On 21 June 2019 the Financial Action Task Force (FATF) adopted its 2019 Guidance for a Risk-Based Approach to Virtual Assets and Virtual Asset Service Providers (the Guidance). The Guidance updates the 2015 version of the guidance and accompanies the FATF’s June 2019 Interpretive Note to Recommendation 15 on New Technologies (INR 15) that clarifies … Continue Reading
Article 71(4) of MiFID II, requires the European Securities and Markets Authority (ESMA) to publish an annual report regarding information on sanctions and measures imposed under MiFID II in the previous calendar year, as notified by Member State national competent authorities (NCAs). On 17 July 2019, ESMA delivered its latest report collating information submitted by … Continue Reading
On 17 July 2019, the European Securities and Markets Authority (ESMA) issued a call for evidence on certain investor protection topics included in the European Commission mandate to ESMA on the reports to be submitted by the Commission under Article 90 of MiFID II. Article 90 of MiFID II provides that the Commission shall, after consulting ESMA, … Continue Reading
On 17 July 2019, the European Money Markets Institute (EMMI) published the benchmark statement for the administration of the Euro Interbank Offered Rate (EURIBOR). The statement provides information on EURIBOR across the following areas: market or economic reality; input data and methodology; exercise of judgement or discretion by the EMMI or contributors; cessation and change … Continue Reading
On 15 July 2019, the European Securities and Markets Authority (ESMA) published a consultation paper containing draft guidelines on aspects of the compliance functions requirements under MiFID II. The purpose of the draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the expanded compliance function requirements introduced under … Continue Reading
On 16 July 2019, the European Banking Authority (EBA) published an update to its implementing technical standards (ITS) on benchmarking of internal approaches to reflect comments received following an earlier consultation in December 2018 (see previous blog post). The ITS include all benchmarking portfolios that will be used for the 2020 benchmarking exercise. A zip … Continue Reading
On 16 July 2019, the European Banking Authority (EBA) published a report setting out its final draft implementing technical standards (ITS) amending Commission Implementing Regulation (EU) 680/2014 on supervisory reporting of institutions with regard to financial reporting (FINREP). The amendments in the draft ITS address the risks of high non-performing exposures (NPE) and forborne exposures … Continue Reading
On 16 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines on performance fees under the Undertakings for Collective Investment in Transferable Securities (UCITS) Directive. The draft guidelines aim to improve harmonisation in the way in which performance fees can be charged to UCITS. This follows a mapping … Continue Reading
On 15 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on practical questions regarding the European Markets Infrastructure Regulation (EMIR). ESMA has updated the Q&As so that they are aligned with the EMIR Refit Regulation. The following have been amended or deleted: General questions – Question 1 – Funds, counterparties – … Continue Reading
The latest issue of Global Asset Management Quarterly is now available here. In this issue we cover: Sustainable finance is a trend set to stay Brexit: latest developments Luxemburg update Ireland update The proposed Australian corporate collective investment vehicle SFC raises disclosure requirements for Green or ESG funds Mutual recognition of funds: Netherland – Hong … Continue Reading
On 12 July 2019, the European Banking Authority (EBA) published its first report on the monitoring of liquidity coverage ratio (LCR) implementation in the EU. The EBA’s monitoring of the LCR contributes to a consistent application of EU law and promotes common supervisory approaches and practices in this area. In the report, the EBA has … Continue Reading
On 12 July 2019, the European Securities and Markets Authority (ESMA) published a report on the status of licencing regimes of FinTech firms across the EU. The report is based on two surveys conducted by ESMA since January 2018, which gathered evidence from Member State national competent authorities (NCAs) on the licencing regimes of FinTech … Continue Reading
On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on the development in prices for pre- and post-trade data and on the post-trade consolidated tape (CT) for equity instruments. The consultation covers the review provisions on the development in prices for pre- and post-trade transparency data from regulated markets, … Continue Reading
On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines on disclosure requirements under the Prospectus Regulation (PR). The purpose of the draft guidelines is to ensure that market participants have a uniform understanding of the relevant disclosure required in the various annexes included in ‘Commission Delegated … Continue Reading
On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a public statement addressing the misalignment between the scope of counterparties subject to the EMIR clearing obligation (CO) and those subject to the MiFIR derivatives trading obligation (DTO). ESMA’s statement addresses two areas: clearing and trading obligations for small financial counterparties (FCs) and … Continue Reading
On 12 July 2019, the following legislative acts were published in the Official Journal of the EU (OJ): Directive (EU) 2019/1160 amending the UCITS Directive and the Alternative Investment Fund Managers Directive with regard to the cross-border distribution of collective investment undertakings; and Regulation (EU) 2019/1156 on facilitating cross-border distribution of collective investment undertakings and … Continue Reading
On 12 July 2019, the European Securities and Markets Authority (ESMA) issued a statement addressed to providers marketing, distributing or selling contracts for differences (CFDs) to retail clients. The statement is in response to various practices and situations observed in the market, which raise concerns of non-compliance with the legal requirements applicable when providing services … Continue Reading
On 12 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on market structures and transparency issues under MiFID II and MiFIR. The updated Q&As provide clarification on the following topics: the use of pre-arranged transactions for non-equity instruments; the hedging exemption of Article 8 of MiFIR; the treatment of constant maturity … Continue Reading
On 11 July 2019, the European Central Bank (ECB) announced that it will start publishing the euro short-term rate as of 2 October 2019. The rate will be available by 8:00am CET on each TARGET2 business day. If there are errors detected following the publication of the rate that affect it by more than 2 … Continue Reading
On 11 July 2019, the European Securities and Markets Authority updated its Q&As on the implementation of the Central Securities Depository Regulation (CSDR). Part IV of the Q&As dealing with internalised settlement now contains answers to the following questions: Should an investment firm report client orders where the corresponding settlement instructions are forwarded in their … Continue Reading
On 11 July 2019, the European Securities and Markets Authority updated its Q&As on the implementation of investor protection topics under MIFID II and MiFIR. The new Q&As provide clarification on the following: Best execution – Classification of financial instruments under RTS 27 if ESMA has not published any calibrated market sizes.… Continue Reading
On 10 July 2019, the GFXC released further detail from its 22 – 23 May meeting during which the committee discussed its mandate to consider the case for a comprehensive review of the FX Global Code (Code) at least every three years. The GFXC also announced that Neill Penney, managing director and co-head of trading … Continue Reading
On 11 July 2019, the European Securities and Markets Authority (ESMA) updated its Q&As on the Benchmarks Regulation (BMR). The new Q&As provide clarification on the following issues: Is the scope of the definition of commodity benchmarks for the purposes of the BMR identical to the scope of the definition of commodity derivatives for the … Continue Reading
Introduction As noted in our earlier update, ASIC has released its updated proposals for the licensing relief available to foreign financial services providers (FFSPs) servicing wholesale clients in Australia, with the release of Consultation Paper 315. In summary, ASIC has proposed to: extend the expiry of the sufficient equivalence relief and limited connection relief until … Continue Reading
