As part of our commitment to keeping our audience informed, j. awan & partners has compiled the most relevant regulatory developments across key financial hubs for February 2025. This newsletter highlights significant updates from the Gulf Cooperation Council, Europe, the Asia Pacific region, and the United States.

Gulf Cooperation Council Regulatory Developments

Dubai Financial Services Authority (DFSA)

• DFSA Publishes 2025-2026 Business Plan

  • The DFSA released its Business Plan for 2025-2026, titled Advancing Regulatory Excellence and Innovation within the Dubai International Financial Centre. The plan aligns with Dubai’s Economic Agenda D33, Digital Dubai, and the DIFC 2030 Strategy. Key priorities include enhancing the regulatory framework, embracing fintech, artificial intelligence, and technological advancements, and strengthening cybersecurity measures.

Source: DFSA | The DFSA publishes its 2025-2026 Business Plan, underscoring commitment to advancing regulatory excellence, driving innovation, and fostering sustainable growth within the DIFC

• Appointment of New DFSA Chief Executive

  • The DFSA announced the appointment of Mark Steward as its new Chief Executive, effective May 2025. Steward, formerly the enforcement head at the UK's Financial Conduct Authority, brings extensive international regulatory experience. His leadership is expected to enhance the DFSA's regulatory oversight and strengthen cross-border regulatory relationships.

Source: DFSA | THE INDEPENDENT REGULATOR OF FINANCIAL SERVICES | The Dubai Financial Services Authority appoints Mark Steward as new Chief Executive

United Arab Emirates Central Bank

• UAE Central Bank Updates Anti Money Laundering and Combating the Financing of Terrorism Guidance

  • The UAE Central Bank issued updates to its Anti Money Laundering and Combating the Financing of Terrorism guidance for licensed financial institutions. The revisions focus on enhancing measures related to transaction monitoring, suspicious transaction reporting, and targeted financial sanctions. These updates aim to strengthen the financial system's integrity and align with international standards.

Source: View Updates | CBUAE Rulebook

GCC Central Banks Governors Committee

• 84th Meeting of GCC Central Banks Governors Committee

  • GCC central bank governors met in Kuwait to discuss monetary integration and economic cooperation. The meeting focused on advancing the region’s financial stability and strengthening its position as a global financial hub.

Source: GCC Central Banks

GCC Fund Passporting Framework

• Implementation of GCC Fund Passporting Regulations

  • The GCC fund passporting regulations, approved in late 2024, have now entered the implementation phase in member states that have completed the necessary legislative procedures. This framework will facilitate cross-border investment flows across the region by streamlining the registration and promotion of investment funds.

Source: GCC financial market authorities approve fund passporting framework, with implementation scheduled for early 2025

Europe

European Banking Authority

• Assessment of Environmental, Social and Governance Risk Data Availability

  • The European Banking Authority published a report assessing the availability and accessibility of data related to environmental, social and governance risks. The report highlights improvements in disclosures but identifies gaps in climate risk and social governance reporting.

Source: The EBA finds progress in availability and accessibility of data used to identify and qualify environmental, social and governance risks but data landscape remains incomplete | European Banking Authority

European Central Bank

• Updates to TIBER EU Framework

  • The European Central Bank updated its TIBER EU framework to align with the Digital Operational Resilience Act, reinforcing financial institutions' resilience against cyber threats.

Source: TIBER-EU Framework updated to align with DORA

Financial Conduct Authority United Kingdom

• Regulatory Initiatives Grid Interim Update

  • The Financial Conduct Authority, as part of the Financial Services Regulatory Initiatives Forum, released an interim update to the Regulatory Initiatives Grid. This update provides stakeholders with information on planned regulatory initiatives over the next 24 months, helping firms anticipate and prepare for regulatory changes. The full grid is scheduled to return to its usual format in 2025.

Source: Regulatory Initiatives Grid - Interim update

• Accelerated Settlement Taskforce Report on T plus One Settlement Cycle

  • The Accelerated Settlement Taskforce published its final report recommending the United Kingdom’s transition to a T plus One settlement cycle by October 2027, aligning with global markets and enhancing efficiency.

Source: FCA welcomes the final report of the Accelerated Settlement Taskforce and supports the UK market’s move to T+1 settlement

Asia Pacific Region

Australia

• ASIC Strengthens Private Market Oversight

  • The Australian Securities and Investments Commission announced enhanced oversight measures for private markets, calling for improved transparency and governance.

Source: 25-021MR Advancing Australia’s regulatory roadmap for public and private capital markets | ASIC

Hong Kong

• Virtual Asset Trading Platform Licensing Framework

  • The Securities and Futures Commission introduced a fast track licensing regime for virtual asset trading platforms.

Source: “A-S-P-I-Re” for a brighter future: SFC’s regulatory roadmap for Hong Kong’s virtual asset market

Japan

• Bank of Japan Interest Rate Decision

  • The Bank of Japan raised interest rates in response to inflationary pressures and strong economic performance.

Source: Bank of Japan

United States

Federal Reserve

• Federal Open Market Committee Meeting Minutes

  • The Federal Reserve released the minutes of its January meeting, discussing economic activity, labour market conditions, and inflation expectations.

Source: FOMC Minutes, January 28-29, 2025

Financial Industry Regulatory Authority

• FINRA Publishes 2025 Regulatory Oversight Report

  • FINRA released its 2025 Regulatory Oversight Report, addressing topics such as third party risk, cybersecurity vulnerabilities, and artificial intelligence driven trading platforms.

Source: 2025 FINRA Annual Regulatory Oversight Report

• FINRA Board of Governors Meeting Update

  • FINRA's Board of Governors held its first meeting of the year, discussing modernisation efforts for market regulation and compliance oversight.

Source: February 2025 Board Update

• FINRA Report on the Metaverse and Securities Industry

  • FINRA published a report analysing the potential applications and challenges of the metaverse for securities firms.

Source: The Metaverse and the Implications for the Securities Industry

February 2025 saw significant regulatory shifts worldwide, impacting fund management, compliance frameworks, and market regulations.

Key takeaways include:

• Strengthened fintech and crypto regulations in the GCC and Asia Pacific

• Transition to a T plus One settlement cycle in the United Kingdom

• Updates to the GCC fund passporting framework

• Increased regulatory focus on artificial intelligence and cybersecurity

For further insights and tailored regulatory guidance, reach out to j. awan & partners.

Email: info@jawanpartners.com | Visit: jawanpartners.com