Commission Delegated Regulation adding People’s Bank of China to Delegated Regulation 2017/1799

On 20 June 2019, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2019/1000 of 14 March 2019 amending Delegated Regulation (EU) 2017/1799 as regards the exemption of the People’s Bank of China from the pre- and post-trade transparency requirements in MiFIR. The Delegated Regulation comes into force … Continue Reading

Reports of European Commission technical expert group on sustainable finance

On 18 June 2019, the European Commission published new guidelines on corporate climate-related information reporting, as part of its Sustainable Finance Action Plan. The guidelines are intended to provide companies with practical recommendations on how to better report the impact that their activities are having on the climate as well as the impact of climate … Continue Reading

IOSCO urges authorities to use existing standards to address cyber risk

On 18 June 2019, the Cyber Task Force of the International Organization of Securities Commissions (IOSCO) published a final report that provides an overview of how its members are using three prominent and internationally recognised cyber frameworks (defined in the report as the ‘Core Standards’): National Institute of Standards and Technology Cybersecurity Framework; CPMI-IOSCO Guidance … Continue Reading

ESMA publishes translations for Guidelines on non-significant benchmarks

On 19 June 2019, the European Securities and Markets Authority (ESMA) issued the official translations of its guidelines on non-significant benchmarks under the Benchmarks Regulation. Member State national competent authorities to whom the guidelines apply must notify ESMA whether they comply or intend to comply with the guidelines within two months of the publication of … Continue Reading

ECB decision and guidelines on TARGET2-Securities

On 20 June 2019, there was published in the Official Journal of the European Union (OJ), Decision (EU) 2019/1006 of the European Central Bank (ECB) of June 7, 2019 amending Decision ECB/2011/20 establishing detailed rules and procedures for implementing the eligibility criteria for central securities depositories to access TARGET2-Securities services. On the same date there … Continue Reading

Amendments to Solvency II Delegated Regulation published in the Official Journal

On 18th June 2019, Commission Delegated Regulation (EU) 2019/981 (the Amending Regulation), which amends the Solvency II Delegated Regulation ((EU) 2015/35), was published in the Official Journal of the EU. The European Commission adopted the Amending Regulation on 8 March 2019. The Amending Regulation will enter into force on 8 July 2019 (twenty days after … Continue Reading

FSB publishes compensation progress report

On 17 June 2019, the Financial Stability Board (FSB) published a progress report on the implementation of its ‘Principles and Standards for sound compensation practices in financial institutions’ (the P&S). The progress report assesses how compensation practices have evolved since the P&S were published in 2009. The progress report notes that all FSB jurisdictions have … Continue Reading

ESMA updates EMIR Q&As

On 13 June 2019, the European Securities and Markets Authority (ESMA) published an updated version of its Q&As on the implementation of EMIR. The updated Q&As contain: a new Q&A on the calculation of the clearing threshold under Article 10 of EMIR; and a new Q&A on the reporting obligation under Article 9(1) of EMIR.… Continue Reading

ESMA letter on EMIR Refit hedging exemption for calculation of clearing thresholds for non-financial groups

On 14 June 2019, the European Securities and Markets Authority (ESMA)  published a letter to the Commission, dated 7 June 2019, regarding the calculation of the month-end average positions of financial counterparties (FC) in non-financial groups under the EMIR Refit regulation, which is used to determine whether FCs are subject to the clearing obligation when … Continue Reading

New note on IOSCO report on sustainable finance

We have published a new two-part briefing note summarizing the International Organization of Securities Commission’s (IOSCO) report of 5 June 2019 on sustainable finance in emerging markets and the role of securities regulators (our blog is here). The report takes a cross-border look at how emerging jurisdictions are implementing measures to promote the development of … Continue Reading

AMLD5: European Commission considers new methodology to identify high-risk third countries

Following the rejection by the Council of the European Union (“the Council”) on 07 March 2019 of a draft list of 23 high-risk countries, as proposed in February 2019 by the European Commission in accordance with Article 9 of Directive (EU) 2018/843 on the prevention of the use of the financial system for the purposes … Continue Reading

Economic and Monetary Union: Commission reports on progress

On 12 June 2019, the European Commission issued a press release which takes stock of the progress made to deepen Europe’s Economic and Monetary Union since the Five President’s Report. The press release also states that ahead of the Euro Summit of 21 June, the Commission invites EU leaders to: reach an agreement on the … Continue Reading

European Commission adopts further implementing decisions on CRA regulatory equivalence

On 11 June 2019, the European Commission published for consultation nine draft implementing decisions regarding the equivalence of jurisdictions’ supervisory frameworks with the Credit Rating Agencies (CRA) Regulation.  The following decisions repeal previous equivalence decisions on the basis that these jurisdictions no longer meet the equivalence requirements under the CRA Regulation: Argentina; Australia; Brazil; Canada; … Continue Reading

Commission adopts Communication taking stock of preparations for a no-deal Brexit

On 12 June 2019, the European Commission (Commission) adopted a communication on the state of play of preparations of contingency measures for a no-deal Brexit. The Commission has tabled 19 legislative proposals, 18 of which have been adopted by the European Parliament and Council.  The Commission has also adopted 63 non-legislative acts and published 93 … Continue Reading

Commission progress report on reducing NPLs in EU

On 12 June 2019, the European Commission (Commission) published a communication containing its fourth progress report on the reduction of non-performing loans (NPLs) and further risk reduction in the Banking Union.  The report summarises recent efforts in the reduction of NPLs in the EU, providing data on the progress made in each Member State. As … Continue Reading

Swiss-EU stalemate prolongs share trading uncertainty

Dialogue on the EU-Switzerland Framework Agreement recommenced on Friday 07 June with a letter from the Swiss Federal Council to European Commission President Jean-Claude Juncker . This is the first public correspondence since negotiations reached a stalemate in December 2018. Negotiations on an inter-institutional agreement, which would usually be of little importance to equity markets, … Continue Reading

ESMA final report on frequent batch auctions under MiFID II

On 11 June 2019, the European Securities and Markets Authority (ESMA) published its final report following its call for evidence on periodic auctions (our blog is here). The report summarises the feedback received to the call for evidence and presents ESMA’s reflections on the feedback provided, including possible follow-ups. Where follow-ups are identified, ESMA intends … Continue Reading

G20 communique from June 2019 meeting

On 10 June 2019, the G20 published a communique, detailing the discussion points from the G20 Finance Ministers and Central Bank Governors meeting held on 9 June 2019. Key takeaways from the communique as regards financial services include: G20 members should consider assisting financial institutions to make any needed adjustments to their business models and … Continue Reading

EMIR Refit

Introduction The EMIR Refit Regulation (EMIR Refit) will enter into force on 17 June 2019. With some exceptions, it will apply from that date. The purpose of the EMIR Refit is to amend and simplify the European Markets Infrastructure Regulation (EMIR) “to address disproportionate compliance costs, transparency issues and insufficient access to clearing for certain … Continue Reading

FSB publishes consultation on SME financing evaluation

On 7 June 2019, the Financial Stability Board (FSB) issued a consultation on an Evaluation of the effects of financial regulatory reforms on small and medium-sized enterprise (SME) financing. The evaluation has been delivered to G20 Finance Ministers and Central Bank Governors for their meeting in Fukuoka on 8-9 June. The evaluation examines the effects … Continue Reading

CRR II Regulation and CRD V Directive published in OJ

On 7 June 2019, there was published in the Official Journal of the EU (OJ): Regulation (EU) 2019/876 of the European Parliament and of the Council of 20 May 2019 amending the Capital Requirements Regulation as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, … Continue Reading

BRRD II Directive and SRM II Regulation published in OJ

On 7 June 2019, there was published in the Official Journal of the EU (OJ): Directive (EU) 2019/879 of the European Parliament and of the Council of 20 May 2019 amending the Bank Recovery and Resolution Directive as regards the loss-absorbing and recapitalisation capacity of credit institutions and investment firms and Directive 98/26/EC (BRRD II); … Continue Reading

FSB report on decentralised financial technologies

On 6 June 2019, the Financial Stability Board (FSB) published a report considering the implications of decentralised financial technologies. The report considers the financial stability, regulatory and governance implications of the use of decentralised financial technologies such as those involving distributed ledgers and online peer-to-peer, or user-matching, platforms. The report focuses on technologies that may … Continue Reading

New ESG insight page

We have launched a new environmental, social and governance (ESG) page on our Asset Management Regulation knowledge hub. This page is called ‘ESG insight’. ESG insight contains resources and materials to guide asset managers through the evolving regulatory landscape on ESG, features include: videos from our financial services team discussing UK and EU regulatory developments … Continue Reading