On 24 September 2018, the European Banking Authority (EBA) issued a press release announcing the launch of its fifth annual EU-wide transparency exercise. In December 2018, together with the Risk Assessment Report (RAR), the EBA will release over 900000 data points on roughly 130 EU banks. The data to be released will cover: capital positions; … Continue Reading
On 21 September 2018, the European Securities and Markets Authority (ESMA) published an opinion (the Opinion) on the European Commission’s (the Commission’s) revised proposal for amending Delegated Regulation (EU) 2017/587 (RTS 1). On 10 August 2018, the Commission endorsed, with amendments, ESMA’s proposal to amend RTS 1 to specify the concept of ‘prices reflecting prevailing … Continue Reading
On 21 September 2018, the European Committee on Economic and Monetary Affairs (ECON) published two draft reports (the Reports) on European Parliament proposals in relation to the cross-border distribution of collective investment funds: draft report on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC of the European … Continue Reading
On 21 September 2018, the European Central Bank (ECB) published its guide to on-site inspections and internal model investigations (the Guide). The Guide acts as a reference document for the supervised entities and other legal entities for which the ECB has decided to launch an on-site inspection of. The Guide applies to inspections conducted in … Continue Reading
On 21 September 2018, there was published in the Official Journal of the European Union (OJ) the Recommendation of the European Systemic Risk Board (ESRB) of 16 July 2018 amending Recommendation ESRB/2015/2 on the assessment of cross-border effects of and voluntary reciprocity for macroprudential policy measures (the Recommendation). The Recommendation amends ESRB/2015/2 by recommending that … Continue Reading
On 20 September 2018, the Basel Committee on Banking Supervision (BCBS) published a press release on the outcome of their meeting of 19 and 20 September 2018 (the Press Release). The Press Release notes that the BCBS discussed: the results of the annual assessment exercise for global systemically important banks (G-SIBs). The BCBS also agreed … Continue Reading
On 20 September 2018, the Basel Committee on Banking Supervision (BCBS) published responses to FAQs relating to the treatment of settled-to-market derivatives under the liquidity coverage ratio and net stable funding ratio. The FAQ responses clarify that the liquidity risks associated with settled-to-market derivatives are the same as those for more conventional collateralised-to-market derivatives, and … Continue Reading
On 20 September 2018, the International Organization of Securities Commissions (IOSCO) published a final report on retail OTC leveraged products (the Report), which provides measures for securities regulators to consider when addressing the risks arising from the marketing and sale of OTC leveraged products to retail investors. The Report provides three ‘toolkits’ containing guidance and measures … Continue Reading
On 18 September 2018, the Council of the EU published the minutes of its meeting on general affairs (the Minutes). On page 13 of the Minutes, the Council provides a non-objection to the Commission Delegated Regulation adding Pakistan to the list of high-risk third countries under the Fourth Anti-Money Laundering Directive (the Delegated Regulation). The … Continue Reading
On 19 September 2018, the European Banking Authority (EBA) published their fourth annual report on asset encumbrance (the Report). There was a slight increase in the level of asset encumbrance across the EU in 2017 compared to previous years, with particularly high levels noted in jurisdictions with established covered bond markets (e.g. Sweden), and those … Continue Reading
On 19 September 2018, the European Banking Authority (EBA) published a report on EU banks’ funding plans (the Report). The report analyses trends in the market to assess the feasibility of banks’ funding plans submitted to the EBA. Most banks expect their assets to grow by 6.2% until 2020, driven primarily by household loans and … Continue Reading
On 14 September 2018, the Financial Markets Law Committee (FMLC) published a paper (dated July 2018), European Market Infrastructure Regulation (EMIR): the European Commission’s Legislative Proposal to Amend Procedures for recognition of Third Country Central Counterparties (the Paper). On 14 July 2017, the European Commission (Commission) adopted a legislative proposal to amend the processes for … Continue Reading
On 18 September 2018, the International Organisation of Securities Commission (IOSCO) published a final report on conflicts of interest and associated conduct risks during the equity capital raising process (the Report). The Report follows the IOSCO Board’s August 2017 mandate for Committee 3 on Regulation of Market Intermediaries (C3) to examine conflicts of interest and … Continue Reading
On 18 September 2018, the European Payments Council (EPC) published seven new and updated resources concerning its Single European Payments Area (SEPA) scheme rulebooks: Guidance on reason codes for SCT R-Transactions; Guidance on reason codes for SCT Inst R-Transactions; Guidance on reason codes for SDD R-Transactions; Guidelines for the appearance of mandates for the SEPA … Continue Reading
The latest edition of global asset management quarterly is now available online. This issue includes coverage of the following: Europe UK and European Overview UK withholding tax: whether interest arises in the UK PRIIPS – 9 months on Brexit: the UK Government ”no deal” guidance notices Brexit: the UK’s temporary permissions regime Brexit: the UK’s … Continue Reading
On 14 September 2018, the European Central Bank (ECB) launched a public consultation on part 2 of the guide to assessments of license applications (Part 2). Part 2 supplements the Licensing Guide published in March 2018 and both documents should be read together as one guide. Part 2 contains specific guidance on the ECB’s supervisory … Continue Reading
On 13 September 2018, the European Central Bank (ECB) published a press release outlining the recommendations of the private sector working group on euro-risk free rates (the Working Group). The Working Group has recommended that the euro short-term rate (ESTER) should become the new euro risk-free rate and replace EONIA. The recommendations of the Working … Continue Reading
On 13 September 2018, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2018/1229 of 25 May 2018 supplementing Regulation (EU) No 909/2014 of the European Parliament and of the Council with regard to regulatory technical standards on settlement discipline (the Delegated Regulation). The European Commission adopted the Delegated … Continue Reading
On 12 September 2018, the European Parliament adopted its first reading positions on two measures to counter money laundering within the EU: Regulation (EU) 2018/… of the European Parliament and of the Council on controls on cash entering or leaving the Union and repealing Regulation (EC) No 1889/2005 (the Regulation). Directive (EU) 2018/… of the European … Continue Reading
On 12 September 2018, the European Commission published a communication: Strengthening the Union framework for prudential and anti-money laundering (AML) supervision for financial institutions (the Communication). The Commission is concerned that gaps remain in the Union’s AML supervisory framework. In particular, concerns have arisen that there is no clear articulation between the prudential and AML … Continue Reading
On 12 September 2018, the European Commission published an amended proposal on the amendment of the three regulations founding the European Supervisory Authorities (ESAs). The amendments proposed aim to centralise the tasks relating to the prevention and combatting of money-laundering and terrorist financing (AML/CTF) into the European Banking Authority (EBA). The amended proposal extends the … Continue Reading
On 11 September 2018, the Joint Committee of the European Supervisory Authorities (the Joint Committee), comprised of EIOPA, ESMA and the EBA, published a report on the risks and vulnerabilities in the EU financial system (the Report). In the Report, the Joint Committee assesses risk concerning (i) valuations, repricing of risk premia and increasing interest … Continue Reading
On 10 September 2018, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2018/1221 of 1 June 2018 amending Delegated Regulation (EU) 2015/35 as regards the calculation of regulatory capital requirements for securitisations and simple, transparent and standardised securitisations held by insurance and reinsurance undertakings. The Delegated Regulation will … Continue Reading
On 7 September 2018, the European Securities and Markets Authority (ESMA) announced that it has moved its register for benchmark administrators and third country benchmarks to the ESMA registers’ database. ESMA had been publishing the list of benchmark administrators and third country benchmarks (under Article 36 of the Benchmarks Regulation) on its website daily. Henceforth, the publications shall … Continue Reading
