ESMA updates MiFID II Q&As on market structures and transparency topics

On 2 October 2019, the European Securities and Markets Authority (ESMA) published updated versions of its Q&As on market structures topics and transparency topics under MiFID II and MIFIR. The updated Q&As on market structures topics amends question 11 within section 4 – The tick size regime to clarify how to interpret the application of … Continue Reading

First EMMI publication of the euro overnight index average

On 2 October 2019, the European Money Markets Institute (EMMI) announced the publication, for the first time, of the euro overnight index average (EONIA) under the reformed determination methodology. From 1 October 2019, EONIA’s methodology will directly track the euro short-term rate (€STR) of the European Central Bank (ECB) (see previous blog here). The ECB … Continue Reading

BCBS Basel III monitoring report

On 2 October 2019, the Basel Committee on Banking Supervision (BCBS) published a report presenting the results of its latest Basel III monitoring exercise, based on data as of 31 December 2018. The report sets out the impact of the Basel III framework that was initially agreed in 2010 as well as the effects of … Continue Reading

Commission guidance notice on Unfair Contract Terms Directive published in OJ

On 27 September 2019, there was published in the Official Journal of the European Union (OJ) the European Commission (Commission) guidance notice on the interpretation and application of Council Directive 93/13/EEC on unfair terms in consumer contracts. This guidance notice was previously published on the Commission website on 22 July 2019 (see previous blog here).… Continue Reading

Joint Committee of ESAs work programme for 2020

On 2 October 2019, the Joint Committee of the European Supervisory Authorities (ESAs) published its work programme for 2020. From 2020 onwards, the Joint Committee will have an amended scope as their work on cybersecurity and retail financial services and depositor, consumer and investor protection issues are now being emphasised. In addition, the Joint Committee’s … Continue Reading

ESMA publishes final guidelines on risk factors under Prospectus Regulation

On 1 October 2019, the European Securities and Markets Authority (ESMA) published its final guidelines on risk factors under the Prospectus Regulation. There are minor amendments to the draft guidelines published in March 2019 (see previous blog here) including the insertion of 1 December 2019 as the date from which the guidelines will apply, but otherwise … Continue Reading

ESMA work programme for 2020

On 1 October 2019, the European Securities and Markets Authority (ESMA) published its work programme for 2020. In terms of the single rulebook, the EMIR Review and the resulting EMIR Refit and EMIR 2.2 will require ESMA to develop several technical standards and technical advice. In addition, following the start of the work on the MiFID II/MIFIR … Continue Reading

ECB consolidated guide to internal models under SSM

On 1 October 2019, the European Central Bank (ECB) published the consolidated version of its guide to internal models under the single supervisory mechanism (SSM). The ECB’s rationale for the publication of this document is to consolidate its general topics and risk-type-specific chapters into one document. The guide provides transparency on how the ECB understands … Continue Reading

Council of the EU Presidency invites discussion on AML/CTF issues

On 30 September 2019, the Council of the EU published a Presidency Issues Note  on its strategic priorities on anti-money laundering (AML) and counter-terrorist financing (CTF). In the note, the Presidency outlines several issues likely to continue impeding the effectiveness of the European AML/CTF framework. These concerns were raised earlier last month when the European … Continue Reading

ESMA call for evidence on the effects of product intervention measures

On 30 September 2019, the European Securities and Markets Authority (ESMA) launched a call for evidence on the effects of product intervention measures regarding contracts for differences (CfDs) and binary options on market participants and clients. The call for evidence closes on 4 November 2019. The temporary product intervention measures of ESMA started to apply … Continue Reading

Technical Expert Group makes recommendations for methodology of EU climate benchmarks

On 30 September 2019, the Technical Expert Group on Sustainable Finance (TEG), a stakeholder group designed to assist the European Commission in developing elements of green finance policy, issued its final report on climate benchmarks. The TEG recommends a set of minimum technical requirements for the methodology of EU Climate benchmarks. These would serve to … Continue Reading

EBA work programme for 2020

On 30 September 2019, the European Banking Authority (EBA) published its work programme for 2020. The programme is defined under six strategic areas: supporting the deployment of the risk reduction package and the implementation of the global standards in the EU; providing efficient methodologies and tools for supervisory convergence and stress testing; moving towards an integrated EU … Continue Reading

ESG: German regulator launches consultation regarding guidance notice on sustainability

On 24 September 2019, the German Federal Financial Supervisory Authority (BaFin) published a draft guidance notice on dealing with sustainability risks for consultation (link; only available in German). BaFin expects supervised entities to also take into account environmental risks, social risks and risks arising from corporate governance (commonly referred to as environmental, social and governance – … Continue Reading

EBA consults on STS framework for synthetic securitisations

On 25 September 2019, the European Banking Authority (EBA) announced that it had published a discussion paper on its proposals for a simple, transparent and standardised (STS) framework for synthetic securitisation. The discussion paper has been developed in response to a mandate assigned to the EBA as per Article 45 of the Securitisation Regulation, which … Continue Reading

ESMA confirms delay of annual review on transparency requirements for non-equity instruments

On 24 September 2019, the European Securities and Markets Authority (ESMA) published a letter (dated 19 September 2019) from Steven Maijoor, ESMA Chair, to Olivier Guersent, European Commission Director General for Financial Stability, Financial Services and Capital Markets Union, on the first annual review required by Article 17 of Commission Delegated Regulation (EU) 2017/583 on … Continue Reading

EPC guidelines for appearance of mandates for SEPA direct debit schemes

On 24 September 2019, the European Payments Council (EPC) published updated guidelines on the appearance of mandates for the Single Euro Payments Area (SEPA) Direct Debit (SDD) Core Scheme and the SDD Business-to-Business (B2B) Scheme. The guidelines contain EPC guidance on the visual presentation of mandates issued by creditors under the SEPA SDD Core and … Continue Reading

Council reaches compromise on EU Sustainable Finance Taxonomy

On 25 September 2019, the Council Permanent Representatives Committee (COREPER II) endorsed the draft compromise text for the European Commission proposal on the Sustainable Finance Taxonomy. At the same time, EU Member States requested the Finnish presidency to commence trilogue negotiations with the European Parliament. The Sustainable Finance Taxonomy is considered a cornerstone of the future … Continue Reading

AFME 3rd Annual Compliance and Legal Conference

We are pleased to be sponsoring The Association for Financial Markets in Europe’s (AFME) 3rd Annual Compliance and Legal Conference, “The future of regulation in a changing world”, which is taking place in Paris from 2-4 October. Our European financial services team will be participating in the event, including speaking on a panel discussion looking … Continue Reading

UN and banks launch Principles for Responsible Banking

On 23 September 2019, during the annual United Nations General Assembly the Principles for Responsible Banking (the Principles) were launched. The Principles have been designed by a core group of 30 ‘founding banks’ together with the UN Environment Programme’s Finance Initiative. They are intended to provide a framework for a sustainable banking system that responds … Continue Reading

EBA launches its 2019 EU-wide transparency exercise

On 23 September 2019, the European Banking Authority (EBA) announced that it was launching its latest EU wide transparency exercise. In November, the EBA will release data points on about 130 EU banks. The data will cover capital positions, financial assets, risk exposure amounts, sovereign exposures and asset quality. As with previous transparency exercises, this … Continue Reading

China banking: New measures for opening up

In recent years China has accelerated its opening up to foreign investment. In June, China rolled out revised Negative Lists for foreign investment market access, allowing foreign investors to run majority-share-controlling or wholly-owned businesses in various sectors. We have published a China Foreign Investment Expert Q&A series, to keep clients and contacts apprised of developments … Continue Reading

German regulator publishes English version of guidance regarding outsourcing by insurers to cloud services

The German regulator BaFin has published an English version of its guidelines published in November 2018, Link. The guidance specifies the contractual provisions which BaFin expects to be included in agreements between German regulated insurers, reinsurers and credit institutions and cloud service providers.… Continue Reading

MEP resolution on implementation of anti-money laundering rules

On 19 September 2019, Members of the European Parliament (MEPs) passed a resolution calling for anti-money laundering (AML) rules to be better coordinated and implemented in a timely manner. The resolution was adopted with 530 votes to 14 and 104 abstentions. The date of transposition of the Fourth Anti-Money Laundering Directive was June 2017, and … Continue Reading

German regulator updates its guidance on the EU-US Covered Agreement

The German regulator BaFin has updated its guidance on the conduct of reinsurance business by US insurers in Germany under the provisions of the 2017 EU-US Covered Agreement (“Bilateral Agreement between the European Union and the United States of America on prudential measures regarding insurance and reinsurance”). An English language version has also been published, … Continue Reading