Greg Kilminster
Head of Product - Content
ECB issues update on digital euro
The European Central Bank (ECB) has issued an update on the work of the digital euro scheme’s Rulebook Development Group (RDG). The RDG, established in January 2023, is responsible for drafting a single set of rules, standards, and procedures for the digital euro. The group comprises Eurosystem staff and market representatives from the financial industry, consumers and merchants.
Key takeaways
Since the first update published by the RDG in June 2023, the group has drafted the initial chapters of the rulebook in accordance with the digital euro design decisions approved by the ECB and the legislative proposal. The first draft of the rulebook is an intermediate version that includes the following:
- The functional and operational model, which includes the end-to-end flows describing the functioning of all use cases and services in the scope of a digital euro.
- The technical scheme requirements, which depict the high-level architecture of a digital euro and some initial and proposed current market standards to be potentially also used for a digital euro.
- The adherence model of the digital euro scheme sets out the rights and obligations of scheme members in accordance with the legislative proposal.
Next steps
Moving forward, the RDG will conduct an interim review of the initial sections of the draft rulebook while focusing on preparing an expanded and updated version. The updated draft of the digital euro rulebook will include new sections on user experience minimum requirements, branding and communication standards, certification, testing and approval procedures, internal rules, risk management, and interoperability and implementation specifications. Additional workstreams will be launched to support the drafting of these new sections, and the text will be adjusted to reflect the outcome of current legislative deliberations.
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Banks’ cyber resilience under scrutiny as ECB announces stress test
The European Central Bank (ECB) has announced that it will be conducting a stress test on 109 banks in 2024. The test will evaluate these banks’ response and recovery capabilities in the event of a cyberattack rather than their ability to prevent one.
As part of the exercise, 28 banks will undergo an enhanced assessment, for which they will submit additional information on how they dealt with the cyberattack.
The exercise will be mostly qualitative, and the insights gained will be used for the broader supervisory assessment in 2024. The ECB will communicate the main findings of the exercise in the summer of 2024.
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AFCA publishes guide to complaints resolution rules
The Australian Financial Complaints Authority (AFCA), which assists consumers and small businesses to reach agreements with financial firms about how to resolve their complaints, has published its latest set of rules. The rules, which govern the operational procedure of the AFCA, apply to all complaints submitted to the AFCA scheme, including superannuation complaints.
The latest version of the rules includes adjustments that AFCA is required to make to its monetary limits and compensation caps due to indexation, which came into effect from 1 January 2024 for complaints received from that date. It is the first revision of the rules since January 2021.
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