Eva Dauberton
News Editor
FCA delays PS on extending the SDR regime to portfolio management
The Financial Conduct Authority (FCA) has announced that the publication of the final policy statement on extending the Sustainability Disclosure Requirements (SDR) regime to portfolio management has been delayed.
The FCA published initial proposals in consultation paper (CP) 24/8 with an aim to issue final rules in the second half of 2024. The FCA has now brought the rule issuance date further to Q2 2025.
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ASIC updates guidance for participants in the carbon market
The Australian Securities and Investments Commission (ASIC) has updated its regulatory guidance for carbon market participants in Regulatory Guide 236 (RG 236) following consultation paper 378 Safeguard mechanism reforms: Updates to RG 236 (CP 378).
Some context
RG 236 offers guidance for participants in the carbon markets to help them determine whether they need an AFS licence to engage in activities that may involve providing a financial service.
Key takeaways
The guide now includes information on the safeguard mechanism reforms that came into force on 1 July 2023 and incorporates changes to the Australian Carbon Credit Unit (ACCU) Scheme since the last reissue of RG 236 in May 2015.
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CBI publishes new market updates issue
The Central Bank of Ireland (CBI) has issued a market update containing various announcements, including:
- The streamlined filing process for pre-contractual document updates based on the SFDR Level 2 Requirement will close on 18 October 2024.
- There will be changes to the process for submitting applications for clearance of investment managers and non-EU AIFMs, as well as applications for UCITS mergers and AIF amalgamations starting from October 2024.
- The CBI has established a streamlined filing process following the publication of ESMA guidelines on fund names using ESG or sustainability-related terms.
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HKMA publishes research paper on GenAI
The Hong Kong Monetary Authority (HKMA) has released a research paper on generative artificial intelligence (GenAI) in the financial services industry. It is a timely release considering the recent circular encouraging authorised institutions to participate in the GenAI sandbox.
The paper:
- Provides insights into the current state of GenAI adoption in the financial sector, highlighting key applications and challenges identified through interviews with financial institutions and technology solution providers.
- Outlines the critical risk management considerations associated with GenAI, including data privacy, cybersecurity, information inaccuracy and algorithmic bias.
- Offers recommendations for governance structures and deployment approaches to support responsible innovations.
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HKMA issues circular on risks of third-party IT solutions
The Hong Kong Monetary Authority (HKMA) has issued a circular on the risks associated with third-party IT solutions.
Considering the global impact of the recent CrowdStrike IT outage, the HKMA emphasises the need for authorised institutions to implement adequate measures to effectively manage third-party dependencies and enhance operational resilience in case of third-party IT solution failures.
As an additional resource, the circular includes an annexe that outlines good industry practices. The HKMA expects senior management of authorised institutions to consider it alongside existing guidance.
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