GRC Report Staff

In a letter sent on April 30 to every institution it supervises, the Australian Prudential Regulation Authority reported that assurance over artificial intelligence at the large banks, insurers and superannuation trustees it had reviewed was relying on methods designed for a different kind of system. Assurance providers were leaning on point-in-time, sample-based testing, which APRA judged poorly suited to probabilistic models that "learn, adapt and degrade over time." Many internal audit and risk functions, it added, lacked the specialist skills and tools to assess AI. Its summary was plain: "assurance practices are not keeping pace with the scale, speed and complexity of AI."

The European Union scored 71.53 out of 100 in its latest assessment of cybersecurity maturity, with most member states reaching at least a mature level of preparedness despite significant differences in their ability to respond to incidents and protect critical infrastructure.

Germany's Federal Cartel Office has issued a preliminary competition law assessment against PayPal, raising concerns that the company's restrictions on merchant surcharges may protect it from cheaper payment services and contribute to higher retail prices.

The European Commission proposed new restrictions on online marketing, pricing and subscription practices on November 10, alongside an overhaul of consumer protection enforcement that would allow it to fine companies up to 6% of their worldwide annual turnover for major violations affecting consumers across the European Union.

The Ontario Securities Commission hosted a three-part knowledge-sharing webinar series for Ukraine's National Securities and Stock Market Commission (NSSMC), covering investor protection, enforcement, and continuous disclosure. The release imposes no new obligations, but it signals OSC supervisory priorities, notably cross-border fraud and "AI washing," that compliance teams should factor into their risk assessments.

ASIC issued an infringement notice to Fundo Loans Pty Ltd on 11 September 2026. The notice alleges that website claims of "no credit check" loans were false or misleading, in breach of section 12DB(1)(e) of the ASIC Act, and carries an AUD $19,800 penalty. The action shows that ASIC will enforce against marketing claims that conflict with actual underwriting practices, including in the small-amount lending segment.

The HKMA raised its Base Rate by 25 basis points to 4.25%, effective immediately, after the Fed lifted the federal funds target range to 3.75-4%. This is a mechanism-driven adjustment rather than a new regulatory requirement, but it widens the HKD-USD rate differential and may increase carry trade activity and pressure on the Hong Kong dollar. Compliance teams should assess the impact on interest rate risk, customer disclosures, and pricing governance.