Journal of the Financial Supervisors Academy (JFSA) – Volume 1
e-ISSN: 3104-4956
1.1 Changing Dynamics of Crypto Regulation
Author Details
Prof. Christopher P. Buttigieg and Samantha Cuyle
Information
| Type | Crypto-asset regulation, MiCA Regulation, Consumer Protection – the work of Prof. Christopher P. Buttigieg and Samantha Cuyle |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 9 – 20 |
| Creative Commons |   This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
This article studies the evolving international regulatory landscape for crypto-assets and highlights the necessity of harmonised and proportionate regulatory frameworks to foster innovation while ensuring market integrity, consumer protection, and financial stability. Efforts at both international and regional levels are examined, including comprehensive regulations like the EU’s MiCA Regulation and regulatory initiatives in the US. The aim of the article is to briefly review the prudential and conduct regulatory developments at the international level, within the EU, and in the US concerning crypto-asset regulation, and to highlight the importance of a harmonised and proportionate approach to ensure a stable and fair market environment while fostering innovation.
1.2 A Regulatory Blueprint for Tokenisation: The Bermuda Paradigm
Author Details
Christos Efthymiopoulos and Alessandro Spellanzon
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| Type | Asset Tokenisation, Blockchain-based assets, Financial Stability – the work of Christos Efthymiopoulos and Alessandro Spellanzon |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 21 – 34 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
This article presents a comprehensive examination of asset tokenisation, a paradigm-shifting approach within blockchain-based digital asset representation. Section 1 sets the scope of the article and elaborates on two primary types of tokenisation—off-chain and on-chain—using specific examples like “tokenised bonds” versus “bond tokens” to highlight pivotal distinctions. Section 2 delves into the attributes, benefits, and challenges associated with tokenisation, while also highlighting consequential impacts on financial stability. Section 3 employs Bermuda’s digital asset framework as a proposed regulatory blueprint for asset tokenisation, offering valuable learnings for regulatory bodies venturing into this dynamic domain. The insights and perspectives presented in this article benefit from the authors’ direct experience and active involvement in the authorization and supervision of digital asset entities within the BMA’s FinTech department.
1.3 Financial Literacy in the Age of Artificial Intelligence
Author Details
Aleksandra Dimitrova and Benjamin Ellul
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| Type | Artificial Intelligence (AI), MiCA Regulation, Financial literacy – the work of Aleksandra Dimitrova and Benjamin Ellul |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 35 – 41 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
The Age of Artificial Intelligence (AI) has brought radical changes to the financial sector, influencing how consumers manage their funds, make purchase decisions, and maximise the use of available technology. This paper offers insight into the significance of having a society with a strong foundation in financial literacy and education to keep pace with evolving technology. From AI tools and blockchain technology to shifting workplace realities and generational gaps, this paper sheds light on the risks of falling behind in today’s financial world. The central argument revolves around the notion that regulators and employers must bridge the knowledge gap between generations to effectively protect consumers. Ultimately, the AI revolution will only succeed if investment is made not only in technology but also in people.
1.4 Artificial Intelligence and Market Abuse Regulation
Author Details
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| Type | High-frequency trading (HFT), EU Market Abuse Regulation (MAR), Algorithmic trading– the work of Prof. Filippo Annunziata |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 43 – 73 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
The purpose of this contribution is to analyse how developments in the field of artificial intelligence (AI), and the debate on its implications—including in the legal sphere—affect the regime established by the EU Market Abuse Regulation (MAR). The topic is explored by considering the two main areas of MAR: on the one hand, inside information and the related disclosure regime; on the other hand, conducts qualifying as market manipulation.
1.5 AI and the Future of Supervision: How Artificial Intelligence Will Impact Financial Supervisory Authorities
Author Details
Nicholas Vasse, Sipke Hiemstra, Richard Gigax and Tranh Tran Trien
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| Type | Artificial Intelligence, Generative AI, Large Language Models (LLMs) – the work of Nicholas Vasse, Sipke Hiemstra, Richard Gigax and Tranh Tran Trien |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 75 – 86 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
This article explores the impact of Artificial Intelligence (AI), especially Generative AI, on financial supervisory authorities. The evolution of AI – from traditional models to advanced Large Language Models (LLMs) – is likely to transform the regulatory and supervisory landscape by enhancing risk assessment, automating processes, and offering predictive insights. The European Union’s AI Act, with its risk-based regulatory framework, will serve as a first legislative response to AI-related challenges in the financial sector and is likely to be complemented by sector-specific hard and soft law in the coming years. While AI offers numerous opportunities for improving supervisory activities, such as detecting market abuses or money laundering, it also introduces risks, particularly due to the opacity of AI models, its probabilistic approach, and inherent biases of the data used to train models. The article emphasizes the need for supervisory bodies to adopt AI strategically, ensuring compliance with new regulations while leveraging AI to bolster efficiency and effectiveness in overseeing financial institutions. As AI should become integral to financial supervision, regulators are urged to lead the change, establish AI hubs, and foster collaborations with the private sector to harness AI’s potential while mitigating its risks.
2.1 Capital Markets Union: What Will It Take to Be a Success
Author Details
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| Type | Capital Markets Union (CMU), Financial sector harmonisation, Supervisory convergence – the work of Prof. Pierre-Henri Conac |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 89 – 100 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
The Capital Markets Union (CMU) was launched in July 2014 by the European Commission as a project to harmonise the rules applicable to the financial sector. The CMU is a continuation of the De Larosière report of February 2009, which advocated “central regulation – local supervision” for the financial industry (banking, securities, insurance). This approach relied on the adoption of a Single Rule Book (SRB) to ensure that the same rules are applicable throughout the single market and on the creation of a European Securities and Markets Authority (ESMA). Critics have recently expressed the view that the SRB has not led to a sufficient flow of cross-border transactions. It is true that the current situation does not always ensure a completely harmonised SRB and supervisory convergence. However, centralisation of supervision, as advocated, will not, per se, make the CMU a success. It might not even be effective. Rather, incremental technical changes can achieve a much stronger single rulebook and supervisory level-playing field. Therefore, the goal of the new legislative action on the CMU should be to adopt targeted technical changes to increase cross-border activities.
2.2 The Pursuit of Potency – Capital Markets in the EU
Author Details
Information
| Type | Capital Markets Union (CMU), Savings and Investments Union, Bank financing dependency – the work of Joe Heavey |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 101 – 110 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
This paper critically examines the development of the European Union’s (EU) Capital Markets Union (CMU) initiative, introduced in 2015 to create a more integrated and resilient capital market across EU member states. Despite the evolution of the free movement of capital in the EU over time, and substantial reform efforts aimed at reducing dependency on bank financing and encouraging a shift toward diversified funding and investment sources, it illustrates how EU capital markets remain underdeveloped, insufficient, and fragmented in comparison to the United States. In light of increasing social and economic challenges facing the EU, and the significant financing needs to address those challenges, the paper underlines how renewed political attention on the crucial role of capital markets must be backed up by decisive, transformative efforts under the rebranded Savings and Investments Union.
2.3 Securities Regulation – Why Capital Markets Deserve Credit
Author Details
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| Type | Banking vs capital markets, Equity markets, Non-Bank Financial Intermediation (NBFI) – the work of Richard Metcalfe |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 111 – 120 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
Banking and capital markets are broadly similar in size, each having a distinct role to play. But they are also very different in key ways, with implications for securities regulation. These implications are rarely, if ever, considered in a systematic way—a gap that this paper sets out to fill. Shares provide opportunities for growth over long time frames: for enterprises and, combating the effects of inflation, for investors. They also offer good opportunities to diversify risk and recover after economic downturns. Capital markets support emerging enterprises and are inherently more likely than credit channels to offer “breathing space.” Illiquid investments are not necessarily bad ones, especially for long-term investors. Volatility and risk are present throughout the financial system and, even though risk can spread from credit channels to equity markets, it plays out in very different ways and therefore cannot be treated as uniform. Asset price volatility is normal and not the same—either in terms of dynamics or consequences—as the jump to default associated with bank runs. In this context, it is worth considering the various types of policy measures that can be used to incentivise investment. Current regulatory debate focuses on “shadow banking,” now typically referred to as Non-Bank Financial Intermediation, without adequately weighing the differences in risk and the risk-reward balance between very distinct channels. This paper examines the differences between (equity) capital markets and banking, as well as their interaction, and explores related incentives and regulatory issues, including systemic risk.
3.1 Independence of Securities Regulators
Author Details
Information
| Type | Supervisory independence, European Supervisory Authorities (ESAs), Transparency in supervision– the work of Nathalie Piscione |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 123 – 133 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
The EU regulation has granted to the European Supervisory Authorities (ESAs) the task to foster and monitor supervisory independence. This follows the observation that supervisors are subject to pressures while ensuring supervisory independence is a key factor in protecting investors and fostering confidence in financial markets. In that context, the ESAs have published the joint ESAs criteria on the independence of supervisory authorities to provide guidance on supervisory independence. This paper presents the approach adopted by the ESAs to prepare the criteria. Then, it focuses on some of these criteria that extend beyond the international standards and are particularly relevant to foster supervisory independence. Such criteria relate to the good functioning of the supervisor’s governing body, the avoidance and management of conflict of interests and transparency. Finally, the paper concludes with the next steps, such as the guidelines on independence that EBA is tasked to prepare and the expected ESAs’ assessment of supervisory independence.
4.1 Collaboration on Capacity Building Between Regulators and Universities
Author Details
Information
| Type | Capacity building, Financial services, Research, Regulation, Universities – the work of Prof. Emanuel Said |
| Information | Journal of Financial Supervisors Academy, Volume 1, September 2025, pp. 137 – 148 |
| Creative Commons | This is an open access article under the CC BY license. Journal of Financial Supervisors Academy © 2025 by Journal of Financial Supervisors Academy is licensed under CC BY 4.0 |
| Copyright | © The Author(s), 2025. Published by the Journal of Financial Supervisors Academy |
Abstract
This paper explores the symbiotic relationship between universities and financial regulators, particularly within the European financial services landscape. It highlights the critical role universities play in enhancing regulatory capacities through specialised training, cutting-edge research, and dialogue. The collaboration between entities like the University of Malta and the Malta Financial Services Authority (MFSA) serves as a case study, demonstrating how joint initiatives lead to robust regulatory frameworks, improved financial stability, and a steady pipeline of skilled professionals. The paper underscores the mutual benefits of these partnerships that not only enhance academic and regulatory goals but also contribute to the broader financial sector’s integrity and sustainability.
