FinTech Global FS Regulatory Round-Up - W/e 17 April 2026

ICYMI

• New UK cryptoasset regime: FCA consults on perimeter guidance

Global

IOSCO keynote remarks on modernisation, innovation and cooperation

The International Organisation of Securities Commissions (IOSCO) has published the keynote remarks delivered by Jean-Paul Servais, IOSCO Chair and Chair of the Belgian Financial Services and Markets Authority, at the Institute of International Finance (IIF) Roundtable. Mr Servais comments on, among others, the use of the IOSCO-created SupTech Forum, as a forum for supervisors to collaborate on the use of technology in supervision itself, including the use of AI to strengthen monitoring and enforcement. [17 Apr 2026] #SupTech #AI

BIS: FSI Briefs – Cyber risk stress testing for banks

The Financial Stability Institute (FSI) at the Bank of International Settlements (BIS) has published a paper in the FSI Briefs series: Cyber risk stress testing for banks. Highlights include:

• In the context of growing frequency and sophistication, and increasing potential impacts of cyber incidents, some authorities have disclosed that they are conducting cyber stress tests to enhance firm and sector resilience to operational disruptions, such as those caused by cyber attacks.
• These tests benefit both authorities and firms by identifying vulnerabilities and strengthening response and recovery mechanisms as well as, in some circumstances, identifying the financial stability impacts of such disruptions.
• Based on recent exercises, two distinct approaches emerge, namely firm- or system-focused cyber stress tests. It is important for the authority in charge to select the approach that best reflects the institutional setup and the objectives of the stress test, ensuring consistency across all parts of the exercise.

Continued enhancements and disclosure of the methodological aspects in cyber stress tests can help raise awareness and establish best practices. [16 Apr 2026] #CyberRisk

UK

PRA: Business Plan 2026/27

The PRA has published its 2026/27 Business Plan which sets out the workplan for each of its strategic priorities and its strategy to advance its primary and secondary objectives. This year’s business plan confirms the PRA’s continued focus on safety and soundness and policyholder protection, alongside a proportionate and efficient approach to regulation.

The PRA’s strategic priorities for 2026/27 include:

• maintain the safety and soundness of the banking and insurance sectors and ensure continuing resilience;
• be at the forefront of identifying new and emerging risks, and developing international policy;
• support competitive, dynamic and innovative markets, alongside facilitating international competitiveness and growth, in the sectors that it regulates; and
• run an inclusive, efficient, and responsive regulator within the central bank.

Activities covered in the plan include: implementing Basel 3.1; the ring-fencing review; prudential treatment of cryptoassets; the Dynamic General Insurance Stress Test (DyGIST); the system-wide exploratory scenario exercise (SWES); enhancing operational resilience; and the IMF Financial Sector Assessment Program. [17 Apr 2026] #Crypto #OperationalResilience

SFO publishes Business Plan for 2026-27

The Serious Fraud Office (SFO) has published its Business Plan for 2026-27, setting out how it will invest in intelligence and technology, and strengthen its international partnerships to fight complex fraud, bribery and corruption.

Among other things, the SFO plans to 'mainstream the use of Technology Assisted Review to increase efficiency', launch a new AI roadmap, use automation for translation and transcription, and implement its first case management system. [16 Apr 2026] #AI

TSC publishes responses to AI in financial services recommendations

The Treasury Committee (TSC) has published HM Treasury's, the BoE's and the FCA's responses to its report on AI in financial services. HM Treasury challenged the TSC's assessment that there was a 'wait and see' approach to AI in the sector; it also confirmed that initial critical third party designations would be made this year. The FCA confirmed that, in line with the TSC's recommendation, it would provide more insights and examples to inform firms' approaches to using AI. [16 Apr 2026] #AI

FCA research: Synthetic data and AML

The FCA has published a report which presents the findings of the Synthetic Data and Anti‑Money Laundering (AML) project. The project examined how synthetic data can support innovation in money laundering detection while safeguarding privacy. It concluded that well‑designed synthetic data can provide meaningful analytical value, allowing firms and regulators to experiment safely with new and emerging detection approaches. It highlighted important trade‑offs between realism, privacy and coherence, and emphasised that synthetic data should complement, not replace, live operational data.

The FCA will make the dataset available through the Digital Sandbox as part of the upcoming Synthetic Data AML Solution Sprint. Participants will use the data throughout the sprint and reconvene to share insights on how synthetic data can support innovation in the fight against financial crime. Applications for the Data Sprint close on 26 April 2026. [15 Apr 2026] #SyntheticData #DigitalSandbox

FCA consults on guidance on UK’s future crypto regime

The FCA has published Consultation Paper 26/13 - Cryptoasset perimeter guidance (CP26/13), which seeks feedback on its interpretation of the following regulated cryptoasset activities:

• issuing qualifying stablecoin;
• operating trading platforms;
• dealing and arranging deals in qualifying cryptoassets;
• safeguarding cryptoassets; and

Responses are requested by 3 June 2026. [15 Apr 2026] #Crypto

FCA outlines vision for open finance

The FCA has published a roadmap setting out how it will progress open finance from vision to delivery by 2030. The regulator will prioritise exploring how open finance can help small and medium-sized enterprises (SMEs) to access credit and speed up loan applications. It will also examine how open finance can help consumers manage and improve access to mortgages.

During 2026, the FCA will engage with industry, consumer groups and other regulators to develop a range of practical open finance use cases through its Smart Data Accelerator and PRISM (Prioritisation and Real-world Insights Selection Matrix) Taskforce. The regulator plans to move into the design and coordination phase in 2027, working with HM Treasury on options for a regulatory framework for open finance. Between 2028 and 2030, the regulator will focus on scaling and delivery.

The FCA will consult on its proposed long-term regulatory framework for open banking before the end of 2026. [14 Apr 2026] #OpenFinance #SmartData #OpenBanking

Europe

OJ: Opinion of the ECB on a proposal for a regulation simplifying the AI Act

The opinion of the European Central Bank (ECB) on a proposal for a regulation as regards the simplification of the implementation of harmonised rules on AI has been published in the Official Journal of the EU (OJ). A technical working document produced in connection with the opinion was also published.

Among other matters, the ECB notes the importance of banking supervisors (such as the ECB) being able to share information with market surveillance authorities, and the need to ensure there is clarity around terms in the AI Act, including 'high risk'. [15 Apr 2026] #AI

EIOPA letter: Proposals for clarifying application of AI Act in insurance sector

EIOPA has published its letter to EU institutions which presents targeted suggestions for clarifying the AI Act. The proposals are aimed at ensuring that the objectives of the AI Act in the insurance sector are achieved without creating unnecessary burden for both insurance undertakings and the respective supervisors.

A key concern highlighted by EIOPA is the lack of clarity around the classification of AI systems used by insurers as well as the determination of techniques as ‘high-risk’ under the Act, noting that further clarification on the scope of application of the Act would be appropriate.

The annex to the letter includes a limited number of possible amendments to the Digital Omnibus on AI. [14 Apr 2026] #AI

Hong Kong

HKEX publishes consultation paper on T+1 settlement for Hong Kong cash market, seeking feedback by 18 May 2026

The HKEX has published a consultation paper on accelerated settlement for the Hong Kong cash market, proposing to shorten the settlement cycle from T+2 to T+1. The consultation paper sets out the proposed operational model and related process changes, following a July 2025 discussion paper that initiated a market-wide dialogue on accelerated settlement (see our previous update). Feedback on the discussion paper indicated overall support for the Hong Kong cash market to move to T+1.

Comments on the proposals under the consultation paper are required to be submitted by 18 July 2026. In brief:

• The proposed T+1 settlement cycle will apply to secondary market exchange trades, including equities, exchange-traded products, structured products and debt securities, as well as the physical settlement of equities arising from stock options exercise and assignment. Initial public offerings and Stock Connect Northbound trading will continue to operate under existing settlement timetables.
• The proposals aim to facilitate earlier completion of post trade activities on the trade execution date (T) to better prepare market participants for settlement on the following business day (T+1). They include adjustments to the timing of clearing procedures, and settlement-related processing to facilitate timely and orderly settlement under a shortened cycle. The existing delivery versus payment framework and batch settlement structure will remain unchanged.
• The HKEX also proposes to extend service windows for settlement-related activities such as settlement instruction input and matching, providing participants with greater flexibility to complete their post trade processing ahead of settlement. The existing clearing risk management framework will continue to apply, with certain timelines adjusted to reflect the shorter settlement cycle.
• In light of feedback on the discussion paper, the HKEX will consider developing a tool that enhances operational efficiency for institutional market stakeholders, including investment managers, custodians and brokers.
• The HKEX notes that a shorter settlement cycle will require adjustments across downstream processes and related market activities, and is seeking market views on how these processes can be adjusted. It encourages market participants to review their securities‑ and money‑side activities to support T+1 settlement.

Subject to market readiness and regulatory approval, the transition to a T+1 settlement cycle is intended to take place in the fourth quarter of 2027. The HKEX encourages market participants to begin assessing their operational readiness, systems and processes as soon as practicable.

Following finalisation of the T+1 framework, the HKEX will make consequential amendments to the Exchange Rules, Clearing House Rules and Listing Rules. Technical specifications will also be published in due course to support system enhancements. [17 Apr 2026] #T+1

HKIMR publishes research report on transition finance and proposes considerations to foster a credible and vibrant transition finance ecosystem in Hong Kong

The Hong Kong Institute for Monetary and Financial Research (HKIMR), the research arm of the Hong Kong Academy of Finance, has published an applied research report titled 'Navigating the Green Shift: Opportunities and the Evolving Landscape of Transition Finance'.

The report reviews the global transition finance landscape, examining the importance of multi-stakeholder collaborations and international best practices in preventing greenwashing and maintaining transparency, capturing insights from a diverse range of global stakeholders, including financial institutions and multilateral organisations.

The study reveals a clear momentum in transition finance, with 60% of survey respondents already either active in or exploring transition finance developments. Equity and fund investments as well as debt instruments were the most commonly used financial instruments to channel capital towards transition projects. The study also indicates that market outlook is cautiously optimistic.

Survey respondents emphasised that further development of the transition finance ecosystem requires progress on both regulatory initiatives and market development. The report states that Hong Kong is strategically positioned as a hub for transition finance, given its ability to leverage its deep capital markets, robust regulatory framework and strong connectivity through the mainland Chinese and international markets.

The report proposes, among others, considerations to foster a credible and vibrant transition finance ecosystem in Hong Kong including:

• Establishing best‑in‑class verification and data governance – including implementing clear assurance requirements, independent verification protocols, and audit‑ready data practices to maintain transparency, accountability and data integrity, thereby preventing greenwashing.
• Integrating frontier digital and green technologies – including leveraging Hong Kong’s Green Fintech Map and proximity to the Greater Bay Area’s green technology cluster to support innovative transition‑linked instruments and improve project verifiability, and adopting digital tools for ESG data management, climate risk modelling and real-time monitoring. [17 Apr 2026] #TransitionFinance #DataGovernance #GreenTechnology #GreenFinTech

Insurance Authority discusses AI and cybersecurity initiatives at recent events

In recent presentations delivered at the APAC Cyber Risk and Insurance Summit 2026 and the 2026 Regulatory Training Programme of the Association of Lusophone Insurance Supervisors, Mr Tony Chan (Associate Director, Policy and Legislation) and Mr Clement Lau (Executive Director, Policy and Legislation) of the Insurance Authority discussed the regulator’s current priorities on AI and cybersecurity, among other areas.

The Insurance Authority takes a two‑pronged approach of (i) regulatory enablement (enhancing regulatory clarity) and (ii) ecosystem development (driving use case incubation and ecosystem building).

AI

• The Insurance Authority plans to issue a new guideline on insurers' AI governance framework later this year, covering core elements including governance and accountability, data protection, cybersecurity, disclosure obligations and operational resilience. The guideline draws reference from local and international experiences, and is aimed at encouraging development while strengthening fairness, accountability and transparency in insurers’ internal governance.
• The AI Cohort Programme launched in August 2025 (see our previous update) focuses on a number of initiatives such as regulatory guidance and expert advice, solutions matching between insurers and AI firms, knowledge exchange on use cases and best practices, use of Cyberport's shared infrastructure, operational resilience, and talent development.

Cybersecurity

• Cybersecurity is the cornerstone of sustainable insurtech development. in January 2025, the Insurance Authority updated its Guideline on Cybersecurity (GL20) and introduced a Cyber Resilience Assessment Framework, providing the industry with a structured and consistent methodology for risk assessment, including inherent risk assessment, maturity assessment and remediation planning (see our previous update). [13 & 16 Apr 2026] #AI #Cybersecurity #OperationalResilience #Insurtech #CyberResilience

Thailand

SECT consults on crypto ETF regulatory framework

The Securities and Exchange Commission Thailand (SECT) has published a consultation on proposed principles regarding the establishment and regulatory framework for crypto exchange traded funds (ETFs) in Thailand. The draft framework covers, among other matters, the delegation of digital asset investment management for mutual funds and the principles governing the appointment of trustees for crypto ETFs.

The initiative is aimed at expanding investment options for investors, strengthening the capabilities of business operators, promoting product diversity in the Thai capital market, and supporting the development of a more robust crypto ETF ecosystem. Responses are requested by 11 May 2026. [10 Apr 2026] #Crypto #DigitalAsset

India

RBI speech on AI in finance

The RBI has published a speech by Deputy Governor Swaminathan Janakiraman on the use of AI in the financial sector. Mr Janakiraman spoke about both the opportunities and challenges presented by AI and outlined five broad principles to shape its responsible use: human responsibility must remain central; fairness and explainability must be built into the system from the beginning; strong data governance; institutional capacity must be strengthened; and inclusion must be a design objective, not an accidental by-product. [13 Apr 2026] #AI