July 2026 Global Regulatory Brief: Model risk, capital markets reform and AI innovation

Regulators across Asia are tightening expectations on how boards govern decision-making models, with India's RBI proposing a board-approved Model Risk Management Framework covering both traditional and AI/ML models used in decision rules. For SEA boards, this signals that decision logs, model validation, and clear board-level accountability for algorithm-assisted choices are becoming supervisory requirements, not optional governance hygiene.