After the European Securities and Markets Authority (ESMA) had issued a public statement regarding the application of MiFID II requirements on the recording of telephone conversations on 20 March 2020 (see the related publication in our blog), the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) published additional guidance to market participants on the same … Continue Reading
After having taken initial steps to deal with the impact of the COVID-19 pandemic on the financial sector in Germany (see the related publication in our blog), the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has taken further relief measures. In order to give supervised entities a better overview of these measures, … Continue Reading
On 18 March 2020, the International Capital Markets Association (ICMA) and the International Securities Lending Association (ISLA) published a letter sent to the European Securities and Markets Authority (ESMA) asking for a delay to the upcoming application of reporting obligations under the Securities Financing Transactions Regulation ((EU) 2015/2365) (SFTR). Under Article 4 of the SFTR, … Continue Reading
After having stated that it will closely monitor the risk situation caused by the new coronavirus (SARS-CoV-2) with a view to potential reactions, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has now taken initial steps to deal with the impact of the pandemic on the financial sector in Germany. Relief for … Continue Reading
On 10 March 2020, the European Banking Authority (EBA) published a new chapter of its Handbook on valuation for the purposes of resolution. The new chapter replaces chapter 10 relating to management information systems. The new chapter deals with resolution authorities’ assessment, in the context of the resolvability assessment, of the institutions’ capability to swiftly … Continue Reading
On 10 March 2020, the European Banking Authority issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting, highlighting those which have been deactivated either for incorrectness or for triggering IT problems. Member State competent authorities throughout the EU are informed that data submitted in accordance with these ITS … Continue Reading
On 5 March 2020, the European Banking Authority (EBA) published a consultation to update the identification methodology of global systemically important institutions (G-SIIs) and related capital buffer rates. The consultation follows the Basel Committee on Banking Supervision updating its approach to identify global systemically important banks in July 2018. The EBA methodology closely follows the … Continue Reading
On 27 February 2020, the Basel Committee on Banking Supervision issued a press release concerning its meeting on 26-27 February 2020. Among other things the press release notes that the Basel Committee discussed the financial stability implications of the coronavirus outbreak (Covid-19) for the banking system and exchanged information on the business continuity measures that … Continue Reading
On 1 March 2020, the Bank for International Settlements (BIS) published its latest Quarterly Review. In its overview of market developments covering the three months to late February, the Review: recounts how the late 2019 market upswing faltered amid unease over the impact of the Covid-19 outbreak; notes that the sell-off was uneven across asset … Continue Reading
On 25 February 2020, the European Systemic Risk Board (ESRB) published a report on the macroprudential implications of financial instruments that are measured at fair value according to IFRS 9 and IFRS 13 (with a focus on those classified in Levels 2 and 3, since they are typically measured using models and other market-based techniques, … Continue Reading
Germany has adopted a new regulatory regime for crypto assets in connection with the implementation of the Fifth Anti-Money Laundering Directive (AMLD5). On 29 November 2019, the second chamber of the German parliament (Bundesrat) approved the “Act on the Implementation of the Amendment Directive to the Fourth EU Money Laundering Directive” (Gesetz zur Umsetzung der Änderungsrichtlinie … Continue Reading
Article 19(6) of the Deposit Guarantee Schemes Directive (DGSD) requires the European Commission to submit to the European Parliament and to the Council a report on the progress towards the implementation of the Directive. To support the Commission in meeting this obligation, the European Banking Authority (EBA) committed to drafting three opinions on the DGSD. … Continue Reading
On 30 January 2020, there was published in the Official Journal of the European Union: Decision No 62/2018 of the EEA Joint Committee concerning the incorporation of delegated and implementing regulations relating to the Solvency II Directive; Decision No 63/2018 of the EEA Joint Committee concerning the incorporation of Commission Delegated Regulation (EU) 2016/438 and … Continue Reading
On 31 January 2020, the European Banking Authority (EBA) published two reports on the consistency of risk weighted assets across all EU institutions authorised to use internal approaches for the calculation of capital requirements. The reports cover credit risk for high and low default portfolios, as well as market risk. The credit risk report examines … Continue Reading
On 22 January 2020, Norton Rose Fulbright’s corporate financial services and government relations practices, in cooperation with the City of London Corporation, organised a panel debate on “The finalisation of the Basel III reforms in a post-Brexit environment: single or dual-track approach?”. Hosted in Norton Rose Fulbright’s Brussels office, the event gathered over 75 participants, … Continue Reading
On 22 January 2020, the European Banking Authority (EBA) published a discussion paper on future changes to the EU-wide stress test. The proposed new framework comprises of two components owned by supervisors and banks respectively: the supervisory leg and the bank leg. The supervisory leg serves as the starting point for supervisory decisions and would … Continue Reading
On 21 January 2020, the European Central Bank (ECB) published a letter from Andrea Enria, ECB Supervisory Board Chair, to significant institutions supervised under the Single Supervisory Mechanism (SSM) regarding variable remuneration policies. Additionally, the ECB has also published a recommendation (dated 17 January 2020) on dividend distribution policies. In the letter, the ECB reminds … Continue Reading
On 20 January 2020, the European Central Bank (ECB) published a consultation on a draft ECB guideline that specifies how Member State national competent authorities (NCAs) shall exercise the discretion conferred on them under Article 178(2)(d) of the Capital Requirements Regulation (CRR) in relation to less significant institutions with regard to the threshold for assessing … Continue Reading
The German Federal Financial Supervisory Authority (BaFin) has issued a guidance notice on dealing with sustainability risks (ESG Guidance Notice). The binding German version was published on 20 December 2019 and later editorially modified on 13 January 2020. Further, BaFin has now also made available an English convenience translation. The German regulator had launched a consultation based on … Continue Reading
On 16 January 2020, the European Banking Authority (EBA) published a report on the application by Member State competent authorities (NCAs) of the regulatory technical standards (RTS) on the criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile. The review shows that, within the EEA, NCAs … Continue Reading
On 18 December 2019, the European Banking Authority (EBA) published a report on undue short-term pressures from the financial sector on corporations. The report is in response to the call for advice from the European Commission as part of its Action Plan, Financing Sustainable Growth, and will inform policy actions that could be taken to … Continue Reading
On 17 December 2019, the Financial Stability Board (FSB) published its work programme for 2020. The FSB’s work programme is split across five areas: addressing new and emerging vulnerabilities in the financial system: including more detailed work on FinTech, global stablecoins, cross-border payment systems and cyber resilience; finalising and operationalising post-crisis reforms: including building resilient … Continue Reading
On 17 December 2019, there was published in the Official Journal of the European Union (OJ): Regulation (EU) 2019/2155 of the European Central Bank (ECB) amending the ECB Regulation on supervisory fees. The ECB has decided to no longer require advance payment of its annual supervisory fees. The fees will only be levied after the … Continue Reading
On 12 December 2019, the European Central Bank (ECB) published the introductory comments made by its chair, Andrea Enria, at the second ordinary hearing at the European Parliament’s Economic and Monetary Affairs Committee. In his comments, Mr Enria describes the progress in the Eurozone in reducing risks in the banking sector noting that the volume … Continue Reading
