Germany

Summary of temporary transitional measures for EU27 Member States

With the Brexit transition period nearing its end, we set out below an update on the EU 27 temporary transitional measures – the table below lists the jurisdictions for which we have received confirmation of the current position, further updates to other jurisdictions will be posted as and when we receive them. Summary of jurisdictions … Continue Reading

EBA provides additional clarity on the implementation of selected COVID-19 policies

By Simon Lovegrove (UK) on December 22, 2020 Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom

On 21 December 2020, the European Banking Authority (EBA) updated its report on the implementation of selected COVID-19 policies. The report was first published on 7 July 2020 and then updated on 7 August 2020 to provide additional clarity on the implementation of the reporting and disclosure framework in the context of the COVID-19 measures. … Continue Reading

Commission Implementing Regulation (EU) laying down ITS for the application of the CRR with regard to supervisory reporting of institutions and repealing Implementing Regulation (EU) No 680/2014

By Matthew Gregory (UK) on December 22, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom

On 21 December 2020, the European Commission adopted an Implementing Regulation laying down implementing technical standards (ITS) for the application of the Capital Requirements Regulation with regard to supervisory reporting of institutions and repealing Implementing Regulation (EU) No 680/2014 together with annexes. The Implementing Regulation lays down uniform reporting formats and templates, instructions on and … Continue Reading

ESMA updates EMIR Q&As

By Hannah Meakin (UK) on December 22, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 21 December 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Market Infrastructure Regulation (EMIR). ESMA has updated the Q&As to clarify the status after the post-Brexit transition period of legacy derivative transactions executed on UK markets and is relevant for EU counterparties in order to determine applicable EMIR … Continue Reading

ESMA sees significant increase in EU market abuse sanctions to €88 million in 2019

By Katie Stephen (UK) on December 22, 2020 Posted in Germany, Italy, Market Abuse, Market abuse, Market abuse, Market abuse, The Netherlands, United Kingdom

On 21 December 2020, the European Securities and Markets Authority (ESMA) published its annual report on administrative and criminal sanctions, as well as other administrative measures, issued under the Market Abuse Regulation (MAR) in 2019. The report shows that Member State national competent authorities (NCAs) and other authorities imposed a total of €88 million in … Continue Reading

Updated open letter on the withdrawal of the UK from the EU and implications on the registration of market participants and data collection under REMIT

By Victoria Pridmore on December 22, 2020 Posted in Brexit, Brexit, Germany, Italy, The Netherlands, United Kingdom

On 21 December 2020, the EU Agency for the Cooperation of Energy Regulators updated its open letter of 8 January 2019 regarding data reporting under Regulation (EU) No 1227/2011 on wholesale energy market integrity and transparency (REMIT) following the end of the transition period. The purpose of the open letter is to give guidance to … Continue Reading

ESMA guidelines – Reporting under Articles 4 and 12 SFTR

By Albert Weatherill (UK) on December 22, 2020 Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom

On 21 December 2020, the European Securities and Markets Authority (ESMA) published guidelines concerning the securities financing transaction (SFT) reporting obligation as provided in Article 4 Securities Financing Transaction Regulation (SFTR), the trade repositories’ (TRs) obligations under Articles 5(7) and 12 SFTR, as well as the reporting start date as determined in Article 33(2) SFTR. … Continue Reading

ESMA publishes cloud outsourcing guidelines

By Hannah Meakin (UK) on December 21, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 18 December 2020, the European Securities and Markets Authority (ESMA) published a final report on guidelines on outsourcing to cloud service providers (CSPs). The purpose of the guidelines is to help firms identify, address and monitor the risks that may arise from their cloud outsourcing arrangements and to support convergent approach to the supervision … Continue Reading

Commission Delegated Regulation (EU) 2020/2145 of 1 September 2020 amending Delegated Regulation (EU) No 876/2013 supplementing EMIR as regards changes to the composition, functioning and management of colleges for central counterparties

By Hannah Meakin (UK) on December 21, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 18 December 2020, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2020/2145 of 1 September 2020 amending Delegated Regulation (EU) No 876/2013 supplementing EMIR as regards changes to the composition, functioning and management of colleges for central counterparties. The Delegated Regulation enters into force on the twentieth day … Continue Reading

Commission Delegated Regulation of 18.12.2020 supplementing Regulation (EU) 2019/1238 with regard to RTS specifying the requirements on information documents, on the costs and fees included in the cost cap and on risk-mitigation techniques for the pan-European personal pension product

By Matthew Gregory (UK) on December 21, 2020 Posted in Germany, Italy, Retail, Retail, Retail, Retail, The Netherlands, United Kingdom

On 18 December 2020, the European Commission adopted a Delegated Regulation supplementing Regulation 2019/1238 with regard to regulatory technical standards specifying the requirements on information documents, on the costs and fees included in the cost cap and on risk mitigation techniques for the pan-European Personal Pension Product together with annexes. The regulatory technical standards are … Continue Reading

SRB issues update on permission regime for the reduction of eligible liabilities

By Simon Lovegrove (UK) on December 21, 2020 Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom

On 18 December 2020, the Single Resolution Board (SRB) updated its approach to the prior permission regime for early calling, redeeming, repaying or repurchasing of eligible liabilities’ instruments by Eurozone banks. From 28 December 2020, the statutory transition period begins under the Single Resolution Mechanism Regulation II (SRMR 2) and authorisation to perform early redemption … Continue Reading

Commission Delegated Regulation (EU) establishing RTS amending Delegated Regulation (EU) 2017/583 as regards adjustment of liquidity thresholds and trade percentiles used to determine the size specific to the instrument applicable to certain non-equity instruments

By Albert Weatherill (UK) on December 21, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 18 December 2020, the European Commission adopted a Delegated Regulation establishing regulatory technical standards (RTS) amending Delegated Regulation (EU) 2017/583 as regards adjustment of liquidity thresholds and trade percentiles used to determine the size specific to the instrument applicable to certain non-equity instruments. Commission Delegated Regulation (EU) 2017/583 sets out the transparency requirements applicable … Continue Reading

ESMA consults on the impact of algorithmic trading

On 18 December 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper on algorithmic trading. MiFID II / MiFIR require the European Commission to present reports to the European Parliament and the Council, after consulting ESMA, on a number of provisions. Article 90(1)(c) of MiFID II provides in particular for the submission … Continue Reading

EBA launches consultation to amend standards on benchmarking of internal models

By Jochen Vester (UK) on December 21, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom

On 17 December 2020, the European Banking Authority (EBA) issued a consultation paper setting out proposals for draft Implementing Technical Standards (ITS) amending the European Commission’s Implementing Regulation on the benchmarking of credit risk, market risk and IFRS9 models. The draft ITS have been developed in accordance with Article 78 of the Capital Requirements Directive … Continue Reading

Supervisory Guidance on managing FX settlement risk and the Global FX Code

By Simon Lovegrove (UK) on December 21, 2020 Posted in Australia, Canada, Clearing and settlement, Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom, United States

On 18 December 2020, there was published a letter from the chairs from the Basel Committee on Banking Supervision (BCBS) and the Committee on Payments and Market Infrastructures (CPMI) encouraging bank supervisors and banks and other participants in the FX market to follow the expectations set out in the 2013 BCBS Supervisory Guidance on managing … Continue Reading

Member States continue MiCA review

By Anna Carrier (BE) on December 21, 2020 Posted in Fintech, Fintech, Fintech, Fintech, Germany, Italy, The Netherlands, United Kingdom

On 14 December 2020, the outgoing German Presidency of the Council hosted the last working group under its leadership for Member States representatives with a purpose of continuing discussions on the recently proposed regulation on markets in crypto-assets (MiCA). The meeting’s agenda covered the fundamental issue of scope and definitions, as well as own fund … Continue Reading

ESMA publishes draft technical standards under EMIR REFIT

By Hannah McAslan (UK) on December 18, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 17 December 2020, the European Securities and Markets Authority (ESMA) published a final report containing technical standards on reporting, data quality, data access and registration of trade repositories under EMIR REFIT. The layout of the final report is as follows: Section 1 contains the list of legislative references and abbreviations used in the report. … Continue Reading

Policy Statement 20/16: Updating the dual-regulated firms Remuneration Code to reflect CRD V

By Iona Wright (UK) on December 18, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, United Kingdom

On 17 December 2020, the FCA published Policy Statement 20/16: Updating the dual-regulated firms Remuneration Code to reflect CRD V (PS20/16). The CRD V contains amendments to the provisions on remuneration upon which FCA rules for dual-regulated firms are based. In Consultation Paper 20/14: Updating the Dual-regulated firms Remuneration Code to reflect CRD V (CP20/14), … Continue Reading

ESMA report to the Commission on central clearing solutions for pension scheme arrangements

By Hannah Meakin (UK) on December 18, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 17 December 2020, the European Securities and Markets Authority (ESMA) issued its second report on the clearing solutions for Pension Scheme Arrangements (PSAs) under EMIR. Last year, EMIR REFIT further extended the temporary exemption from the clearing obligation for PSAs until June 2021. To monitor the progress made by the different actors involved towards … Continue Reading

EBA launches consultation on its new guidelines on internal governance for investment firms

By Simon Lovegrove (UK) and Jochen Vester (UK) on December 18, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom

On 17 December 2020, the European Banking Authority (EBA) issued a consultation paper concerning draft guidelines on internal governance under the Investment Firm Directive (IFD). The guidelines are intended to complete the various governance provisions in the IFD, taking into account the principle of proportionality, by specifying the tasks, responsibilities and organisation of the management … Continue Reading

EBA consults on draft guidelines on remuneration policies for investment firms

By Simon Lovegrove (UK) and Jochen Vester (UK) on December 18, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom

On 17 December 2020, the European Banking Authority (EBA) issued a consultation paper containing draft guidelines on remuneration for investment firms as defined in Article 4(1)(1) of MiFID II that do not meet all of the conditions for qualifying as small and non-interconnected investment firms under Article 12(1) of the Investment Firm Regulation (IFR) and … Continue Reading

ACER latest Q&As on REMIT

By Victoria Pridmore on December 18, 2020 Posted in Germany, Italy, Market Abuse, Market abuse, Market abuse, Market abuse, The Netherlands, United Kingdom

On 17 December 2020, the EU Agency for the Cooperation of Energy Regulators published the 24th edition of its Q&As on the Regulation of wholesale energy market integrity and transparency (REMIT). The following new entries have been inserted in the Q&As: Page 72, III.3.46: Could you please clarify when considering REMIT obligations if we should … Continue Reading

EBA updates its report on liquidity measures and confirms banks’ solid liquidity position

By Jochen Vester (UK) on December 18, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, Germany, Italy, The Netherlands, United Kingdom

On 17 December 2020, the European Banking Authority (EBA) published a report on liquidity measures. The report monitors and evaluates the liquidity coverage requirements currently in place in the EU. The liquidity coverage ratio (LCR) of EU banks stood at around 166% in June 2020, materially above the minimum threshold of 100%. The report shows … Continue Reading

EBA explains how it will use its new power to carry out risk assessments in the fight against money laundering and terrorist financing

By Lisa Lee Lewis (UK) on December 18, 2020 Posted in Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 17 December 2020, the European Banking Authority (EBA) published a methodology for carrying out risk assessments under Article 9a of the revised EBA Regulation. These risk assessments are part of the EBA’s new role to lead, coordinate and monitor the fight against money laundering and terrorist financing (ML/TF) in all EU Member States. The … Continue Reading