What are the top 10 regulatory changes impacting global finance?

1. Basel III: The Basel III regulations issued by the Basel Committee on Banking Supervision have significantly impacted global finance. These regulations aim to strengthen the global banking system by introducing stricter capital requirements, liquidity standards, and leverage ratios.

2. Dodd-Frank Act: Enacted in response to the 2008 financial crisis, the Dodd-Frank Act introduced a wide range of regulatory changes in the United States. It created the Consumer Financial Protection Bureau (CFPB), implemented stricter regulations on derivatives trading, and introduced the Volcker Rule to restrict proprietary trading by banks.

3. MiFID II: The Markets in Financial Instruments Directive II (MiFID II) is a European Union regulation that aims to enhance transparency and investor protection in financial markets. It imposes stricter reporting requirements, increases scrutiny on high-frequency trading, and expands regulations for trading venues.

4. General Data Protection Regulation (GDPR): The GDPR is a regulation implemented by the European Union to protect individuals’ data privacy and impose strict rules on data handling. It has significant implications for financial institutions that deal with customer data, requiring them to obtain explicit consent for data gathering and processing.

5. IFRS 9: The International Financial Reporting Standard 9 (IFRS 9) introduced new rules for financial instruments’ classification, measurement, and impairment. It requires banks and other financial institutions to adopt a more forward-looking approach to provisioning for bad loans and credit losses.

6. EMIR: The European Market Infrastructure Regulation (EMIR) imposes obligations on derivative market participants in the European Union. It aims to enhance risk management, increase transparency, and reduce systemic risk in the OTC derivatives market.

7. PSD2: The Second Payment Services Directive (PSD2) is an EU directive that aims to regulate payment services and promote competition in the European payment market. It requires banks to open up their customer data to licensed third-party providers, facilitating the development of innovative payment services.

8. FATCA: The Foreign Account Tax Compliance Act (FATCA) is a U.S. law designed to prevent tax evasion by U.S. taxpayers with foreign accounts. It requires foreign financial institutions to report information on U.S. account holders to the Internal Revenue Service (IRS).

9. Solvency II: Solvency II is a set of regulatory requirements for insurance companies operating in the European Union. It establishes risk-based capital requirements, governance, and reporting standards, aiming to increase policyholder protection and stability in the insurance industry.

10. AML/CFT Regulations: Anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations have become increasingly stringent globally. Financial institutions must implement robust AML/CFT procedures to detect and prevent illicit financial activities, ensuring compliance with various country-specific regulations and international standards set by organizations like the Financial Action Task Force (FATF).