Germany

T2-T2S consolidation: FAQs on migration, testing and readiness

Albert Weatherill (UK)By Albert Weatherill (UK) on Posted in France, Germany, Italy, Payment Services, Payment services, Payment services, The Netherlands, United Kingdom
On 28 May 2020, the European Central Bank (ECB) published FAQs for TARGET2 (T2) participants (banks and ancillary systems) providing them with information regarding the T2-T2S consolidation project.  In particular, the FAQs provide such participants with information on the overall migration strategy and the key project milestones, as well as details on service providers, connectivity, … Continue Reading

EBA guidelines on loan origination and monitoring

Jochen Vester (UK)Simon Lovegrove (UK)By Jochen Vester (UK) and Simon Lovegrove (UK) on Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom
On 29 May 2020, the European Banking Authority (EBA) published guidelines on loan origination and monitoring that expect institutions to develop robust and prudent standards to ensure newly originated loans are assessed properly. The guidelines also aim to ensure that institutions’ practices are aligned with consumer protection rules and respect fair treatment of consumers. To … Continue Reading

IOSCO consults on outsourcing principles to ensure operational resilience

Simon Lovegrove (UK)Hannah McAslan (UK)By Simon Lovegrove (UK) and Hannah McAslan (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 28 May 2020, the International Organization of Securities Commissions (IOSCO) issued a consultation report concerning its ‘Principles for Outsourcing’. IOSCO prepared this consultation report before the COVID-19 outbreak. On 8 April 2020, the IOSCO board agreed to delay the publication of its reports to allow firms and financial institutions to redirect their resources to … Continue Reading

ESMA updates Q&As on the Securitisation Regulation

Jochen Vester (UK)By Jochen Vester (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
 On 28 May 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the Securitisation Regulation. Most of the new Q&As provide clarification on the different aspects of the templates contained in the draft technical standards on disclosure which are published on the European Commission’s website. In particular, ESMA clarifies how several specific … Continue Reading

ESMA updates EMIR Q&As

Hannah Meakin (UK)By Hannah Meakin (UK) on Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom
On 29 May 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Market Infrastructure Regulation (EMIR). ESMA has added a new Trade Repository (TR) Q&A 54 providing clarifications on reporting of over-the-counter derivatives by a financial counterparty (FC) on behalf of a non-financial counterparty (NFC) below the clearing threshold (NFC-) … Continue Reading

ESMA updates MiFID II / MiFIR Q&As on transparency and market structures topics

Hannah Meakin (UK)By Hannah Meakin (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 29 May 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on market structures and transparency issues under MiFID II / MiFIR. The updated Q&As provide clarification on the following topics: the default liquidity status, SSTI and LIS thresholds of non-equity instruments; the publication of transactions in an aggregated form; the conversion … Continue Reading

ESMA updates MiFID II Q&As on investor protection and intermediaries

Imogen Garner (UK)Iona Wright (UK)By Imogen Garner (UK) and Iona Wright (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 28 May 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of investor protection topics under MiFID II / MiFIR. ESMA has added a new Q&A (see section 12, question 7) that provides clarification on the application of the MiFID definition of “acceptable minor non-monetary benefits”.… Continue Reading

Commission adopts Delegated Regulation on revisions to RTS on prudent valuation under CRR

Jochen Vester (UK)By Jochen Vester (UK) on Posted in Coronavirus, Coronavirus, Coronavirus, Coronavirus, Germany, Italy, The Netherlands, United Kingdom
On 28 May 2020, the European Commission adopted a Delegated Regulation (plus Annex) amending Delegated Regulation (EU) 2016/101 of 26 October 2015 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) for prudent valuation under Article 105(14) of the CRR. The Delegated Act introduces a temporary adjustment aimed at mitigating increases … Continue Reading

European Commission 2020 adjusted work programme: financial services aspects

Simon Lovegrove (UK)By Simon Lovegrove (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 27 May 2020, the European Commission adjusted its 2020 work programme in light of the COVID-19 pandemic. The adjustments include a non-legislative proposal relating to a renewed sustainable finance strategy being issued in Q4 2020 rather than Q3 2020. A due date for a report on the application of the Electronic Identification and Signature … Continue Reading

COVID-19 is placing unprecedented challenges on EU banks

Simon Lovegrove (UK)By Simon Lovegrove (UK) on Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom
On 25 May 2020, the European Banking Authority (EBA) published a preliminary assessment of the impact of COVID-19 on the EU banking sector. The EBA reports that the COVID-19 pandemic is expected to affect asset quality and therefore the profitability of banks going forward. However, it also notes that the capital accumulated by banks during … Continue Reading

SRB publishes MREL policy under the Banking Package

Jochen Vester (UK)Simon Lovegrove (UK)By Jochen Vester (UK) and Simon Lovegrove (UK) on Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom
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 resolution mechanism … Continue Reading

EBA report on interlinkages between recovery and resolution planning

Jochen Vester (UK)Simon Lovegrove (UK)By Jochen Vester (UK) and Simon Lovegrove (UK) on Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom
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: outlines the EBA’s observations deriving from its first … Continue Reading

ESMA calls for transparency on COVID-19 effects in half-yearly financial reports

Hannah McAslan (UK)By Hannah McAslan (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
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 to adequately … Continue Reading

Regulators’ approach to reporting obligations during the COVID-19 outbreak

Simon Lovegrove (UK)Hannah McAslan (UK)Anna Carrier (BE)By Simon Lovegrove (UK), Hannah McAslan (UK) and Anna Carrier (BE) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, United Kingdom
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 … Continue Reading

ECB public consultation on its guide on climate-related and environmental risks

Imogen Garner (UK)Caroline HerkströterBy Imogen Garner (UK) and Caroline Herkströter on Posted in ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom
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 to further … Continue Reading

ESMA – non-renewal and termination of short selling bans by Austrian FMA, Belgian FSMA, French AMF, Greek HCMC, Italian CONSOB and Spanish CNMV

Hannah McAslan (UK)By Hannah McAslan (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
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: Finanzmarktaufsicht (FMA) of Austria; Financial Securities and Markets Authority (FSMA) of Belgium; Autorité des Marchés Financiers (AMF) of France; Hellenic Capital Market Commission (HCMC) of … Continue Reading

Adapting to change is business as usual: keeping you connected throughout the pandemic

Anna Carrier (BE)By Anna Carrier (BE) on Posted in Coronavirus, Coronavirus, Coronavirus, Coronavirus, France, Germany, Italy, The Netherlands, United Kingdom
An update from Brussels Over the coming weeks, partners and members of our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In video diary number 16, Anna … Continue Reading

EBA consults on technical standards for contractual recognition of stay powers under the BRRD

Simon Lovegrove (UK)By Simon Lovegrove (UK) on Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom
On 15 May 2020, the European Banking Authority (EBA) issued a consultation on draft regulatory technical standards (RTS) for contractual recognition of stay powers laid down in the Bank Recovery and Resolution Directive (BRRD). The draft RTS are made under Article 71a(5) of the BRRD, which requires the EBA to develop RTS to further determine … Continue Reading

EMIR Refit reporting: New documentation requirements, COVID-19 and implementation challenges

Hannah Meakin (UK)Simon Lovegrove (UK)Jochen Vester (UK)By Hannah Meakin (UK), Simon Lovegrove (UK) and Jochen Vester (UK) on Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom
 While the majority of the new requirements under the EMIR Refit applied upon the regulation entering into force, other requirements are phased in, such as the changes in relation to the current EMIR reporting regime. The new reporting requirements will apply in less than a month’s time, from June 18, 2020 onwards. We have published … Continue Reading

ESMA highlights challenges for rating collateralised loan obligations

Jochen Vester (UK)By Jochen Vester (UK) on Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom
On 13 May 2020, the European Securities and Markets Authority (ESMA) published a thematic report on collateralised loan obligations (CLOs) credit ratings in the EU. The report provides an overview of CLO rating practices and identifies the main supervisory concerns, and medium-term risks, in this asset class which include credit rating agencies’ (CRAs) internal organisation, … Continue Reading

EBF guidance document on the revised Cross-Border Payments Regulation

Albert Weatherill (UK)By Albert Weatherill (UK) on Posted in France, Germany, Italy, Payment Services, Payment services, Payment services, The Netherlands, United Kingdom
On 13 May 2020, the European Banking Federation (EBF) published a guidance document on the revised Cross-Border Payments Regulation. The purpose of the document is to help EBF members in their implementation of the Regulation, in particular with regard to the new obligations related to transparency requirements for currency conversions for card-based payments and credit … Continue Reading

Commission Delegated Regulation amending the list of high risk jurisdictions for 4MLD

By Clarinda Francesca Grundy on Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom
On 7 May 2020, the European Commission adopted a Delegated Regulation amending Delegated Regulation (EU) 2016/1675 supplementing the Fourth Anti-Money Laundering Directive as regards the Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama and Zimbabwe to the table in point I of the Annex and deleting Bosnia-Herzegovina, Ethiopia, Guyana, Lao People’s Democratic … Continue Reading

EBA report into dividend arbitrage trading schemes and 10-point action plan to enhance the future regulatory framework

Simon Lovegrove (UK)By Simon Lovegrove (UK) on Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom
On 12 May 2020, the European Banking Authority (EBA) published the results of its inquiry into dividend arbitrage schemes, which looked into the actions of prudential and anti-money laundering and countering the financing of terrorism (AML / CFT) supervisors in dealing with such schemes. In May 2019, the EBA carried out a survey of competent … Continue Reading

Member States discuss CRR “quick fix” legislative proposal

Anna Carrier (BE)By Anna Carrier (BE) on Posted in EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom
On 29 April 2020 we blogged that in the context of COVID-19 the European Commission published a legislative proposal for targeted amendments to the Capital Requirements Regulation (CRR).  A legislative process is currently underway, with both the Council (Member States) and the European Parliament conducting their respective reviews. On 13 May 2020, a meeting of … Continue Reading
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