AI Governance

ASIC is consulting on a proposal to extend the CFD Product Intervention Order (PIO) for a further 10 years and introduce targeted amendments addressing margin calculation, inducements, record-keeping, and digital asset settlement. CFD issuers and brokers should review the proposed changes closely, as they tighten margin requirements for CFDs over options and multi-position netting, and expand the PIO's scope to capture digital-asset-settled derivatives with CFD-like characteristics. Feedback is due by 9 November 2026, giving firms a limited window to assess operational and compliance impacts.

The EBA Board of Supervisors' June 2026 minutes reveal heightened supervisory focus on frontier AI-related cyber risk, NBFI interlinkages, and approval of the 2027 EU-wide stress test methodology, including a new climate risk module. These discussions signal upcoming supervisory actions and reporting expectations that compliance teams at EU banks should begin preparing for now.

The Danish Data Protection Agency (Datatilsynet) has submitted a consultation response on the revised draft of the AI Authorization Act, which would give public authorities a data protection legal basis to develop and use AI systems. While the Agency acknowledges improvements from the earlier draft, it stresses that a legal basis alone does not satisfy broader GDPR obligations, a critical reminder for compliance teams involved in public-sector AI deployment.

BaFin has issued a public warning against Zyrtex-X, an entity operating through wealthinvsthubs.com, which is suspected of offering financial, securities, and cryptocurrency services in Germany without the required authorization. Compliance teams should treat this as a reminder to maintain vigilance around unauthorized third-party financial service providers and to reinforce customer due diligence processes related to unlicensed entities.

The Bank of England has refreshed its Statistics webpage, consolidating release schedules for money and credit, mortgage, capital, and regulatory data through early 2027, and disclosing a corrected gilt repo transactions series in its sterling money market data. Compliance and treasury teams relying on BoE statistical series for benchmarking, risk modeling, or regulatory reporting should note the correction and upcoming release dates to ensure data integrity in downstream processes.

The HKMA has released detailed guidance drawn from the second cohort of its GenA.I. Sandbox, covering 27 use cases across 20 banks and 14 technology partners. The report provides practical reference points on data strategy, solution design, and risk mitigation for generative AI and AI agent deployments, directly supporting application of the HKMA's updated Supervisory Guidance for Responsible Adoption of Artificial Intelligence (the "ART" framework: Accountability, Resilience, Trust).

Norway's Finanstilsynet has issued a public warning against Fondavex, operating under the Shinenwt trading platform, for soliciting Norwegian investors without authorization. The case highlights continuing risks from unlicensed cross-border crypto and investment platforms using aggressive sales tactics and fabricated performance data to defraud retail investors.