International

Structural Regulation

EU Council Agrees to Implement Global Minimum Tax

By Editors | 19/12/2022

The 15% corporate minimum tax rate is expected to be transposed into EU wide rules by end-2023 and prompt other countries to speed up efforts to implement the measure.

Emerging Prudential Risks

Systemic Risk Scores in Global Insurance Sector Are Rising: IAIS

By Mark Johnston | 19/12/2022

Higher systemic risk scores are driven by increased exposures to illiquid and difficult-to-value assets, OTC derivatives, repo transactions and other factors.

Trading & Investment

FSB Offers LIBOR Transition Update, Warns of ‘Residual Risks’

By Manesh Samtani | 19/12/2022

Regulators continue to express concerns that the use of Term SOFR and credit sensitive rates could draw away liquidity from the overnight SOFR derivatives markets.

Capital Adequacy

Basel Rules for Cryptoassets to Take Effect in Jan 2025

By Manesh Samtani | 19/12/2022

1,250% risk weight not applicable to custodied assets. Infrastructure risk add-on no longer mandatory. Gross limit on total Group 2 exposures raised from 1% to 2%.

Nature & Biodiversity

Weak Environmental Crimes Law a Risk to Investors

By ESG Investor | 19/12/2022

European Council’s position on the revised Environmental Crime Directive will damage portfolios as well as the environment, says WWF.

AI Risk & Governance

Singapore, EU to Expand Partnership to ‘Digital Realm’

By Editors | 18/12/2022

The partnership includes efforts to advance new and emerging areas such as 5G/6G, artificial intelligence, and digital identities.

Reporting & Disclosures

ISSB Introduces Scope 3 Disclosure Guidance

By ESG Investor | 18/12/2022

A temporary exemption from Scope 3 disclosures will be granted for the first 12 months after the ISSB standards are finalised to give companies more time to prepare.

PEPs & Sanctions

New Russia, Iran Sanctions Imposed Over Drone Use in Ukraine

By Mark Johnston | 16/12/2022

The UK, EU and New Zealand has announced new sanctions against Iranian individuals and entities over the supply of drones to Russia.

Liquidity Risk

FSB to Revise Recommendations on Fund Liquidity Management

By Editors | 15/12/2022

Open-ended funds with illiquid assets should only be allowed to offer daily dealing if they use tools that pass on redemption costs to redeeming investors.