Germany

Report on CBDCs

On 9 July 2021, there was published a report on central bank digital currencies (CBDCs). The report was released by the Committee on Payments and Market Infrastructures, the Bank for International Settlements Innovation Hub, the International Monetary Fund and the World Bank. The report looks at how CBDCs could facilitate enhanced cross-border payments, and how … Continue Reading

G20 communiqué – third Finance Ministers and Central Bank Governors meeting

On 10 July 2021, the G20 published a communiqué following the third Finance Ministers and Central Bank Governors meeting in Venice. Among other things the communiqué: Reiterates the commitment to a timely and effective implementation of the G20 Roadmap to enhance cross-border payments by relevant authorities. In particular, it looks forward to the Financial Stability … Continue Reading

Platform on Sustainable Finance’s draft reports on a social taxonomy and on an extended taxonomy to support economic transition

By Daniel Nevzat (UK) on July 13, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 12 July 2021, the Platform on Sustainable Finance (a permanent expert group of the European Commission) issued the following documents: A draft report for a social taxonomy. A consultation report on Taxonomy extension options linked to environmental objectives. The two draft reports are important steps in the Platform’s main deliverables to advise the Commission … Continue Reading

ESMA launches public consultations on CCP recovery regime

By Albert Weatherill (UK) on July 13, 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 seven public consultation papers intended to gather feedback on how to implement its central counterparty (CCP) recovery mandates. The seven consultation papers contain, among others, proposals for draft regulatory technical standards (RTS) on the methodology for calculation and maintenance of the additional amount … Continue Reading

Additions and removals to the list of critical benchmarks under the Benchmarks Regulation

By Simon Lovegrove (UK) on July 12, 2021 Posted in Germany, Italy, The Netherlands

On 9 July 2021, there was published in the Official Journal of the EU Commission Implementing Regulation 2021/1122 of 8 July 2021 amending Implementing Regulation 2016/1368 adding the Norwegian Interbank Offered Rate (NIBOR) to and removing the London Interbank Offered Rate (LIBOR) from the list of critical benchmarks used in financial markets established pursuant to … Continue Reading

ESMA consults on derivatives clearing and trading obligations in view of the benchmarks transition

By Simon Lovegrove (UK) on July 12, 2021 Posted in Benchmarks – IBOR transition, France, Germany, Italy, The Netherlands, United Kingdom

On 9 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft regulatory technical standards (RTS) that amend the existing RTS on the clearing obligation and derivatives trading obligation that have been developed under the European Market Infrastructure Regulation and the Markets in Financial Instruments Regulation respectively. The draft RTS … Continue Reading

ESMA letter to Commission regarding the interpretation of the Regulation for European crowdfunding service providers for business

By Matthew Gregory (UK) on July 12, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 9 July 2021, the European Securities and Markets Authority (ESMA) published a letter that it had sent to the European Commission concerning certain interpretation issues regarding the Regulation for European crowdfunding service providers for business. The letter shares with the Commission some important interpretation issues regarding the Regulation that have emerged from ESMA’s interaction … Continue Reading

ESMA consults on the review of transparency requirements under MiFIR

By Jochen Vester (UK) on July 12, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 9 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper setting out proposals to amend Commission Delegated Regulation 2017/587 (RTS 1) and Commission Delegated Regulation 2017/583 (RTS 2). RTS 1 and RTS 2 specify the MiFIR pre- and post-trade transparency requirements for equity instruments and non-equity instruments. The consultation … Continue Reading

Published in OJ – Commission Delegated Regulation supplementing BRRD with RTS on estimating Pillar 2 and combined buffer requirements for setting MREL

By Jochen Vester (UK) on July 9, 2021 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands

On 8 July 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/118 of 26 March 2021 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) specifying the methodology to be used by resolution authorities to estimate the requirement referred to in Article … Continue Reading

FSB publishes three climate-related reports

On 7 July 2021, the Financial Stability Board (FSB) published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their 9 – 10 July 2021 meeting. Among other things the letter stresses the need for coordinated action to address financial risks posed by climate change, noting … Continue Reading

European Commission publishes its Renewed Sustainable Finance Strategy

By Flupke van den Bogart on July 8, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 6 July 2021, the European Commission (the Commission) published its Renewed Sustainable Finance Strategy (RSFS). The RSFS follows the Commission’s 2018 Sustainable Finance Action Plan, which aimed to channel more investment towards environmentally sustainable activities. Under the 2018 Sustainable Finance Action Plan, the Commission presented two main legislative proposals establishing the building blocks for … Continue Reading

European Commission publishes legislative proposal on European green bonds

By Daniel Nevzat (UK) on July 7, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 6 July 2021, the European Commission published a legislative proposal on European green bonds (the EuGB Regulation). The EuGB Regulation will lay the foundation for a common framework of rules regarding the use of the “European Green Bond” (EuGB) designation for bonds that pursue environmentally sustainable objectives as defined by the Taxonomy Regulation.[1] It … Continue Reading

New briefing note on Commission legislative proposal on European green bonds

By Imogen Garner (UK), Daniel Nevzat (UK), Jonathan Herbst (UK), Simon Lovegrove (UK) and Rosa Mottershead on July 7, 2021 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

We have published an online briefing note covering the new European Commission legislative proposal on European green bonds.… Continue Reading

Published in OJ – Commission Implementing Decisions on equivalence for third country derivatives regimes under EMIR

By Hannah Meakin (UK) on July 7, 2021 Posted in Clearing and Settlement, Clearing and Settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands

On 6 July 2021, the following European Commission Implementing Decisions on the equivalence of the regulatory regimes of third countries under the European Market Infrastructure Regulation were published in the Official Journal of the EU: Commission Implementing Decision (EU) 2021/1103 of 5 July 2021 on the recognition of the legal, supervisory and enforcement arrangements of … Continue Reading

Basel Committee’s reforms helped cushion the impact of COVID-19 shock on banks

On 6 July 2021, the Basel Committee on Banking Supervision published a report that gives a preliminary assessment of the impact of the implemented Basel reforms during the COVID-19 pandemic as part of a broader review of their effectiveness. Overall, the report finds that the increased quality and higher levels of capital and liquidity in … Continue Reading

FSB urges action to complete the transition away from LIBOR by end-2021

By Hannah Meakin (UK) on July 7, 2021 Posted in Africa, Asia, Australia, Benchmarks – IBOR transition, Canada, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 6 July 2021, the Financial Stability Board (FSB) published a progress report to the G20 on LIBOR transition and remaining issues. The progress report to the G20 is structured in four parts: Section 2 sets the scene on issues and risks associated with LIBOR transition. Section 3 presents observations and key themes from the … Continue Reading

Latest FATF papers

By Simon Lovegrove (UK) on July 6, 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

On 1 July 2021, the Financial Action Task Force (FATF) published: A stocktake report that examines commercially available or emerging technologies that facilitate advanced anti-money laundering / countering the financing of terrorism (AML/CFT) analytics within regulated entities or collaborative analytics between financial institutions, while respecting data privacy and protection. A report that highlights the necessary … Continue Reading

EBA and ESMA publish final guidance on fit and proper requirements

By Matthew Gregory (UK) on July 6, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 2 July 2021, the European Banking Authority and the European Securities and Markets Authority published revised final joint Guidelines on the assessment of the suitability of members of the management body and key function holders. These revised final Guidelines take into account the amendments introduced by the Fifth Capital Requirements Directive and the Investment … Continue Reading

EBA publishes final draft technical standards to improve supervisory cooperation for investment firms

By Jochen Vester (UK) on July 6, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 5 July 2021, the European Banking Authority (EBA) published: Final draft regulatory technical standards (RTS) on colleges of supervisors for investment firms groups. These final draft RTS have been prepared in accordance with Article 48(8) of the Investment Firms Directive (IFD). The final draft RTS specify the conditions under which colleges of supervisors exercise … Continue Reading

EBA publishes its final Guidelines on internal governance

By Simon Lovegrove (UK) on July 6, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 2 July 2021, the European Banking Authority (EBA) published revised Guidelines on internal governance. The update takes into account the amendments introduced by the Fifth Capital Requirements Directive and the Investment Firms Directive in relation to credit institutions’ sound and effective governance arrangements, in particular with regard to gender diversity, money laundering, financing terrorist … Continue Reading

EBA revises Guidelines on sound remuneration policies

By Iona Wright (UK) on July 6, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 2 July 2021, the European Banking Authority (EBA) published revised Guidelines on sound remuneration policies. This update takes into account the amendments introduced by the Fifth Capital Requirements Directive in relation to institutions’ sound remuneration policies and, in particular, the requirement that remuneration policies should be gender neutral. The revised Guidelines also consider supervisory … Continue Reading

ESMA publishes first overview of national rules governing fund marketing

By Iona Wright (UK) on July 2, 2021 Posted in Collective Investment Schemes, Collective Investment Schemes, Collective investment schemes, Collective investment schemes, France, Germany, Italy, The Netherlands

On 1 July 2021, the European Securities and Markets Authority (ESMA) published its first report on national rules governing the marketing of investment funds under the Regulation on cross-border distribution of funds. Specifically, the report presents an overview of marketing requirements referred to in Article 5(1) of the Regulation in all Member States and contains … Continue Reading

New proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive

By Simon Lovegrove (UK) on July 2, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 1 July 2021, the European Commission issued a proposal for a Directive on consumer credits repealing and replacing the Consumer Credit Directive (CDD). The Commission also published the Annexes to the draft Directive, an impact assessment report, an executive summary of the report and a factsheet. The European Parliament and the Council of the … Continue Reading

EBA provides clarification on the implementation of the new prudential regime for investment firms

By Jochen Vester (UK) on July 2, 2021 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, The Netherlands

On 1 July 2021,European Banking Authority (EBA) issued an Opinion concerning the implementation of the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD), which entered into force on June 26. The IFR/IFD classify investment firms according to their business model and size, the latter of which is benchmarked on various threshold. For most investment … Continue Reading