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EC Unveils Ambitious Plan for T+1 Migration by 2027: What You Need to Know
The European Securities and Markets Authority (ESMA) has proposed a transition to a T+1 settlement cycle, scheduled for 11 October 2027, to enhance efficiency in European financial markets. This shift aligns the EU with countries like the US and Canada, which have already adopted this faster settlement process. In response, the European Commission is suggesting amendments to the Central Securities Depositories Regulation to facilitate the transition. The T+1 cycle is expected to reduce delays, increase market efficiency, and enhance resilience while ensuring global alignment. The Association for Financial Markets in Europe supports this initiative, emphasizing its importance for competitiveness.
FCA Urges MPs to Act on Big Tech and Finfluencer Influence in Financial Promotions
Key officials from the Financial Conduct Authority (FCA) expressed concerns about the challenges of regulating finfluencers during a Treasury Select Committee inquiry. They highlighted the ineffectiveness of Big Tech in managing harmful financial content, with many finfluencers evading account takedown requests by creating new profiles. FCA officials emphasized the need for proactive measures to remove unsuitable investment promotions swiftly. While some finfluencers have been charged, securing convictions is challenging, and the FCA advocates for increasing maximum prison sentences for illegal financial activities from two to five years. The FCA calls for urgent action to protect consumers from illegal financial content online.
Trump Initiates Transformation of National Crypto Reserves; Bans CBDC Development
Former President Trump’s recent executive order on digital financial technology highlights the digital asset industry’s role in fostering innovation and economic growth in the U.S. Key components include the formation of a working group tasked with delivering a report on regulatory proposals within 180 days, and the potential creation of a national digital asset stockpile for seized cryptocurrencies. The order also prohibits the development of Central Bank Digital Currencies (CBDCs), reflecting concerns about privacy and their impact on traditional banking. This executive order represents a significant shift in the regulatory landscape for digital assets, balancing innovation with caution.
Revolut’s Bold Move: €1 Billion Investment in France and Banking License Application
Revolut plans to establish its new western European headquarters in Paris, aiming to create at least 200 jobs in France. As its largest EU market, France has around 5 million customers and nearly 300 employees. The company targets 10 million users by 2026 and 20 million by 2030. While holding a Lithuanian banking license for EU operations, Revolut will maintain its Vilnius base for expansion. CEO Nik Storonsky acknowledged past regulatory oversights and is pursuing 10 global license applications, including a Prepaid Payment Instruments license from India. These initiatives reflect Revolut’s commitment to growth and regulatory compliance in the fintech sector.
EBA Unveils Comprehensive Final Guidelines for Effective ESG Risk Management
Financial institutions are increasingly focusing on ESG (Environmental, Social, and Governance) risks, guided by new protocols to effectively identify, manage, and monitor these risks in line with EU regulations. The European Banking Authority (EBA) emphasizes the significant threats posed by ESG risks, particularly environmental ones, urging businesses to address them for climate neutrality by 2050. Key requirements include transparency in ESG practices, clear definitions of risks, and strategy implementation. The guidelines will become mandatory from January 11, 2026, with an extended deadline for smaller institutions. This initiative supports sustainable economic growth and compliance with EU goals.
Massachusetts Investigates Robinhood’s Predictions Market Hub: What You Need to Know
Massachusetts Secretary of the Commonwealth Bill Galvin has subpoenaed Robinhood for marketing materials and data related to brokerage account users interested in betting on college sports events, particularly during March Madness. Galvin criticized Robinhood’s tactics as gimmicky, emphasizing concerns about their marketing strategies. In response, Robinhood stated that the contracts in question are regulated by the CFTC through registered entities. The company highlighted its role in introducing prediction markets to retail investors while ensuring a safe trading environment. This subpoena adds to Robinhood’s regulatory challenges, following a $7.5 million fine last year for gamification practices.