Regulatory Roundup: Regulatory Priorities for 2026

Spread the love

ASIC has been relatively clear on this priority, making it clear that it is not just false reporting but also failure to lodge required reports. However, other regulators point to its importance. The SEC 2026 examination priorities state that “areas of review will include the timeliness of financial reporting and other required filings” indicating that disclosure accuracy is a core part of their enforcement approach within their priorities.

Additionally, we are seeing better financial reporting as a matter of market resilience. IOSCO plans to review its disclosure principles and standards, OTC derivatives reporting and reporting from non-bank financial institutions. Notably in India, SEBI will implement a comprehensive set of financial reporting reforms in 2026.

Table of Contents

Data Security Measures and Incident Response

This is a continuation of last year, although it is a common thread across the regulatory priorities of most jurisdictions. New in 2026 is the US SEC’s Regulation SP Security Measures, which came into effect in December 2025 and was elevated as a priority area for the 2026 examinations. They also clearly note Regulation S-ID for 2026 and “The Division will focus on firms’ development and implementation of a written identity theft prevention program (Program) that is designed to detect, prevent, and mitigate identity theft with respect to covered accounts.”

In Europe, DORA comes into force as early as 2025, with this year focusing mostly on adoption support. However, for 2026, we see regulators focusing more on full compliance, as outlined in the ESMA work programme. This approach has been reiterated by several EU regulators. We have also seen similar rules implemented in other jurisdictions such as Australia, Singapore, UK and Korea around the same time, so although not explicitly mentioned, it is reasonable to expect similar changes to supervision over adoption. Expect more cases like the recent one from ASIC last week.

February 2026 Capital Markets Regulatory Update

17 February 2026: The Canadian Investment Regulatory Organization (CIRO) Published its Annual Compliance Report 2026, which outlines key compliance risks for dealers, including cyber security, crypto asset trading platforms, artificial intelligence oversight and key supervisory obligations such as KYC, KYP and suitability to help firms strengthen risk management and regulatory compliance.

17 February 2026: The CFTC Defended its authority over prediction markets, filing an amicus brief in the U.S. Court of Appeals claiming its exclusive jurisdiction over event contracts and aiming to prevent state-level gambling operations from undermining federally regulated prediction markets operated by registered exchanges.

15 February 2026: of South Korea Financial Supervisory Service (FSS) Released a 2026 policy roadmap indicating stricter crypto market supervision and tougher action on unfair trading practices (including coordinated trading, sudden price spikes, and API-based automated strategies) to protect investors and market integrity.

11 February 2026: from hong kong Securities and Futures Commission (SFC) A new digital asset trading initiative was published announcing a high-level framework allowing licensed virtual asset trading platforms to offer virtual asset perpetual contracts to professional investors, with safeguards on product design, market manipulation and disclosure. It also allowed eligible licensed firms to offer margin and other financing for virtual-asset dealing, subject to liquidity, order book and investor protection requirements.

11 February 2026: : IOSCO Announced a global campaign to raise awareness of “relationship investment scams” (including crypto-themed “pig butcher” schemes), urging investors to shift conversations to encrypted apps and keep an eye out for red flags such as repeated solicitations for investments.

10 February 2026: sweden Financial Supervisory Authority (Financial Inspection) Published its 2026 supervisory priorities, focusing on tackling financial crime, threats to stability (including IT resilience/cyber risks) and the suitability of consumer products such as loans, savings and insurance.

9 February 2026: : IOSCO Published its 2026 work program outlining priorities including technological transition, investor protection and regulatory cooperation, with cross-border enforcement cooperation highlighted as central to delivery.

9 February 2026: The CFTC A multi-agency “DatingOrDefrauding?” Was launched. The campaign warns the public about relationship investment scams that often lure victims into crypto payments and fake crypto investment websites.

9 February 2026: Indonesian Financial Services Authority (OJK) with IDX and KSEI. Following MSCI feedback, reforms were announced to strengthen capital markets integrity, including expanded investor classification, enhanced shareholder disclosure and preparations for exchange demutualization, as well as a phased increase in the minimum free float from 7.5% to 15%.

6 February 2026: The CFTC Staff guidance was reissued, updating the definition of “payments stablecoin” to specify that a National Trust Bank may be a permitted issuer for purposes of the no-action condition on stablecoins.

5 February 2026: of India Securities and Exchange Board of India (SEBI) Published a circular removing the calendar spread margin benefit for single-stock derivatives on the expiration day to prevent systemic risk.

4 February 2026: of India SEBI Revised order-to-trade ratio (OTR) rules have been issued that expand the exemption for equity options contracts and adjust how certain algorithmic orders are treated for OTR penalty purposes to reduce unfair penalties while supporting price discovery.

4 February 2026: The UK government Published the Financial Services and Markets Act 2000 (Cryptocurrency) Regulations 2026, established a formal FSMA perimeter for crypto asset activities and created market abuse prohibitions (including insider dealing and market manipulation) for eligible crypto assets.

2 February 2026: of South Korea Financial Services Commission (FSC) Announced that the Korea Exchange (KRX) will begin operating an AI-powered market monitoring system, which will be used to incorporate and monitor social media into its surveillance program to strengthen early detection of online-driven market manipulation and other unfair trading in real-time.

1 February 2026: the UK Financial Conduct Authority (FCA) Published the first edition of Enforcement Watch, outlining enforcement priorities and its approach to public communication of investigations.

1 February 2026:Australian asic Published its 2026 key issues outlook identifying 10 systemic risks including financial reporting integrity, retail risks to private credit, consumer harms from advanced technology (including agent AI) and operational resilience risks associated with CHESS replacement.

1 February 2026: Indonesian ojk It warned it would launch a crackdown on market manipulation following a major equity selloff, as well as plan to increase free-float requirements and speed up IDX demutualization.

Latest fines and enforcement actions

FINRA A financial adviser was fined $750,000 USD for supervisory failings related to off-channel business communications.
America seconds A 30-month prison sentence was issued for a biotech executive convicted of securities fraud and insider trading.
America seconds Dismissed and settled his civil action against an asset management firm and its CCO, as well as initiated a systematic administrative proceeding on allegations of “cherry picking” trade allocations that harmed advisor clients.

the UK FCA It fined seven social media influencers for issuing unauthorized financial promotions linked to a forex trading scheme, strengthening its crackdown on illegal “finfluencer” activity and misleading investment advertising on social media platforms.
of france Autorité des marchés financiers (AMF) An investment services provider and its director were fined the total amount of €850,000 for failures in the market abuse detection system and breaches of authorization conditions following a supervisory inspection.
Bank Negara Malaysia (BNM) Four entities were fined RM1.07 million (approximately $275,000 USD) for AML/CFT violations related to failures in suspicious transaction reporting.

from hong kong SFC A trader was sentenced for “scaffolding” and wash trading, given mandatory community service and ordered to pay a fine equal to the profits plus the SFC’s investigation costs.
from hong kong SFC Announced a prison sentence (up to 24 months) in a securities fraud case involving social media “stock tips” and alleged ramp-and-dump schemes, citing conduct including naked short selling and misleading representations about stock ownership.
A South Korean court The CEO of a crypto company was sentenced to up to three years in prison for manipulating virtual asset prices, the first conviction under the Virtual Asset User Protection Act.

Indonesian ojk A company and three individuals were fined a total of 11.05 billion rupiah (about $655,000 USD) for stock market manipulation schemes between 2016 and 2022, including the use of designated accounts and misleading information to artificially influence share prices.
from india SEBI A total fine of ₹66 lakh (approximately $73,000 USD) was imposed on 28 entities for synchronized/reversal/circular trading and non-cooperation in an investigation by ANI Integrated Services, citing artificial volumes and deceptive market activity.
Australian asic It was announced that an investment firm was ordered to pay a $2.5 million fine and costs following an ASIC crackdown on long-term cyber security failings, setting a precedent for penalties under general AFS licensee obligations.