Financial Services and the Treasury Bureau (FSTB)’s Post

Regulation Samantha Barrass CEO Financial Markets Authority - New Zealand (FMA) Samantha Barrass discussed the regulatory landscape affecting the financial services industry. The session offered insights into the regulatory priorities and initiatives that were shaping the financial sector. Here are five key takeaways from Samantha Barrass, CEO of the Financial Markets Authority's speech: - Capital Markets Changes: The FMA is focusing on making it easier for firms to raise capital by reviewing and streamlining rules and regulations, while still ensuring strong protections for retail investors. Trust is critical, especially in light of the rise in investor scams. - Climate-Related Disclosures: New Zealand was a leader in introducing mandatory climate-related disclosures, and the FMA is supporting businesses through education and engagement to navigate this complex area. A monitoring report will be published soon. - Liquidity Risk Management: The FMA is proactively setting clear expectations for managing liquidity risk. They aim to anticipate and respond to changes in the market, emphasising that compliance must be ongoing and board-driven, rather than a tick-box exercise. Updated guidance was issued in April this year. - Green Bonds: Green bonds, used to fund government projects with climate and environmental outcomes, reflect the evolving financial landscape. The FMA is working to support the industry as it grows in this space. - Fintech and Innovation: The FMA advocates for the responsible adoption of fintech, ensuring it challenges traditional models while delivering fair outcomes for investors. Recent economic research into commercial real estate prompted the FMA to meet with investment managers to discuss their risk management practices. Thank you, Penny Sheerin from Chapman Tripp for introducing our speaker. Jim McElwain Miriama Kamo Bernice Archer Will Goodwin Sarah Raudkivi Minhinnick Leah Scales Stephan Deschamps Kirk Hope Carolyn Ng Mahina Puketapu Stephen Ridgewell Jane Standage John Vanderbom Tracey Walker Andrew Woodward Iona Gibbs Kirsty King Penne Clayton MStJ JP Faith Taylor

A quick review of the function of the Namibian Securities Market: A regulatory framework recap: The Namibian securities market plays a pivotal role in facilitating the flow of capital, enabling the allocation of savings to productive investments, investment risk management and fostering economic growth. This article provides a brief examination of how the Namibian Securities Market functions within its regulatory framework, shedding light on the regulatory authorities, generic listing requirements, […]

📖 The European Commission has updated Commission Implementing Regulation (EU) No 650/2014, revising the implementing technical standards for disclosure by Member State competent authorities. This amendment aligns with changes in the Capital Requirements Directive IV (CRD IV) and introduces new requirements for EU investment firms under the Investment Firms Directive and Implementing Regulation (EU) 2022/389. The revision focuses on enhancing the format, structure, content, and timing of disclosures by competent authorities, aiming to improve transparency and ensure regulatory compliance within the EU financial sector. #EURegulations #FinancialCompliance #CRDIV https://lnkd.in/dZcieQqi

The new handbook presents all APRA prudential standards, guidance and supporting information in a digital format. Australian Prudential Regulation Authority https://lnkd.in/dsz_u9J4

【Enhancing the Arrangements under Swap Connect to Promote Concerted Development of the Mainland and Hong Kong Financial Markets】   Following the China Securities Regulatory Commission's announcement last month supporting the expansion of mutual access between the capital markets of the two places and the listing of leading Mainland enterprises in Hong Kong, good news has been announced again within a month. The People's Bank of China, the Hong Kong Securities and Futures Commission, and the Hong Kong Monetary Authority issued a joint announcement on a series of measures to enhance the arrangements between the Mainland and Hong Kong interest rate swap markets (Swap Connect).   Since its implementation in May last year, the Swap Connect has operated smoothly, with rising investor participation. As of April 2024, the average daily turnover calculated on a monthly basis had nearly tripled from the first month of its launch to over RMB 12 billion in notional amount, providing investors with a convenient and efficient risk management tool. The current round of enhancement measures will expand the choice of products under Swap Connect, enhance the efficiency of the mechanism and reduce participation costs, thereby further addressing the diverse risk management needs of domestic and foreign investors as well as promoting trading.    Secretary Christopher Hui stated that since its launch, the Swap Connect has provided local and international investors with convenient and efficient tools for managing risks in their RMB asset allocations. The further enhancement of the Swap Connect will further foster the collaborative development of the derivatives markets between Mainland China and Hong Kong, building a high-level pattern of financial openness. To continue promoting the Swap Connect business cooperation in a stable and orderly manner, the HKSAR Government and regulatory bodies will join hands with relevant mainland departments to promote the financial market infrastructure institutions in both places, continuously improving various mechanism arrangements with a view to steadily expanding the opening-up of our country’s financial market and consolidating Hong Kong's status as an international financial centre.   The enhancement measures include: - accepting interest rate swap contracts with payment cycles based on the International Monetary Market dates for clearing to enrich the product types and align with mainstream products traded globally - introducing compression service and the clearing of backdated swap contracts as the associated supporting arrangement to improve the ancillary services and facilitate participating institutions to manage the notional amount outstanding as well as lower capital costs - rolling out other system enhancements and incentive programmes to reduce the participation costs of Mainland and overseas investors

A discussion paper has been issued by the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA), examining the potential review of the Investment Firms Regulation and Investment Firms Directive. Chris Monks explores the key areas for consideration and priorities for possible improvement. #InvestmentFirms #PrudentialFramework https://lnkd.in/ehGNrsDN

Good reading on #valuation of alternative investment funds.

The Financial Sector Assessment Program (FSAP) of Luxembourg’s large, interconnected, and complex financial system took place against heightened economic, financial, and geopolitical uncertainty. Investment funds have grown since the 2017 FSAP, while their connections to other funds, banks, nonbank financial intermediaries, and foreign entities have also increased. Domestic banks face risks from the ongoing downturn in credit and house price cycles, especially in the high-risk mortgage segment. The 2024 FSAP found that the authorities have made commendable progress in following up on recommendations from the 2017 FSAP. The stress tests found the financial system resilient to severe shocks, while identifying a few potentially weak entities. Higher interest rates have benefited banks, despite increasing loan losses among households and real estate companies. Under plausible adverse scenarios, the system can handle significant liquidity shocks, with minimal second-round price impacts. However, the growing connections of other financial intermediaries with investment funds and related data gaps call for greater monitoring.

I don't get out much, so I wrote an opinion piece on the EU's securitization consultation last night.. To give a bit of context, when I started my career at GlobalCapital and got stuck into the regulatory issues, it was tempting to view any regulation of the sector as unnecessary or overkill. Obviously, since EUSR was implemented a lot of things were unnecessary and disproportionate, but there's plenty in there that is good for the market. I suppose I've learned over the last 3-4 years that regulation does not immediately mean it must be bad or opposed. Plenty of investors have spoken about when problems arise, issuers can be suddenly a lot less open to sharing their data if it's not mandatory, for example. With all this in mind, I wrote this opinion piece about the coming of EUSR 2 (Can we call it that? Can I take the credit!?). I think the market must recognise the gravity of the situation, the responsibility they bear for the future of European Securitization, and how far the EU policymakers have gone towards them. In return, market participants must be open to compromises too. It's free to read! Here's the link: https://lnkd.in/ekKD2q-X Now onto the PRA...

Interesting to read.