Germany

Capital treatment of securitisations of non-performing loans

On 26 November 2020, the Basel Committee on Banking Supervision published a technical amendment ‘Capital treatment of securitisations of non-performing loans’. The technical amendment closes a gap in the Basel framework by setting out prudent and risk sensitive capital requirements for non-performing loan securitisations. The Basel Committee has agreed to add the following elements to … Continue Reading

Publication of the 2021 EPC SEPA payment scheme rulebooks

By Albert Weatherill (UK) on November 27, 2020 Posted in France, Germany, Italy, Payment services, Payment services, Payment Services, Regulation and compliance, The Netherlands, United Kingdom

On 26 November 2020, the European Payments Council (EPC) published the 2021 payment scheme rulebooks and the related implementation guidelines. All 2021 payment scheme rulebooks enter into force on 21 November 2021. Annex IV of each 2021 rulebook contains a table summarising all changes made in each 2021 rulebook compared to the 2019 rulebook.… Continue Reading

Commission Implementing Decision on time limited equivalence determination for UK CSDs

By Hannah Meakin (UK) on November 27, 2020 Posted in Brexit, Brexit, France, Germany, Italy, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 26 November 2020, there was published in the Official Journal of the EU, Commission Implementing Decision (EU) 2020/1766 of 25 November 2020 determining, for a limited period of time, that the regulatory framework applicable to central securities depositories of the United Kingdom of Great Britain and Northern Ireland is equivalent in accordance with Regulation … Continue Reading

European Parliament publishes adopted amendments to MiFID II in light of COVID-19

By Anna Carrier (BE) on November 27, 2020 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 25 November 2020, the European Parliament published the amendments that it had adopted on the proposed Directive amending MiFID II as regards information requirements, product governance and position limits to help the recovery from the COVID-19 pandemic. The next step is for the Council of the EU to adopt the proposed Directive. … Continue Reading

ESMA sets out its final view on the derivatives trading obligation (DTO)

By Hannah Meakin (UK) and Hannah McAslan (UK) on November 26, 2020 Posted in Brexit, Brexit, Germany, Italy, The Netherlands, United Kingdom

On 25 November 2020, the European Securities and Markets Authority (ESMA) made a public statement setting out its view on the application of the EU trading obligation for derivatives (DTO) following the end of the Brexit transition period. Article 28 of MiFIR requires investment firms to conclude transactions in some derivatives on regulated markets (RMs), … Continue Reading

ESMA final report – EMIR RTS on the clearing obligation regarding intragroup transactions as well as on novations from UK to EU counterparties

By Hannah Meakin (UK) and Jochen Vester (UK) on November 25, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 24 November 2020, the European Securities and Markets Authority (ESMA) published a final report presenting a new set of draft regulatory technical standards (RTS) on the clearing obligation that the European Supervisory Authority has developed under Article 5(2) of the European Market Infrastructure Regulation (EMIR). The draft RTS cover: The treatment of certain intragroup … Continue Reading

Global comparative guide – Senior management responsibility in financial services

We have updated our cross border comparative guide on individual accountability which is located on the NRF Institute. The comparative guide, Senior management responsibility in financial services, allows clients to better understand how senior management responsibility in different types of financial services firm other than insurers is being treated in different jurisdictions around the world. … Continue Reading

ESAs propose to adapt the EMIR implementation timelines for intragroup transactions, equity options and novations to EU counterparties

On 23 November 2020, the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) (together the ESAs) co-published a final report with draft regulatory technical standards (RTS) proposing to amend the Commission Delegated Regulation on the risk mitigation techniques for over-the-counter (OTC) derivatives not … Continue Reading

EBA calls on the Commission to harmonise the significant risk transfer assessment in securitisation

By Simon Lovegrove (UK) on November 25, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 23 November 2020, the European Banking Authority (EBA) published a report on significant risk transfer (SRT) in securitisation transactions, which includes a set of detailed recommendations to the European Commission on the harmonisation of practices and processes applicable to the SRT assessment. The EBA proposals aim to enhance the efficiency, consistency and predictability of … Continue Reading

Sustainable Finance and Taxonomy: Commission launches public consultation on criteria defining environmentally sustainable activities

By Daniel Nevzat (UK) and Imogen Garner (UK) on November 24, 2020 Posted in ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 22 November 2020, the European Commission issued a consultation on a draft delegated act under the Taxonomy Regulation. The Taxonomy Regulation establishes the framework for the EU taxonomy by setting out four conditions that an economic activity must meet in order to qualify as environmentally sustainable: It contributes substantially to one or more of … Continue Reading

FSB examines financial stability implications of climate change

By Simon Lovegrove (UK) on November 24, 2020 Posted in Africa, Asia, Australia, Canada, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 23 November 2020, the Financial Stability Board (FSB) published a report that discusses the potential implications of climate change for financial stability. It investigates channels through which climate-related risks might impact the financial system. The report: Sets out the ways in which physical and transition risks from climate change can affect financial stability, as … Continue Reading

Leaders’ Declaration – G20 Riyadh Summit

On 22 November 2020, the G20 leaders issued a declaration following their summit in Riyadh on 21 – 22 November 2020. Paragraphs 16 to 18 of the declaration cover financial sector issues. Key points include: The pandemic has reaffirmed the need to enhance global cross-border payment arrangements to facilitate cheaper, faster, more inclusive and more … Continue Reading

ECB working group on euro risk-free rates launches two public consultations on fallbacks to EURIBOR

By Hannah Meakin (UK) and Anna Carrier (BE) on November 24, 2020 Posted in Benchmarks – IBOR transition, France, Germany, Italy, The Netherlands, United Kingdom

On 23 November 2020, the European Central Bank’s working group on euro risk-free rates launched the following consultations on fallbacks to EURIBOR: Consultation on EURIBOR fallback trigger events. In this consultation paper, the working group identifies and provides recommendations on a generic set of potential permanent EURIBOR fallback trigger events that market participants could consider … Continue Reading

ACER updates guidance on REMIT

By Hannah Meakin (UK) on November 24, 2020 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 18 November 2020, the Agency for the Cooperation of Energy Regulators (ACER) published the fifth edition of its guidance on the application of Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency (REMIT). In this edition, ACER provides more detailed guidance concerning the definition of information and inside information under REMIT. In … Continue Reading

EU regulation on markets in crypto-assets: Member States continue MiCA review

By Anna Carrier (BE) on November 24, 2020 Posted in Fintech, Fintech, Fintech, Fintech, France, Germany, Italy, The Netherlands, United Kingdom

In September we published a blog setting out 10 key things that firms needed to know about the draft regulation on markets in crypto-assets (MiCA). We have since published an update on what’s been happening and as we continue our close monitoring of the key developments regarding the MiCA review, in this blog we provide … Continue Reading

FSB sets out progress on interest rate benchmark reform

On 20 November 2020, the Financial Stability Board (FSB) published a progress report on implementation of reforms to major interest rate benchmarks. Among other things the report notes: Production of LIBOR cannot be guaranteed after the end of 2021. The administrator of LIBOR, ICE Benchmark Administration, has recently announced that it will consult on its … Continue Reading

IOSCO final report – thematic review on consistency in implementation of money market funds reforms

On 20 November 2020, the International Organisation of Securities Commissions (IOSCO) published a diagnostic report analysing the events that occurred in the money market funds (MMFs) sector during the market turmoil in March 2020. At the same time, IOSCO has also published a thematic review assessing the implementation of selected IOSCO recommendations issued in 2012 … Continue Reading

ESMA consults on derogation criteria for data reporting services providers

By Hannah Meakin (UK) on November 23, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 20 November 2020, the European Securities and Markets Authority (ESMA) launched a consultation seeking stakeholder input on proposals for technical advice to the European Commission on delegated acts relating to the criteria to identify those authorised reporting mechanisms (ARMs) and approved publication arrangements (APAs) that, by way of derogation from MiFIR, on account of … Continue Reading

Commission Delegated Regulation (EU) 2020/1732 of 18 September 2020 supplementing the Securitisation Regulation with regard to fees charged by ESMA to securitisation repositories

By Hannah McAslan (UK) on November 23, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 20 November 2020, there was published in the Official Journal of the EU (OJ), Commission Delegated Regulation (EU) 2020/1732 of 18 September 2020 supplementing Regulation (EU) 2017/2402 of the European Parliament and of the Council with regard to fees charged by the European Securities and Markets Authority to securitisation repositories. The Commission Delegated Regulation … Continue Reading

ESMA speech – future challenges for fund managers

By Iona Wright (UK) and Imogen Garner (UK) on November 23, 2020 Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, Germany, Italy, The Netherlands, United Kingdom

On 19 November 2020, the European Securities and Markets Authority (ESMA) published a speech on future challenges for fund managers. During the course of this speech ESMA’s Executive Director, Verena Ross, provides some thoughts on the outlook for the asset management sector from a supervisory perspective. In particular, the Alternative Investment Fund Managers Directive (AIFMD) … Continue Reading

EBA analyses effect of the unwind mechanism of the liquidity coverage ratio

By Jochen Vester (UK) on November 20, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom

On 19 November 2020, the European Banking Authority (EBA) published a report that provides a discussion about the functioning of the unwind mechanism of the liquidity coverage ratio (LCR). It shows the actual effect of this mechanism over a period covering the most recent years. The analysis is based on common reporting (COREP) of larger … Continue Reading

Commission communication to the Council on the adoption of a Regulation on a framework for the recovery and resolution of CCPs

By Hannah Meakin (UK) on November 20, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 18 November 2020, there was published: A communication from the Commission to the European Parliament pursuant to Article 294(6) of the Treaty on the Functioning of the European Union concerning the position of the Council on the adoption of a Regulation of the European Parliament and of the Council on a framework for the … Continue Reading

Reverse solicitation – some thoughts

By Caroline Herkströter and Simon Lovegrove (UK) on November 19, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

At the end of the transition period UK investment firms will lose the right to passport their investment services in the EEA, EEA investment firms will also lose the right to passport their investment services into the UK. With the increasing possibility that the transition period will end without a free trade agreement and mutual … Continue Reading

FSB highlights need for resolution preparedness

By Simon Lovegrove (UK) on November 19, 2020 Posted in Africa, Asia, Australia, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Banking, Canada, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 18 November 2020, the Financial Stability Board (FSB) published its 2020 Resolution Report. In relation to banks the report notes that global systemically important banks (G-SIBs) are estimated to already meet the final 2022 minimum external total loss absorbing capacity (TLAC) requirement. While disclosure of external TLAC levels by G-SIBs has improved over the … Continue Reading