“Beyond the Horizon: A 2024 Supervision Blueprint for Navigating the Evolving Landscape”
**Capital Markets Supervision Update**
The capital markets have been a hotbed of activity in recent months, with numerous regulatory bodies around the world taking steps to maintain financial stability and promote innovation. In this article, we’ll take a closer look at some of the key developments and fines imposed by various regulatory bodies.
**Strategic Priorities**
The Japan Financial Services Agency (FSA) has announced its strategic priorities for July 2024 to June 2025, which focus on driving reforms and keeping policy measures and tools under review. This underscores the agency’s commitment to ensuring the stability and soundness of the financial system.
**Financial Market Infrastructure Report**
The Bank of England has released its Financial Market Infrastructure Report, which details the efforts to maintain financial stability and promote innovation through the regulation of critical financial infrastructure companies. The report highlights the achievements in meeting statutory targets, implementing new regulatory powers under FSMA 2023, and advancing innovation related to stablecoins and the Digital Securities Sandbox.
**Private Intermittent Securities and Capital Trading System**
The UK Financial Conduct Authority (FCA) is consulting on proposals for a new trading venue, the Private Intermittent Securities and Capital Trading System (PISCES), which would allow private companies to open trading windows for employees and early investors to sell shares.
**Markets in Crypto-Assets Regulation**
The European Securities and Markets Authority (ESMA) has released a final report containing regulatory technical standards and guidance ahead of the implementation of the Markets in Crypto-Assets Regulation (MiCA). This regulation provides regulatory and legal certainty for all crypto-assets in the EU.
**Australian Securities and Investments Commission**
The Australian Securities and Investments Commission (ASIC) has published an annual dashboard outlining regulatory costs by industry and sub-sector in 2023-24. Total regulatory costs recovered through taxes on all industries were approximately $328 million.
**Financial Stability Board**
The Financial Stability Board (FSB) has published recommendations on the regulation of data flows and cross-border payments to address data flow frictions, promote fair competition between bank and non-bank payment service providers, and advance the goals outlined in the G20 Cross-border Payments Roadmap.
**Commodity Futures Trading Commission**
The United States Commodity Futures Trading Commission (CFTC) has announced that monetary relief for fiscal year 2024 will exceed $17.1 billion, a record high. This includes $2.6 billion in civil penalties and $14.5 billion in forfeitures and restitution.
**Fines and Enforcement Actions**
Several regulatory bodies have imposed fines and taken enforcement actions in recent months. Some notable examples include:
* The National Market and Competition Commission (CNMC) fined Gesternova SA €6 million and Axpo Iberia €1.5 million for manipulating the Spanish electricity market.
* The Monetary Authority of Singapore (MAS) assessed a $2.4 million civil penalty on a major financial institution for the misconduct of its relationship managers.
* The Authority for Financial Markets (AMF) imposed fines totaling €4,150,000 on four legal entities and three individuals for spreading false or misleading information and manipulating prices.
* The Special Integrated Circuit (ASIC) fined Bit Trade Pty Ltd $8 million for illegally extending credit facilities to customers without identifying the target market.
**FAQ**
Q: What are the key developments in the capital markets?
A: Some of the key developments include the release of the Bank of England’s Financial Market Infrastructure Report, the FSA’s strategic priorities for July 2024 to June 2025, and the consultation on the Private Intermittent Securities and Capital Trading System (PISCES).
Q: What is the Markets in Crypto-Assets Regulation (MiCA)?
A: MiCA is a regulation that provides regulatory and legal certainty for all crypto-assets in the EU. It was released by the European Securities and Markets Authority (ESMA) and is intended to promote transparency and stability in the crypto-asset market.
Q: What is the purpose of the Financial Stability Board’s recommendations on data flows and cross-border payments?
A: The purpose of the recommendations is to address data flow frictions, promote fair competition between bank and non-bank payment service providers, and advance the goals outlined in the G20 Cross-border Payments Roadmap.
**Conclusion**
The capital markets have been a hotbed of activity in recent months, with numerous regulatory bodies taking steps to maintain financial stability and promote innovation. The developments outlined above highlight the importance of regulatory bodies in ensuring the stability and soundness of the financial system. As the markets continue to evolve, it is essential for regulatory bodies to stay ahead of the curve and implement effective regulations to promote transparency and stability.
