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On 17 December 2024, the Swiss Financial Market Supervisory Authority (FINMA) issued its groundbreaking circular titled “Nature-related Financial Risks”. This directive establishes comprehensive guidelines for banks and insurers to identify, manage, and mitigate financial risks associated with climate and other nature-related factors. Aimed at bolstering the resilience of Switzerland’s financial sector, the circular aligns with international frameworks and introduces a proportional approach tailored to institutions of varying complexity and size. Following extensive consultations with stakeholders, the directive responds to industry and civil society feedback, balancing practical implementation with ambitious regulatory standards. FINMA’s circular defines nature-related financial risks as those resulting from exposure to climate change and ecological degradation. These include physical risks such as floods, storms, and droughts, as well as transition risks associated with policy...

On 20 December 2024, the Swiss Federal Council announced the appointment of Aline Darbellay as a member of the Board of Directors of the Swiss Financial Market Supervisory Authority (FINMA). Aline Darbellay is an expert in financial market law and will succeed Susan Emmenegger, who is stepping down at the end of the year. Aline Darbellay’s term will commence on 1 January 2025 and run through to the end of 2027. Susan Emmenegger, the outgoing member, has been appointed Dean of the Faculty of Law at the University of Bern, after her resignation from FINMA effective 31 December 2024. Marlene Amstad, Chair of FINMA’s Board, expressed her gratitude stating: “I am delighted that in Aline Darbellay we are gaining a recognised expert in financial market law with an understanding of economic interrelationships and strategic issues for our Board of Directors. I would like to thank Susan Emmenegger for her great commitment to FINMA’s Board of Directors, which she has enriched with her proven...

On 23 December 2024, the United States Securities and Exchange Commission (US SEC) issued an order under Section 15(b) of the United States Securities Exchange Act of 1934, permanently barring Richard Brown from associating with any broker-dealer, investment adviser, or other regulated entities. Brown's involvement in a fraudulent kickback scheme tied to Forcefield Energy, Inc. stock sales and follows a final judgment entered against him by the United States District Court for the Eastern District of New York. The US SEC's administrative order formalised its sanctions against Richard Brown, a former registered representative of a broker-dealer. The order permanently bars him from the securities industry and prohibits his participation in any penny stock offerings. The judgment permanently enjoined him from violating antifraud provisions under the United States Securities Act of 1933 and the United States Securities Exchange Act of 1934. Richard Brown, a 45-year-old resident of...

On 19 December 2024, the Saeima of Latvia appointed Māris Kālis as the Acting Governor of Latvijas Banka to ensure the seamless continuity of the central bank's operations. This decision follows the Saeima’s failure to elect a new Governor, leaving Kālis, currently serving as Deputy Governor, to assume the Governor’s responsibilities starting 21 December 2024. The interim arrangement will remain in effect until a new Governor is officially elected and begins their term. Mārtiņš Kazāks, the outgoing Governor, concluded his tenure on 20 December 2024. Under Latvian law, the Governor of Latvijas Banka serves a five-year term, with the possibility of holding the position for a maximum of two consecutive terms. The Latvian Saeima has indicated that the appointment of a permanent Governor will be addressed in early 2025. During this interim phase, Latvia will be temporarily without voting rights in the Governing Council of the European Central Bank. The role of Latvijas Banka’s Governor is...

On 11 December 2024, Mr. Sanjay Malhotra was appointed as the Governor of Reserve Bank of India. Mr. Sanjay Malhotra, who has considerable administrative and financial experience, assumed charge as the 26th Governor for a three-year term. An Indian Administrative Service officer from the 1990 Rajasthan cadre, Mr. Sanjay Malhotra brings experience spanning finance, taxation, information technology, and power sectors. Prior to his appointment as RBI Governor, Mr. Sanjay Malhotra served as Secretary in the Department of Revenue under the Ministry of Finance. Before that, he held the position of Secretary in the Department of Financial Services. His tenure as a bureaucrat in government service also includes being the Chairman and Managing Director of Rural Electrification Corporation Limited. Mr. Sanjay Malhotra has previously been associated with the Reserve Bank of India, serving as a Government Nominee Director on its Central Board from February 2022 to November 2022. An alumnus of...

On 20 December 2024, the United States Commodity Futures Trading Commission (US CFTC) published the Final Rule along with a fact sheet outlining requirements for futures commission merchants (FCMs) concerning margin adequacy and the treatment of separate accounts of customers. This aims to codify and expand the no-action position first detailed in US CFTC Letter 19-17, bringing greater clarity and structure to how FCMs manage customer accounts and associated risks. The fact sheet accompanying the rule covers the regulatory journey that began in 2019, when the Division of Clearing and Risk and the Division of Swap Dealer and Intermediary Oversight (now Market Participants Division) issued Letter 19-17. That letter allowed clearing FCMs to treat separate accounts of a single customer as distinct entities under specific risk-mitigating conditions. This practice was further extended and clarified in subsequent letters, including 20-28, 21-29, 22-11, 23-13, and 24-07. In April 2023, the...

On 20 December 2024, the United States Securities and Exchange Commission (US SEC) issued an order instituting cease-and-desist proceedings pursuant to Section 8A of the United States Securities Act of 1933, making findings, and imposing a cease-and-desist order against Tai Mo Shan Limited, a subsidiary of Jump Crypto Holdings LLC. The company has been ordered to pay US $123 million in penalties and disgorgements for its role in misleading investors about the stability of Terraform Labs’ Terra USD (UST) stablecoin and engaging in unregistered sales of LUNA, a crypto asset classified as a security. This case highlights critical lapses in transparency and compliance in the cryptocurrency sector and reinforces the US SEC’s commitment to safeguarding investor interests and upholding market integrity. Tai Mo Shan Limited’s involvement with Terraform Labs began in November 2019, when the company entered agreements with Terraform, a Singapore-based firm responsible for issuing LUNA and UST....

On 19 December 2024, the United Kingdom's Financial Conduct Authority (UK FCA) announced an order instituting consultation for a new product information framework under CP24/30: A New Product Information Framework for Consumer Composite Investments (CCIs). The initiative proposes amendments to how investment products are presented to retail investors, focusing on enhancing clarity, flexibility, and consumer empowerment in investment decisions. This decision follows a commitment by the UK Treasury to replace European Union-derived regulations with a more tailored domestic framework. The current EU-based regulatory landscape, which includes Packaged Retail and Insurance-based Investment Products (PRIIPs) and Undertakings for Collective Investment in Transferable Securities (UCITS), criticised for its rigidity and inefficiency in delivering meaningful, comprehensible investment information to consumers, and, therefore by redefining the regulatory framework, the UK FCA aims to address...

On 18 December 2024, the United States Securities and Exchange Commission (US SEC) approved the 2025 budget of the Public Company Accounting Oversight Board (PCAOB), amounting to $399.7 million, alongside the corresponding annual accounting support fee. The accounting support fee, totalling US$374.9 million, will be distributed among public company issuers ($346.1 million) and registered broker-dealers (US$28.8 million). The PCAOB was established by the United States Sarbanes-Oxley Act of 2002 to enhance trust in financial reporting by overseeing the audits of public companies and broker-dealers. Its responsibilities include setting auditing standards, conducting inspections, and investigating and disciplining auditors. The US SEC maintains oversight of the PCAOB, approving its budget annually to ensure its activities align with investor protection and public interest goals. For 2025, the PCAOB submitted its budget proposal to the US SEC after a rigorous review process. The US SEC’s...

On 19 December 2024, the United States Securities and Exchange Commission (US SEC) has granted approval for rule changes proposed by the Nasdaq Stock Market LLC and Cboe BZX Exchange, Inc. to list and trade shares of two new cryptocurrency-based exchange-traded funds (ETFs): the Hashdex Nasdaq Crypto Index ETF and the Franklin Crypto Index ETF. The Hashdex Nasdaq Crypto Index ETF and the Franklin Crypto Index ETF represent commodity-based trust shares designed to hold spot bitcoin and ether, with proportions determined by their respective market capitalisations. The Nasdaq proposal for the Hashdex ETF and the Cboe proposal for the Franklin ETF both underwent amendments and public consultations to refine their operational structures and ensure alignment with applicable trading rules. The SEC’s decision follows previous approvals of cryptocurrency-based ETFs that focused on either spot bitcoin or ether, building on the regulatory framework established in 2024. Both ETFs aim to provide...

On 18 December 2024, the Hong Kong Securities and Futures Commission (HK SFC) announced that it had granted licences to four virtual asset trading platforms (VATPs) under its streamlined licensing process. The process follows a comprehensive series of on-site inspections conducted since June 2024. The four newly virtual asset trading licensed platforms, Accumulus GBA Technology (Hongkong) Co. Limited, DFX Labs Company Limited, Hong Kong Digital Asset EX Limited, and Thousand Whales Technology (BVI) Limited, will initially operate under a restricted scope of business while completing mandatory rectifications and assessments as outlined in the SFC’s newly published circular​. The streamlined licensing process as initiated by HK SFC mandates requirements such as rectifying issues identified during the HK SFC’s inspections and conducting independent vulnerability assessments and penetration tests to ensure compliance with security and operational standards​. The Hong Kong Securities and...