SMFSC Launches Second Consultation on Enforcement Transparency

Council Launches Second-Phase Consultation Following Industry Concerns

The San Marino Financial Standard Council (SMFSC) has announced the launch of the second phase of its consultation on proposals aimed at improving transparency within its enforcement processes. The move follows significant feedback and concerns raised during the initial consultation, prompting the council to refine its approach and seek further engagement with stakeholders across the financial sector.

According to the SMFSC, the updated proposals are designed to ensure that greater transparency does not compromise fairness, confidentiality, or due process. The initiative reflects the council’s ongoing commitment to fostering a financial environment built on trust, accountability, and responsible governance.

Balancing Transparency and Procedural Integrity

The original consultation, published earlier this year, sought input on whether SMFSC should disclose more information about ongoing enforcement investigations, including preliminary actions, sanctions, or settlements.
While the majority of respondents expressed support for greater openness, several industry participants voiced concerns that early disclosure could damage reputations, disrupt market stability, or prejudice ongoing proceedings.

In response, SMFSC’s revised framework adopts a measured and phased approach, focusing on clarity and proportionality. It aims to ensure that any additional transparency measures are introduced responsibly, with adequate safeguards to protect both investors and institutions.

Commitment to Stakeholder Collaboration

In its announcement, SMFSC emphasized that constructive dialogue with stakeholders remains central to the development of effective regulatory policy. The council plans to hold a series of roundtable discussions, targeted surveys, and expert briefings to gather diverse perspectives before finalizing the enforcement transparency model.

An SMFSC spokesperson stated:

“Transparency and integrity are fundamental to our mission, but so is the protection of due process. We are determined to strike the right balance—one that strengthens confidence in our enforcement actions while maintaining fairness for all parties involved.”

Next Steps and Implementation Outlook

The second-phase consultation will remain open for submissions over the coming months, with feedback invited from financial institutions, legal professionals, investor groups, and the general public.
Once the consultation period concludes, SMFSC will publish a comprehensive summary of responses, along with its final policy direction and an implementation timeline.

Should the proposals be adopted, SMFSC anticipates gradually expanding disclosure practices—such as periodic updates on enforcement outcomes, anonymized summaries of cases, and publication of key lessons for market participants.

A Step Forward in Responsible Self-Regulation

As a self-regulatory financial association based in San Marino, SMFSC continues to advocate for transparent and ethical practices that enhance market integrity.
The current consultation demonstrates its proactive stance in modernizing financial governance, ensuring that the pursuit of transparency evolves in tandem with investor protection and institutional accountability.

Through these efforts, SMFSC reaffirms its role as a guardian of integrity and fairness within the global financial ecosystem—promoting responsible conduct not through force, but through cooperation, education, and open dialogue.