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1、Asia Pacific Financial ServicesRegulatory UpdateQ3 2023October 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.01Australia5-1102Chinese Mainland12-1503India22-2405Introduction and Summary3-4Indonesia24-28 06Hong Kong SAR16-2104Japan29-32 07New Zealand3509Philippines36-3709Singapor
2、e38-4110Malaysia33-3408Table of ContentsTaiwan42 11Thailand4312Vietnam44-4513 2023.For information,Contact Deloitte Touche Tohmatsu Limited.3IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacif
3、ic Financial Services Regulatory Update Q3 2023Chinese MainlandIntroductionDear clients and colleagues,The Deloitte Asia Pacific Centre for Regulatory Strategy is pleased to share with you the key regulatory updates from our region for Q3 2023.Regulatory developments strengthening AML/CFT controls a
4、nd practices to detect and mitigate risks were at the forefront.Controls have been tightened across Asia Pacific including Philippines,Singapore and Vietnam.In Singapore,the Monetary Authority of Singapore(MAS)collaborated with the Commercial Affairs Department to investigate a criminal and money la
5、undering syndicate that led to the seizure/freezing of SGD$2.8 billion worth of assets.Regulators have also issued additional guidance on risk assessment and reporting,proliferation financing,misuse of legal persons and arrangements,and digital assets.Digital Finance and Technology is another topic
6、that is top of mind for regulators.Australia released a report with findings from a joint research project which explored the potential for a central bank digital currency(CBDC).Whilst CBDCs can facilitate smarter payments,legal and operational issues would need to be addressed.In Hong Kong,the Hong
7、 Kong Monetary Authority(HKMA)unveiled a FinTech Promotion RoadMap,with the goal of promoting collaboration and building a sustainable fintech ecosystem.Policy initiatives are continuously being rolled out across markets to foster a conducive environment for digital transformation.These policy initi
8、atives have emphasised promoting fintech adoption,nurturing the fintech ecosystem,enhancing data infrastructure,and cultivating talent with fintech expertise.To harness the potential of digital advancements,Financial Institutions need to continuously invest in key areas,such as enhancing user experi
9、ence and trust,securely adopting advanced technologies,and cultivating talent in relevant domains.Cybersecurity measures need to maintain agility in the ever-evolving geo-political climate and the increased use of distributed ledger technology.The recent cybersecurity stock take completed in Austral
10、ia exposed several control gaps:(i)incomplete identification and classification of critical and sensitive information assets;(ii)limited assessment of third-party information security capability;and(iii)inadequate definition and execution of control testing programs.Financial Institutions need to en
11、hance their practices to combat heightened risks.The Securities and Exchange Board of India has issued a consultation paper on the Consolidated Cybersecurity and Cyber Resilience Framework that proposes a common structure to cybersecurity using a graded approach.For queries or more information on th
12、ese updates or other regulatory topics,please get in touch.Best regards,The ACRS Co-leads 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContact
13、s4Asia Pacific Financial Services Regulatory Update Q3 2023Chinese MainlandRegulatory Hot Topics Top six most talked about themes this quarterSupervisory Approach8UpdatesData&Technology12UpdatesFinancial Products,Instruments&Services20UpdatesClimate and sustainability 8Updates1.Governance&Strategic/
14、Reputational Risk2.Financial Risk3.Operational Risk 4.Conduct Risk5.Financial Crime6.Consumer Protection7.Data&Technology8.Financial Products,Instruments&Services9.Financial Market Infrastructure10.Systemic/Currency Stability11.Enforcement12.Supervisory Approach13.Climate&SustainabilityTaxonomySyste
15、mic and Currency Stability7UpdatesFinancial Risk10Updates 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacific Financial Services
16、 Regulatory Update Q3 20235Chinese MainlandAustralia(1/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates1APRACyber security stocktake exposes gapsOn 5 July 2023,the Australian Prudential Regulation Authority(APRA)released summary findings for the initial tranche of the cyber security stocktake,hig
17、hlighting areas of concern to be addressed by banks,insurers,and superannuation trustees.The assessment required APRAs regulated entities to appoint an independent auditor for an assessment of their compliance as per Prudential Standard CPS 234 Information Security(CPS 234).The most common control g
18、aps identified in this tranche included,but were not limited to:incomplete identification and classification of critical and sensitive information assets;limited assessment of third-party information security capability;andinadequate definition and execution of control testing programs.APRA encourag
19、es all entities to review these weaknesses alongside CPS 234 obligations to ensure relevant strategies are incorporated and any shortfalls addressed.Entities are currently participating in the second and third tranches of APRAs assessment,with the fourth and final tranche expected to roll out later
20、this year.Cyber security stocktake exposes gaps|APRA-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacific Financial Services Regu
21、latory Update Q3 20236Chinese MainlandAustralia(2/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates2APRAAPRA finalises new prudential standard on operational riskOn 17 July 2023,APRA finalised Prudential Standard CPS 230 Operational Risk Management(CPS 230),intended to enhance the ability of banks
22、,insurers,and superannuation trustees to better manage operational risks and respond to business disruptions.The standard will come into effect on 1 July 2025,with transitional arrangements for pre-existing contractual arrangements with service providers,applying from the next contract renewal date
23、or 1 July 2026(whichever comes earlier).CPS 230 is designed to:strengthen operational risk management by imposing new requirements to remediate weaknesses in current controls;uplift business continuity planning to ensure tolerance through severe disruptions;andensure risks from material service prov
24、iders are adequately managed,and therefore mitigating third-party risk.APRA Chair John Lonsdale emphasised the importance of this standard,given recent control failures of operational risks in Australia,including major cyber breaches.He signalled an expectation for regulated entities to be proactive
25、 in the implementation of CPS 230,however noted there would be a transition phase for existing contractual arrangements with significant service providers.APRA has also released draft Prudential Practice Guide CPG 230 Operational Risk Management to aid in the implementation of CPS 230.Consultation o
26、n this guidance closes 13 October 2023.APRA finalises new prudential standard on operational risk|APRAPrudential Standard CPS 230 Operational Risk Management|APRADraft Prudential Practice Guide CPG 230 Operational Risk Management|APRAEffective date of CPS 230:1 July 2025(excl.transitional arrangemen
27、ts)Consultation on CPG 230 Operational Risk Management closes:13 October 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacifi
28、c Financial Services Regulatory Update Q3 20237Chinese MainlandAustralia(3/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates3ASICAPRAReview finds super trustees need to improve retirement outcomes planningOn 18 July 2023,ASIC and APRA released findings from a thematic review of the Retirement Inco
29、me Covenant.This measure was introduced on 1 July 2022 and required trustees to improve long-term outcomes for members in,or approaching retirement,by developing a retirement income strategy.ASICs review found that while trustees have improved their offerings of assistance to members in retirement,q
30、uality of approach across trustees remains inconsistent,and a lack of urgency in embracing the intent of the covenant has continued.The review found that more focus was needed on:understanding member retirement needs to inform development of effective retirement income strategies;designing fit-for-p
31、urpose assistance measures through use of metrics;andusing analytics to oversee strategy implementation and include retirement income initiatives as actions in their overall business plan.The regulators have urged superannuation trustees to review the report and examples of better practices,taking s
32、teps as necessary to strengthen their retirement income strategies.Review finds super trustees need to improve retirement outcomes planning|ASICReview finds super trustees need to improve retirement outcomes planning|APRA-4APRAASICAPRA and ASIC commence early consultation on FAROn 20 July 2023,APRA
33、and ASIC jointly announced further support to the implementation of the Financial Accountability Regime(FAR)by releasing key materials for consultation.The FAR will introduce a stronger framework around responsibility and accountability for APRA-regulated entities in the banking,insurance,and supera
34、nnuation industries,aimed at improving the culture of risk and governance in these institutions.APRA and ASIC will both administer the regime which will come into effect 6-18 months following Royal Assent of the Financial Accountability Bill 2023,depending on the entity.To support early engagement w
35、ith entities and enable the timely implementation of the FAR,APRA and ASIC released a package of documents for consultation including:proposed regulatory rules that prescribe information to be included in the FAR register of accountable persons;andproposed Transitional rules that specify information
36、 to be provided by banking entities in relation to their existing accountable persons.APRA and ASIC sought industry feedback on the proposed Regulator rules,including Authorised Deposit Institution(ADI)key functions and Transitional rules.The closing date for submissions was 17 August 2023.APRA and
37、ASIC commence early consultation on FAR|APRAAPRA and ASIC commence early consultation on FAR|ASICConsultation end date:17 August 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummar
38、yIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacific Financial Services Regulatory Update Q3 20238Chinese MainlandAustralia(4/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates5APRAAPRA publishes final investment governance guidanceOn 20 July 2023,APRA released the final guidance on investment
39、 governance for superannuation trustees,the latest step by APRA in strengthening investment governance practices across the industry.The updated guidance is aimed at assisting trustees meet obligations under Prudential Standard SPS 530 Investment Governance(SPS 530),which came into effect on 1 Janua
40、ry 2023.The Prudential Standard Guide SPG 530 Investment Governance includes:additional guidance on liquidity management,stress testing and asset valuations;expectations of trustees in considering environmental,social and governance risk factors as part of their overall risk management;greater clari
41、ty in areas requested by industry in applying the standard;anda streamlined approach to the guidance to align with APRAs strategic initiatives.The changes follow a thematic review by APRA which identified the need for industry practice to improve.APRA seeks to deliver a strong governance structure,e
42、nsuring trustees put the financial interests of members at the centre of investment decisions.APRA publishes final investment governance guidance|APRAPrudential Practice Guide SPG 530 Investment Governance|APRA-6APRAAPRA finalises requirements for remuneration disclosureOn 1 August 2023,APRA finalis
43、ed updates to Prudential Standard CPS 511 Remuneration,implementing new remuneration disclosure rules for ADIs,insurers and superannuation entities.APRA-regulated entities must now annually disclose more information on their remuneration frameworks,design,governance,and outcomes,with additional quan
44、titative data disclosure required by larger and more complex entities.The requirements will commence from entities first full financial year following 1 January 2024,with additional flexibility of a six-month window from an entitys financial year end to release its annual disclosure.Following consul
45、tation,APRA proposed collecting and publishing more granular remuneration data and announced a delay to its response to consultation on draft Reporting Standard CRS 511 Remuneration,with the commencement date of the standard extended accordingly.APRA also notified it will release the findings from a
46、n implementation review of CPS 511 to assist industry implement the new requirements.APRA finalises requirements for remuneration disclosure|APRAPrudential Standard CPS 511 Remuneration|APRAEffective date of changes to CPS 511:1 January 2024 2023.For information,Contact Deloitte Touche Tohmatsu Limi
47、ted.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacific Financial Services Regulatory Update Q3 20239Chinese MainlandAustralia(5/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates7RBAReserv
48、e Bank and Digital Finance CRC Complete CBDC Research ProjectOn 23 August 2023,The Reserve Bank of Australia(RBA)and the Digital Finance Cooperative Research Centre(DFCRC)released a report with findings from a joint research project which explored the potential for a central bank digital currency(CB
49、DC)in Australia.The project consisted of a limited scale pilot used by select industry participants to explore areas where a CBDC could enhance the functioning of the payments system.The project highlighted that continued engagement between industry and policymakers can assist with opportunities and
50、 challenges associated with innovations in digital currency.The use of a CBDC was found to potentially support:enabling smarter payments;supporting innovation in financial and asset markets;promoting private digital money innovation;andenhancing resilience and inclusion in the digital economy.Howeve
51、r,the project also discovered issues associated with a CBDC that would require ongoing attention,including legal and operational challenges.The project helped in understanding these concerns,with the aim of using the results to inform future research agendas.Reserve Bank and Digital Finance CRC Comp
52、lete CBDC Research Project|RBA-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacific Financial Services Regulatory Update Q3 20231
53、0Chinese MainlandAustralia(6/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates8ASICAPRAASIC focuses on protecting vulnerable consumers and small businesses in 23-24 Corporate PlanAPRA responds to emerging risks in 2023-24 Corporate PlanOn 28 August 2023,ASIC released its Corporate Plan for 2023-27
54、 with a specific focus on 2023-24.ASIC announced it would leverage its increased capacity through a July 2023 restructure to take further enforcement action in protecting consumers from scams,digital misconduct,and predatory lending practices.ASIC named shifts across sustainable finance,the digital
55、and data economy,and an ageing population as drivers of these challenges.Concurrently,ASIC on 30 August 2023 released an open letter calling lenders to ensure customers experiencing financial hardship are adequately supported and named financial hardship an area of increased focus for ASIC over the
56、following 12 months.On 29 August 2023,APRA also released its 2023-24 Corporate Plan,defining key priorities for the regulator over the next four years to maintain the ongoing stability of the financial sector.The priorities outlined in APRAs 2023-24 Corporate Plan included:improving cross-industry s
57、tress testing and ensuring the adequacy of macroprudential policies;maintaining a greater focus on operational and cyber resilience,crisis management and operational risk management;embedding climate risk in APRAs approach to supervision;andincreasing focus within superannuation,specifically on reti
58、rement outcomes and enhanced transparency of investment performance.APRA also announced its intentions to update its prudential framework,use technology and data more effectively to supervise the industry and strengthen accountability,and create a more agile and engaged workforce that can respond to
59、 new and emerging risks.ASIC Corporate Plan 2023-27(Focus 2023-24)|ASICASIC focuses on protecting vulnerable consumers and small businesses in 23-24|ASICAs cost of living pressures persist ASIC calls on lenders to support customers in financial hardship|ASICAPRA responds to emerging risks in 2023-24
60、 Corporate Plan|APRAAPRA Corporate Plan 2023-24|APRA-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamContactsAsia Pacific Financial Services Regu
61、latory Update Q3 202311Chinese MainlandAustralia(7/7)#Issuing AuthorityTitleRegulatory UpdateKey Dates9APRAAPRA strengthens standard to enhance member outcomes in superannuationOn 21 September 2023,APRA announced plans to update Prudential Standard SPS 515 Strategic Planning and Member Outcomes(SPS
62、515).APRA says the changes follow developments in the operating environment of superannuation funds since SPS 515 came into effect in 2020.APRA sees updating SPS 515 as a policy priority in superannuation.Through its reform,APRA aims to:better align expenditure requirements with the best financial i
63、nterest duty and to support the retirement income covenant;improve trustees management of financial resources by ensuring trustees maintain a prudent approach in setting fees and managing member-funded reserves;andenhance risk management for members being transferred across funds.Additionally,APRA s
64、tated its intention to retire guidance circular on the sole purpose test,with no plans to issue new guidance.APRA cited that the test,now over 20 years old,no longer remains relevant to trustees who are now better prepared to make appropriate decisions.APRA has released a consultation on the propose
65、d enhancements to SPS 515.Submissions are due on 21 December 2023.APRA strengthens standard to enhance member outcomes in superannuation|APRAStrategic planning and member outcomes:proposed enhancements|APRAConsultation ends on 21 December 2023 2023.For information,Contact Deloitte Touche Tohmatsu Li
66、mited.12IntroductionAustraliaChinese MainlandSummaryAsia Pacific Financial Services Regulatory Update Q3 202312Hong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese Mainland(1/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates1NAFRNAFR so
67、licits opinions on Measures for Administrative Licensing of Non-banking Financial InstitutionsOn 21 July 2023,National Administration of Financial Regulation(NAFR)launched a consultation on the revised Measures for Administrative Licensing of Non-Bank Financial Institutions.This revision aims to enh
68、ance the effectiveness of administrative licensing for non-bank institutions and focuses on the following aspects:Adjusting the admission criteria for certain matters:the conditions for institution establishment and shareholder admission are adjusted synchronously,implementing hierarchical managemen
69、t of businesses,and improving the specific business admission conditions for financial companies.Further relaxing the entry conditions for foreign institutions to invest in financial asset management companies:allowing foreign non-financial institutions to participate as investors in financial asset
70、 management companies and eliminating the total asset requirement for overseas financial institutions as investors in financial asset management companies.Promoting the simplification of administration and delegation of power:streamlining bond issuance and personnel qualification approvals,abolishin
71、g certain non-bank institutions approvals,and adopting a post-reporting system for improved efficiency.Improving relevant administrative licensing regulations:Addressing practical challenges in the administrative licensing of non-bank institutions,focusing on scrutinising shareholder qualifications,
72、and enhancing regulations related to licensing conditions and procedures.NAFR solicits opinions on Measures for Administrative Licensing of Non-Bank Financial InstitutionsConsultation ended on 21 August 20232NAFRNAFR solicits opinions on Measures for Operational Risk Management in Banking and Insura
73、nce InstitutionsOn 28 July 2023,NAFR launched a consultation on the Measures for Operational Risk Management in Banking and Insurance Institutions.The main aspects include:Clear definition of risk governance and management responsibilities;Specification of fundamental risk management requirements;De
74、tailed management processes and tools;andEnhancement of supervisory and management responsibilities.In the next step,based on the feedback received during the public consultation,NAFR will further refine the Measures and publish the final version for implementation in due course.NAFR solicits opinio
75、ns on Measures for Operational Risk Management in Banking and Insurance InstitutionsConsultation ended on 31 August 20233NAFRNAFR solicits opinions on Measures for Preventing and Controlling Risks Related to Criminal Cases in Banking and Insurance InstitutionsOn 4 August 2023,NAFR launched a consult
76、ation on the Measures for Preventing and Controlling Risks Related to Criminal Cases in Banking and Insurance Institutions.Key aspects covered by the Measures are:Clarify the objectives and basic principles of preventing risks related to criminal cases;Defining the responsibilities of the board of d
77、irectors(board of supervisors),senior management,lead departments,internal departments,branches,and internal audit departments;Identify the main tasks of risk prevention and control in criminal cases for banking and insurance institutions;andSpecify the division of responsibilities for regulatory au
78、thorities in crime-related risk prevention and control.NAFR solicits opinions on Measures for Preventing and Controlling Risks Related to Criminal Cases in Banking and Insurance InstitutionsConsultation ended on 8 September 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.13Introdu
79、ctionAustraliaChinese MainlandSummaryAsia Pacific Financial Services Regulatory Update Q3 202313Hong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese Mainland(2/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates4NAFRNAFR releases Notices
80、regarding Optimization of Regulatory Standards for Insurance Company SolvencyOn 10 September 2023,NAFR issued the Notice Regarding Optimization of Regulatory Standards for Insurance Company Solvency.The Notice optimises the regulatory standards for insurance companies based on the actual development
81、 of the insurance industry.The Notice consists of ten articles focusing on four aspects:Differential Adjustment of Minimum Capital Requirements:Capital requirements are adjusted based on total assets.Property and reinsurance companies with total assets between 10 billion and 200 billion rmb calculat
82、e the minimum capital at a 95%solvency adequacy ratio.Companies with assets below 10 billion yuan calculate at 90%.Encouraging Long-term Policies:The proportion of future surplus from life insurance policies with a term over 10 years included in core capital has increased from 35%to 40%,promoting th
83、e development of long-term insurance products.Capital requirements are reduced by 5%for companies meeting specific criteria related to claims reserves and premium risk.Supporting Capital Market Stability:Risk factors for investments in certain stocks and infrastructure funds are adjusted to promote
84、stable investments.Insurance companies must disclose their investment returns over the past three years.Promoting Technological Innovation:The risk factor for equity investments in non-listed companies in strategic emerging industries is set at 0.4.For technology insurance,solvency adequacy ratio ca
85、lculations are set at 90%.NAFR releases Notices regarding Optimization of Regulatory Standards for Insurance Company Solvency10 September 20235PBOC,NAFRPBOC and NAFR Release List of Chinas Systemically Important BanksIn 2023,the Peoples Bank of China(PBOC)and the NAFR assessed domestic systemically
86、important banks(D-SIBs)in accordance with the Assessment Methodology for Systemically Important Banks.As a result,20 D-SIBs were identified,categorised into five groups based on the level of systemic importance.The first group includes 10 banks.Going forward,PBOC and NAFR plan to enhance the supervi
87、sion on these banks,ensuring compliance with additional capital and leverage ratio requirements.The aim is to bolster risk management capabilities,promote the stability of the financial system,and support the development of the real economy.PBOC and NAFR Release List of Chinas Systemically Important
88、 Banks-2023.For information,Contact Deloitte Touche Tohmatsu Limited.14IntroductionAustraliaChinese MainlandSummaryAsia Pacific Financial Services Regulatory Update Q3 202314Hong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese Mainland(3/
89、4)#Issuing AuthorityTitleRegulatory UpdateKey Dates6CSRC Regulations on the Supervision and Administration of Private Equity FundsOn 9 July 2023,a State Council decree was released on the Regulations on the Supervision and Administration of Private Equity Funds,which will take effect on 1 September
90、to facilitate the industrys high-quality development by better managing risks.The main points of the regulations are as follows:Clear Scope of Application:Covers various types of private equity funds,raised privately for investment,managed by fund managers or general partners.Obligations of Private
91、Equity Fund Managers and Custodians:Regulates fund managers and custodians,forbidding relevant parties from becoming fund managers and requiring employee training.Regulation of Fundraising and Investment Operations:Limits the number of investors per fund,aligns fund risk levels with investor profile
92、s,emphasises post-raising supervision,and clarifies investment scopes.Special Provisions for Venture Capital Funds:Encourages venture capital investments in startups and defines unique supervision.Strengthened Supervision and Legal Responsibilities:Aligns with national policies,specifies regulatory
93、responsibilities,establishes collaboration mechanisms,and outlines legal consequences for violations.The State Council decree Regulations on the Supervision and Administration of Private Equity FundsEffective 1 September 20237CSRC CSRC instructed the China Securities Industry Association to release
94、the Measures for Practicing Quality Assessment of Securities Companies Bond BusinessChina Securities Regulatory Commission(CSRC)has instructed the China Securities Industry Association to release the Measures for Practicing Quality Assessment of Securities Companies Bond Business,strengthening the c
95、lassification supervision of bond underwriting.This revision now focuses on enhancing the connotation and requirements of bond business practice quality under the registration system.Additionally,it includes the categorisation evaluation of intermediary institutions for enterprise bonds.As part of t
96、he transitional period for the transfer of corporate bond duties,the evaluation criteria,workflow,and mechanisms for enterprise bond intermediary institutions will remain unchanged in 2023,with relevant work currently in progress.In the next steps,the CSRC will guide relevant organisations,such as t
97、he Securities Association of China,to carry out the assessment work for the practice quality of securities companies bond business.CSRC instructed the China Securities Industry Association to release the Measures for Practicing Quality Assessment of Securities Companies Bond Business-2023.For inform
98、ation,Contact Deloitte Touche Tohmatsu Limited.15IntroductionAustraliaChinese MainlandSummaryAsia Pacific Financial Services Regulatory Update Q3 202315Hong Kong SARIndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese Mainland(4/4)#Issuing AuthorityTi
99、tleRegulatory UpdateKey Dates8CSRC CSRC solicits opinions on Measures for the Administration of Corporate Bond Issuance and Trading and Guidelines for the Information Disclosure Content and Format of Companies Issuing Securities PubliclyOn 8 September 2023,CSRC launched a consultation on the revised
100、 Measures for the Administration of Corporate Bond Issuance and Trading and Guidelines for the Information Disclosure Content and Format of Companies Issuing Securities Publicly No.24-Application Documents for the Public Offering of Corporate Bonds.The revisions to the Measures mainly focus on five
101、aspects:Implementing institutional reform;Strengthening anti-fraud measures;Enhancing fundraising supervision;Enhancing supervision of non-market-based issuances;andAdapting to revised administrative licensing procedures.The revisions to the Guidelines draw on existing experiences in corporate bond
102、management,focusing on three main aspects:Strengthening compliance requirements for fundraising projects;Enhancing oversight from higher authorities;andEnhancing accountants responsibilities.CSRC solicits opinions on Measures for the Administration of Corporate Bond Issuance and Trading and Guidelin
103、es for the Information Disclosure Content and Format of Companies Issuing Securities PubliclyConsultation ended on 8 October 20239CSRC CSRC solicits opinions on Rules on Listed Companies Issuing Convertible Corporate Bonds to Specific Objects for Purchasing AssetsOn 15 September 2023,CSRC introduced
104、 the Rules on Listed Companies Issuing Convertible Corporate Bonds to Specific Objects for Purchasing Assets for public consultation.In November 2018,CSRC initiated the pilot program for restructuring using directed convertible bonds.According to the pilot program results,the business of restructuri
105、ng using directed convertible bonds has been stable and orderly,promoting the integration and quality improvement of listed companies industries.The rules outline various key aspects:Clarifies restructuring using directed convertible bonds must comply with the regulations such as the Measures for th
106、e Administration of Major Asset Restructuring of Listed Companies and the Measures for the Administration of the Issuance and Listing of Securities of Listed Companies;Following the principle of same treatment for the same situation,the rules provide provisions on the pricing mechanism and lock-up p
107、eriod of directed convertible bonds used as payment tools,referring to the relevant regulations on issuing shares for purchasing assets;Specifies that the suitability requirements for investors at various stages when directed convertible bonds are used as payment tools in the transfer and conversion
108、 processes;Clarifies the calculation method of the quantity and proportion of the companys equity rights that investors possess when determining whether it constitutes a restructuring for listing;andListed companies can independently choose to use directed convertible bonds as payment tools and deci
109、de whether the entire transaction consideration of the restructuring is paid with directed convertible bonds or combined with partial shares and cash.CSRC solicits opinions on“Rules on Listed Companies Issuing Convertible Corporate Bonds to Specific Objects for Purchasing Assets”Consultation ended o
110、n 15 October 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARSummaryAsia Pacific Financial Services Regulatory Update Q3 202316IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese Main
111、landHong Kong SAR(1/6)#Issuing AuthorityTitleRegulatory UpdateKey Dates1HKMCIAmendments to the Mortgage Insurance ProgrammeOn 22 September 2023,HKMC Insurance Limited(HKMCI),a subsidiary of The Hong Kong Mortgage Corporation Limited,announced amendments to the Mortgage Insurance Programme(MIP)for re
112、sidential properties under construction.The changes align eligibility criteria with those for completed properties:For eligible properties under construction up to HK$10 million,the maximum loan-to-value(LTV)ratio is 90%;For properties valued above HK$10 million and up to HK$15 million,the maximum L
113、TV ratio is 80%or derived from a mortgage loan cap of HK$9 million,whichever is higher;andFor properties valued above HK$15 million and up to HK$30 million,the maximum LTV ratio is 70%or derived from a mortgage loan cap of HK$12 million,whichever is higher.These changes apply to mortgage loans for s
114、elf-occupied properties with provisional agreements executed on or after 22 September 2023.Previously,MIP covered properties under construction up to HK$6 million.The amendments aim to promote home ownership considering property market conditions and business factors.Amendments to the Mortgage Insur
115、ance ProgrammeApplies to mortgage loans on or after 22 September 20232HKMA,SFCRegulators conclude consultation on revising OTC derivative Clearing RulesOn 29 August 2023,the HKMA and SFC have proposed amendments to Clearing Rules for OTC derivative transactions.Interest rate swaps tied to alternativ
116、e reference rates(ARRs)will now be subject to clearing obligations under specific conditions.Concurrently,requirements to clear swaps tied to obsolete interbank offered rates will be removed,aligning with global benchmark reforms.The proposal has general support and is awaiting legislative approval,
117、and is expected to take effect from 1 July 2024.Regulators conclude consultation on revising OTC derivative Clearing RulesExpected to come into effect from 1 July 2024 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARSummaryAsia Pacific Fi
118、nancial Services Regulatory Update Q3 202317IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese MainlandHong Kong SAR(2/6)#Issuing AuthorityTitleRegulatory UpdateKey Dates3HKMAHKMA Unveils New Roadmap to Promote Fintech AdoptionOn 25 August 2023,the
119、HKMA unveiled a new Fintech Promotion Roadmap,outlining initiatives to boost Fintech adoption in the financial sector.Focusing on Wealthtech,Insurtech,Greentech,Artificial Intelligence(AI),and Distributed Ledger Technology(DLT),HKMA collaborated with regulators and stakeholders.Key activities in the
120、 next 12 months include:Establishing a Fintech Knowledge Hub with a cross-sectoral directory of service providers and financial institutions for enhanced accessibility;Hosting regular Fintech showcase events and roundtables for in-depth communication between financial institutions and Fintech servic
121、e providers;Organising interactive seminars and training sessions to encourage knowledge exchange across diverse financial sectors in specific Fintech areas;andPublishing use case videos and research reports offering insights into practical considerations throughout the Fintech adoption lifecycle.Th
122、is roadmap aims to foster collaboration beyond banking,involving insurance,wealth management,and capital markets,building a sustainable Fintech ecosystem in Hong Kong.More details about the Roadmap and the HKMAs upcoming initiatives can be found in the report.HKMA Unveils New Roadmap to Promote Fint
123、ech Adoption-4HKMA,IACross-Agency Steering Group announces priorities to further strengthen Hong Kongs sustainable finance ecosystemOn 7 August 2023,the Green and Sustainable Finance Cross-Agency Steering Group in Hong Kong has outlined its priorities to strengthen the citys sustainable finance ecos
124、ystem,including:Establish world-class regulation through alignment with global standards;Boost Hong Kongs vibrancy and competitiveness through capacity building,data enhancement and technology innovation of the finance ecosystem to support net-zero transition across the economy;andGrow dynamic,trust
125、ed markets with diverse products to mobilise capital at larger scale to support the net-zero transition.Cross-Agency Steering Group announces priorities to further strengthen Hong Kongs sustainable finance ecosystem-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaM
126、ainland ChinaHong Kong SARSummaryAsia Pacific Financial Services Regulatory Update Q3 202318IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese MainlandHong Kong SAR(3/6)#Issuing AuthorityTitleRegulatory UpdateKey Dates5HKIMR,AoFReport on The Digital
127、isation of Financial Services in Hong Kong:Recent Experience,Regulatory Developments and Considerations for Sustainable Innovation and GrowthOn 12 July 2023,the Hong Kong Institute for Monetary and Financial Research(HKIMR)released a new report titled The Digitalisation of Financial Services in Hong
128、 Kong:Recent Experience,Regulatory Developments and Considerations for Sustainable Innovation and Growth.The report examines the factors accelerating digitalisation in Hong Kongs financial services sector,discussing implicationsfor financial inclusion and environmental sustainability.It includes ins
129、ights from local financial institutions and outlinesmeasures taken locally and internationally to mitigate risks and enhance consumer protection,and concludes with recommendations for fostering sustainable innovation and growth in Hong Kongs financial services digitalisation journey.The report is av
130、ailable on the AoF/HKIMR website.Report on The Digitalisation of Financial Services in Hong Kong:Recent Experience,Regulatory Developments and Considerations for Sustainable Innovation and Growth-6HKMAOrderly exit from the banking sector Pre-approved Principal Payment Holiday SchemeOn 11 July 2023,t
131、he HKMA and the Banking Sector SME Lending Coordination Mechanism have announced an orderly exit from the Pre-approved Principal Payment Holiday Scheme,effective at the end of July 2023.The focus will shift from pandemic relief,to facilitating corporates return to normal repayment.The Scheme,extende
132、d six times during the pandemic,has seen a decline in participation to 1%of eligible corporates,indicating improved repayment abilities.Corporates currently in the Scheme may opt for partial principal repayment,choosing either 20%or 50%of the original principal repayment amount with extended duratio
133、ns,allowing for a gradual transition to normal repayment.Banks will contact participating corporates,and those wishing to opt for partial principal repayment must inform their banks by the end of October 2023.Alternative repayment arrangements,ensuring terms are no less favourable than the specified
134、 options,can be discussed based on individual circumstances.Continued support for sectors facing challenges and sympathetic handling of non-participating corporates funding needs are encouraged,with the earlier relief measures for the transport sector remaining unchanged until the end of 2025.Orderl
135、y exit from the banking sector Pre-approved Principal Payment Holiday Scheme-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARSummaryAsia Pacific Financial Services Regulatory Update Q3 202319IndonesiaJapanMalaysiaSingaporeThailandNew Zeal
136、andIndiaPhilippinesTaiwan(China)VietnamContactsChinese MainlandHong Kong SAR(4/6)#Issuing AuthorityTitleRegulatory UpdateKey Dates7HKMCIAmendments to the Mortgage Insurance ProgrammeOn 7 July 2023,HKMCI announced amendments to the Mortgage Insurance Programme(MIP)for completed residential properties
137、 in Hong Kong,aimed at assisting homebuyers with housing needs.Under the new changes:Properties with values up to HK$10 million maintain a maximum loan-to-value(LTV)ratio of 90%;For properties valued above HK$10 million up to HK$15 million,the maximum LTV ratio is 80%or a ratio derived from a mortga
138、ge loan cap of HK$9 million,whichever is higher;andProperties valued above HK$15 million and up to HK$30 million have a maximum LTV ratio of 70%or a ratio derived from a mortgage loan cap of HK$12 million,whichever is higher.In addition,HKMCI will provide insurance coverage for bank loans exceeding
139、a 70%LTV ratio,with premium rates lower than those starting at 60%LTV ratio;Special premium concessions will be given to first-time homebuyers for properties valued up to HK$15 million,with a waiver on insurance coverage premiums for mortgage loan portions not exceeding 5%above the maximum LTV ratio
140、 for banks;andHKMCI will also enhance transparency by updating its website with effective premium rates after a 35%discount.These changes apply to owner-occupied properties with provisional sale and purchase agreements executed on or after 7 July 2023,aiming to promote home ownership and contribute
141、to the stability of the banking sector.Amendments to the Mortgage Insurance ProgrammeApply to mortgage loans on or after 7 July 20238HKMACountercyclical Macroprudential Measures for Property Mortgage LoansOn 7 July 2023,the HKMA issued guidelines to banks adjusting the countercyclical macroprudentia
142、l measures for property mortgage loans.HKMA has adjusted the measures as follows:For residential properties for self-occupation,the maximum loan-to-value(LTV)ratios will be adjusted to 70%for properties valued at HK$15 million or below and 60%for properties valued between HK$15 million and HK$30 mil
143、lion.Properties valued at more than HK$30 million will maintain a maximum LTV ratio of 50%.The changes will be gradual for certain value ranges.For non-self-use residential properties,the maximum LTV ratio remains unchanged at 50%;The maximum LTV ratio for non-residential properties will be adjusted
144、 from 50%to 60%;For mortgage loans assessed based on the net worth of mortgage applicants,the maximum LTV ratio will be adjusted from 40%to 50%,applicable to both residential and non-residential properties;Requirements to lower the maximum LTV ratio and debt servicing ratio(DSR)limit for mortgage ap
145、plicants mainly earning income outside Hong Kong will be lifted.The requirement for a 5-percentage-point reduction in applicable DSR limits when mortgage applicants total mortgage finance exceeds the HKMAs permissible LTV ceilings by 20 percentage points will be removed.Countercyclical Macroprudenti
146、al Measures for Property Mortgage LoansEffective 7 July 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARSummaryAsia Pacific Financial Services Regulatory Update Q3 202320IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippi
147、nesTaiwan(China)VietnamContactsChinese MainlandHong Kong SAR(5/6)#Issuing AuthorityTitleRegulatory UpdateKey Dates9SFCSFC amends takeovers and share buy-backs codesOn 21 September 2023,the SFC released consultation conclusions on its proposed amendments to the Codes on Takeovers and Mergers and Shar
148、e Buy-backs(Codes),following conclusion of the consultation period on 23 June 2023.The changes to the Codes,effective from 29 September 2023,codify existing Takeovers Executive practices,clarify key terms,streamline processes for efficiency,and incorporate green initiatives to reduce the carbon foot
149、print of Codes documents.Consequential amendments to Practice Notes will also be available on the SFC website.Market practitioners are encouraged to familiarise themselves with the revisions and consult the Takeovers Executive for any application concerns.SFC amends takeovers and share buy-backs cod
150、esEffective 29 September 202310SFCSFC concludes consultation on risk management guidelines for futures dealing activitiesOn 25 August 2023,the SFC published consultation conclusions on its proposed risk management guidelines for licensed futures brokers,covering market risk management,commodity futu
151、res trading,client credit risk management,concessionary margining and risk management over executing or clearing agents.Requirements for funding liquidity risk management,safeguarding client assets,trading in futures markets outside Hong Kong and stress testing are also included.Respondents generall
152、y appreciated the guidance,leading to adjustments based on their feedback.The guidelines emphasise the importance of a robust risk management framework,ensuring brokers can handle market volatility effectively.Futures brokers have a transition period of six months to comply,with system changes relat
153、ed to client risk limit controls and stress testing to be implemented within an additional 12 months.The guidelines will become effective on 25 February 2024.SFC concludes consultation on risk management guidelines for futures dealing activitiesEffective 25 February 202411SFCSFC concludes consultati
154、on on amendments to enforcement-related provisions of the Securities and Futures OrdinanceOn 25 August 2023,the SFC published consultation conclusions on proposed amendments to enforcement-related provisions of the Securities and Futures Ordinance(SFO),following conclusion of a consultation process
155、on 12 August 2022.The amendments will extend the scope of insider dealing provisions to include activities in Hong Kong related to overseas stock markets and their derivatives,as well as insider dealing activities outside Hong Kong involving securities listed on recognised stock markets or their der
156、ivatives.However,two other proposed amendments regarding professional investor exemption and injunctions and other orders will be put on hold due to complex implementation issues raised during the consultation.The SFC will continue monitoring market developments to ensure investor protection,conside
157、ring options such as enhancing disciplinary powers and regulatory frameworks.SFC concludes consultation on amendments to enforcement-related provisions of the Securities and Futures Ordinance-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong S
158、ARSummaryAsia Pacific Financial Services Regulatory Update Q3 202321IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaPhilippinesTaiwan(China)VietnamContactsChinese MainlandHong Kong SAR(6/6)#Issuing AuthorityTitleRegulatory UpdateKey Dates12SFC,IOSCOSFC welcomes IOSCO endorsement of new sustai
159、nability disclosure standardsThe SFC welcomes the endorsement by the International Organisation of Securities Commissions(IOSCO)of the IFRS Sustainability Disclosure Standards published by the International Sustainability Standards Board(ISSB).The ISSB standards aim to serve as a global framework fo
160、r investor-focused corporate sustainability disclosures.IOSCOs endorsement signals to its 130 member securities regulators to adopt,apply or make reference to the standards in addressing sustainability-related risks and opportunities.The SFC will work with relevant Government bureaux,other financial
161、 regulators and the Stock Exchange of Hong Kong Limited(SEHK)to develop a comprehensive roadmap for adoption of the ISSB standards in Hong Kong.As an initial move in this direction,SEHKs proposed disclosure requirements for listed companies(Note 3)made reference to the ISSBs exposure draft for clima
162、te-related disclosures and its further deliberations.SFC welcomes IOSCO endorsement of new sustainability disclosure standards-13IAInsurance Authority welcomes passage of the amendment bill for the implementation of the Risk-based Capital regimeThe Insurance Authority(IA)welcomed the passage of the
163、Insurance(Amendment)Bill 2023(the Bill)on 6 July 2023,which provides the legislative framework for the implementation of the Risk-based Capital(RBC)regime for the Hong Kong insurance industry.The IA will start the preparatory work on drafting detailed requirements of the RBC regime to be followed by
164、 public consultation on subsidiary legislation.The RBC regime is targeted for implementation in 2024.Insurance Authority welcomes passage of the amendment bill for the implementation of the Risk-based Capital regimeEffective 6 July 2023Targeted for implementation in 2024 2023.For information,Contact
165、 Deloitte Touche Tohmatsu Limited.Asia Pacific Financial Regulatory Update Q2 2021Asia Pacific Financial Services Regulatory Update Q3 2023IntroductionAustraliaMainland ChinaHong Kong SARSummaryIndia22IndonesiaJapanMalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese Ma
166、inlandIndia(1/3)#Issuing AuthorityTitleRegulatory UpdateKey Dates1SEBIConsultation Paper on Consolidated Cybersecurity and Cyber Resilience Framework(CSCRF)for SEBI Regulated EntitiesOn 4 July 2023,the Securities and Exchange Board of India(SEBI)issued a consultation paper on the Consolidated Cybers
167、ecurity and Cyber Resilience Framework(CSCRF)for SEBI Regulated Entities.The CSCRF aims to enhance the scope of the cybersecurity and cyber resilience framework,address the need for uniformity of cybersecurity guidelines for all Regulated Entities(REs),and strengthen the mechanism to deal with cyber
168、 risks/threats/incidents.The framework provides a common structure for approaches to cybersecurity using a graded approach and divides the guidelines into three parts:i)Applicable to all REs,ii)Applicable to specified REs,iii)Applicable to Market InfrastructureInstitutions(MIIs).SEBI has based the f
169、ramework on five concurrent and continuous functions of cybersecurity as defined by the National Institute of Standards and Technology(NIST)-Identify,Protect,Detect,Respond,and Recover.SEBI also notified it will seek to update and improve the framework as technology and securities markets evolve and
170、 as REs provide their feedback.The CSCRF consultation ended 25 July 2023.SEBI|Consultation Paper on Consolidated Cybersecurity and Cyber Resilience Framework(CSCRF)for SEBI Regulated EntitiesConsultation ended 25 July 20232SEBIMaster Circular for compliance with the provisions of the SEBI(Listing Ob
171、ligations and Disclosure Requirements)Regulations,2015 by listed entities On 11 July 2023,SEBI issued a Master Circular consolidating the provisions of the SEBI Listing Obligations and Disclosure Requirements Regulations,2015(LODR Regulations)and applicable circulars issued until 30 June 2023.The Ma
172、ster Circular aims to support listed entities comply with the listing regulations and to ensure uniformity in disclosure practices.The Master Circular provides a chapter-wise framework for compliance with various obligations under the LODR Regulations,such as corporate governance,financial results,a
173、nd risk management.The Master Circular also provides listed entities with applicable formats and timelines for submitting required information to SEBI.SEBI|Master circular for compliance with the provisions of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements
174、)Regulations,2015 by listed entities-3SEBIMaster Circular for ESG Rating Providers(ERPs)On 12 July 2023,SEBI issued a Master Circular consolidating the provisions of the SEBI Credit Rating Agencies Regulations,1999(CRA Regulations)for Environmental,social and corporate governance Rating Providers(ER
175、Ps).While the CRA framework provides a broader framework for ERPs,the Master Circular further outlines the procedural/disclosure requirements and obligations set out in the CRA framework and provides guidelines for ERP registration and operation.ERPs are expected to have systems and infrastructure i
176、n place to implement the Master Circular,including monitoring compliance with the Master Circular through yearly internal audits.SEBI|Master Circular for ESG Rating Providers(ERPs)-2023.For information,Contact Deloitte Touche Tohmatsu Limited.Asia Pacific Financial Regulatory Update Q2 2021Asia Paci
177、fic Financial Services Regulatory Update Q3 2023IntroductionAustraliaMainland ChinaHong Kong SARSummaryIndia23IndonesiaJapanMalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandIndia(2/3)#Issuing AuthorityTitleRegulatory UpdateKey Dates4SEBICircular on Disclosur
178、e of material events/information by listed entities under Regulations 30 and 30A of SEBI(Listing Obligations and Disclosure Requirements)Regulations,2015On 13 July 2023,SEBI announced the partial modification of a Master Circular to incorporate a circular which detailed the information required to b
179、e provided while disclosing events under Schedule II of the LODR Regulations.The circular outline the disclosure requirements of listed entities including,but not limited to:Events that should be disclosed;The manner of determination of materiality for events and timeline for disclosure;The role and
180、 responsibility of stakeholders,such as boards of directors and audit committees,in ensuring compliance with disclosure;andConsequence of non-compliance.SEBI announced the consolidation into the Master Circular is intended to bring more transparency and ensure the timely disclosure of material event
181、s and information by listed entities.SEBI|Disclosure of material events/information by listed entities under Regulations 30 and 30A of Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements)Regulations,2015Effective date:15 July 2023 5SEBICircular on BRSR Core Framewo
182、rk for assurance and ESG disclosures for value chainOn 12 July 2023,SEBI introduced the Business Responsibility and Sustainability Report Core(BRSR Core),which consists of Key Performance Indicators(KPIs)and metrics across nine ESG attributes.The guidance is a subset of the BRSR and is directed at t
183、he top 1,000 listed entities,who from FY 20232024 are expected to make disclosures per the updated format as part of their annual reporting.SEBI announced the release of the BRSR Core aims to provide reasonable assurance on ESG performance and disclosure and to facilitate comparability and benchmark
184、ing across sectors and industries.SEBI|BRSR Core-Framework for assurance and ESG disclosures for value chainEffective date of the BRSR Core format:1 July 20236SEBICircular on extending framework for restricting trading by Designated Persons(“DPs”)by freezing PAN at security level to all listed compa
185、nies On 19 July 2023,SEBI announced an extension to the circular containing a framework for developing a system to restrict the trading by Designated Persons(DPs).The SEBI(Prohibition of Insider Trading)Regulations,2015 prohibits trading by DPs in listed benchmark index companies during a Trading Wi
186、ndow closure period and the framework extension widens the prohibition to include all listed companies.The framework will be rolled out to listed companies using a phased approach based on their market capitalisation:Group 1:Top 1000 listed entities from 1 October 2023Group 2:Next 1000 listed entiti
187、es from 1 January 2024Group 3:Remaining entities from 1 April 2024SEBI announced the extension to the framework will help prevent insider trading and ensure fairness and transparency in the securities market.SEBI|Trading Window closure period under Clause 4 of Schedule B read with Regulation 9 of SE
188、BI(Prohibition of Insider Trading)Regulations,2015(“PIT Regulations”)Extending framework for restricting trading by Designated Persons(“DPs”)by freezing PAN at security level to all listed companies in a phased mannerEffective date of changes to framework:Group 1:1 October 2023Group 2:1 January 2024
189、Group 3:1 April 2024 2023.For information,Contact Deloitte Touche Tohmatsu Limited.Asia Pacific Financial Regulatory Update Q2 2021Asia Pacific Financial Services Regulatory Update Q3 2023IntroductionAustraliaMainland ChinaHong Kong SARSummaryIndia24IndonesiaJapanMalaysiaSingaporeThailandNew Zealand
190、PhilippinesTaiwan(China)VietnamContactsChinese MainlandIndia(3/3)#Issuing AuthorityTitleRegulatory UpdateKey Dates7SEBIValidity period of approval granted by SEBI to Alternative Investment Funds(AIFs)and Venture Capital Funds(VCFs)for overseas investmentOn 4 August 2023,SEBI reduced the validity per
191、iod of approval for Alternative Investment Funds(AIFs)and Venture Capital Funds(VCFs)seeking to make overseas investments from six to four months.SEBI noted that the reduction would ensure the allocated time limit would be used efficiently and aims to facilitate growth and development of Indias inve
192、stment sector by providing greater opportunities for AIFs and VCFs to invest in offshore venture capital undertakings.The reduced validity period will be applicable to all approvals granted by SEBI on or after the date of issuance of the circular,clarifying that any existing approvals granted by SEB
193、I before the issuance date will continue to have a validity period of six months.SEBI|Validity period of approval granted by SEBI to Alternative Investment Funds(AIFs)and Venture Capital Funds(VCFs)for overseas investmentEffective date of reduced validity period:4 August 20238SEBIMaster Circular for
194、 Online Resolution of Disputes in the Indian Securities MarketOn 4 August 2023,SEBI issued a Master Circular outlining enhancements to the resolution of disputes within the Indian Securities Market.The Master Circular provides a comprehensive framework for Online Dispute Resolution(ODR)to streamline
195、 the resolution process and protect the interests of investors,companies,and intermediaries.SEBI also announced the creation of a common Online Dispute Resolution portal(ODR Portal)to facilitate online conciliation and arbitration for resolving disputes arising in the Indian Securities Market.Establ
196、ishing a central ODR Portal provides online conciliation and arbitration mechanisms,offering investors and market participants an efficient way to resolve disputes.SEBI|Online Resolution of Disputes in the Indian Securities Market-9SEBISEBI(Facilitation of Grievance Redressal Mechanism)(Amendment)Re
197、gulations,2023 On 18 August 2023,SEBI issued the SEBI(Facilitation of Grievance Redressal Mechanism)(Amendment)Regulations 2023 aimed at streamlining the process for resolving investor grievances.The regulation provides the responsibilities of the AIF Manager to address investor grievances within 21
198、 calendar days from the date the grievance was submitted.The amended regulations will be applicable to portfolio managers,investment advisers and research analysts and is intended to improve investor grievance handling mechanisms.SEBI announced it will also recognise a body corporate for handling an
199、d monitoring the grievance redressal process within the provided timeframes.SEBI|Securities and Exchange Board of India(Facilitation of Grievance Redressal Mechanism)(Amendment)Regulations,2023Effective date of amendment:18 August 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.25
200、IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaSummaryIndiaAsia Pacific Financial Services Regulatory Update Q3 2023JapanMalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandIndonesia(1/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates1OJKOKJ 17/2023
201、 Governance for Commercial BanksIn light of the increasing complexity of the banking industry,the Financial Services Authority Regulation(POJK)has issued Regulation 17 of 2023 Governance(OKJ 27/2023)for commercial banks.The new regulation aims to strengthen governance principles,and in turn support
202、outcomes such as prudent and ethical bank management,economic growth and national stability,and social and environmental responsibilities.In particular,OKJ 27/2023 highlights the role of the Board of Directors and Board of Commissioners in banking governance.OKJ 27/2023 will come into effect from 14
203、 September 2023.Implementation of Governance for Commercial Banks|OJKEffective date:14 September 20232OJKOKJ 15/2023 Implementation of Administrative Services Principles for KYC InfrastructureOn 8 August 2023,POKJ issued Regulation 15 of 2023 on Implementation of Administrative Services Principles f
204、or Know Your Customer(OJK 15/2023)that will support the use of the KYC Principles Administration Service(LAPMN)infrastructure.The scope of the regulation includes entities eligible LAPMN providers and users and will also require securities companies that carry out PPE business activities to open sec
205、urities subaccounts as an alternative method for storing customer data.OKJ 27/2023 will come into effect 6 months from the date of promulgation,on 8 February 2024.Implementation of Administrative Services with Customer Recognition Principle|OJKEffective date:8 February 20243OJKProcedures for Organis
206、ing Carbon Trading Through Carbon ExchangesOn 2 August 2023 POJK issued Regulation No.14 of 2023 on Carbon Trading through Carbon Exchange(OJK 14/2023).The new regulation outlines requirements for carbon trading through the carbon exchange,and reflects the POJKs efforts and commitments to sustainabl
207、e carbon trading and broader climate commitments.Key requirements under OJK 14/2023 include:Carbon Units traded through the Carbon Exchange are Securities and must first be registered in the National Registry System for Climate Change Control(SRN-PPI)and the Carbon Exchange Organiser.Parties that ca
208、n carry out business activities as a Carbon Exchange are market organisers that hold a business license as a Carbon Exchange Organizer from the OJK.Carbon Exchange Organisers can carry out other activities and develop Carbon Unit-based products after obtaining OJK approval.OKJ 27/2023 will come into
209、 effect from 2 August 2023.Procedures for Organising Carbon Trading Through Carbon Exchanges|OJKEffective date:2 August 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.26IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaSummaryIndiaAsia Pacific Financial Services Regulatory
210、 Update Q3 2023JapanMalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandIndonesia(2/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates4Bank IndonesiaAmendment to Bank Indonesia Regulation Number 4 of 2023:Short-Term Liquidity Assistance for Conventional Commer
211、cial BanksOn 12 September 2023,Bank Indonesia(BI)published a new amendment on Short-Term Liquidity Assistance for Conventional Commercial Banks.The regulation aims to provide guidelines for Bank Indonesia to provide short-term liquidity assistance to conventional commercial banks that face liquidity
212、 issues.The regulation defines the terms and conditions for applying,granting,monitoring and terminating liquidity assistance,the roles and responsibilities of Bank Indonesia,OJK and banks,as well as the sanctions for non-compliance.The amendments made to this regulation include:Adjustment to the ty
213、pes of securities used as collateral for short-term liquidity loans,including BI certificates and certificates of deposit,BI Sukuk,BI Rupiah securities and Government securities.Securities issued by other legal entities must have at least have an investment grade rating,be actively traded,and have a
214、 remaining term set by BIAmendment to Bank Indonesia Regulation 4 of 2023 concerning Short-Term Liquidity Loans for Conventional Commercial Banks|Bank Indonesia-5Bank IndonesiaAmendment to Bank Indonesia Regulation Number 22/14/PBI/2020 concerning Monetary OperationsTo strengthen the implementation
215、of Monetary Operations(OM)integrated with the development of money market and foreign exchange market,Bank Indonesia issued Bank Indonesia rupiah securities(SRBI)and implemented the role of primary dealer.Matters amended by Bank Indonesia Regulation concerning Amendment to Bank Indonesia Regulation
216、Number 22/14/PBI/2020 include the following:SRBI can be used in Open Market Operations(OPT)in the form of repurchase agreements(repo)and in Standing Facilities(in the form of providing rupiah funds in conventional lending facilities)through repo.Bank Indonesia administers SRBI in an electronic admin
217、istration system at Bank Indonesia,which includes a system of recording ownership and settlement of SRBI transactions conducted without scrip.Criteria for OPT participants to become primary dealers have been set,and OPT participants who meet the criteria may apply for primary dealer appointment to B
218、ank Indonesia.Amendment to Bank Indonesia Regulation Number 22/14/PBI/2020 concerning Monetary Operations|Bank Indonesia-2023.For information,Contact Deloitte Touche Tohmatsu Limited.27IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaSummaryIndiaAsia Pacific Financial Services Regulatory Upd
219、ate Q3 2023JapanMalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandIndonesia(3/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates6Bank IndonesiaAmendment to the Regulation of Members of the Board of Governors Number 22/24/PADG/2020 on Standing FacilitiesOn 7
220、September 2023,the Bank of Indonesia amended the Standing Facilities provisions in the Regulations of Members of the Board of Governors to include the following:Provisions regarding securities that could be repurchased in Lending Facility Transactions,namely Bank Indonesia Certificates,Bank Indonesi
221、a Certificates of Deposit,Bank Indonesia Sukuk,Bank Indonesia Rupiah Securities(SRBI)and Government Securities.SRBI available for repurchase agreement(repo)in Lending Facility Transaction is,at most,equal to the nominal value of securities recorded in the Securities Account.If a Standing Facilities
222、Participant fails to fulfill the second leg settlement obligation of a Lending Facility transaction conducted using SRBI,Bank Indonesia will debit the rupiah Current Account or conduct early redemption automatically through BI-SSSS.Amendment to the Regulation of Members of The Board of Governors Num
223、ber 22/24/PADG/2020 on Standing Facilities|Bank Indonesia-7Bank IndonesiaSecond Amendment to The Regulation of the Members of the Board of Governors Number 22/23/PADG/2020 on the Implementation of the Open MarketOn 7 September 2023,the Bank of Indonesia strengthened participation in the implementati
224、on of Money Operations in the form of implementing primary dealers.Matters regulated in this second amendment include the following:Stages of SRBI issuance through auction,such as announcement of auction plan,submission of auction bids,determination of auction winners,announcement of auction results
225、,and settlement of auction results,are explained in this regulation.SRBI is stipulated as securities that can be used in Monetary Operations and Conventional Open Market Operations(OPT)Repo Transactions.Provisions relating to the settlement of Conventional OPT Repo Transactions using SRBITypes of sa
226、nctions imposed on Conventional OPT Participants for violations of settlement obligations Correspondence and document submission mechanisms for various registration applications and changes to registration informationSecond Amendment to The Regulation of the Members of the Board of Governors Number
227、22/23/PADG/2020 on the Implementation of the Open Market-2023.For information,Contact Deloitte Touche Tohmatsu Limited.28IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaSummaryIndiaAsia Pacific Financial Services Regulatory Update Q3 2023JapanMalaysiaSingaporeThailandNew ZealandPhilippinesT
228、aiwan(China)VietnamContactsChinese MainlandIndonesia(4/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates8Bank IndonesiaAmendment to the Regulation of the Members of the Board of Governors Number 22/25/PADG/2020 concerning Criteria and Requirements for Securities in Monetary OperationsWith the goal
229、 of strengthening the implementation of sustainable Monetary Operations and to support the development of money markets and foreign exchange markets,Bank Indonesia have amended regulations relating to issuing Bank Indonesia Rupiah Securities(SRBI),establishing SRBI as securities that can be used in
230、Monetary Operations.SRBI is designated as securities that can be used in Monetary Operations,namely Conventional OPT Repo Transactions and Lending Facility Transactions.Some of the points contained in the Regulation of Members of the Board of Governors Number 7 of 2023 are:The remaining term require
231、ment of SRBI that can be used in Conventional OPT Repo Transactions and Lending Facility Transactions is to have a minimum remaining term of 2(two)business days at the time of the second leg of the two transactions;SRBI price is determined by Bank Indonesia by considering the weighted average discou
232、nt rate at issuance,the remaining term of each SRBI series,and/or other variables.In addition,the SRBI haircut is set at 0%;The settlement value of Conventional OPT Repo Transactions and Lending Facility with SRBI has several provisions.Early redemption of SRBI is eligible if there is a failure to s
233、ettle the Conventional OPT Repo Transaction on time;a failureto settle the Lending Facility Transaction on time;or an early termination settlement of the Conventional OPT Repo Transaction.Amendment to the Regulation of the Members of the Board of Governors Number 22/25/PADG/2020 concerning Criteria
234、and Requirements for Securities in Monetary Operations|Bank Indonesia-9Bank IndonesiaFourth Amendment to the Member Regulation of the Board of Governors Number 22/22/PADG/2020 concerning Open Market Operation InstrumentsOn 7 September 2023,Bank Indonesia made its fourth amendment to the Regulation o
235、f the Members of the Board of Governors No.22/22/PADG/2020.The amendment aims to support the development of the money and foreign exchange market,improve the effectiveness of monetary policy transmission,and strengthen Monetary Operations,through the issuing of SRBI as one of the Monetary Operations
236、 instruments for rupiah liquidity absorption.SRBI are rupiah-denominated securities issued by Bank Indonesia as short-term debt recognition using underlying assets in the form of securities owned by Bank Indonesia.The characteristics of SRBI are as follows:The shortest period of 1 week and the longe
237、st period of 12 months expressed in the number of calendar days,which is calculated from 1 day after the transaction completion date until the maturity date.Issued scripless and maintained in BI-SSSS,as well as issued and traded with a discount system.Can be transferred(negotiable)through trading in
238、 the secondary market by means of outright purchase or sale,borrowing,granting,repurchase agreement(repo),used as collateral.Can be owned by residents or non-residents in the secondary market.Bank Indonesia may conduct early redemption of SRBI if there is a cancellation of the transaction during the
239、 second leg of the expansionary Monetary Operation transaction using securities in the form of SRBI or if there are considerations related to monetary management strategies determined by Bank Indonesia.Fourth Amendment to the Member Regulation of the Board of Governors Number 22/22/PADG/2020 concern
240、ing Open Market Operation Instruments|Bank Indonesia-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanSummaryIndia29Asia Pacific Financial Services Regulatory Update Q3 2023MalaysiaSingaporeThailandNew ZealandPhilippinesTaiwa
241、n(China)VietnamContactsChinese MainlandJapan(1/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates1JFSAJFSA published draft amendments to the Cabinet Office Ordinance on Regulation of Securities Transactions,etc.On 11 July 2023,the Japan Financial Services Agency(JFSA)published the draft Cabinet Off
242、ice Order to Amend the Cabinet Office Order on Restrictions on Securities Transactions,etc.(Cabinet Office Order)for public consultation.The proposal intends to exempt transactions related to actively managed Exchange Traded Funds(ETFs)for which no specific index exists from short-selling regulation
243、s by providing consequential amendments to the Cabinet Office Order.JFSA expects the market size for actively managed ETFs to expand within Japan in the future and intends to create a similar market to the global trading environment through the proposed amendments.Consultation on this amendment clos
244、ed on 10 August 2023.Announcement of Draft Cabinet Office Ordinance to Partially Amend the Cabinet Office Ordinance on Regulation of Securities Transactions,etc.:Financial Services Agency(fsa.go.jp)Consultation ended:10 August 20232JFSAJFSA announced the list of evaluation organisations endorsing th
245、e Code of Conduct for ESG Evaluation and Data ProvidersOn 27 July 2023,the Technical Committee for ESG Evaluation and Data Providers(established by the JFSA)published a list of 17 ESG Evaluation and Data Providers who have notified JFSA of their intent to endorse the Code of Conduct for ESG Evaluati
246、on and Data Providers.The Code of Conduct takes into consideration consultation which closed on 15 December 2022 and invites further organisations to express their endorsement through JFSAs Strategy Development and Management Bureau.Announcement of the List of Evaluation Organisations that Have Anno
247、unced Acceptance of the Code of Conduct for ESG Assessment and Data Providers:Financial Services Agency(fsa.go.jp)-2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanSummaryIndia30Asia Pacific Financial Services Regulatory Upda
248、te Q3 2023MalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandJapan(2/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates3JFSAJFSA published results of public comments on amendments to the Cabinet Office Ordinance on Financial Instruments BusinessOn 1 August 20
249、23,JFSA published the final Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business after public consultation.The finalised Cabinet Office Order is intended to develop the environment for financial business operators intending to engage in investment advisory busines
250、s as a subsidiary business concurrently.Major amendments included:Review of the application of registration pertaining to investment advisory business or of the employee who is to submit the notification;Matters are to be described in the document for delivery prior to the conclusion of an investmen
251、t advisory contract and discretionary investment management contract;Flexibility of media for documents describing the content of advice based on an investment advisory contract;andReview of exemptions from the prohibition of lending.Results of Public Comments on the Draft Cabinet Office Ordinance P
252、artially Amending the Cabinet Office Ordinance on Financial Instruments Business,etc.:Financial Services Agency(fsa.go.jp)Effective from 15 August 20234SESCSESC announced Fundamental Policy on Securities Monitoring for the Fiscal Year 2023On 1 August 2023,the Securities and Exchange Commission(SESC)
253、announced its Fundamental Policy on Securities Monitoring for the Fiscal Year 2023.The policy emphasises the following cross-industry verification subjects:Establishing internal governance structures that focus on appropriate investment solicitations and operations based on the principles of suitabi
254、lity,as well as customer-oriented sales practices;Adapting to changes in business models due to the developments of digitisation and establishing corresponding internal management structures;Ensuring the adequacy of cybersecurity measures and managing system risks related to advancements in digitisa
255、tion;Assessing the establishment of internal management structures related to AML/CTF;andImplementing improvements and preventive measures based on results from internal audits.Basic Policy on Securities Monitoring for Fiscal Year Reiwa:Securities and Exchange Surveillance Commission(fsa.go.jp)-2023
256、.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanSummaryIndia31Asia Pacific Financial Services Regulatory Update Q3 2023MalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandJapan(3/4)#Issuing
257、 AuthorityTitleRegulatory UpdateKey Dates5JFSAJFSA published The JFSA Strategic Priorities July 2023-June 2024On 29 August 2023,the JFSA announced its Financial Administration Policy for fiscal year 2023,a publication setting key priorities for JFSA in 2023.Four priority issues were outlined:Support
258、ing the stability of the Japanese economy and the well-being of citizens;Building a financial system that resolves social issues and fosters economic growth;Ensuring stability and confidence in the financial system,ensuring financial institutions adhere to laws and regulations and conduct customer-c
259、entric operations;andEvolving and deepening financial administration through enhancements in data utilisation,improving skills of staff,and strengthening policy advocacy capabilities both domestically and internationally.The JFSA has outlined specific measures and initiatives to promote each priorit
260、y,including the development of an International Financial Centre,advancing innovation and strengthening cybersecurity.Financial Administration Policy for Fiscal Year 2023|JFSA-6JFSAJFSA publishes draft ordinance related to revision of the Digital Society Formation Basic LawOn 31 August 2023,JFSA pub
261、lished a draft ordinance related to the revision of the Digital Society Formation Basic Law that regulates the financial sector.The Digital Society Formation Basic Law aims to promote regulatory reform to facilitate the formation of a digital society and revises FSA-regulated laws to review the regu
262、lations on written notices.The JFSA invited public consultation on the draft due by 29 September 2023.Announcement of Draft Cabinet Order Concerning the Preparation of Cabinet Orders Related to the Financial Services Agency in Conjunction with the Enforcement of the Act for Partial Revision of the B
263、asic Act on the Formation of a Digital Society to Promote Regulatory Reform to Shape a Digital Society:Financial Services Agency(fsa.go.jp)Consultation ended 29 September 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapan
264、SummaryIndia32Asia Pacific Financial Services Regulatory Update Q3 2023MalaysiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandJapan(4/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates7JFSAJFSA announced Partial Revision(Draft)of Guidelines for Preparation,Storag
265、e,and Reporting items for OTC DerivativesOn 1 September 2023,JFSA partially revised and opened for public consultation Article 4(1)of the Cabinet Office Ordinance on Regulation of OTC Derivative Transactions.Article 4(1)stipulates the“Guidelines for Preparation,Storage and Reporting Items”and,under
266、its revision,introduces Unique Product Identifiers(UPIs)and Deltas as reporting items for over-the-counter derivative transactions in Japan.After completion of the consultation,reporting on UPIs and Delta will commence on 7 April 2024.Announcement of Partial Revision(Draft)of Guidelines for Preparat
267、ion,Storage,and Reporting Items Stipulated in Article 4,Paragraph 1 of the Cabinet Office Ordinance on Regulation of Over-the-Counter Derivative Transactions:Financial Services Agency(fsa.go.jp)Consultation ended 2 October 2023UPI and Delta reporting effective from 7 April 20248JFSAJFSA published am
268、endments to the Cabinet Office Ordinance on Financial Instruments BusinessOn 1 September 2023,JFSA announced the draft Cabinet Office Order to Amend the Cabinet Office Order on Financial Instruments Business,etc.,for public consultation.The draft amendment makes changes to the consolidated regulatio
269、ns for special financial instruments business operators(Type I-with total assets exceeding one trillion yen)to ensure compliance with IFRS and other relevant standards.Furthermore,the amendment proposes to exempt Type I financial instruments business operators and registered financial institutions f
270、rom filing a report on affiliated companies if they have no related companies to report.Announcement of Draft Cabinet Office Ordinance to Partially Amend the Cabinet Office Ordinance on Financial Instruments Business,etc.:Financial Services Agency(fsa.go.jp)Consultation ended 2 October 2023 2023.For
271、 information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSummaryIndia33Asia Pacific Financial Services Regulatory Update Q3 2023SingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandMalaysia(1/2)#Issuing
272、AuthorityTitleRegulatory UpdateKey Dates1BNMBNM Aims to Enhance Credit Risk ManagementOn 31 July 2023,Bank Negara Malaysia(BNM)released its policy document that seeks to ensure long-term,effective credit risk management practices of Malaysian financial institutions.The document aims to align credit
273、risk management practices with international standards and reflect the local context.BNM Financial institutions will,at a minimum,be required to implement the standards disclosed in the policy document and be able to demonstrate to the Bank that their risk management arrangements are operating effec
274、tively and remain commensurate with the size,nature,complexity and risk profile of their institution.Credit Risk|BNMPolicy document effective from 1 January 20242BNMBNM Issues Exposure Draft on Liquidity Risk Management On 23 August 2023,BNM released an exposure draft that sets out the Banks propose
275、d requirements and guidance on the management of liquidity risk.BNM aims to ensure financial institutions(FIs)are effective in assessing their exposures to liquidity risk and take appropriate measures to address their liquidity needs.The requirements and guidance set out in the document also complem
276、ent the Liquidity Coverage Ratio(LCR)and Net Stable Funding Ratio(NSFR)policy documents which set out minimum regulatory liquidity requirements.The Bank invites feedback on the proposed requirements,including suggestions on areas to be clarified and alternative proposals the Bank should consider.The
277、 consultation is open for feedback until 30 November 2023.Liquidity Risk|BNMFeedback due by 30 November 20233BNMBNM Addresses Quality and Integrity of Currency Through New Policy DocumentOn 12 September 2023,BNM as the sole authority to issue currency notes and coins in Malaysia,issued a new policy
278、document setting out the principles and standards for effective management of the quality and integrity of Malaysian currency circulation.The policy document outlines:the criteria for determining the quality of currency note and currency coin in circulationthe standards to be adhered to by financial
279、 institutions(FIs)in processing currency note and currency coin,and recirculating them to the public;the standards to be adhered to by FIs in handling suspected counterfeit Malaysian currency in Malaysiathe timeline for FIs to lodge a police report with PDRM of the discovery of suspected counterfeit
280、 Malaysian currencythe requirements for FIs to have competent staff and to calibrate and perform attestation on their currency processing machines.Quality and Integrity of Currency|BNM Policy document effective from 1 October 20234BNMBNM Issues Policy on Management of Insurance FundsOn 7 July 2023,B
281、NM published its Management of Insurance Funds policy,aimed at promoting sound management of insurance funds of licensed insurers.The policy seeks to protect the interests of policy owners by ensuring proper segregation of insurance funds,appropriate attribution of assets and liabilities,robust cont
282、rols over withdrawals and maintenance of policies and claims records.The policy applies to all insurers licensed under the Financial Services Act(2013)and comes into effect on 1 July 2024.Management of Insurance Funds|BNMPolicy document effective from 1 July 2024 2023.For information,Contact Deloitt
283、e Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSummaryIndia34Asia Pacific Financial Services Regulatory Update Q3 2023IndonesiaSingaporeThailandNew ZealandPhilippinesTaiwan(China)VietnamContactsChinese MainlandMalaysia(2/2)#Issuing AuthorityTitleRegul
284、atory UpdateKey Dates5BNMBNM Releases Document on the Management of Participating Life BusinessOn 10 July 2023,BNM outlined its vision for effective management of participating life businesses.The BNM released its document Management of Participating Life Business,aimed at promoting the sustainabili
285、ty of participating life businesses and protecting policy owners interests.The policy addresses:the roles and responsibilities of the board,senior management and the appointed actuary,requirements for the determination of benefit payouts and allocation of expenses to participating life businessRequi
286、rements to promote transparency and adequate disclosures to participating life policy owners over the duration of a participating life contractThe policy document comes into effect from 1 July 2024,and is applicable to all licenced insurers under the Financial Services Act 2013.Management of Partici
287、pating Life Businesses|BNMPolicy document effective from 1 July 20246SCMSCM Issues Guidelines on Technology Risk ManagementOn 1 August 2023,the Securities Commission Malaysia(SCM)issued new Guidelines on Technology Risk Management(Guidelines)pursuant to section 377 of the Capital Markets and Service
288、s Act 2007.The Guidelines introduce a comprehensive regulatory framework for the management of technology risk in capital market entities.The Guidelines set out the roles and responsibilities of the board of directors and senior management,reporting and notification requirements to the SCM,and the r
289、equirements for managing technology risk.The Guidelines will supersede and replace the Guidelines on the Management of Cyber Risk once an effective date has been announced.Guidelines on Technology Risk Management|SCM-7SCMSCM Revises Guidelines on Unlisted Capital Market Products under the Lodge and
290、Launch FrameworkOn 29 August 2023,the SCM revised its guidelines on unlisted capital market products under the Lodge and Launch Framework.The Lodge and Launch Framework allows issuers to offer unlisted capital market products to investors without requiring SCM approval,provided all requirements unde
291、r the guidelines are complied with.Key changes from the revision include the expansion of the definition of sophisticated investors,the revision in disclosure requirements for structured products,corporate bonds,sukuk,convertible notes and Islamic convertible notes.Guidelines on Unlisted Capital Mar
292、ket Products Under the Lodge and Launch Framework|SCMEffective date of revision:29 August 20238SCMSCM Issues the Amended Guidelines for the Offering,Marketing and Distribution of Foreign FundsOn 29 August 2023,the SCM amended its Guidelines for the Offering,Distribution and Marketing of Foreign Fund
293、s to introduce the Foreign Exempt Scheme(FES)Framework.The FES Framework will facilitate the offering of foreign funds by allowing local fund management companies(or their related corporations)to offer foreign funds to certain accredited investors and high-net worth entities in Malaysia.Additional a
294、mendments have been made that allow foreign exchange-traded fund(ETF)operators to list up to five non-plain vanilla ETFs(e.g.,leveraged ETF,inverse ETF,and synthetic ETF),as well as the insertion of additional obligations to foreign ETF operators and parties involved in submissions to the SCM for fo
295、reign fundsGuidelines on the Offering,Distribution and Marketing of Foreign Funds|SCMEffective date of revision:29 August 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaNew ZealandSummaryIndia35Asia Pacific Fin
296、ancial Services Regulatory Update Q3 2023SingaporeThailandPhilippinesTaiwan(China)VietnamContactsChinese MainlandNew Zealand#Issuing AuthorityTitleRegulatory UpdateKey Dates1RBNZGovernance Thematic ReviewOn 1 September 2023,the Financial Markets Authority(FMA)and the Royal Bank of New Zealand(RBNZ)p
297、ublished a joint governance thematic review.The key principles are as follows:Roles and responsibilities of boards,board and committee chairs and their members are clearly defined,understood and remain fit for purpose.Boards maintain the collective skills and experience to guide and oversee the impl
298、ementation of the entitys long-term strategy and to discharge their roles and responsibilities effectively.Succession planning is a priority for the chair.Boards have sufficient independence to support good decision making.Boards have sufficient diversity to support their role.Directors have suffici
299、ent capacity to fulfil their obligations.Boards provide effective and appropriate challenge.A focus on continuous improvement and regular evaluation drives board performance.The findings from this Review will be considered in upcoming policy reviews such as the Standards Development for the Deposit
300、Takers Act and review of the Insurance(Prudential Supervision)Act 2010(IPSA).A review of the FMA Corporate Governance Handbook may also be undertaken.RBNZ and FMA Governance Thematic Review report-2NZ ComComMarket Study Into Personal Banking ServicesOn 20 June 2023,the New Zealand Government asked t
301、he Commerce Commission to carry out a 14-month long study into whether competition for personal banking services is working well or not.The study will consider any factors that may affect competition for the supply or acquisition of personal banking services.The final report due 20 August 2024 may i
302、nclude recommendations that identify ways to improve competition in the sector for the long-term benefit of New Zealand consumers.Commerce Commission-Market study into personal banking services(comcom.govt.nz)Market study ends on 20 August 20243FMAConduct of Financial Institutions(CoFi)legislationOn
303、 14 August 2023,The FMA announced it is now accepting applications for financial institution licences under the Conduct of Financial Institutions(CoFI)regime that comes into force on 31 March 2025.Financial institutions must establish Board-approved fair conduct programmes before they submit their l
304、icence applications,although the programmes do not need to be fully implemented until 31 March 2024.All licences issued by the FMA are subject to six standard conditions.Conduct of Financial Institutions(CoFI)legislation|Financial Markets Authority(fma.govt.nz)CoFi regime commences 31 March 2025 202
305、3.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaNew ZealandSummaryIndiaPhilippinesAsia Pacific Financial Services Regulatory Update Q3 202336IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaTaiwan(China)VietnamCon
306、tactsChinese MainlandPhilippines(1/2)#Issuing AuthorityTitleRegulatory UpdateKey Dates1BSPAnti-Money Laundering Council(AMLC)2022 Terrorism and Terrorism Financing(TF)Risk AssessmentOn 23 June 2023,The Bangko Sentral Ng Pilipinas(BSP)issued a circular letter disseminated to all banks regarding the A
307、nti-Money Laundering Council 2022 Terrorism and Terrorism Financing Risk Assessment.The paper aims to serve as guidance to stakeholders,including financial institutions,regarding their AML-CTF risk-based strategies.BSP,in their thematic review of Proliferation financing,recommended that BSP-supervis
308、ed financial institutions(BSFIs)adopt or enhance their policies based on the Targeted Financial Sanctions(TFS)Framework and uplift control measures on proliferation financing.Furthermore,BSFIs are encouraged to consider the results of the study in their risk analysis and assessments to reassess and
309、evaluate their terrorism,terrorism financing and proliferation financing risk mitigation strategies.Anti-Money Laundering Council(AMLC)2022 Terrorism and Terrorism Financing(TF)Risk Assessment|BSP-2BSPReduction in Reserve RequirementsOn 23 June 2023,BSP published a circular approving a reduction in
310、the reserve requirement(RR)ratios of deposit and deposit substitute liabilities of banks and non-bank institutions with quasi-banking functions(NBQBs).The RR ratios refers to the percentage of reservable liabilities that banks and NBQBs must keep as cash or deposits with BSP to ensure effective liqu
311、idity and stability.BSP aims to increase liquidity in the financial system and lower the cost of funds for banks and NBQBs to boost economic recovery following the COVID-19 pandemic.Reduction in Reserve Requirements|BSPEffective from 30 June 20233BSPAmendments to the Rules and Regulations on the Res
312、erves Against Deposits and Deposit Substitute Liabilities of BanksOn 29 June 2023,BSP made amendments to the Manual of Regulations for Banks(MORB)on the rules and regulations governing reserves against deposit and deposit substitute liabilities of banks.Effective from 30 June 2023,the rates of requi
313、red reserves against deposit and deposit substitute liabilities in local currency of banks will adjust to:Peso deposits lodged under Due to foreign banks-9.5%for Ubs/KBs;6%for Digital BanksPeso deposits lodged under Due to HO/Branches/Agencies Abroad-9.5%for Ubs/KBsl 6%for Digital banksAdditionally,
314、alternative modes of compliance(outlined in section 252)with reserve requirements allow the use of micro,small and medium enterprise(MSME)loans as part of reserve composition.BSP is extending the availability of this method until 30 June 2023 for all banks and until 31 December 2025 for thrift,rural
315、 and cooperative banks.Amendments to the Rules&Regulations on Reserves Against Deposits and Deposit Substitute Liabilities of Banks|BSPEffective from 30 June 2023 2023.For information,Contact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaNew Z
316、ealandSummaryIndiaPhilippinesAsia Pacific Financial Services Regulatory Update Q3 202337IndonesiaJapanMalaysiaSingaporeThailandNew ZealandIndiaTaiwan(China)VietnamContactsChinese MainlandPhilippines(2/2)#Issuing AuthorityTitleRegulatory UpdateKey Dates4BSPFinancial Action Task Force(FATF)Publication
317、s 23 June 2023On 4 July 2023,BSP released a circular to inform BSFIs about the Financial Action Task Forces(FATF)recent publications.The publications and their updates are:High-risk Jurisdictions subject to a Call for Action:no new countries have been added to the list,with no change to those on the
318、 current list and subject to a call for action(currently North Korea,Iran and Myanmar).Jurisdictions under Increased Monitoring:FATF has updated the list of jurisdictions under increased monitoring to include Cameroon,Croatia and Vietnam.Statement on the Russian Federation:FATF reiterates that all j
319、urisdictions should be vigilant to current and emerging risks from the circumvention of measures taken against the Russian Federation and the Russian Federations suspension from the group remains.Financial Action Task Force(FATF)Publications 23 June 2023|BSP-5BSPGuidelines on the Use of Benchmarks f
320、or Unit Investment Trust Funds(UITFs)On 9 August 2023,BSP approved amendments to the guidelines on the use of benchmarks in presenting returns for Unit Investment Trust Funds(UITFS).Benchmarks allow UTIF participants to assess whether a fund is overperforming or underperforming regarding a relevant
321、market index or a portfolio with comparable return-risk profile.Trustees,in its policies and procedures,will be required to outline the process for the selection and approval of a benchmark,the process for period reviews of benchmarks and contingency plans in the event the benchmark becomes unavaila
322、ble.Guidelines on the Use of Benchmarks for Unit Investment Trust Funds(UITFs)|BSPEffective from 24 August 20236BSPImplementation of the International Transaction Reporting System(ITRS)On 18 August 2023,BSP issued a revised timeline for the rollout of the Implementation of the International Transact
323、ion Reporting System(ITRS).The ITRS is a data collection system that obtains information from banks on all peso and foreign currency transactions between a countrys residents and non-residents,as well as transactions between residents that pass through the domestic banking system.The system will als
324、o feature a summary report that captures data on banks net on-balance sheet foreign exchange assets and net foreign asset position daily.ITRS reports will be required to be submitted using the Application Programming Interface(API)in Extensible Markup Language(XML),and full implementation will be re
325、quired by April 2024,with a soft launch taking place in January 2024.Implementation of the International Transaction Reporting System(ITRS)|BSPITRS Soft Launch in January 2024ITRS full implementation by April 20247BSPAmendments to Reverse Repurchase Agreements for NBFIsOn 1 September 2023,BSP announ
326、ced an amendment to Reverse Repurchase(RRP)agreements.RRPs are monetary instruments where BSP sells government securities with a commitment to repurchase them at a later date.The amendments aim to implement a fixed-volume variable-rate auction format for RRP operations,where BSP will set the volume
327、of RRP transactions,and counterparties will bid for the interest rate.Amendments to the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions pertaining to Bangko Sentrals Reverse Repurchase Operations|BSPEffective from 8 September 2023 2023.For information,Co
328、ntact Deloitte Touche Tohmatsu Limited.IntroductionAustraliaMainland ChinaHong Kong SARIndonesiaJapanMalaysiaSingaporeSouth KoreaThailandNew ZealandSummaryIndiaPhilippinesTaiwan(China)VietnamAsia Pacific Financial Services Regulatory Update Q3 202338IndonesiaJapanMalaysiaThailandNew ZealandIndiaPhil
329、ippinesTaiwan(China)VietnamContactsChinese MainlandSingapore(1/4)#Issuing AuthorityTitleRegulatory UpdateKey Dates1MASMAS Vigilance in Safeguarding the Financial System On 16 August 2023,the Monetary Authority of Singapore(MAS)announced it is working closely with the Commercial Affairs Department(CA
330、D)to facilitate the development of the case that led to the Polices arrest of 10 individuals for suspected involvement in offences,including forgery and/or money laundering and resistance to lawful apprehension.MAS has been collaborating closely with the CAD to identify potentially tainted funds and
331、 assets in our financial system and prevent their dissipation.In one of the biggest anti-money laundering operations,the Singapore Police Force(SPF)rounded up a group of 10 foreigners and froze about SGD$2.4 billion worth of assets.MAS Will Not Tolerate the Abuse of Our Financial System for Illicit
332、Activities-2MASStrengthening AML/CFT Controls and Practices to Detect and Mitigate Risks of Misuse of Legal Persons/Arrangements and Complex Structures On 30 August 2023,MAS released a paper on Strengthening AML/CFT Controls and Practices to Detect and Mitigate Risks of Misuse of Legal Persons/Arran
333、gements and Complex Structures.This paper sets out typologies and case studies observed by MAS during inspections of Financial Institutions(FI)and expectations to ensure robust anti-money laundering and countering the financing of terrorism(AML/CFT)controls.FIs should ensure that their AML/CFT controls adapt to fast-changing typologies to remain effective in mitigating ML/TF risks arising from the