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
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.