FSC Korea Sets Out Regulatory Revisions Resulting from Sandbox Program
FSC Korea announced recent progress in the operation of the financial regulatory sandbox. Through its sandbox program, regulatory improvements were made to eight areas, with five additional areas in the process of revision and fourteen more recognized as necessary for reform. FSC Korea has been operating a financial regulatory sandbox program since April 01, 2019 and nearly 110 innovative financial services have been designated to be included in the sandbox so far.
The five rule revisions resulting from the regulatory sandbox program involve revision of rules on the supervision of insurance businesses to simplify the process of insurance renewal, revision of Financial Investment Services and Capital Markets Act to bolster the autonomy and accountability of financial investment businesses, and few enhancements to the Credit Information Use and Protection Act. Among the in-progress revisions, regulations on financial investment businesses are being revised in October 2020 to ease restrictions for trust companies and to promote more diverse types of financial investment products. A few of the revisions being drawn up are as follows:
- External research being conducted to allow financial companies to enter into the big data and other platform businesses
- Expert opinions and consulting sought for ways to improve regulations to allow retail investors to trade both foreign and domestic stocks in small amounts
- A task force to draw up plans to establish a new personal authentication and ID verification system fit for the era of contactless transactions
- A task force and external research Q3 2020 to draw up plans for digital security in financial sectors, with a focus on network separation rules
- Revisions to the Electronic Financial Transactions Act submitted for enactment to the National Assembly to lower entry barriers for electronic financial businesses by introducing small licenses and lowering minimum capital requirements
- Revisions to the Credit Guarantee Fund Act to be prepared for strengthening the role of credit guarantee funds, which will provide SMEs with more fundraising opportunities
Related Link: Press Release (PDF)
Keywords: Asia Pacific, Korea, Banking, Insurance, Securities, Regulatory Sandbox, Fintech, Regtech, FSC
Previous Article
BDF Updates AnaCredit Reporting Specifications for OneGate PortalRelated Articles
APRA Finalizes Guidance on Management of Climate Change Risks
The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.
European Council Adopts Position on Digital Finance Package Proposals
The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).
PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window
The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.
EC Proposes New Measures Under Capital Markets Union Package
The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.
EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR
The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).
FED Outlines Lending Conditions and Supervisory Activities in H1 2021
The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.
APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience
The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.
FSB Updates List of Global Systemically Important Banks
The Basel Committee on Banking Supervision (BCBS) published further information related to its 2021 assessment of global systemically important banks (G-SIBs), with additional details to help understand the scoring methodology.
FASB Proposes Improvements to Credit Losses Standard
The Financial Accounting Standards Board (FASB) is consulting on an Accounting Standards Update and the associated taxonomy improvements for requirements on troubled debt restructurings and vintage disclosures under the credit losses standard (for financial instruments) topic 326.
US Agencies Issue Statement on Crypto-Asset Policy Initiatives
US Agencies issued a statement that summarizes the work undertaken during the interagency policy sprints focused on crypto-assets and provides a roadmap of future work related to crypto-assets.
