Jochen Vester (UK)

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SRB welcomes adoption of the review of the ‘CRR quick-fix’

On 22 September 2022, the Single Resolution Board (SRB) announced that they welcomed the adoption of the review of the Capital Requirements Regulation (CRR), known as ‘CRR quick-fix’. The CRR quick-fix clarifies the treatment of total loss-absorbing capacity (TLAC) surpluses located in third countries for banks with a multiple entry point of entry (MPE) resolution … Continue Reading

Commission Delegated Regulation (EU) 2022/1622 on emerging markets and advanced economies

On 21 September 2022, there was published in the Official Journal of the European Union(OJ) Commission Delegated Regulation (EU) 2022/1622 of 17 May 2022 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards on emerging markets and advanced economies. The RTS specify which countries constitute advanced economies for the purposes of specifying … Continue Reading

PRA consults on changes to the regulatory regime for credit unions

On 21 September 2022, the PRA published Consultation Paper 7/22 ‘Credit Unions: Changes to the Regulatory Regime’ (CP7/22). In CP7/22 the PRA sets out proposed amendments to the regulatory regime that applies to credit unions. The proposals broadly relate to amending and strengthening the regulatory regime in order to address risks posed by larger, more … Continue Reading

EBA publishes final draft RTS specifying the performance-related triggers pursuant to the Securitisation Regulation

On 20 September 2022, the European Banking Authority (EBA) published final draft Regulatory Technical Standards (RTS) specifying the minimum performance-related triggers for simple, transparent and standardised (STS) on-balance-sheet securitisations that feature non-sequential amortisation. The draft RTS have been developed in accordance with Article 26c(5) of the Securitisation Regulation (as amended by Regulation 2021/557), which requests … Continue Reading

PRA letter to Mel Stride MP on Simpler-regime Firm

On 6 September 2022, the Prudential Regulation Authority (PRA) published a letter from its CEO, Sam Woods, to Mel Stride MP, Chair of the Treasury Committee, providing a response to an earlier letter from Ms Stride regarding the PRA’s proposed definition of a Simpler-regime Firm. The letter provides thoughts on the following points but these … Continue Reading

Commission Delegated Regulation (EU) 2022/1455 supplementing the IFR with regard to RTS for own funds requirement for investment firms based on fixed overheads

On 5 September 2022, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2022/1455 of 11 April 2022, supplementing the Investment Firms Regulation with regard to regulatory technical standards for own funds requirement for investment firms based on fixed overheads. The RTS: Specify the deductions to be applied … Continue Reading

Corrigendum to Commission Delegated Regulation (EU) 2022/1159 of 11 March 2022 supplementing IFR with regard to RTS for public disclosure of investment policy by investment firms

On 25 August 2022, there was published in the Official Journal of the European Union a Corrigendum to Commission Delegated Regulation (EU) 2022/1159 of 11 March 2022 supplementing the Investment Firms Regulation with regard to regulatory technical standards for public disclosure of investment policy by investment firms. The Corrigendum inserts on page 15, in Annex … Continue Reading

FCA statement on IFPR eligibility for enhanced SM&CR status as a Significant SYSC firm

On 16 August 2022, the Financial Conduct Authority (FCA) published a statement on the Investment Firm Prudential Regime (IFPR) and eligibility for enhanced Senior Managers and Certification Regime (SM&CR) status as a Significant SYSC firm. The statement provides that, since the FCA provided a new definition of ‘significant SYSC firm’, stakeholders have highlighted that the … Continue Reading

Commission Delegated Regulation supplementing the CRR with regard to RTS specifying exotic underlyings and the instruments bearing residual risks for the purposes of the calculation of own funds requirements for residual risks

On 16 August 2022, the European Commission published Commission Delegated Regulation of 16.8.2022 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying exotic underlyings and the instruments bearing residual risks for the purposes of the calculation of own funds requirements for residual risks. The final draft RTS specify what an … Continue Reading

Commission Delegated regulation specifying the calculation methods of gross jump-to-default amounts for exposure to default risk arising from certain derivative instruments, and specifying the determination of notional amounts of instruments other than the instruments referred to in Article 325w(4) of the CRR

On 11 August 2022, the European Commission published a Commission Delegated Regulation supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards specifying the calculation methods of gross jump-to-default (JTD) amounts for exposures to debt and equity instruments and for exposures to default risk arising from certain derivative instruments, and specifying the determination … Continue Reading

House of Commons’ Treasury Sub-Committee on Financial Services Regulations publishes letter to the PRA regarding the ‘Strong and Simple Framework’

On 10 August 2022, the House of Commons’ Treasury Sub-Committee on Financial Services Regulations published a letter addressed to the Prudential Regulation Authority (PRA) regarding the ‘Strong and Simple Framework’. The letter sets forth that on 20 July 2022, the Sub-Committee held its inaugural meeting, where evidence was taken from two ‘challenger’ banks, as well as … Continue Reading

EBA consults on draft RTS on the determination by originator institutions of the exposure value of SES in securitisations

On 9 August 2022, the European Banking Authority launched a public consultation on its draft regulatory technical standards (RTS) on the determination by originator institutions of the exposure value of synthetic excess spread (SES) in securitisations. The draft RTS have been developed in accordance with Article 248(4) of Capital Requirements Regulation (CRR). The Capital Markets … Continue Reading

ESMA launches call for Evidence on Pre-Hedging

On 29 July 2022, the European Securities and Markets Authority (ESMA) published a call for evidence on pre-hedging. The aim is to promote discussion among stakeholders and gather further evidence on the practice of pre-hedging that could help ESMA to develop appropriate guidance. The call for evidence illustrated the arguments in favour and against such … Continue Reading

EBA publishes Final Report: Guidelines on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033

On 29 July 2022, the European Banking Authority (EBA) published its final guidance on the criteria for the exemption of investment firms from liquidity requirements in accordance with Article 43(4) of Regulation (EU) 2019/2033. The guidelines ensure that all competent authorities granting this exemption follow the same harmonised approach, while preserving the IFR general objective … Continue Reading

PRA CP13/22 ‘Amendments to the PRA’s approach to identifying other systemically important institutions’

On 21 July 2022, the PRA published Consultation Paper 13/22 ‘Amendments to the PRA’s approach to identifying other systemically important institutions’ (CP13/22). In CP13/22 the PRA is proposing to make changes to its Statement of Policy (SoP) on ‘The PRA’s approach to identifying other systemically important institutions’ (O-SIIs) and its SoP on ‘Interpretation of EU … Continue Reading

EBA publishes final regulatory products to harmonise the supervisory review and evaluation process of investment firms

On 21 July 2022, the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) jointly published final guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) for investment firms. The final guidelines set out common process and criteria for the assessment of the main SREP elements, including … Continue Reading

EBA launches discussion on 2023 EU-wide stress test methodology

On 21 July 2022, the European Banking Authority (EBA) published a draft methodology for its 2023 EU-wide stress test. The draft methodology and draft templates are the starting point for an informal discussion with banks so as to receive their input, which will be taken into account when finalising both documents. The final methodology will … Continue Reading

Basel Committee issues high-level considerations on proportionality

On 7 July 2022, the Basel Committee on Banking Supervision (Basel Committee) issued high-level considerations on proportionality that are intended to provide practical support to supervisory authorities seeking to implement proportionality into their domestic regulatory and supervisory frameworks. The high-level considerations seek to support the decision-making process of proportionality in a broad variety of jurisdictions, … Continue Reading

EBA reports on the successful mitigation of possible infection risk stemming from legacy instruments

On 7 July 2022, the European Banking Authority (EBA) published an analysis of how its October 2020 opinion on the prudential treatment of legacy instruments has been implemented across the EU. The EBA opinion noted that when reviewing EU institutions’ legacy instruments and examining the clauses that led to their grandfathering, two main issues created … Continue Reading

Commission Delegated Regulation supplementing the IFR with regard to RTS for public disclosure of investment policy by investment firms

On 6 July 2022, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2022/1159 of 11 March 2022 supplementing the Investment Firms Regulation with regard to regulatory technical standards for public disclosure of investment policy by investment firms. The provisions of the Delegated Regulation specify uniform disclosure formats and … Continue Reading

Basel Committee second consultation on the prudential treatment of banks’ cryptoasset exposures

On 30 June 2022, the Basel Committee on Banking Supervision (Basel Committee) issued its second public consultation paper on the prudential treatment of banks’ cryptoasset exposures. In the second consultation paper the Basel Committee continues with the basic structure outlined in its first consultation by dividing cryptoassets into two broad groups: Group 1 includes those … Continue Reading

Bank of England’s final policy on EMIR 2.2 implementation and consultation on fees for non-UK FMIs

On 30 June 2022, the Bank of England (BoE) published a Policy Statement and a Statement of Policy on its approach to ‘tiering’ non-UK central counterparties (incoming CCPs) based on the level of risk they could pose to UK financial stability. The BoE has also published a Policy Statement and a Statement of Policy on … Continue Reading
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