The Swedish Financial Supervisory Authority FI set out the work priorities for 2021. The authority will prioritize, among others, climate risks, prevention of money laundering, future risks from COVID-19 pandemic, and consumer protection. During the year, FI will continue to measure the climate-related risks in the portfolios of financial firms. FI will also, based on the pending EU regulations, follow up on the work on sustainability and sustainability reporting. The authority intends for Swedish financial firms to be at the forefront of the application of the new requirements and to follow up on this in its supervision. Additionally, FI plans to participate in the work to develop global standards for sustainability reporting.
Overall, the prioritized work areas for the year can be broadly summarized as follows:
- Monitor the long-term impact of pandemic on the financial system and implement measures, as necessary, to reduce future risks
- Assess how the corporate bond market functions and how the funds that invest in corporate bonds can be better at managing their liquidity risks
- Follow how the firms conducting clearing operations for payments are addressing the outsourcing risks and how the firms maintain good internal governance and control of their operations
- Focus on consumer credit and ensure that lenders conducting thorough credit assessments
- Monitor closely whether the work by smaller banks and payment service firms is sufficiently methodical and structured to prevent money laundering
Keywords: Europe, Sweden, Banking, Securities, COVID-19, Climate Change Risk, ESG, Credit Risk, AML, Corporate Bonds, Reporting, Outsourcing Risk, FI
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The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.
The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.
The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.
The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.
The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.