The Financial Stability Board (FSB) has recently published a consultation report on leverage in non-bank financial intermediation (NBFI). The proposed policy recommendations are addressed to FSB member authorities and SSBs. They aim to enhance the ability of authorities and market participants to monitor vulnerabilities from NBFI leverage, contain NBFI leverage where it may create risks to financial stability, and mitigate the impact of these risks. The recommendations build on the 2023 FSB report on The Financial Stability Implications of Leverage in Non-Bank Financial Intermediation, which found that NBFI leverage played a significant role in recent episodes of market stress. Continue reading…

At its Annual General Meeting recently, the International Association of Insurance Supervisors (IAIS) adopted the global Insurance Capital Standard (ICS). Additionally, members endorsed substantial updates to the IAIS Insurance Core Principles (ICPs) and Common Framework for the supervision of internationally active insurance groups (ComFrame). This significant milestone marks a major advancement in insurance supervision – enhancing financial stability and building a more resilient global insurance sector to better serve and protect policyholders around the world. Continue reading…

The European Central Bank (ECB) has on 19 December published the results of the latest study on the payment attitudes of consumers in the euro area (SPACE). Despite the trend towards digital payments, the number of cash payments remains significant in 2024, especially for small-value and person-to-person payments. In terms of number of payments, cash is used at the point of sale in 52% of transactions, down from 59% in 2022. In terms of value, cards are the most dominant payment instrument (with a share of 45%, down from 46%), followed by cash (39%, down from 42%) and mobile apps (7%, up from 4%). Continue reading…

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is publishing the last package of final reports containing regulatory technical standards and guidelines ahead of the full entry into application of the Markets in Crypto Assets Regulation (MiCA). ESMA has delivered extensive regulatory work over the past 18 months, comprising more than 30 Technical Standards and Guidelines, many of them developed in cooperation with the European Banking Authority (EBA). Continue reading…

Pasqal, a global leader in neutral atom quantum computing, has on 10 December announced an ambitious partnership with Riverlane, a frontrunner in quantum error correction (QEC) technology, to accelerate the race towards fault-tolerant quantum computing – a critical milestone, where errors are corrected in real time, for unleashing the full potential of quantum computing. Continue reading…

The European Central Bank (ECB) and the European Insurance and Occupational Pensions Authority (EIOPA) have on 18 December released a joint paper with a proposal designed to reduce the economic impact of natural catastrophes in the EU. The paper builds on the policy options presented in a 2023 joint ECB-EIOPA discussion paper which advocated a ladder approach to natural catastrophe insurance involving both the private and public sectors. Continue reading…

The FCA has set out plans to simplify the information supplied to investors to boost confidence and drive investment. Under the current rules, introduced across Europe when the UK was in the EU, people buying investments like investment funds are supplied with standardised documents covering prescribed information. In practice these documents were often complex, unclear, and could miss important points. This could put people off investing or lead them to make less informed decisions. Continue reading…

by Uzi Rosha

The intensified focus on conflicts of interest reflects its commitment to safeguarding investors and ensuring market integrity. For investment advisers, managing conflicts is not merely a regulatory obligation, but a fiduciary imperative. Recent enforcement cases have vividly highlighted the critical need for investment advisers to proactively address conflicts of interest. Firms that neglect to disclose or manage these conflicts are increasingly finding themselves facing severe penalties, significant reputational damage, and, most importantly, the erosion of investor trust. Both the regulators and institutional investors have made it clear: There is no room for ambiguity or complacency when it comes to conflicts of interest. Continue reading…

by Guy Harrison

As 2025 approaches, the wealth, trust and corporate services sector faces a defining moment. Confronted with increasing regulatory complexity, rising client expectations and persistent data quality challenges, firms are under increasing pressure to modernise. As highlighted in the Quantios global survey of wealth, trust and corporate services providers as well as private banks, family offices and wealth managers, 71% of firms aspire to build a scalable business to support growth while controlling costs. Yet, the slow adoption of digital solutions as well as mounting regulatory and market pressures facing firms, may cause those costs to spiral out of control. Or worse, those firms that fail to adapt risk diminished profitability, regulatory fines, data breaches and missed opportunities for growth. Continue reading…

According to new research from Quantios, the trust and company service provider (TCSP) sector is split when it comes to AI. Only 53% of companies are either actively implementing AI solutions or developing an AI strategy. This leaves 47% of firms potentially lagging behind in their digital transformation journey. As demand for innovation soars, the pressure to invest in cutting-edge technology is mounting. Nearly a quarter (24%) of respondents agree that client digital expectations have grown this year, compared to only 9% last year – the biggest increase since Quantios began its research.  Continue reading…