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 ArticleBDF Updates AnaCredit Reporting Specifications for OneGate Portal
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.
EBA published a report that sets out the final draft regulatory technical standards specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR).
EBA updated the list of other systemically important institutions (O-SIIs) in EU.
BCBS published two reports that discuss transmission channels of climate-related risks to the banking system and the measurement methodologies of climate-related financial risks.
UK Authorities (FCA and PRA) welcomed the findings of FSB peer review on the implementation of financial sector remuneration reforms in the UK.
PRA and FCA jointly issued a letter that highlights risks associated with the increasing volumes of deposits that are placed with banks and building societies via deposit aggregators and how to mitigate these risks.
MFSA announced that amendments to the Banking Act, Subsidiary Legislation, and Banking Rules will be issued in the coming months, to transpose the Capital Requirements Directive (CRD5) into the national regulatory framework.
EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.
OSFI launched a consultation to explore ways to enhance the OSFI assurance over capital, leverage, and liquidity returns for banks and insurers, given the increasing complexity arising from the evolving regulatory reporting framework due to IFRS 17 (Insurance Contracts) standard and Basel III reforms.
ECB published results of the benchmarking analysis of the recovery plan cycle for 2019.