EC Welcomes Japan as Latest Member of Platform on Sustainable Finance
At the November 2020 meeting of the EU-Japan Forum on Financial Regulation, EC welcomed Japan as the latest member of the International Platform on Sustainable Finance (IPSF). Meanwhile, EC and JFSA issued a joint statement providing details of this meeting. EC also announced that Japan will co-chair the newly created IPSF working group on sustainability-related disclosures, along with Switzerland and EU. At the meeting, the authorities from EU and Japan discussed the possible equivalence of the Japanese benchmark regime under the European Benchmark Regulation and shared information on various ongoing regulatory initiatives in their respective jurisdictions.
Participants at the EU-Japan Forum meeting discussed the impact of the COVID-19 pandemic as well as the related financial regulatory and supervisory responses. They discussed a number of concrete regulatory and supervisory issues, such as benchmarks, as well as enhanced cooperation in the areas of recovery and resolution and the insurance sector. EC presented a key proposal of the recent digital finance package, while JFSA presented its new policy initiatives to strengthen the functions of Japan as a global financial center. EC presented the digital finance package it adopted on September 24, 2020, in particular the legislative proposal related to crypto-assets. The introduction of a common EU framework on crypto-assets will allow for innovation in a way that preserves financial stability and protects investors. They also shared the importance of strengthening the resilience of global financial markets against stress events, such as natural disasters, through geographical diversification of financial centers.
With regard to the insurance sector, JFSA presented the state of progress on its economic-value-based solvency regulation while EC presented the upcoming review of the Solvency II framework. EC and JFSA discussed the development of their respective regulatory and supervisory initiatives in relation to financial benchmarks. Participants discussed the ongoing assessment by EC of the possible equivalence of the Japanese benchmark regime under the European Benchmark Regulation. In this respect, both parties acknowledged the importance of cross-border use of financial benchmarks and the substantial similarities of their respective rulebooks. JFSA and SRB agreed to strengthen cooperation in the area of financing toward sustainable growth. Participants agreed to engage further on the various topics discussed during the meeting as well as on other topics of mutual interest ahead of the next Forum meeting, which should take place in Brussels in 2021.
Related Links
Keywords: Europe, Asia Pacific, EU, Japan, Banking, Insurance, COVID-19, Solvency II, Sustainable Finance, ESG, IPSF, Climate Change Risk, Crypto-Asset, Recovery and Resolution, JFSA, EC
Featured Experts
Adam Koursaris
Asset and liability management expert; capable modeler; risk and capital specialist
Victor Calanog, Ph.D.
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
Cassandra Hannibal
Life insurance actuary; risk management and economic capital specialist
Previous Article
BIS Examines Potential Role and Regulation of StablecoinsRelated Articles
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
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.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
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).
HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
FCA Registers Securitization Repositories; PRA Issues 2022 Priorities
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
EC Regulation Sets Out Methods for Measuring K-Factors Under IFR
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
BIS Studies How Platform Models Impact Financial Stability & Inclusion
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
ESAs Publish List of Financial Conglomerates for 2021
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
APRA Licenses Two More Banks, Reduces Committed Liquidity Facility
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.
EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions
EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).
EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges
The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.
