United States
Conduct
Morgan Stanley has reportedly fired the head of its commodities business after investigating inappropriate remarks to colleagues.
Cybersecurity/data privacy
A US Congressional committee subpoenaed three Chinese state-owned telecommunications companies, after they failed to respond to a request for information on whether their US operations affect national security and privacy.
California privacy bill to target the insurance sector.
Medical technology companies ask Trump administration for “careful” AI regulation.
Enforcement
Following an internal investigation, PwC has withdrawn permission (subscription) for partners to use Black River Management to access speculative and illiquid, but potentially high-return, investment options. No information on the rationale for the unwinding of the relationship is available.
ESG
Investors cut their exposure (subscription) to ESG funds, with $8.6 billion of net outflows including European investors for the first time since 2022. US investors have been broadly limiting their exposure since Q4 2022.
Regulation
SEC holds roundtable on crypto custody.
OCC and FDIC withdraw Biden-era statements on cryptocurrencies, signal that they are working on clarification.
SEC crypto task force meets with Trump-friendly institutions.
Trump administration seeks to lessen regulations to facilitate autonomous vehicle development.
China
China is reportedly considering (subscription) tariff exemptions on some American imports in a further sign that a trade war may not be sustainable for either country.
EU
ESMA has published an annual risk assessment of AIFs and UCITS highlighting the need for supervisory attention on this sector.
And the EDPB has published a 2024 annual report highlighting the strengthening and modernization of data protection, as well as consistent enforcement and cross-regulatory cooperation, as key priorities in its strategic plan for 2024-2027.
EU targets Google and Meta with privacy enforcement fines, prompting a rebuke from the US.
India
India’s Enforcement Directorate has accused Sonia and Rahul Gandhi, senior leaders of the Congress party, of money laundering.
International
The IFRS Foundation and the Inter-American Development Bank (IDB) have announced a strategic partnership intended to promote the ISSB Standards across Latin America and the Caribbean.
Japan
Some 30 more jurisdictions, including a large number of European countries as well as South Africa, will be subject to notification obligations connected with the transfer of cryptoassets. Japan’s Financial Services Agency (FSA) cites the “ineffectivess of the regulation” in those jurisdictions as the key reason for the imposition of the travel rule.
South Korea
Former president Moon Jae-in has been charged with bribery related to his former son-in-law being hired as executive director Thai Eastar Jet – this “despite any relevant experience or qualifications in the airline industry.”
Switzerland
A FINMA survey has revealed that around half of the 400 Swiss financial institutions use AI in their day-to-day work. A further confirmation of rapid and widespread adoption of AI within the financial industry.
UK
The Post Office paid more than £600m ($800.1m)of public money to continue using the faulty Horizon IT system that led directly to Britain’s biggest miscarriages of justice.
The large British retailer Marks & Spencer was the victim of a cyber attack that led it to halt orders on its website and apps.
The National Audit Office offered a scathing assessment of the performance of the Department for Environment, Food and Rural Affairs and various water regulators in connection with the water sector concluding that they had “failed to deliver a trusted and resilient water sector”.
