Global Regulators

Basel Committee issues FAQs on changes to lease accounting. The Basel Committee on Banking Supervision published responses to frequently asked questions on the changes to lease accounting as revised by standards implemented by the International Accounting Standards Board and the Financial Accounting Standards Board, which will become effective on January 1, 2019. (4/6/2017) BIS press release. 

Basel Committee finalizes guidelines on definitions of non-performing exposures and forbearance. The Basel Committee published final guidance on the definitions of non-performing exposures and forbearance in the prudential treatment of problem assets. (4/4/2017) BIS press release. 

ISDA announces results of Determinations Committee selection process. The International Swaps and Derivatives Association announced the firms selected to serve on the five regional Determinations Committees, which determine whether a credit event has occurred in the credit derivatives market. (3/31/2017) ISDA press release. 

IOSCO announces increased powers for securities regulators to enhance cross-border enforcement cooperation. The International Organization of Securities Commissions an enhanced multilateral memorandum of understanding on cooperation and the exchange of information for cross-border enforcement. The enhanced MOU grants additional enforcement powers to securities regulators, including, among other things, the ability to obtain and share audit work papers, internet service provider records, and existing telephone records. (3/31/2017) IOSCO press release. 

OTC Derivatives Compliance Calendar. ISDA updated its OTC Derivatives Compliance Calendar. (3/30/2017) 

New Islamic credit support deed. ISDA and the International Islamic Financial Market issued a new credit support deed for Islamic hedging transactions in response to global variation margin requirements for non-cleared trades. (3/30/2017) ISDA press release. 

Basel committee proposes revisions to the G-SIB assessment framework. The Basel Committee requested comments on a revised framework for assessing global systemically important banks, which would, among other things, remove the cap on the substitutability category, expand the scope of consolidation to include insurance subsidiaries, and amend the definition of cross-jurisdictional activity. Comments are due on or before June 30, 2017. (3/30/2017) BIS press release. 

Basel Committee releases revised framework for Pillar 3 disclosure requirements. The Basel Committee published a consolidated and enhanced framework for disclosure requirements under Pillar 3, which, among other things, introduces a dashboard of banks’ key prudential metrics, requires banks that record prudent valuation adjustments to provide users with a detailed breakdown of its calculation, and accounts for changes to the total loss-absorbing capacity regime for G-SIBs and the revised market risk framework. (3/29/2017) BIS press release. 

Basel Committee announces interim regulatory approach to accounting for transitional arrangements. In response to the anticipated international accounting standards on expected credit loss provisioning, the Basel Committee published the details of the interim regulatory approach to accounting provisions and standards on transitional arrangements. (3/29/2017) BIS press release. 

Basel Committee releases follow-up Basel III implementation assessment reports for 14 countries. The Basel Committee published follow-up assessments on the implementation of Basel III standards by member jurisdictions whose Regulatory Consistency Assessment Program reports were published by December 2015, which include Australia, Brazil, Canada, China, the European Union, Hong Kong SAR, India, Japan, Mexico, Saudi Arabia, Singapore, South Africa, Switzerland and the United States. (3/24/2017) BIS press release.