Greg Kilminster
Head of Product - Content
Bank of England releases update on CBDC
The Bank of England (BOE) has recently released the minutes of its Central Bank Digital Currency (CBDC) Technology Forum meeting held on 3 October 2023, revealing the progress made regarding the CBDC.
Background
The CBDC Technology Forum is composed of various financial institutions, universities, fintechs, infrastructure providers, and technology firms. The Bank relies on this forum to understand the technological challenges of designing, implementing, and operating a CBDC.
Previous outputs
Before the meeting, the Bank had published a discussion paper on CBDC in March 2020, a consultation paper with HM Treasury and a Technology Working Paper in February 2023.
Meeting takeaways
The Bank outlined key outputs from subgroups created to explore the design options for the digital pound architecture, including:
- A high-level conclusion on a technology solution that could meet privacy requirements expected in Q2 2024.
- A comparison of options and a description of common themes relevant to alternative models of interaction between Payment Interface Providers (PIPs) expected in Q2 2024.
- Options for the core ledger design expected around Q2 or Q3 2024.
- An assessment of what a platform for innovation might look like and the possible technology requirements for one.
At this stage, the Bank has yet to decide whether to introduce the digital pound. The next meeting is scheduled for January 2024.
Click here to read the full RegInsight on CUBE’s RegPlatform
EIOPA publishes study on non-life underwriting risk in internal models
The European Insurance and Occupational Pensions Authority (EIOPA) published today the results of a Europe-wide comparative study on non-life underwriting risk in internal models.
The study took a deep dive into the underwriting models of 75 European insurers belonging to 31 insurance groups to:
- Determine the differences between internal models.
- Evaluate the extent to which they capture similar risks in a consistent manner.
- Explore the factors influencing the risk capital over the first five years since the introduction of Solvency II.
EIOPA and national supervisors have provided individual feedback to all study participants. Any outliers have been notified, and relevant national supervisors are taking follow-up actions.
Click here to read the full RegInsight on CUBE’s RegPlatform
SEC fines microcap fraudster
The Securities and Exchange Commission (SEC) has obtained a final judgment against Vincenzo Carnovale, who was charged with participating in a fraudulent scheme involving unlawful microcap stock sales.
Carnovale secretly gained control of thinly traded microcap companies, hired stock promoters to create demand for their stocks, and made significant profits by selling the stock to unsuspecting investors. He also misled investors and transfer agents and caused the microcap companies to file false and misleading financial statements and reports.
The final judgment orders Carnovale to pay $667,653 and imposes a penny stock bar on him. The SEC also obtained a judgment against another party, Amar Bahadoorsingh, ordering him to pay $466,619 for his role in the fraudulent scheme.
Click here to read the full RegInsight on CUBE’s RegPlatform