Global Regulatory Development – Page 11 – Global Investment Law Watch

United States: CFTC Seeks to Refresh Swap Dealer and FCM Risk Management Program Requirements

Jul 18 2023

By: Clifford C. Histed, Cheryl L. Isaac and Christine Mikhael

On July 18, 2023, the Commodity Futures Trading Commission (“CFTC”) published in the Federal Register an advanced notice of proposed rulemaking (“ANPRM”) on Risk Management Program (“RMP”) requirements for swap dealers (“SDs”), major swap participants (“MSPs”) and futures commission merchants (“FCMs”). After initially adopting its RMP requirements for SDs and MSPs (CFTC Regulation 23.600) and FCMs (CFTC Regulation 1.11) in 2012, the CFTC now seeks to refresh certain aspects in light of feedback it has received on market participants’ confusion and lack of uniformity on their RMP obligations and filings. In particular, the CFTC identified the impetus for issuing the ANPRM as being:

Australia: Regulation for ESG Ratings Agencies Gathers Pace

Jul 18 2023

By Jim Bulling and Kai Luck

With increased demand for “ESG friendly” investments (in an ESG investment market on track to exceed US $53 trillion globally by 2025), asset managers, funds management companies, superannuation funds and other investors are actively turning to ESG ratings agencies to guide their decisions.

As it currently stands, there is significant potential for discrepancy in the ratings being produced. This is confusing and potentially misleading for investors and may also divert capital away from its intended direction.

People’s Republic of China: CSRC Promulgated New Bond Issuance Guidelines

Jun 30 2023

By Chloe Duan and Grace Ye

The China Securities Regulatory Commission (CSRC) promulgated two sets of guidelines in relation to bond issuance on 20 June 2023, namely “Guiding Opinions on Deepening the Reform of Bond Registration System” and “Guiding Opinions on Raising the Quality of Bond Business Practice by Intermediaries under the Registration System” (collectively, the Guidelines).

Australia: Mandatory Climate Disclosures Framework Takes Shape With Release of New Consultation Paper and ISSB Standards

Jun 30 2023

By: Jim Bulling and Kai Luck

On 27 June 2023, the Australian Treasury released a further consultation paper (consultation period open until 21 July 2023) on the introduction of a mandatory climate disclosure framework in Australia.

Under a phased-in approach, by 2027-28, all entities required to lodge financial reports will be subject to the disclosure framework. Larger entities fulfilling two of three criteria (consolidated revenue of AUD$500 million or more, consolidated gross assets of AUD$1 billion or more and 500 or more employees) will be required to lodge reports first, from 2024-25 with smaller entities which satisfy two of three criteria (consolidated revenue of AUD$50 million or more, consolidated gross assets of AUD$25 million or more, and 100 or more employees) having an extra two years to comply.

Australia: ASIC Chair Addresses “Greenhushing” Amongst ESG Focus Areas

Jun 28 2023

By Jim Bulling and Grace Hall

The Chair of the Australian Securities and Investments Commission (ASIC), Joe Longo, commented on three key ESG focus areas of the regulator in recent speeches.

In addition to governance, greenwashing and growth in sustainable financing, the Chair discussed the phenomenon of “greenhushing”, where companies decline to make any voluntary climate-related disclosures.

Europe: At Last, the UK and EU are Due to Begin Active Post-Brexit Cooperation on Financial Services Matters

Jun 27 2023

By Robert Lloyd and Philip Morgan

On 27 June 2023, the UK and the EU Commission entered into a memorandum of understanding (MoU) on regulatory cooperation in financial services triggered, it seems, by the agreement of revised arrangements on Northern Ireland. You could be forgiven for thinking that the MoU was agreed a long time ago – accordingly to a nonbinding joint declaration between the EU and the UK, the targeted date was 31 March 2021. At the end of the Brexit transition period on 31 December 2020 few people would have expected that it would take the best part of two and a half years to reach this modest objective.

Australia: Regulating AI – Emerging Issues

Jun 16 2023

By Daniel Knight, Cameron Abbott, Rob Pulham, Dadar Ahmadi-Pirshahid

Amid global calls for tailored regulation of artificial intelligence tools, the Australia Federal Government has released a discussion paper on the safe and responsible use of AI. The Government is consulting on what safeguards are needed to ensure Australia has an appropriate regulatory and governance framework.

United States: SEC’s Stunning Enforcement Actions Against Binance and Coinbase

Jun 08 2023

By Rich Kerr, Eden Rohrer, and Max Black

In a stunning move, over the last two days, the Securities and Exchange Commission (SEC) has filed back-to-back enforcement actions against major crypto exchanges Binance (See here) and Coinbase (See here). This clearly indicates that the SEC is flexing its enforcement power over both international exchanges as well as those exchanges with a focus on the United States. Please visit the K&L Gates Fintech and Blockchain Law Watch to see commentary about these developments from our Digital Assets team.

Europe: Public Marketing of Cryptocurrencies in the UK – The End is (Nearly) Nigh

Jun 08 2023

By Kai Zhang and Jin Enyi

Thousands of advertisements for cryptoasset-related products were displayed on London public transport, including the underground network, in 2021. There has been a drop-off since the Advertising Standards Authority (“ASA”) issued standards for crypto adverts. Nonetheless, in 2022 there were reportedly adverts for 24 crypto products on London public transport. Now, however, legislation seems likely to end much of this public advertisement of crypto in the UK.

People’s Republic of China: MOU of ETF Products Between China and Singapore Exchanges

Jun 01 2023

By Chloe Duan and Grace Ye

Shanghai Stock Exchange (SHSE) announced that it has entered into a memorandum of understanding (MOU) with Singapore Exchange (SGX) to establish a link for exchange-traded funds (ETFs) between two exchanges. SHSE and SGX are also aiming to jointly develop more ETF products available to investors on both markets via the link.

Category:Global Regulatory Development