Germany

ESMA statement on the state of play of implementing a supervisory approach to pre-trade transparency requirements in commodity derivatives

On 6 February 2020, the European Securities and Markets Authority (ESMA) published a statement providing an update on the progress made on implementing its supervisory briefing on pre-trade transparency in commodity derivatives under MiFIR, which was published in June 2019. In the statement, ESMA explains that all Member State national competent authorities (NCAs), except for … Continue Reading

ESMA sets out strategy on sustainable finance

On 6 February 2020, the European Securities and Markets Authority (ESMA) announced its strategy on sustainable finance, setting out how the European Supervisory Authority will place sustainability at the core of its activities by embedding environmental, social and governance (ESG) factors at the forefront of its work. The key priorities for ESMA highlighted in the … Continue Reading

ESMA launches common supervisory action with NCAs on MiFID II suitability rules

On 5 February 2020, the European Securities and Markets Authority (ESMA) announced the launch of a common supervisory action (CSA) with Member State national competent authorities (NCAs) concerning the application of the suitability requirements under the MiFID II Directive. The CSA will enable ESMA and the NCAs to assess the progress made by intermediaries in … Continue Reading

ESRB letter on issues raised with AIFMD

On 5 February 2020, the European Systemic Risk Board (ESRB) published a letter to John Berrigan, Director General for Financial Stability, Financial Services and Capital Markets Union at the European Commission, regarding shortcomings of the current framework of the Alternative Investment Fund Managers Directive (AIFMD). The letter highlights areas for improvement in AIFMD reporting ahead … Continue Reading

EBA report on competent authorities approach to AML/CTF banking supervision

On 5 February 2020, the European Banking Authority (EBA) published a report on competent authorities’ approaches to anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of banks. The report summarises the findings from the first year of ongoing reviews of all competent authorities responsible for AML/CFT supervision of banks in the EU. In … Continue Reading

EBA to update AML and CTF risk factor guidelines

On 5 February 2020, the European Supervisory Authorities (ESAs) jointly published a consultation paper seeking to revise the guidelines that set out factors that firms should consider when assessing the money laundering and terrorist financing (ML / TF) risk associated with their business, and with a business relationship or an occasional transaction with any natural … Continue Reading

Second ECB consultation on guide on assessment methodology for IMM and A-CVA

On 5 February 2020, the European Central Bank (ECB) published a consultation paper on a draft guide on the assessment methodology for the internal model method (IMM) and the advanced method for credit valuation adjustment risk (A-CVA) charge for counterparty credit risk (CCR). The draft guide indicates how the ECB intends to assess internal models … Continue Reading

ESMA amends guidelines for further harmonisation of the enforcement of financial information by NCAs

On 4 February 2020, the European Securities and Markets Authority (ESMA) published amended guidelines for Member State national competent authorities (NCAs) undertaking enforcement of financial information under the Transparency Directive. ESMA’s amendments to the guidelines require NCAs to further harmonise: the way they select issuers for examination, by requiring that their selection should be based … Continue Reading

ESMA advises Commission on product intervention

On 4 February 2020, the European Securities and Markets Authority (ESMA) published its final report on product intervention requirements under MiFIR, following a formal request from the European Commission in May 2019 to provide technical advice on a number of technical issues stemming from MiFID II and MiFIR. The key points of the technical advice … Continue Reading

ESMA final report on postponed entry into force of CSDR RTS on Settlement Discipline

On 4 February 2020, the European Securities and Markets Authority (ESMA) published its final report on draft regulatory technical standards (RTS) on postponing the date of entry into force of Commission Delegated Regulation EU 2018/1229 (the RTS on settlement discipline) to 1 February 2021. The current date of entry into force of the RTS on … Continue Reading

ESMA consults on MiFIR transparency regime for equity instruments

On 4 February 2020, the European Securities and Markets Authority (ESMA) published a consultation paper on the transparency regime for equity and equity-like instruments, the double volume cap (DVC) mechanism and the trading obligation for shares under MiFIR. Article 52 of MiFIR requires ESMA to submit a report on the impact in practice of the … Continue Reading

ESMA letter technical advice on third country equivalence in relation to prospectuses

On 31 January 2020, the European Securities and Markets Authority (ESMA) published a letter to the European Commission in response of its request for technical advice on general equivalence criteria for prospectuses drawn up under the laws of third countries under Article 29(3) of the Prospectus Regulation. After careful analysis of its mandate, ESMA concludes … Continue Reading

ESMA consultation on systematic internalisers in non-equity instruments under MiFIR

On 3 February 2020, the European Securities and Markets Authority (ESMA) published a consultation paper on the MiFIR pre-trade transparency regime for systematic internalisers (SI) in respect of non-equity instruments. Article 18 of MiFIR sets out specific pre-trade transparency requirements for SIs relating to bonds, structured finance products, emission allowances and derivatives. ESMA is required … Continue Reading

Is the UK still a member of the EEA?

The European Free Trade Association FAQs on Brexit make a number of statements clarifying the UK’s position as regards EEA membership. Such statements include: The UK ceased to be a Contracting Party to the EEA Agreement after its withdrawal from the EU on 31 January 2020. This follows from the two-pillar structure and Article 126 … Continue Reading

Commission recommendation on mandate for opening negotiations for new partnership between UK and EU

On 3 February 2020, the European Commission (Commission) published its recommendation for a Council of the EU decision authorising the negotiations for a new partnership with the UK. Page 4 of the recommendations contains the draft text of a Council. The Annex on page 8 sets out the Commission’s proposals for the future UK-EU relationship … Continue Reading

EBA launches 2020 EU-wide stress test

On 3 February 2020, the European Banking Authority (EBA) launched its 2020 EU-wide stress test and released the macro-economic scenarios for this year’s test. The adverse scenario follows for the first time a ‘lower for longer’ narrative, a recession coupled with low or negative interest rates for a prolonged period. The EU real GDP would … Continue Reading

EBA report on the benchmarking of diversity practices

On 3 February 2020, the European Banking Authority (EBA) published a benchmarking report on diversity practices in credit institutions and investments firms, following on from a previous exercise in 2015. The Capital Requirements Directive introduced the requirement for institutions to take into account the diversity of the management body when recruiting new members and implement … Continue Reading

Monthly global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

ESMA consultation on draft technical standards on MiFID II third-country firm regime

On 31 January 2020, the European Securities and Markets Authority (ESMA) published a consultation paper on draft technical standards on the provision of investment services and activities in the EU by third-country firms under MiFID II and MiFIR, as mandated by Article 16(2) of the ESMA Regulation. The third country regime under MiFIR is being … Continue Reading

EEA Joint Committee Decisions published in OJ

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

ESMA statement on governance and reporting obligations post-Brexit

On 31 January 2020, the European Securities and Markets Authority (ESMA) published a statement providing an update on governance and reporting obligations for UK entities following the UK’s withdrawal from the European Union. From 1 February 2020, the UK’s FCA will no longer be a member of ESMA’s Board of Supervisors or participate in any … Continue Reading

OJ: Commission Implementing Regulation updating list of appropriately diversified indices under CRR

On 30 January 2020, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2020/125 amending Implementing Regulation (EU) No 945/2014 laying down implementing technical standards with regard to relevant appropriately diversified indices, in accordance with the Capital Requirements Regulation (CRR). The Annex in Implementing Regulation (EU) 2020/125 replaces the … Continue Reading

EBA releases its annual assessment of the consistency of internal model outcomes

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

IOSCO work programme for 2020

On 30 January 2020, the International Organization of Securities Commissions (IOSCO) published its annual work programme for 2020. The IOSCO Board has identified, amongst other things, five priority issues for 2020, namely: cryptoassets: In February 2020, IOSCO will publish its final report on issues, risks and regulatory considerations relating to crypto-asset. IOSCO will also finalise … Continue Reading
LexBlog