Grand FinReg Weekly Update

The EU Parliament has approved updates to the MiFIR2/MiFID3 financial regulations, following an initial agreement with the EU Council on June 29, 2023.

The EU's revised trading rules aim to boost its capital markets' global competitiveness and simplify investor access to market data.

Key measures include creating EU-wide consolidated data feeds for asset information and generally banning payment for order flow, with member states having discretion to permit it until June 30, 2026.

The Council of the EU and the European Parliament have provisionally agreed on stricter AML/CFT rules.

• Agreement Reached: The Council of the EU and the European Parliament have provisionally agreed on stricter AML/CFT rules.
• Expanded Scope: The rules now cover more entities, including cryptoasset service providers, requiring enhanced customer duediligence and reporting of suspicious activities.

ECON) is scheduled to discuss the revision of the Sustainable Finance Disclosure Regulation (SFDR) on January 20, 2024.

• This session will focus on revising the Regulatory Technical Standards, emphasising the disclosure of investment impacts on sustainability and the introduction of decarbonisation targets for financial products.

The Financial Stability Board (FSB) has published its work programme for 2024, which outlines its plans and initiatives for the year

• Program tackles digitalization, climate change, and economic shifts.
• Priorities: global financial stability, resolution reforms, nonbank intermediation resilience, climate-related risks.
• Comprehensive Annual Report before November 2024 G20 Leaders Summit.

The European Supervisory Authorities (ESAs) are holding a public hearing on the second batch of policy products under the Digital Operational Resilience Act (DORA)

• Hearing: January 23, 2024, to discuss consultation paper.
• Consultation covers ICT risk management, incident reporting, third-party risk, penetration testing, and oversight.
• Consultation period ends on March 4, 2024.