2023-03-01-德勤-2022年第四季度亚太地区金融服务监管政策更新_32页_1mb

Asia Pacific Financial Services Regulatory Update – Q4 2022

Core Content

This document provides a comprehensive overview of key regulatory updates in the Asia Pacific (AP) region during the fourth quarter of 2022. It highlights the evolving regulatory landscape, focusing on digital asset regulation, digital payments, climate and sustainability, and the delayed implementation of Basel III reforms. Additionally, it outlines specific developments in Australia, Mainland China, and Hong Kong SAR, emphasizing the regulatory efforts to enhance financial stability, consumer protection, and innovation.

Main Points

1. Global Uncertainty and Regulatory Preparedness

• Financial regulatory agencies in AP are actively preparing for future challenges, including inflation, slower growth, new pandemic variants, geopolitical tensions, and climate change.
• The goal is to ensure the financial system remains resilient and adaptable to these uncertainties.

2. Digital Asset Regulation

• Key markets in AP, including Hong Kong SAR and Singapore, are reshaping digital asset regulation in response to global crypto failures.
• Regulatory measures include:
  • Enhanced disclosures
  • Safeguarding customer assets
  • Standards for stablecoins
  • Anti-money laundering (AML) controls
  • Cybersecurity requirements
• The aim is to develop responsible digital asset ecosystems that support innovation and transformation in financial services.

3. Digital Payments Advancement

• New technologies and business models are expanding payment options and improving consumer convenience.
• Authorities are updating regulatory frameworks to include digital wallets, buy-now-pay-later (BNPL) arrangements, stablecoins, and crypto-assets.
• Central banks are launching sandboxes to test central bank digital currencies (CBDCs) and exploring cross-border payment cooperation.

4. Climate and Sustainability Focus

• Efforts to combat climate change have intensified since the Paris Agreement.
• AP regulators are promoting sustainable finance to support an inclusive and effective transition to net-zero.
• Financial institutions are encouraged to:
  • Establish robust governance frameworks for green products
  • Conduct climate risk assessments
  • Develop transition plans with green finance support
• Enhanced global cooperation is expected to improve regulatory alignment and data comparability.

5. Basel III Implementation Delays

• HKMA and MAS have delayed the implementation of remaining Basel III reforms to no earlier than 1 January 2024.
• This delay aligns their timelines with those of Japan, EU, UK, and US.
• In contrast, Australia has moved forward with most reforms, effective from 1 January 2023.

Key Regulatory Updates by Region

Australia

• APRA and ASIC Annual Reports: Summarize key regulatory activities and enforcement priorities for 2023.
• Modernising Prudential Architecture: APRA outlines a multi-year plan to improve regulatory clarity, simplicity, and adaptability.
• Board Director Guide: APRA publishes its first guide for bank board directors, focusing on performance evaluation and financial projections.
• Recovery and Exit Planning: Final Prudential Standard CPS 190 is released, effective from 1 January 2024 for banks and insurers.
• Market Resilience Consultation: ASX seeks industry feedback on enhancing market resilience, with new rules expected in March 2023.
• BNPL Regulation: Treasury consults on a regulatory framework for BNPL, with submissions closed on 23 December 2022.
• Insurance Risk Self-assessment: APRA publishes findings from a thematic review of insurance risk management, urging all insurers to evaluate their practices.
• Superannuation Transfer Planning: APRA proposes enhancements to transfer planning guidance, with submissions open until 10 March 2023.
• Financial Resources for Risk Events: APRA seeks feedback on updating prudential standards to better manage operational risk in superannuation.
• Climate-related Financial Disclosure: Treasury consults on climate-related financial disclosure standards, with submissions due by 17 February 2023.
• Climate Vulnerability Assessment: APRA releases results of the first climate vulnerability assessment for Australia's largest banks.
• Payments System Strategic Plan: Treasury consults on a strategic plan for the payments system, with submissions due by 6 February 2023.
• Financial System Modernisation: Government outlines priorities for financial system reform, including BNPL regulation and crypto licensing.

Mainland China

• Banking Regulation and Supervision Law: CBIRC consults on a revised draft to improve legal financial regulation and consumer protection.
• Governance Evaluation Methodology: CBIRC updates rules for corporate governance evaluation in banks and insurance companies.
• Insurance Security Fund Rules: Revised rules aim to strengthen the role of the Insurance Security Fund in protecting policyholders.
• Green Insurance Business Statistical Rules: CBIRC requires insurance companies to collect and report green insurance data systematically.
• Life Insurance Product Information Disclosure: New rules mandate full disclosure of life insurance product details and enhance internal management mechanisms.
• Personal Pension Business Notice: CBIRC outlines requirements for insurance companies to offer personal pension products and manage them effectively.
• Corporate Group Finance Company Rules: Revised rules focus on market entry, classified supervision, and risk resolution.
• Interim Rules on Personal Pension Business: CBIRC consults on the development of personal pension business for commercial banks and wealth management companies.
• Commercial Bill Management Rules: PBC and CBIRC revise rules to regulate commercial bill acceptance, discounting, and rediscounting.
• Commercial Bank Off-balance Sheet Management: CBIRC updates the risk management approach for off-balance sheet activities.
• Comprehensive Supervisory Rating for Foreign Bank Branches: CBIRC introduces a new rating system for foreign bank branches to improve supervision and resource allocation.

Hong Kong SAR

• Basel III Final Reform Implementation: HKMA finalises the implementation timetable for Basel III reforms, with key standards to be applied from 1 January 2024.
• AML and CTF Amendment Bill: The bill introduces licensing for virtual asset service providers and a two-tier registration system for precious metal dealers.
• AMLab Series with Cyberport: HKMA continues to host AML Regtech Labs to combat fraud using synthetic data and network analytics.
• Green and Sustainable Product Due Diligence: HKMA shares best practices for managing green and sustainable products to prevent greenwashing.
• Risk-based Supervisory Approach: HKMA updates its supervisory approach to include climate risk and other emerging risks.
• HKFRS/IFRS 17 Implementation: IA provides clarifications on reporting requirements under the new insurance accounting standard.

Conclusion

The Q4 2022 regulatory updates across the Asia Pacific region reflect a continued focus on digital transformation, climate resilience, and financial stability. Regulators are adapting to new challenges by enhancing consumer protection, promoting innovation, and strengthening oversight frameworks. These changes are expected to shape the future of financial services in the region, ensuring a more transparent, resilient, and sustainable industry.