Navigating the Mid-Year Changes:
A Comprehensive Interim Update of the Financial Services Regulatory Initiatives
I. Introduction:
Amidst the ever-evolving financial services landscape, it is crucial for industry players to stay informed about the latest regulatory initiatives. This interim update aims to provide a comprehensive overview of significant mid-year changes affecting various sectors within the financial services industry.
Banking Sector:
Basel IV: The Basel Committee on Banking Supervision (BCBS) has finalized the regulatory framework for Basel IV, which introduces new capital and liquidity requirements. The implementation timeline varies by jurisdiction, with some countries planning to comply as early as 2019.
Capital Requirements:
The new framework aims to simplify the calculation of capital requirements, introducing a more risk-sensitive approach for determining Pillar 1 capital.
Liquidity Requirements:
Basel IV also introduces a new Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) to enhance banks’ liquidity management.
I Securities Sector:
Market Abuse Regulation (MAR): The European Union’s MAR, which entered into force in 2016, has undergone significant updates. Changes include clarifications on insider trading and market manipulation practices.
Fintech Sector:
Revised Payment Services Directive (PSD2): PSD2, which took effect in January 2018, requires financial institutions to share customer data with third-party providers upon request. This regulation aims to promote competition and innovation within the sector.
Conclusion:
This interim update offers an overview of the key regulatory changes impacting the financial services industry in the first half of 2019. Staying informed about these developments is essential for maintaining a competitive edge and ensuring ongoing regulatory compliance.