Germany

Monthly Global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought them … Continue Reading

Commission overhauls AML and CFT rules

By Lisa Lee Lewis (UK), John Coley (UK) and Simon Lovegrove (UK) on July 21, 2021 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 20 July 2021, the European Commission published a package of legislative proposals designed to strengthen the EU’s anti-money laundering and countering the financing of terrorism (AML/CFT) rules. The legislative package consists of a: Regulation establishing a new EU AML/CFT Authority. In the financial sector, this new European Authority directly supervise financial sector entities that … Continue Reading

Basel Committee consults on an amendment to the process for reviewing the G-SIB methodology

On 20 July 2021, the Basel Committee of Banking Supervision published a consultation document setting out a technical amendment to the Basel framework. The amendment sets out a new process that will be used by the Committee to review the assessment methodology for global systemically important banks (G-SIBs). The Committee plans to replace the existing … Continue Reading

ESMA publishes fourth annual report on use of sanctions for UCITS

By Iona Wright (UK) on July 21, 2021 Posted in Enforcement, Enforcement, Enforcement, Enforcement, France, Germany, Investigations and enforcement, Italy, The Netherlands, United Kingdom

On 20 July 2021, the European Securities and Markets Authority (ESMA) issued its latest report in the use of supervisory sanctions by Member State competent authorities (NCAs) under the UCITS IV Directive. The report has been prepared in accordance with Article 99e(1) of the UCITS IV Directive and covers the period from 1 January 2020 … Continue Reading

ESMA makes new Q&As available

By Simon Lovegrove (UK) on July 21, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 20 July 2021, the European Securities and Markets Authority announced that it had updated Q&As covering: Alternative Investment Fund Managers Directive. UCITS Directive. MiFIR data reporting. Prospectus Regulation. Benchmarks Regulation.… Continue Reading

ESMA publishes second report on sanctions under AIFMD

By Iona Wright (UK) on July 21, 2021 Posted in Enforcement, Enforcement, Enforcement, Enforcement, France, Germany, Investigations and enforcement, Italy, The Netherlands, United Kingdom

On 20 July 2021, the European Securities and Markets Authority (ESMA) issued its second annual report on the use by Member State competent authorities (NCAs) of sanctions under the Alternative Investment Fund Managers Directive (AIFMD). The report has been prepared in accordance with Article 48(3) AIFMD. It contains information on the penalties and measures imposed … Continue Reading

Commission sets out proposed Directive as regards access of NCAs to centralised bank account registries through the single access point

By Simon Lovegrove (UK) on July 21, 2021 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 20 July 2021, the European Commission published a draft Directive as regards access of Member State competent authorities to centralised bank account registries through the single access point. Article 32a of the Fifth Anti-Money Laundering Directive requires Member States to put in place centralised automated mechanisms, such as central registers or central electronic data … Continue Reading

ESMA consults on remuneration requirements under MiFID II

By Iona Wright (UK) on July 20, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 19 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines on certain aspects of the MiFID II remuneration requirements. The purpose of these draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the new MiFID II remuneration requirements, replacing the … Continue Reading

ESMA finds NCAs imposed sanctions of €8.4 million for MiFID II breaches in 2020

By Simon Lovegrove (UK) on July 20, 2021 Posted in Enforcement, Enforcement, Enforcement, Enforcement, France, Germany, Investigations and enforcement, Italy, The Netherlands, United Kingdom

On 19 July 2021, the European Securities and Markets Authority (ESMA) published its third report on the use of sanctions and measures by Member State competent authorities (NCAs) under MiFID II. Overall, in 23 (out of 30) EU/EEA Member States, NCAs imposed a total of 613 sanctions and measures in 2020 for an aggregated value … Continue Reading

Draft Directive amending UCITS IV Directive as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities

By Simon Lovegrove (UK) on July 19, 2021 Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective Investment Schemes, Collective investment schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 16 July 2021, the European Commission adopted a Directive that amends the UCITS IV Directive as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS). Article 32 of Regulation No 1286/2014 on key information documents for packaged retail and insurance-based investment products provides for … Continue Reading

Commission Delegated Regulation supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level

By Anna Carrier (BE) on July 19, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 14 July 2021, the European Commission adopted a Delegated Regulation supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level. Article 2(4) of MiFID II empowered the Commission to adopt regulatory technical standards (RTS) specifying the criteria for … Continue Reading

EBA consults to amend its technical standards on currencies with constraints on the availability of liquid assets

By Albert Weatherill (UK) on July 19, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 16 July 2021, the European Banking Authority launched a public consultation on amendments to its Implementing Technical Standards on currencies with constraints on the availability of liquid assets in the context of the liquidity coverage ratio. The proposed amendments remove the Norwegian Krone from the list, with the result that no currency will be … Continue Reading

ESMA third report on CSDR implementation

By Jochen Vester (UK) on July 19, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 16 July 2021, the European Securities and Markets Authority issued its latest report on the implementation of the Central Securities Depositories Regulation (CSDR). The report looks at the provision of banking-type ancillary services by central securities depositories (CSDs). The report contains suggestions to enhance the authorisation process for CSDs to provide banking-type ancillary services … Continue Reading

ESMA updates Q&As

By Simon Lovegrove (UK) on July 19, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 16 July 2021, the European Securities and Markets Authority updated the followings Q&As: Application of the AIFMD. Application of the UCITS Directive. Benchmarks Regulation. Prospectus Regulation.… Continue Reading

EBA consults on the draft guidelines on the limited network exclusion under the PSD2

By Simon Lovegrove (UK) on July 16, 2021 Posted in France, Germany, Italy, Payment services, Payment Services, Payment services, Payment services, The Netherlands, United Kingdom

On 15 July 2021, the European Banking Authority (EBA) issued a consultation paper on draft guidelines that set out its view on the application of the limited network exclusion requirements, which certain payment instruments might benefit from, as laid down in the revised Payment Services Directive (PSD2). Article 3(k) of the PSD2 specifies that the … Continue Reading

GFXC updates FX Global Code, publishes new templates for disclosures and guidance paper on Pre-hedging

On 15 July 2021, the Global Foreign Exchange Committee (GFXC) completed its review of the FX Global Code, updating its principles of good practice in the foreign exchange market in several key areas. The GFXC also published templates for industry participants to use in improving disclosures and assisting with transaction cost analysis. The GFXC is … Continue Reading

Supervisory approach on the MiFIR open access provisions for ETDs

By Hannah Meakin (UK) on July 15, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a public statement concerning its supervisory approach on the MiFIR open access provisions for exchange traded derivatives (ETDs). The statement notes that: Article 54(2) of MiFIR provides Member State national competent authorities (NCAs) with the possibility to temporarily exempt trading venues and central … Continue Reading

ESMA consults on EMIR reporting guidelines

By Jochen Vester (UK) on July 15, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines for derivatives reporting under the European Market Infrastructure Regulation (EMIR). When finalised the guidelines will apply to financial and non-financial counterparties to derivatives as defined in Articles 2(8) and 2(9) of EMIR, to trade repositories as defined … Continue Reading

ESMA publishes methodology for assessing third country CCPs systemic importance

By Jochen Vester (UK) on July 14, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 13 July 2021, the European Securities and Markets Authority (ESMA) published a methodology for assessing whether a third country central counterparty (TC-CCP) or some of its clearing services are of such substantial systemic importance that the TC-CCP should not be recognised to provide certain clearing services or activities in the European Union. The methodology … Continue Reading

ESMA final report – technical advice on simplification and harmonization of fees to TRs under EMIR and SFTR

By Hannah Meakin (UK) on July 14, 2021 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 12 July 2021, the European Securities and Markets Authority (ESMA) issued a final report setting out its technical advice to the European Commission regarding the simplification and harmonisation of its fee regulations applicable to trade repositories (TRs) under the European Market Infrastructure Regulation and the Securities Financing Transactions Regulation (SFTR). In particular in section … Continue Reading

FSB interim report on lessons learnt from the COVID-19 pandemic from a financial stability perspective

On 13 July 2021, the Financial Stability Board (FSB) published an interim report on the lessons learnt from the COVID-19 pandemic from a financial stability perspective. Among other things the interim report notes that: So far, the global financial system has weathered the COVID-19 pandemic thanks to greater resilience, supported by the G20 reforms, and … Continue Reading

ESMA warns firms and investors about risks arising from payment for order flow

By Hannah Meakin (UK) on July 14, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a public statement to remind firms that the receipt of payment for order flow (PFOF) raises significant investor protection concerns. The statement also reminds firms of their key MiFID II obligations intended to ensure that firms act in their clients’ best interest when … Continue Reading

EBA publishes final guidelines for the use of data inputs in the expected shortfall risk measure under the IMA

By Albert Weatherill (UK) on July 14, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 13 July 2021, the European Banking Authority (EBA) published final guidelines that clarify the requirements that the data inputs used to determine the scenarios of future shocks applied to modellable risk factors should meet. The guidelines, which have been developed in accordance with Article 325bh(3) of the Capital Requirements Regulation (CRR), become applicable from … Continue Reading

SFDR draft RTS further delayed – what does it mean for firms?

By Daniel Nevzat (UK), Imogen Garner (UK) and Simon Lovegrove (UK) on July 14, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

Earlier this year, the European Supervisory Authorities (ESAs) published a final report containing draft regulatory technical standards (RTS) on the content, methodologies and presentation of sustainability-related disclosures under the empowerments set out in Articles 2a, 4(6) and (7), 8(3), 9(5) and 10(2) and 11(4) of the Sustainable Finance Disclosure Regulation (SFDR). At the time of … Continue Reading