FI Sets Out Work Priorities for 2021
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
Related Links
Keywords: Europe, Sweden, Banking, Securities, COVID-19, Climate Change Risk, ESG, Credit Risk, AML, Corporate Bonds, Reporting, Outsourcing Risk, FI
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
Related Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.
