Germany

Topic: Regulation and Compliance

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European Commission consults on a draft BMR equivalence decision for Japan

On 6 April 2020, the European Commission published for a four-week consultation period a draft implementing decision on the equivalence of the legal and supervisory framework applicable to benchmarks in Japan in accordance with the Benchmarks Regulation. The decision is applicable to the specified administrators of financial benchmarks that are specified as specified financial benchmarks … Continue Reading

Commission extends consultation deadlines

On 3 April 2020, the European Commission updated its consultations (banking and finance web page) extending the following consultation: A retail payments strategy for the EU – deadline extended to 26 June 2020 A new digital finance strategy for Europe / FinTech action plan – deadline extended to 26 June 2020 Revision of the non-financial … Continue Reading

BaFin puts distribution policies regarding dividends and bonuses of German insurers and pension funds in the context of COVID-19 under scrutiny

In accordance with its habit to upload links to EIOPA publications relating to the aligned policy of European supervisors in light of the current coronavirus crisis, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) on 2 April 2020 published a note in which it referred to EIOPA’s statement of the same date … Continue Reading

BaFin publishes FAQ on current supervisory measures for German insurers and pension funds in light of COVID-19

On 18 March 2020 and 21 March 2020 the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) published notes in which it referred to and appropriated EIOPA publications on Actions to mitigate the impact of Coronavirus/COVID-19 on the EU insurance sector (dated 17 March 2020) and Recommendations on supervisory flexibility regarding the deadline … Continue Reading

Are you prepared for the new EU prudential regime impacting investment firms?

Read Jochen Vester’s analysis which features in the latest issue of Citibank’s ‘Global Fiduciary and Trustee Services news and views’. To help our financial services clients navigate the implications of the new prudential regime, we have created an IFR transition hub on the NRF Institute. The hub includes our latest views and analysis on regulatory … Continue Reading

Coronavirus/COVID-19: German regulator on conduct of business rules

After the European Securities and Markets Authority (ESMA) had issued a public statement regarding the application of MiFID II requirements on the recording of telephone conversations on 20 March 2020 (see the related publication in our blog), the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) published additional guidance to market participants on the same … Continue Reading

ESMA extends closing dates for open consultations by four weeks

On 20 March 2020, the European Securities and Markets Authority (ESMA) announced that it was extending the response date for a number of ongoing consultations with a closing date on, or after, 16 March 2020 by four weeks. The consultations include those on the MiFIR report in systematic internalisers and draft technical standards under the … Continue Reading

Coronavirus/COVID-19: German regulator grants temporary relief for supervised entities (update)

After having taken initial steps to deal with the impact of the COVID-19 pandemic on the financial sector in Germany (see the related publication in our blog), the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has taken further relief measures. In order to give supervised entities a better overview of these measures, … Continue Reading

ESMA clarifies call taping under MiFID II

On 20 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement aimed at clarifying issues regarding the application by firms of the MiFID II requirements on the recording of telephone conversations. In the public statement ESMA: reminds firms that it has issued numerous Q&As to assist firms in the application of … Continue Reading

Coronavirus/COVID-19: German regulator grants temporary relief for supervised entities

After having stated that it will closely monitor the risk situation caused by the new coronavirus (SARS-CoV-2) with a view to potential reactions, the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) has now taken initial steps to deal with the impact of the pandemic on the financial sector in Germany. Relief for … Continue Reading

ECB provides temporary capital and operational relief for banks against Covid-19 impact

On 12 March 2020, the European Central Bank (ECB) announced a number of measures to ensure that its directly supervised banks can continue to fulfil their role in funding the real economy. Key points in the announcement include: the ECB will allow banks to operate temporarily below the level of capital defined by the Pillar … Continue Reading

EBA statement on actions to mitigate the impact of COVID-19 on the EU banking sector

On 12 March 2020, the European Banking Authority (EBA) issued a statement on actions to mitigate the impact of COVID-19 on the EU banking sector. Key points in the statement include: the EBA will postpone the EU-wide stress test exercise to 2021. This is intended to allow banks to focus on and ensure continuity of … Continue Reading

ESMA statement on COVID-19

On 12 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement which makes certain recommendations to market participants as regards the impact of COVID-19. The statement touches on: Business continuity planning; Market disclosure; Financial reporting; and Fund management.… Continue Reading

Getting ready for the IFR / IFD

The way in which investment firms are to be treated for the purposes of prudential regulation is changing. Set to take effect from June 2021, the Investment Firms Regulation (IFR) and Investment Firms Directive (IFD) will make significant alterations to the framework governing investment firms. The new regime will mean higher regulatory capital requirements for … Continue Reading

ESMA consults on MiFIR transparency regime for non-equity instruments

On 10 March 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper reviewing the transparency regime for non-equity instruments and the trading obligation for derivatives under the Market in Financial Instruments Regulation (MiFIR). The first part of the consultation paper focuses on the Level 1 review required under Article 52(1) and (6) … Continue Reading

ESMA supervision work programme 2020

On 9 March 2020, the European Securities and Markets Authority (ESMA) has published its 2020 Supervision Work Programme, detailing the areas of focus for its supervision of credit rating agencies, trade repositories and the monitoring of third country central clearing counterparties and central securities depositories.… Continue Reading

ECB letter to significant institutions re contingency preparedness in the context of COVID-19

On 3 March 2020, the European Central Bank (ECB) issued a letter to significant institutions concerning their contingency preparedness in the context of COVID-19. In the letter the ECB makes the point that supervised entities are expected to review their business continuity plans and consider what actions can be taken to enhance preparedness to minimise … Continue Reading

ESMA report on C6 energy derivative contracts under EMIR

On 2 March 2020, the European Securities and Markets Authority (ESMA) issued a report on C6 energy derivatives and related obligations under the European Market Infrastructure Regulation (EMIR). In particular, the report looks into the impact, cost, adequacy and feasibility of C6 energy derivative contracts being made subject to: (i) the clearing obligation set out … Continue Reading

Annual transparency calculations for equity and equity-like instruments

On 28 February 2020, the European Securities and Markets Authority made available the results of the annual transparency calculations for equity and equity-like instruments. The calculations include: the liquidity assessment as per Articles 1 to 5 of Commission Delegated Regulation 2017/567; the determination of the most relevant market in terms of liquidity (MRM) as per … Continue Reading

ICMA guide on reporting repo transactions

On 24 February 2020, ICMA’s European Repo and Collateral Council published its guide to reporting repo transactions under the EU Securities Financing Transactions Regulation (SFTR). The guide is intended to support ICMA members in their SFTR implementation efforts. It offers help to interpret the SFTR regulatory reporting framework specified by the European Securities and Markets … Continue Reading

ESMA updates Q&As on MiFID II and MiFIR investor protection topics

On 17 February 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the implementation of investor protection topics under MiFID II and MiFIR. The updated Q&As now include new answers on MiFID II practices for firms selling financial instruments subject to the resolution regime under the Bank Recovery and Resolution Directive. The … Continue Reading

ESMA updates Q&A on implementation of CRA Regulation

On 17 February 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the Regulation on credit rating agencies (CRA Regulation). The updated Q&As now provide clarification on what steps should a CRA take in order to ensure a sufficient level of quality and transparency in the periodic review of credit ratings conducted … Continue Reading

Crypto Assets: Germany introduces new regulatory regime

Germany has adopted a new regulatory regime for crypto assets in connection with the implementation of the Fifth Anti-Money Laundering Directive (AMLD5). On 29 November 2019, the second chamber of the German parliament (Bundesrat) approved the “Act on the Implementation of the Amendment Directive to the Fourth EU Money Laundering Directive” (Gesetz zur Umsetzung der Änderungs­richt­linie … Continue Reading
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