CMF Announces Strategic Initiatives for 2020-2022
CMF has finalized its strategic plan for 2020-2022. The plan is to implement 32 initiatives in the areas of regulation, prudential and market conduct supervision, sanctioning procedures, and institutional development. The key initiatives in the plan involve the implementation of Basel III standards, a bill to strengthen the legal framework for bank resolution, and a definitive bill for fintech regulation in securities.
The strategic plan is intended to strengthen the regulatory and supervisory capacities of CMF to safeguard the solvency of institutions, propagate adequate market conduct and protection of financial customers, and address the challenges and opportunities resulting from technological breakthroughs in the financial markets. The following are the key highlights of the plan:
- Strengthening the solvency of financial institutions—The plan includes the development of nine initiatives that strengthen the regulations of CMF for the prudential supervision of solvency of banks, insurance companies, and financial intermediaries. These initiatives include implementation of Basel III standards for the banking system, design and presentation of a bank resolution bill, preparation of a bill proposal on financial conglomerates, and strengthening the regulatory framework for risk-based financial supervision in the insurance market. The plan also includes initiatives related to the generation of an integrated supervision policy and model, implementation of a macro-prudential risk management process, and development of a supervision scheme to support the implementation of Basel III standards.
- Safeguarding Market Conduct and Protecting Financial Customers—The plan provides for the development of nine initiatives that strengthen the regulations of CMF to promote proper market conduct and protect financial customers.
- Addressing Technological Challenges and Opportunities—The plan addresses opportunities and challenges of technological development in the financial system. The plan includes initiatives on a legal proposal to close gaps in capital markets in areas such as fintech and crowdfunding; implementation of an action plan to close gaps in the area of operational risks and cyber security; and the deployment of a data governance system.
Related Links (in Spanish)
Keywords: Americas, Chile, Banking, Basel, Strategic Plan, Fintech, Operational Risk, Governance, Cyber Risk, CMF
Previous Article
RBI Consults on Variation Margin Requirements for OTC DerivativesRelated Articles
EBA Finalizes Remuneration Standards for Investment Firms in EU
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
ECA Recommends Actions to Enhance Resolution Planning for Banks
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.
BoE Publishes Key Elements of the 2021 Stress Testing for Banks in UK
BoE published a scenario against which it will be stress testing banks in 2021, in addition to setting out the key elements of the 2021 stress test, guidance on the 2021 stress test, and the variable paths for the 2021 stress test.
PRA Proposes Rules on Identity Verification of Depositor Protection
PRA published a consultation paper (CP3/21) proposes rules regarding the timing of identity verification required for eligibility of depositor protection under the Financial Services Compensation Scheme (FSCS).
FSB Publishes Work Program for 2021
FSB published the work program for 2021, which reflects a strategic shift in priorities in the COVID-19 environment.
FCA Issues Update on Move to New Data Collection Platform
FCA announced that 50% firms have started using the new data collection platform RegData, which is slated to replace the existing platform known Gabriel.
Bundesbank Publishes Derivation Rules for Reporting by Banks
Bundesbank published Version 5.0 of the derivation rules for completeness check at the form level, with respect to the data quality of the European harmonized reporting system.
FED Revises Capital Planning and Stress Testing Requirements for Banks
FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.
ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020
ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.
ESAs Publish Reporting Templates for Financial Conglomerates
ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.
