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Asia Pacific Regulatory Developments Newsletter - Volume 1, 2021

Our regulatory newsletter highlights both the stability measures regulators are using in response to the pandemic with some countries entering a second or third wave and how they are continuing to deliver on their longer term plans.

By Tricia O’Donovan, Senior Consultant, Regulatory Solutions - EMEA & APAC,
Trent Richardson, Head of Products - Asia Pacific,
Lisa Chen, Senior Product Manager - Asia, and 
James Crane, Senior Product Manager - Australia

Regulators in the region continue to focus on the response to the COVID-19 pandemic as most countries have entered a second wave, some a third. To support this, measures on resiliency and stability continue to be introduced. Medium and longer term regulatory priorities are being reviewed and the balance between supervision and recovery will no doubt become a topic of discussion over the coming months. However regulators will continue to focus on governance, management, conduct and oversight frameworks as an increased focus on culture and accountability remains. Regulators’ attention on emerging risks, including sustainability risk measures with developments introduced across the region continuing to take pace.

Taxonomies and disclosures as measures to reduce greenwashing are at the forefront while ensuring sustainability is considered in investment decision making or provision of financial advice. In a trend similar to Europe, climate stress testing is being introduced, with the Hong Kong Monetary Authority inviting authorised institutions to participate in a climate risk stress test to be undertaken in 2021.

Financial crime remains a hot topic and developments in the Anti-Money Laundering (AML) and Combatting the Finance of Terrorism (CFT) regulatory space continue to be in the spotlight with a renewed focus on the risks applicable to crypto assets continuing to emerge. The acceleration of the digital agenda cannot be ignored and we are seeing a response from regulators in the region not just focusing on AML/CFT but also looking at overall digital operational resilience.

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RELATED ARTICLES

Key developments covered in this edition include the European Union's Sustainable Finance Disclosure Regulation, the new prudential regime for investment firms and the final push towards transition away from interbank offer rates.

In the latest edition of our regulatory newsletter, we discuss the SEC’s fund shareholder disclosure, update to their approach for regulating derivatives and ETFs, and the approved fair valuation rule. We also provide you with updates to CSDR and LIBOR.

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