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ESMA consults on remuneration requirements under MiFID II

On 19 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft guidelines on certain aspects of the MiFID II remuneration requirements. The purpose of these draft guidelines is to enhance clarity and foster convergence in the implementation of certain aspects of the new MiFID II remuneration requirements, replacing  the … Continue Reading

Commission Delegated Regulation supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level

On 14 July 2021, the European Commission adopted a Delegated Regulation supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level. Article 2(4) of MiFID II empowered the Commission to adopt regulatory technical standards (RTS) specifying the criteria for … Continue Reading

Supervisory approach on the MiFIR open access provisions for ETDs

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a public statement concerning its supervisory approach on the MiFIR open access provisions for exchange traded derivatives (ETDs). The statement notes that: Article 54(2) of MiFIR provides Member State national competent authorities (NCAs) with the possibility to temporarily exempt trading venues and central … Continue Reading

ESMA warns firms and investors about risks arising from payment for order flow

On 13 July 2021, the European Securities and Markets Authority (ESMA) issued a public statement to remind firms that the receipt of payment for order flow (PFOF) raises significant investor protection concerns. The statement also reminds firms of their key MiFID II obligations intended to ensure that firms act in their clients’ best interest when … 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

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

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

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

EBA and ESMA publish final guidance on fit and proper requirements

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

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

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

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

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

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

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

Latest ESRB publications

On 1 July 2021, the European Systemic Risk Board (ESRB) published the following: Press release on the ESRB general board meeting on 24 June 2021. At this meeting the general board of the ESRB assessed the key systemic risks in the EU, as well as public policy priorities to address them. Among other things its … Continue Reading

ECB launches consultation on updates to options and discretions policies

On 29 June 2021, the European Central Bank (ECB) launched a public consultation on updates to its harmonised policies for exercising the options and discretions that it is allowed to exercise under EU law when supervising banks. In 2016 and 2017, the ECB published a set of policy instruments harmonising how options and discretions (O&Ds) … Continue Reading

EBA launches consultation on amendments to reporting on securitisation, asset encumbrance and G-SIIs

On 23 June 2021, the European Banking Authority (EBA) issued a consultation proposing amending implementing technical standards (ITS) on supervisory reporting with regards to COREP and asset encumbrance reporting as well as the reporting for the purposes of identifying global systemically important institutions (G-SIIs). The ITS have been developed in accordance with Article 430 of … Continue Reading

ESMA recommends changes to supervisory fees for CRAs

On 21 June 2021, the European Securities and Markets Authority (ESMA) issued a final report providing technical advice to the European Commission on the supervisory fees charged to credit rating agencies (CRAs). ESMA proposes to charge: A fixed registration fee of €40,000. An annual supervisory fee of 0.5% of turnover to CRAs with annual revenues … Continue Reading

Australian Federal Budget 2021-22: Changes for foreign financial services providers relief and licensing

On 11 May 2021, Treasurer Josh Frydenberg delivered the Australian Federal Budget 2021-2022, which contained an announcement as to future changes to the licensing and relief regime for foreign financial service providers. Our update can be found here.… Continue Reading

ECB launches consultation on its revised Guide to fit and proper assessments

On 15 June 2021, the European Central Bank (ECB) issued a consultation on the draft of a revised and more comprehensive version of its guide to fit and proper assessments and a new fit and proper questionnaire. Among other things the proposed changes introduce ECB supervisory expectations on climate-related and environmental risks and explain the … Continue Reading

Outsourcing and third-party risk – Overview of responses to FSB public consultation

On 14 June 2021, the Financial Stability Board (FSB) published a note which summarises the main issues raised by respondents to its discussion paper on regulatory and supervisory issues relating to outsourcing and third party relationships. In the FSB discussion paper financial institutions and third parties were invited to provide comments on: The key challenges … Continue Reading

EBA second consultation on RTS on the calculation of the EUR 30bn threshold for investment firms

On 7 June 2021, the European Banking Authority (EBA) issued its second consultation on draft regulatory technical standards (RTS) on the calculation of the threshold for investment firms. The draft RTS have been developed for the mandate related to the reclassification of certain investment firms to credit institutions in line with Article 8a(6)(b) of the … Continue Reading

ESMA publishes final Guidelines on the MiFID II/MiFIR market data obligations

On 1 June 2021, the European Securities and Markets Authority (ESMA) published its final Guidelines on the MiFID / MiFIR market data obligations. While non-binding, the Guidelines seek to ensure more harmonised and consistent application across Member States of the relevant MiFID II and MiFIR provisions concerning market data, and in particular the requirement to … Continue Reading
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