Featured Product

    UK and Brazil Agree to Cooperate on Green Finance and Fintech

    December 11, 2020

    UK and Brazil held the fourth Economic and Financial Dialog between the two countries in December 2020. The participants included the central bank governors and the heads of financial sector regulators. Among other topics, the discussions centered on collaboration in the areas of green finance, financial technology and innovation, and insurance and capital markets. One of the key developments was the agreement of the UK and Brazil on the implementation of the UK-Brazil Green Finance program, to develop the Green Finance market in Brazil. To ensure follow-up across all the agreed areas, senior officials will meet to take stock in the first half of 2021, with the next Dialog expected to be held in Brazil in 2021.

    The UK proposed that Brazil consider the possibility of joining the Coalition of Finance Ministers for Climate Action.  As one of the main Program beneficiaries, the Brazilian National Development Bank (BNDES) will pioneer the integration of international ESG standards into its processes, policies, and mandates. Both countries welcomed engagement between the UK Green Finance Institute (GFI) and the multi-stakeholder forum Brazilian Financial Innovation Laboratory (LAB), which aims to foster sustainable finance through innovative financial instruments. Both countries committed to a series of technical engagements to work together on deliverables to advance the sustainable finance agenda in Brazil, including an industry roundtable in early 2021. The Central Bank of Brazil committed to implement mandatory climate-related disclosures for financial institutions aligned with the recommendations of the Task Force on Climate-related Financial Disclosure (TCFD) by 2022. UK and Brazil agreed to enhance cooperation on the implementation of mandatory climate-related financial disclosures, ahead of COP26. They agreed on the need for a global approach to international climate-related disclosure standards to limit fragmentation across jurisdictions.

    They also recognized the developing role of the IFRS and other international standard-setters in this regard. The UK welcomed the Brazilian central bank’s membership of the NGFS and the commitment to perform climate stress testing by 2022. The UK also encouraged Brazil to join the Coalition of Finance Ministers for Climate Action. The UK welcomes and supports SUSEP’s commitment to promote initiatives to implement TCFD recommendations in the insurance sector and offers technical assistance for the development of these initiatives. Finally, both sides agreed to work together to explore further measures to encourage financing growth, including through sustainable bonds, infrastructure investment, and local currency bonds. Both sides agreed to consider the feasibility of, and presence of any barriers to, dual listing of Brazil’s sovereign bonds in London, providing additional investor diversification and profile.

    The two nations reinforced their commitment to collaborate on issues related to the development of the fintech ecosystem in the Brazilian and British markets. To this end, the UK and Brazil welcomed the planned workshop on Regulatory Sandboxes between the UK FCA, and the Central Bank of Brazil, the Securities and Exchange Commission, and Superintendence of Private Insurance; the workshop is expected to take place virtually in the first quarter of 2021. Both countries welcomed the Central Bank of Brazil’s interest in, and the Superintendence of Private Insurance’s intention of, joining the Global Financial Innovation Network (GFIN). They also welcomed the UK cooperation with the central bank of Brazil through the Support Open Banking Implementation Project. While the Brazilian Open Banking model will be implemented in four phases throughout 2021, general rules for the ecosystem and for its governance structure and technical standards for the first phase have already been issued. Brazil intends to move toward an Open Finance model by also including on its scope the sharing of data pertaining investment, insurance, foreign exchange, and open pension funds products and transactions. 


    Related Links

    Keywords: Europe, Americas, UK, Brazil, Banking, Insurance, Securities, ESG, Sustainable Finance, Climate Change Risk, Disclosures, Stress Testing, Green Bonds, Fintech, Open Banking, COP26, BCB, HM Treasury

    Featured Experts
    Related Articles

    CFPB Finalizes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) published a final rule that sets out data collection requirements on small business lending, under section 1071 of the Dodd-Frank Act.

    March 30, 2023 WebPage Regulatory News

    BCBS to Consult on Pillar 3 Climate Risk Disclosures by End of 2023

    The Bank for International Settlements (BIS) published a summary of the recent Basel Committee (BCBS) meetings.

    March 23, 2023 WebPage Regulatory News

    FINMA Approves Merger of Credit Suisse and UBS

    The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.

    March 21, 2023 WebPage Regulatory News

    BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks

    The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.

    March 13, 2023 WebPage Regulatory News

    US Congress Report Examines Data Privacy and Cybersecurity Regulations

    The U.S. Congressional Research Service published a report on banking, data privacy, and cybersecurity regulation.

    March 13, 2023 WebPage Regulatory News

    OSFI Finalizes on Climate Risk Guideline, Issues Other Updates

    The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.

    March 12, 2023 WebPage Regulatory News

    EU to Conduct One-Off Scenario Analysis to Assess Transition Risk

    The European authorities recently made multiple announcements that impact the banking sector.

    March 10, 2023 WebPage Regulatory News

    APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.

    March 07, 2023 WebPage Regulatory News

    BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending

    BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.

    March 03, 2023 WebPage Regulatory News

    HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks

    The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.

    March 02, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8810