Governance, Risk & Compliance: GRC
Global GRC Roundup: Five Regulations Businesses Must Know
Several significant regulatory developments have emerged globally that businesses must be aware of. Ongoing regulatory changes only highlight the importance of staying informed and adapting to new compliance requirements to ensure business resilience and ethical operations in a rapidly evolving landscape.
Here are five key regulations to know:
FCA’s Consumer Duty for Closed Products and Services
The UK Financial Conduct Authority (FCA) Consumer Duty, which came into force on July 31, 2023, for new products and services, will start applying to closed products and services on July 31, 2024. Firms must demonstrate that they deliver good consumer outcomes, including through implementation plans, data monitoring, and internal assessments.
SEC Approval of Ethereum ETFs
The U.S. Securities and Exchange Commission (SEC) has approved Exchange-Traded Funds (ETFs) tracking Ethereum. This approval, following the earlier acceptance of Bitcoin ETFs, is significant for the crypto market. The SEC continues to review filings from major companies like VanEck and Fidelity, with expectations for further approvals later this year.
Bank of England’s Digital Securities Sandbox
The Bank of England and the FCA have proposed the creation of a Digital Securities Sandbox (DSS). This framework will allow firms to issue, trade, and settle securities using Distributed Ledger Technology (DLT) within regulated parameters. This initiative aims to foster innovation while ensuring financial stability and market integrity.
ESG and Sustainability Disclosure Requirements (SDR)
The FCA has introduced new rules and guidance on sustainability disclosure requirements and investment labels, effective from May 31, 2024. These include anti-greenwashing rules for all FCA-regulated firms. Additional milestones include the use of labels starting July 31, 2024, with accompanying disclosures and naming and marketing rules applying from December 2, 2024.
Cyber Risk Optimization Initiatives
With the global cost of cybercrime expected to reach $9.5 trillion in 2024, industries like energy, healthcare, and banking are prioritizing cyber risk management. Integrating automation, analytics, AI, and continuous control monitoring into cyber risk strategies is becoming essential. These measures aim to enhance compliance and security while quantifying cyber risk exposure.
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References
Norton Rose Fulbright. (2024, January 11). Ten Regulatory Topics to Look Out for in 2024. Retrieved from [Norton Rose Fulbright](https://www.nortonrosefulbright.com/en-gb/knowledge/publications/caa1e019/ten-regulatory-topics-to-look-out-for-in-2024)
Contentworks Agency. (2024, June 3). Regulations Roundup – June 2024. Retrieved from [Contentworks Agency](https://contentworks.agency/regulations-roundup-june-2024/)
ET Edge Insights. (2024, January 10). Governance, Risk, and Compliance Trends to Watch for in 2024. Retrieved from [ET Edge Insights](https://etinsights.et-edge.com/governance-risk-and-compliance-trends-to-watch-for-in-2024/)
