In our April 2020 Banking Reform updater we considered the amendments that the Bank Recovery and Resolution Directive II make focussing in particular on total loss-absorbing capacity, the minimum requirements for own funds and eligible liabilities (MREL) and the changes to contractual recognition of bail-in. We also covered the changes to the single
On 20 May 2020, the European Banking Authority (EBA) published a report, which assesses interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD), with the aim of enhancing synergies between the two phases and ensuring consistency in their potential implementation.
The report:
On 20 May 2020, the European Securities and Markets Authority (ESMA) issued a public statement that addresses the preparation of interim financial statements according to IFRS and the interim management reports for the 2020 half-yearly reporting periods. The statement highlights the need for issuers to provide updated information that is useful to investors
Regulatory authorities in the EU and the UK have delayed certain regulatory reporting requirements so that firms can concentrate on supporting their customers during this difficult period. The announcements regarding reporting requirements have come at different times and the purpose of this new briefing note is to consolidate the PRA, FCA and EU announcements in
On 20 May 2020, the European Central Bank (ECB) published a draft guide for consultation that explains how it expects banks to safely and prudently manage climate-related and environmental risks and disclose such risks transparently under the current prudential framework. Whilst the ECB’s immediate attention is on the COVID-19 pandemic, it remains committed
Following on our post discussing the ARRC’s recommendations outlining a spread adjusting procedure, we mentioned that the ARRC planned to release a more detailed final recommendation of the spread adjustment methodology for cash products. On May 6, 2020, the ARRC released a supplemental consultation seeking further views on certain technical questions for the spread
On 19 May 2020, the Government published the following draft legal texts to accompany its February 2020 policy paper, The future relationship with the EU.
The draft legal texts comprise:
On 20 May 2020, the LMA published on its website a list of loans in the market which reference risk-free rates (RFRs). The LMA states that over the last year, bilateral and syndicated loans have been announced which reference the sterling (SONIA), US dollar (SOFR) and Swiss franc (SARON) RFRs, demonstrating an appetite among some
The International Swaps and Derivatives Association (ISDA) has published a report summarising the final responses to its consultation process regarding including LIBOR pre-cessation fallbacks in derivatives that reference LIBOR.
The results of the consultation indicate that a significant majority of respondents support including pre-cessation and permanent cessation fallbacks without optionality or flexibility in the amended
On 18 May 2020, the European Securities and Markets Authority (ESMA), noted the non-renewal of the emergency restrictions on short selling and similar transactions by the following national competent authorities: