On 15 November 2021, the European Central Bank (ECB) issued a consultation on a draft guide on the notification of securitisation transactions for directly supervised banks. The consultation follows the ECB’s announcement of its decision in May 2021 to ensure that directly supervised banks comply with the requirements for risk retention, transparency and resecuritisation for … Continue Reading
On 12 November 2021, the European Banking Authority (EBA) published its European Supervisory Examination Programme (ESEP) for 2022. The EBA are required to contribute to enhancing supervisory convergence across the internal market. They have an active role in building a common supervisory culture and consistent supervisory practices throughout the European Union. The ESEP is designed … Continue Reading
On 20 October 2021, Frank Elderson, Member of the Executive Board of the European Central Bank (ECB) gave a keynote speech at the Financial Market Authority’s Supervisory Conference, regarding the need for banks to translate their 2050 carbon-neutral targets into milestones. Key points in the speech include: Banks can no longer simply declare their intention … Continue Reading
On 18 October 2021, the European Central Bank (ECB) published a letter that it had sent to CEOs of significant institutions providing them with information on participation in the 2022 ECB Climate Risk Stress Test. In the letter the ECB explains that the output of the stress test exercise will be integrated into the Supervisory … Continue Reading
On 5 October 2021, the European Central Bank published a speech by a member of its Supervisory Board, Edouard Fernandez-Bollo. The speech is entitled ‘ECB Banking Supervision’s post-pandemic priorities – the way forward’. In his speech Mr Fernandez-Bollo reflects on some of the challenges and priorities that lie ahead for the banking sector. These include: … Continue Reading
On 21 September 2021, the European Central Bank (ECB) issued the results of its economy-wide climate stress test. The test looked at the impact of climate change on more than four million firms worldwide and 1,600 euro area banks under three different climate policy scenarios. The results show that, although the effects of climate risk … Continue Reading
On 16 September 2021, the Single Resolution Board (SRB) published an update to information on its approach to prior permissions for eligible liabilities. Prior to calling, redeeming, repaying or repurchasing eligible liabilities instruments before their contractual maturity, institutions are required to obtain the authorisation of the resolution authority in accordance with Article 77(2) of the … Continue Reading
On 6 September 2021, the following European Central Bank decisions were published in the Official Journal of the EU: Decision (EU) 2021/1437 of the European Central Bank of 3 August 2021 amending Decision (EU) 2017/934 on the delegation of decisions on the significance of supervised entities (ECB/2021/33). Decision (EU) 2021/1438 of the European Central Bank … Continue Reading
On 30 July 2021, the European Central Bank (ECB) published the results of its 2021 stress test. The stress test shows that the euro area banking system is resilient to adverse economic developments. The Common Equity Tier 1 capital ratio of the 89 ECB supervised banks in the stress test would fall by an average … Continue Reading
On 28 July 2021, the Single Resolution Board (SRB) published information on its approach to prior permissions for eligible liabilities, in line with upcoming regulatory changes. Banks need an authorisation under Articles 77 and 78a of the Capital Requirements Regulation (CRR) to redeem eligible liabilities, as of 27 June 2019. Article 78a(3) of the CRR … Continue Reading
On 23 July 2021, the European Central Bank announced that it was not extending beyond September 2021 its recommendation that all banks in the Eurozone limit dividends. Instead, supervisors will assess the capital and distribution plans of each bank as part of their regular supervisory process. When assessing a Eurozone bank’s capital trajectory and its … Continue Reading
On 30 June 2021, there was published in the Official Journal of the EU Decision (EU) 2021/1074 of the European Central Bank of 18 June 2021 on the temporary exclusion of certain exposures to central banks from the total exposure measure in view of the COVID-19 pandemic and repealing Decision (EU) 2020/1306. The decision extends … Continue Reading
On 1 July 2021, the European Systemic Risk Board (ESRB) published the following: Press release on the ESRB general board meeting on 24 June 2021. At this meeting the general board of the ESRB assessed the key systemic risks in the EU, as well as public policy priorities to address them. Among other things its … Continue Reading
On 30 June 2021, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) specifying the requirements for originators, sponsors, original lenders and servicers related to risk retention, in line with the Securitisation Regulation. The draft RTS have been developed in accordance with Article 6(7) of the Securitisation Regulation, as … Continue Reading
On 29 June 2021, the European Central Bank (ECB) launched a public consultation on updates to its harmonised policies for exercising the options and discretions that it is allowed to exercise under EU law when supervising banks. In 2016 and 2017, the ECB published a set of policy instruments harmonising how options and discretions (O&Ds) … Continue Reading
On 28 June 2021, the European Banking Authority (EBA) issued a consultation on revised guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) and supervisory stress testing. The purpose of the revisions is to implement recent changes introduced by the Capital Requirements Directive V and the Capital Requirements Regulation II, … Continue Reading
On 21 June 2021, the Single Resolution Board (SRB) published its policy on how banks can notify resolution authorities when bail-in recognition clauses cannot be added to contracts under third country law. In accordance with Article 55(2) of the Bank Recovery and Resolution Directive (BRRD), banks may determine that it is legally or otherwise impracticable … Continue Reading
On 18 June 2021, the European Central Bank (ECB) announced that the euro area banks it directly supervises may continue to exclude certain central bank exposures from the leverage ratio, as exceptional macroeconomic circumstances due to the COVID-19 pandemic continue. The announcement extends until March 2022 the leverage ratio relief granted in September 2020, which … Continue Reading
On 16 June 2021, the European Commission issued a targeted consultation designed to gather evidence on improving transparency and efficiency in secondary markets for non-performing loans (NPLs). The Commission notes that one of the key actions in fostering secondary markets for NPLs is to improve the quantity, quality and comparability of NPL data. Secondary markets … Continue Reading
When looking for new sources of investors and capital US fund managers often look towards Europe, but the European market is more tightly regulated when compared to the US market. In our forthcoming webinar taking place on February 25, 2021, Raising capital in Europe: Key regulatory issues for US asset managers, a team of partners … Continue Reading
On 19 November 2020, the German Regulator (BaFin) issued a notice on UK investment funds and their status in light of the imminent expiry of the transition period and the UK qualifying as a third country after 31 December 2020. Currently, UK UCITS and AIFs benefit from the EU-passport regime, which facilitates marketing of EU-UCITS … Continue Reading
With every day that passes without apparent progress towards an agreement on financial services or equivalence, the more firms we see putting in place arrangements to enable them to continue business across Europe. On 22 October members of our financial services and regulation team in London, Paris, Frankfurt, Amsterdam and Milan will be hosting a … Continue Reading
In order to sell their expertise to German institutional and retail investors, non-German asset managers must find ways to operate in the German investment market. This has become much more difficult under the Alternative Investment Fund Managers Directive. An attractive option is to cooperate with a German Master-KVG. We have recently published a new client … Continue Reading
The recordings from our global asset management regulation webinar series are now available to watch on demand. In this series, our financial services team explored the key issues and requirements firms should be considering when looking to launch an overseas fund in Europe, Asia Pacific, the United States and Canada. Watch now: The AIFMD re-examined … Continue Reading
