Abstract
The global financial services regulation in December 2021 mainly includes several important matters:
In terms of operational and behavioral risks, the State Administration of foreign exchange has issued the guidelines on norms of conduct for foreign exchange market transactions, focusing on regulating foreign exchange market transactions such as transaction management and information management, and setting a one-year transition period for banks and other financial institutions to conduct foreign exchange transactions over the counter; The Ministry of Finance issued the notice on regulating matters related to asset transfer of state-owned financial institutions, proposing to standardize the transfer mode and strictly limit the scope of direct agreement transfer. Unless otherwise stipulated by the state, state-owned financial institutions shall not transfer assets to non-state-owned transferees by means of direct agreement transfer without public bidding disposal procedures; The Hong Kong Monetary Authority (HKMA) welcomes the newly revised code of banking practice jointly launched by the Hong Kong Association of banks and the association of deposit taking companies to ensure that the protection of banks in providing digital banking services to customers will not be affected by the new electronic channels and service modes, so as to provide better protection for customers; The Australian Prudential Supervision Authority (APRA) has completed a new banking capital framework, which aims to embed an "absolutely strong" capital level and align Australian banking capital standards with internationally recognized Basel III requirements.
In terms of financial products, tools and services, the CBRC issued the measures for liquidity risk management of financial products of wealth management companies, requiring wealth management companies to carry out liquidity risk management of financial products and establish an effective risk isolation mechanism to prevent liquidity risk infection; The people's Bank of China and the State Administration of foreign exchange solicit public opinions on the provisions on the administration of funds for domestic bond issuance by overseas institutions (Draft for comments), unify the rules for the administration of funds for bond issuance by overseas institutions in different domestic markets, and clarify the management requirements for information registration, account opening, fund exchange and use; The Financial Stability Board (FSB) issued a progress report on the implementation of OTC derivatives reform, which pointed out that most jurisdictions have withdrawn or not extended the measures previously taken to reduce the operational burden of OTC derivatives market participants to deal with covid-19; The Bank of Thailand (BOT) and relevant institutions discussed the guidelines on standardizing the use of digital assets as a means of payment for goods and services. BOT reiterates that it does not support the use of digital assets as a means of payment for goods and services; The Australian Prudential regulatory authority (APRA) has issued a set of FAQ updates to help ADI, GI and Li enterprises issue qualified common stock tier 1 capital instruments, additional tier 1 capital instruments and tier 2 capital instruments in compliance with aps111 capital measurement, gps112 capital measurement and lps112 capital measurement.
In terms of governance and strategic / reputation risk, the China Banking and Insurance Regulatory Commission issued the guiding opinions on the banking and insurance industry supporting high-level scientific and technological self-reliance and self-improvement. The opinion emphasizes that we should make an overall plan to promote the complementarity of direct financing and indirect financing, and make policy finance and commercial finance work together; The Financial Stability Board (FSB) issued a resolution report for 2021. The report assesses the progress made in implementing the FSB resolution policy and improving the resolution capacity of banks, financial market infrastructure and insurance sectors; The Federal Reserve releases the Federal Reserve's regulatory report, which focuses on the current financial situation of the banking industry, the recent development of the Federal Reserve's regulatory policy work, and the development of the Federal Reserve's regulatory plan and priorities; The European Commission has proposed a new strategy, the main objective of which is to establish a system to provide accurate, consistent and timely data to regulators at the EU and national levels. The strategy will directly promote the objectives of the European data strategy and the digital finance package to promote digital innovation in Europe.
In terms of supervision methods, the CBRC revised the measures for the administration of insurance group companies (for Trial Implementation), formed the measures for the supervision and administration of insurance group companies, added a chapter on "risk management", required the insurance group companies to integrate the group's risk management resources, establish a comprehensive risk management system suitable for the group, and added and improved specific regulatory requirements such as related party transaction management; The cbcirc revised the Interim Provisions on the management of insurance asset management companies to form the provisions on the management of insurance asset management companies (Draft for comments), added a special chapter on corporate governance, and defined the requirements from the aspects of shareholders' obligations, incentive and restraint mechanism, the operation of shareholders' meetings, directors and supervisors, etc; The European Central Bank (ECB) released the regulatory focus of the single regulatory mechanism (SSM) from 2022 to 2024. It was determined in 2022-2024 to smoothly come out of the epidemic, seize opportunities to solve structural weaknesses and cope with climate related and environmental risks through effective digital strategy and strengthening governance The three priorities for emerging risks such as it and network risks are designed to ensure the bank's ability to deal with risks; The Reserve Bank of India (RBI) issued an early correction mechanism framework (PCA) for non bank financial companies (nbfc) to further strengthen the regulatory tools applicable to nbfc. The objective of the framework is to enable regulatory interventions when appropriate and require regulated entities to initiate and implement remedial measures in a timely manner to restore financial soundness.
