Germany

UNEPFI – Guidelines for Climate Target Setting for Banks

On 21 April 2021, the United Nations Environment Programme Finance Initiative (UNEPFI) published guidelines for climate targets setting for banks. The guidelines outline key principles to underpin the setting of credible, robust, impactful and ambitious targets in line with achieving the objectives of the Paris Agreement. The guidelines outline four principles for target-setting: Banks shall … Continue Reading

SRB responses to the Commission consultation on the review of the crisis management and deposit insurance framework

By Simon Lovegrove (UK) on April 22, 2021 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands

On 21 April 2021, the Single Resolution Board (SRB) published its response to the European Commission’s targeted consultation on the review of the bank crisis management and deposit insurance framework. The consultation sought to gather stakeholders’ experience with the current crisis management and deposit insurance framework as well as their views on the revision of … Continue Reading

Commission consults on a road map for a retail investment strategy

By Matthew Gregory (UK) on April 22, 2021 Posted in France, Germany, Italy, Retail, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

On 20 April 2021, the European Commission published for consultation a road map for a retail investment strategy for the EU. The September 2020 Capital Markets Union Action Plan noted the Commission’s intention to propose a retail investment strategy for the first half of the year of 2022, that should seek to ensure that retail … Continue Reading

Commission Implementing Regulation on ITS on public disclosures under CRR published in OJ

By Jochen Vester (UK) on April 22, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 21 April 2021, there was published in the Official Journal of the EU Commission Implementing Regulation (EU) 2021/637 of 15 March 2021 laying down implementing technical standards with regard to public disclosures by institutions of the information referred to in Titles II and III of Part Eight of Regulation (EU) No 575/2013 of the … Continue Reading

Commission adopts Delegated Regulation correcting MiFID II Delegated Regulation

By Simon Lovegrove (UK) on April 22, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 21 April 2021, the European Commission adopted a Delegated Regulation and Annex correcting Delegated Regulation (EU) 2017/565 supplementing MiFID II (the MiFID II Delegated Regulation) as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of MiFID II. The Delegated Regulation amends Article 1 paragraph 1 of the … Continue Reading

European Commission adopts delegated regulations that amend existing regulations to introduce greater sustainability requirements into Solvency II, MiFID and the IDD

By Laura Hodgson (UK) on April 22, 2021 Posted in ESG, ESG, ESG, ESG, France, Germany, IDD, Insurance, Insurance, Insurance, Insurance, Italy, The Netherlands

The European Commission has adopted a series of delegated regulations that help to drive investors towards more sustainable economic activities. The measures are part of the European Green Deal. The adopted delegated regulations are part of a suite of sustainability measures adopted at the same time including the EU Taxonomy Climate Delegated Act and the … Continue Reading

European Commission adopts legislative and regulatory package on sustainable finance

By Flupke van den Bogart and Daniel Nevzat (UK) on April 22, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

The European Commission (Commission) has published a number of legislative and regulatory initiatives in the context of its Sustainable Finance Action Plan. The aim of the Sustainable Finance Action Plan, which was first presented in 2018, is to channel more investment towards sustainable activities. The Commission has published the following initiatives: A Delegated Regulation under … Continue Reading

Changes to the EU Securitisation Regulation – a more liberal approach to NPE securitisations and extending the STS framework – EU/UK regulatory divergence in action?

By David Shearer (UK) and Rae Parsons (UK) on April 21, 2021 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

Regulation (EU) 2021/557 and Regulation (EU) 2021/558 (together, the Regulations) were published in the Official Journal of the European Union on 6 April 2021 and came into force on 9 April 2021. Regulation (EU) 2021/557 amended European Regulation 2017/2402 (EUSR)[i] extending the Simple, Transparent and Standardised (STS) framework to on-balance sheet synthetic securitisations (previously only … Continue Reading

FATF Meeting of Private Consultative Forum on Virtual Assets

By Anna Carrier (BE) on April 21, 2021 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 20 April 2021, the Financial Action Task Force (FATF) hosted a meeting of its private consultative forum to discuss its ongoing work streams concerning virtual assets. The meeting was organised in two main sessions: the first session was focused on money laundering (ML) and terrorist financing (TF) risks in virtual assets, and the second … Continue Reading

ECB project report on TRIM

By Simon Lovegrove (UK) on April 20, 2021 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 19 April 2021, the European Central Bank (ECB) published a project report concerning a targeted review of internal models. The targeted review of internal models (TRIM) was a multi-year project launched by the ECB at the beginning of 2016 in close cooperation with the national competent authorities (NCAs) that are part of European banking … Continue Reading

EIOPA publishes opinion on the supervision of the use of climate change risk scenarios in the ORSA

By Laura Hodgson (UK) on April 20, 2021 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, Insurance, Insurance, Insurance, Insurance, Italy, The Netherlands

The European Insurance and Occupational Pensions Authority (EIOPA) has published an opinion on the use of climate change risk scenarios in insurance undertakings’ Own Risk and Solvency Assessment (ORSA). The opinion has been written to help supervisory authorities understand EIOPA’s expectations in terms of climate risk scenarios included in the ORSA. Solvency II requires that … Continue Reading

Basel Committee publishes work programme and strategic priorities for 2021-22

On 16 April 2021, the Basel Committee on Banking Supervision (Basel Committee) published its work programme for 2021-22. The work programme focuses on three key themes: COVID-19 resilience and recovery. This includes ongoing monitoring and assessment of risks and vulnerabilities to the global banking system. Horizon scanning and mitigation of medium-term risks and trends. This … Continue Reading

Published in OJ – Updated Implementing Regulation on ITS on MREL reporting by resolution authorities

By Simon Lovegrove (UK) on April 19, 2021 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 16 April 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/622 of 15 April 2021 laying down implementing technical standards for the application of Directive 2014/59/EU of the European Parliament and of the Council with regard to uniform reporting templates, instructions and methodology for reporting on … Continue Reading

Part 7: The Biden Presidency and new and improved anti-money laundering tools

By Kathleen Scott (US), Clarinda Grundy, Lisa Lee Lewis (UK), Weronika Sowa, Jeremy Moller, Tim Stewart, Rajaee Rouhani and Nathan Condoleon on April 19, 2021 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, The Netherlands, United Arab Emirates, United Kingdom, United States

2021 Financial crime Outlook series Senior management and boards are increasingly acknowledging the threat of financial crime as a critical risk to their business that must be addressed. This has been exacerbated in the last 12 months through the impact of the pandemic as well as rising domestic and international tensions. Our financial crime compliance … Continue Reading

Member States discuss proportionality in DORA

By Anna Carrier (BE) on April 19, 2021 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, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom

On 12 April 2021 the Portuguese Presidency of the Council held a meeting to continue Member States’ discussions on the proposed regulation on digital operational resilience for the financial sector (DORA). The agenda for the meeting included discussion on proportionality in DORA as well as scope and timeline of specific regulatory technical standards (RTS) and … Continue Reading

EBA final draft technical standards specifying the methods of prudential consolidation

By Jochen Vester (UK) on April 16, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 15 April 2021, the European Banking Authority (EBA) published final draft regulatory technical standards (RTS) specifying the conditions according to which consolidation shall be carried out in line with Article 18 of the Capital Requirements Regulation (CRR). The draft RTS seek to ensure that the appropriate method of prudential consolidation is applied for the … Continue Reading

ESMA highlights need for increased efforts on EMIR and SFTR data quality

By Hannah McAslan (UK) on April 16, 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 15 April 2021, the European Securities and Markets Authority (ESMA) published its final report on the European Markets Infrastructure Regulation (EMIR) and Securities Financing Transactions Regulation (SFTR) data quality. The report is the first review of data quality since the introduction of the EMIR and SFTR reporting regimes. It also reviews the quality of … Continue Reading

EIOPA consults on a framework to address value for money risk in the European unit-linked market

By Laura Hodgson (UK) on April 16, 2021 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, IDD, Insurance, Insurance, Insurance, Insurance, Italy, The Netherlands

The European Insurance and Occupational Pensions Authority (EIOPA) has launched a consultation on value for money risk in the European unit-linked insurance market. EIOPA has previously expressed concern that while unit-linked products can offer important benefits for policyholders, costs for some products remain too high. The low interest rate environment, in addition to market shocks … Continue Reading

Published in OJ – Delegated Regulation on specialised lending exposures under the CRR

By Jochen Vester (UK) on April 15, 2021 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 14 April 2021, there was published in the Official Journal of the EU, Commission Delegated Regulation (EU) 2021/598 of 14 December 2020 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) for assigning risk weights to specialised lending exposures. The Delegated Regulation applies from 14 April 2022. The RTS specify … Continue Reading

Basel Committee report on climate-related risk drivers and their transmission channels

By Simon Lovegrove (UK) on April 15, 2021 Posted in Africa, Asia, Australia, Canada, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 14 April 2021, the Basel Committee on Banking Supervision (Basel Committee) published a report ‘Climate-related risk drivers and their transmission channels’. The report explores how climate-related financial risks can arise and impact both banks and the banking system. By synthesising existing literature, it illustrates how physical and transition climate risk drivers affect banks’ financial … Continue Reading

European Parliament ECON Committee discusses draft reports on MiCA, DORA and DLT pilot regime

By Flupke van den Bogart on April 15, 2021 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, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom

On 14 April 2021, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) held a committee meeting in which it discussed the main legislative proposals under the European Commission’s (Commission) Digital Finance Strategy. During the discussion, the committee members considered the draft reports on the following legislative proposals: Proposal for a Regulation on Markets … Continue Reading

ESMA updates its LEI statement

By Albert Weatherill (UK) on April 14, 2021 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 13 April 2021, the European Securities and Markets Authority (ESMA) issued an updated statement on the implementation of LEI requirements for third-country issuers under the Securities Financing Transaction Regulation (SFTR) reporting regime. ESMA maintains its position regarding third-country issuer LEI reporting included in its statement published on 6 January 2020 (ESMA74-362-388) until 10 October … Continue Reading

ESMA replies to ESRB letter on procyclical impact of downgrades of corporate bonds on markets and entities across the financial system

By Jochen Vester (UK) on April 14, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 13 April 2021, the European Securities and Markets Authority (ESMA) published its response to an earlier letter it had received from the European Systemic Risk Board (ESRB) providing detailed views on the procyclical impact of downgrades of corporate bonds. In particular, the letter focuses on the transparency of credit rating agency (CRA) methodologies and … Continue Reading

Global Asset Management Quarterly – new issue

The latest issue of our Global Asset Management Quarterly publication is now available. In this issue we cover: Europe European update EU/UK regulatory roundup United Kingdom Asset managers and the Task Force for Climate-related Financial Disclosures UK funds regime review Germany German Draft Fund Jurisdiction Promotion Act Australia Greenwashing: International initiatives taken to address the … Continue Reading