On 2 June 2023, there was published a letter from the European Securities and Markets Authority to the European Commission, the European Parliament and the Council of the EU concerning the MiFIR review and the current lack of transparency in the EU for over-the-counter (OTC) derivatives, notably single-name credit default swaps (CDS). Among other things … Continue Reading
On 26 May 2023, HM Treasury (HMT) published a policy paper outlining amendments to the Financial Services and Markets Bill (FSM Bill), concerning overseas central counterparties (CCPs). In January 2023, HMT introduced an amendment to the FSM Bill which, if enacted, would give the Bank of England (the Bank) the power to extend the maximum … Continue Reading
On 25 May 2023, the European Commission published Commission Delegated Regulation (EU) of 25 May 2023 supplementing the Investment Firms Directive with regard to regulatory technical standards specifying the measurement of risks or elements of risks not covered or not sufficiently covered by the own funds requirements set out in parts three and four of … Continue Reading
On 17 May 2023, the Prudential Regulation Authority (PRA) published Policy Statement PS6/23, ‘Model risk management principles for banks’, which contains a new supervisory statement (SS1/23) on the topic, as well as the PRA’s feedback to responses to its earlier consultation CP6/22. SS1/23 sets out the PRA’s expectations for banks’ management of model risk, with … Continue Reading
On 12 May 2023, the European Banking Authority (EBA) issued a final report containing draft regulatory technical standards (RTS) on the scope and methods for consolidation of an investment firm group under the Investment Firms Regulation (IFR). The final report follows a consultation paper that the EBA published in June 2020 which included draft RTS … Continue Reading
On 4 May 2023, the European Banking Authority (EBA) published its annual report on convergence of supervisory practices in 2022. In accordance with Article 107 of the Capital Requirements Directive IV, the EBA reports annually to the European Parliament and Council on the degree of convergence of supervisory practices. The report describes the effects of … Continue Reading
On 3 May 2023, the European Commission published the following: These Delegated Regulations shall come into force on the twentieth day following that of their publication in the Official Journal of the European Union.… Continue Reading
On 25 April 2023, the European Banking Authority (EBA) published a report containing final draft regulatory technical standards (RTS) that specify how originator institutions are to determine the exposure value referred to in Article 248(1)(e) of the Capital Requirements Regulation (CRR) (as amended by Regulation 2021/558), taking into account the relevant losses expected to be … Continue Reading
On 21 April 2023, the European Commission published Commission Delegated Regulation (EU) of 20 April 2023 supplementing the Capital Requirements Regulation on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange risk or commodity risk and the treatment for those positions for the purposes of the … Continue Reading
On 21 April 2023, the European Commission published Commission Delegated Regulation (EU) of 20 April 2023, supplementing the Capital Requirements Regulation with regard to regulatory technical standards (RTS) specifying the requirements for the internal methodology or external sources used under the internal draft risk model for estimating default probabilities and losses given default. The final … Continue Reading
On 19 April 2023, the European Commission published Commission Delegated Regulation (EU) of 19.4.2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement. The Commission Delegated Regulation removes the separate process established in Article … Continue Reading
On 6 April 2023, the International Capital Market Association (ICMA) published the ninth update to its recommendations for reporting under SFTR. These ICMA recommendations for reporting under the EU Securities Financing Transactions Regulation (SFTR) have been created to support ICMA members in their efforts to implement and apply the complex SFTR reporting requirements. They offer … Continue Reading
In our latest briefing note on the Edinburgh Reforms, we look at HM Treasury’s call for evidence on aligning the ring-fencing and resolution regimes.… Continue Reading
On 30 March 2023, the Basel Committee on Banking Supervision published updated a Technical Amendment document containing various technical amendments and FAQs. The Technical Amendment document contains proposed amendments to the Basel Framework relating to the: The deadline for comments on the proposed amendments is 15 May 2023. The Basel Committee has also finalised a … Continue Reading
Introduction: what are the facts? The Bank of England (BoE) has a number of resolution tools at its disposal which are provided for in legislation following the 2008 global financial crisis. These tools are designed to protect and enhance UK financial stability, protect public funds and ensure the continuity of banking services. These tools have … Continue Reading
On 24 March 2023, the European Banking Authority (EBA) published a Consultation Paper on draft Regulatory Technical Standards (RTS) on the assessment methodology under which Member State competent authorities (NCAs) verify an institution’s compliance with the internal models approach as per Article 32az(8) of the revised Capital Requirements Regulation (CRR). One of the prerequisites for … Continue Reading
On 22 March 2023, there was published in the Official Journal of the European Union (OJ) Commission Delegated Regulation (EU) 2023/662 of 20 January 2023 amending Delegated Regulation (EU) 2015/63 as regards the methodology for the calculation of liabilities arising from derivatives. Regulation (EU) 2019/876 included an amendment to the Capital Requirements Regulation (CRR) which … Continue Reading
On 21 March 2022, the European Banking Authority (EBA) published a Consultation Paper (CP) on draft Implementing Technical Standards (ITS) amending Regulation (EU) 2021/453 with regard to the specific reporting requirements for market risk. As the full implementation of the Fundamental Review of the Trading Book (FRTB) in the EU approaches, and with the aim … Continue Reading
On 16 March 2023, the European Banking Authority (EBA) published a Handbook on data submissions for supervisory benchmarking of internal models. The Handbook is an online tool that provides guidance and links to relevant documents and information for the supervisory benchmarking to facilitate their accessibility. In particular, the Handbook includes overviews for all applicable Q&As … Continue Reading
On 14 March 2023, the European Commission published Commission Delegated Regulation (EU) of 14 March 2023 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards (RTS) specifying the contents of the resolution plan. This delegated act sets out the contents of the resolution plan in accordance … Continue Reading
On 14 March 2023, the European Commission published Commission Delegated Regulation (EU) of 14 March 2023 supplementing Regulation (EU) 2021/23 of the European Parliament and of the Council with regard to regulatory technical standards specifying the content of the written arrangements and procedures for the functioning of the resolution colleges. This delegated act sets out … Continue Reading
On 14 March 2023, the PRA published Consultation Paper 6/23 ‘The non-performing exposures capital deduction’ (CP6/23). In CP6/23 the PRA sets out a proposal to remove the Common Equity Tier 1 (CET1) deduction requirement in the PRA Rulebook, regarding non-performing exposures (NPEs) that are treated as insufficiently covered by firms’ accounting provisions. Among other things … Continue Reading
On 13 March 2023, the Bank of England (BoE) published a report on climate-related risks and the regulatory capital frameworks. The report includes updates on capability and regime gaps, capitalisations timelines, and areas for future research and analysis. Background In October 2021, the BoE published its Climate Change Adaptation Report (CCAR) which set out early … Continue Reading
On 3 March 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/450 of 25 November 2022 supplementing the Central Counterparty Recovery and Resolution Regulation with regard to regulatory technical standards specifying the order in which CCPs are to pay the recompense referred to in Article 20(1) … Continue Reading
