CUBE RegNews: 20th June

BoE migrates CHAPS to ISO 20022        

Greg Kilminster

Greg Kilminster

Head of Product - Content

CUBE RegNews:
20th June

BoE migrates CHAPS to ISO 20022        

The Bank of England has announced it has migrated CHAPS, the UK’s high-value payments system, to ISO 20022 – the latest global financial messaging standard.  

CHAPS is one of the largest high-value payment systems in the world and was used to settle an average of £395 billion every day last year. This includes wholesale payments made by large institutions as well as individuals buying expensive items like cars or houses. 

ISO 20022 replaces the previous legacy SWIFT ‘MT’ standard, which SWIFT is retiring for payments in November 2025. 

Click here to read the full RegInsight on CUBE’s RegPlatform

ESAs consult on DORA        

The European Supervisory Authorities (EBA, EIOPA and ESMA – the ESAs) are consulting on the first batch of policy products under the Digital Operational Resilience Act (DORA). This includes four draft regulatory technical standards (RTS) and one set of draft implementing technical standards (ITS). These technical standards aim to ensure a consistent and harmonised legal framework in the areas of ICT risk management, major ICT-related incident reporting and ICT third-party risk management.  

The Digital Operational Resilience Act (DORA), which entered into force on 16 January 2023 and will apply from 17 January 2025, aims to enhance the digital operational resilience of entities across the EU financial sector and to further harmonise key digital operational resilience requirements for all EU financial entities. This regulatory framework covers key areas such as ICT risk management, ICT-related incident management and reporting, digital operational resilience testing and the management of ICT third-party risk. 

The consultation runs until 11 September 2023. 

Click here to read the full RegInsight on CUBE’s RegPlatform

SEC settles charges against convertible note dealer         

The Securities and Exchange Commission (SEC) has charged BHP Capital NY, Inc and its managing member, Bryan Pantofel, with failing to register as securities dealers. The SEC alleges that BHP Capital and Pantofel purchased convertible notes and associated warrants from microcap issuers, converted the notes into shares of stock at a discount from the market price, and then sold the shares at a profit. 

As part of the settlement, BHP Capital and Pantofel have agreed to pay more than $2.5 million in fines, surrender for cancellation the securities they obtained from their unregistered dealer activity, and be permanently enjoined from further violations of the securities laws. BHP Capital also agreed to surrender all conversion rights in its currently held convertible notes, surrender for cancellation all unexercised warrants that it acquired in connection with convertible notes, and surrender for cancellation any shares it holds that were acquired by converting notes or exercising related warrants. 

This case is a reminder of the importance of registering as a securities dealer if you are engaged in the business of buying and selling securities. If you are not registered, you could be subject to significant penalties. 

Click here to read the full RegInsight on CUBE’s RegPlatform

CUBE RegNews:
A selected summary of key developments for regulated financial institutions

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