report (tr22 / 1) after a thematic review, focusing on liquidity needs during liquidation, intra group dependencies and liquidation triggers; The Reserve Bank of India issued a statement setting out the development and regulatory policy measures related to liquidity measures, regulation and payment and settlement systems.
In terms of financial market infrastructure, the people’s Bank of China (PBOC) announced the newly revised provisions on administrative punishment procedures of the people’s Bank of China. The new provisions take the “separation of investigation and punishment” as the core, further refine the procedures of case jurisdiction, filing, investigation, trial, deliberation, statement and defense, hearing and decision in the process of administrative punishment, and fully implement the publicity system of administrative law enforcement and the legal review system of law enforcement decisions Bank Of China Limited(601988) Insurance Regulatory Commission issued the notice on further strengthening financial support for the development of small and micro enterprises in 2022, which defined the annual work objectives. In terms of total amount, the banking industry continued to achieve the growth rate of inclusive small and micro enterprise loans and the “two increases” in the number of households; The Hong Kong Monetary Authority (HKMA) issued a circular to notify the cognizant institutions that the banking (capital) (Amendment) Rules 2022 have been published in the Gazette and will introduce three different levels of risk sensitivity methods to set up bank equity investment funds.
In terms of financial products, instruments and services, the 34th meeting of the Standing Committee of the 13th National People’s Congress voted to adopt the futures and derivatives law of the people’s Republic of China, which comprehensively and systematically stipulates the basic systems of the futures market and derivatives market Bank Of China Limited(601988) Insurance Regulatory Commission issued the notice on the key work of comprehensively promoting rural revitalization in banking and insurance services in 2022. The notice puts forward specific measures from the aspects of ensuring the stable growth of agricultural financial investment, optimizing the agricultural financial supply system and mechanism, and focusing on serving the key areas of Rural Revitalization; The Hong Kong Insurance Regulatory Authority issued a set of explanatory notes to supplement the guidance of designated insurance holding companies in module C (group capital adequacy ratio) of the group regulatory guidelines. This set of explanatory notes sets out the views of the CIRC on the operation of certain regulations of the insurance (group capital) Rules in different group organizations, and focuses on removing double counting by referring to illustrative examples.
In terms of implementation, the CSRC held a meeting to emphasize the need to do a solid job in the supervision of private equity funds and regional equity markets, crackdown on illegal activities and liquidation in 2022; The inter institutional Steering Group on green and sustainable finance of the Hong Kong Special Administrative Region announced the preliminary feasibility assessment of Hong Kong’s carbon market opportunities and put forward the next measures to support the development of Hong Kong as a regional carbon trading center; The European Securities Regulatory Authority issued a press release summarizing the results of its cooperation with national authorities (NCAs) on the supervision of corporate debt and liquidity risk of real estate funds.
