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Topic: Regulation and Compliance

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Commission adopts Delegated Regulation correcting MiFID II Delegated Regulation

On 21 April 2021, the European Commission adopted a Delegated Regulation and Annex correcting Delegated Regulation (EU) 2017/565 supplementing MiFID II (the MiFID II Delegated Regulation) as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of MiFID II. The Delegated Regulation amends Article 1 paragraph 1 of the … Continue Reading

ESMA replies to ESRB letter on procyclical impact of downgrades of corporate bonds on markets and entities across the financial system

On 13 April 2021, the European Securities and Markets Authority (ESMA) published its response to an earlier letter it had received from the European Systemic Risk Board (ESRB) providing detailed views on the procyclical impact of downgrades of corporate bonds. In particular, the letter focuses on the transparency of credit rating agency (CRA) methodologies and … Continue Reading

Global Asset Management Quarterly – new issue

The latest issue of our Global Asset Management Quarterly publication is now available. In this issue we cover: Europe European update EU/UK regulatory roundup United Kingdom Asset managers and the Task Force for Climate-related Financial Disclosures UK funds regime review Germany German Draft Fund Jurisdiction Promotion Act Australia Greenwashing: International initiatives taken to address the … Continue Reading

ESMA board of supervisors and FCA CEO exchange views

On 9 April 2021, the European Securities and Markets Authority (ESMA) published a summary of conclusions following its meeting of board of supervisors on 23 February 2021. Among other things the summary refers to co-operation with the UK FCA and meeting its CEO Nikhil Rathi. The summary notes that there was an exchange of views … Continue Reading

ESMA makes recommendations for OTFs under MiFID II/MiFIR

On 8 April 2021, the European Securities and Markets Authority (ESMA) published a final report on the functioning of Organised Trading Facilities (OTFs).  The report contains proposals aimed at clarifying the MiFID II provisions relating to OTFs and, more generally, multilateral systems to ensure efficient EU market structures and to enhance the level playing field … Continue Reading

G20 – Communique of 2nd Finance Ministers and Central Bank Governors Meeting

On 7 April 2021, there was published an official communique following the second meeting of G20 Finance Ministers and Central Bank Governors under the Italian G20 Presidency. During the meeting the discussion spanned from issues covering the global economy, efforts to push forward the economic recovery and promoting more sustainable growth, to supporting the most … Continue Reading

Financier Worldwide Magazine feature – Regulatory futures: challenges and opportunities in 2021

Throughout 2020 and 2021, financial services firms have had to respond and adapt to a number of regulatory challenges in an unprecedented fashion. Firms now have to navigate a diverging regulatory landscape as a result of Brexit, at the same time as continuing to respond to an array of pandemic-related risks that have arisen. Nevertheless, … Continue Reading

ESMA updates its Q&As on SFTR data reporting

On 6 April 2021, the European Securities and Markets Authority (ESMA) updated its Q&As on reporting under the Securities Financing Transactions Regulation (SFTR). The updated Q&As complement ESMA’s guidance on reporting under the SFTR. The Q&As were updated to simplify reporting of SFTs when an external portfolio manager is used.… Continue Reading

ESMA updates its Q&As on MiFID II and MiFIR transparency topics

On 6 April 2021, the European Securities and Markets Authority (ESMA) updated its Q&As on market structures issues under MiFID II and MiFIR. ESMA has introduced changes to one of its Q&As on tick sizes to reflect the amendment introduced in Article 49(1) of MiFID II which excludes Large in Scale transactions from the mandatory … Continue Reading

FSB final report – evaluation of the effects of too-big-to-fail reforms

On 31 March 2021, the Financial Stability Board (FSB) published the final report on its evaluation of the effects of too-big-to-fail (TBTF) reforms for systemically important banks (SIBs). The evaluation examines the extent to which the reforms have reduced the systemic and moral hazard risks associated with SIBs, as well as their broader effects on … Continue Reading

Basel Committee issues principles for operational resilience and risk

On 31 March 2021, the Basel Committee on Banking Supervision issued Principles for operational resilience, designed to make banks better able to withstand, adapt to and recover from severe adverse events. The Basel Committee has also issued revisions to its Principles for the sound management of operational risks reflecting the natural relationship between operational resilience … Continue Reading

ESMA proposes amendments to MiFIR transactions and reference data reporting regimes

Introduction On 30 March 2021, the European Securities and Markets Authority (ESMA) published a final report on the review of transaction and reference data reporting obligations under MiFIR. The final report is prepared in accordance with Article 26(10) of MiFIR that requires ESMA to submit a report to the European Commission assessing the functioning of … Continue Reading

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

On 29 March 2021, the European Securities and Markets Authority (ESMA) updated its Q&As on MiFID II and MiFIR investor protection and intermediaries topics. Specifically, ESMA has added new material to the inducements section.… Continue Reading

ESMA advises on framework for data reporting service providers

On 26 March 2021, the European Securities and Markets Authority (ESMA) published its final advice to the European Commission on data reporting service providers (DRSP). The advice focuses on the fees, fines and penalties applicable to DRSPs subject to EU supervision as well as the criteria determining whether certain DRSPs may be exempted from ESMA … Continue Reading

Recently published in the OJ

On 26 March 2021, there was published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2021/527 of 15 December 2020 amending Commission Delegated Regulation (EU) 2017/565 as regards the thresholds for weekly position reporting.  Commission Delegated Regulation (EU) 2017/565 establishes the minimum thresholds referred to in the second subparagraph of Article … Continue Reading

ESAs update Q&As on exchange of collateral

On 18 March 2021, the three European Supervisory Authorities (ESAs) updated their Q&As on exchange of collateral. The ESAs have updated Q&As on partial exemption and the application process for intragroup transactions between financial counterparties and non-financial counterparties.… Continue Reading

IIFM White Paper – Global Benchmark Rate Reforms and Implications of IBOR Transition for Islamic Finance

On 22 March 2021, the International Islamic Financial Market (IIFM) issued a White Paper ‘Global Benchmark Rate Reforms and Implications of IBOR Transition for Islamic Finance’. The White Paper is based on contributions from leading financial institutions, accounting firms, law firms (including Norton Rose Fulbright) and other market participants. Its purpose is to create awareness … Continue Reading

Keynote address by Commissioner McGuinness at FIA Boca International Futures Industry Conference

On 16 March 2021, the European Commission published the keynote address that Commissioner McGuiness provided at the FIA Boca International Futures Industry Conference. Key points in the speech includes: The Capital Markets Union is a top priority for the Commission. An area where the Commission will be reflecting on in the coming months is supervision … Continue Reading

Temporary requirement for net short position holders to disclose positions of 0.1 % and above expires on 19 March

On 15 March 2021, the EFTA Surveillance Authority (ESA) and the European Securities and Markets Authority (ESMA) confirmed that the temporary requirements lowering the threshold to notify net short positions to 0.1% will expire on 19 March 2021. The announcement by ESA and ESMA means that the reporting threshold for net short positions will revert … Continue Reading

Risk assessments and the expectations of global authorities – what this means for businesses

On 18 March 2021, we will be holding the first of our global webinars on putting into practice authorities’ expectations in relation to each of the components of an ABC programme. In this first session we will examine global expectations in relation to risk assessments – the starting point of an effective ABC programme. We … Continue Reading

Commission targeted consultation on EU supervisory convergence and the single rulebook

On 12 March 2021, the European Commission issued a targeted consultation on EU supervisory convergence and the single rulebook. The background to the targeted consultation is that the September 2020 Capital Markets Union Action Plan provided that the Commission will work towards an enhanced single rulebook for capital markets by assessing the need for further … Continue Reading

EBA launches discussion paper on integrated reporting

On 11 March 2021, the European Banking Authority (EBA) published a discussion paper on the feasibility study of an integrated reporting system to collect feedback for the preparation of its final report in this area. The discussion paper outlines possible options around the main building blocks of a possible integrated system including a single data … Continue Reading

EBA consults on guidance on how to grant authorisation as a credit institution

On 10 March 2021, the European Banking Authority (EBA) issued a consultation paper containing draft guidelines on a common assessment methodology for granting authorisation as a credit institution. The draft guidelines have been drafted in accordance with Article 8(5) Capital Requirements Directive IV (CRD IV), which mandates the EBA to specify a common assessment methodology … Continue Reading

Conducting an ABC risk assessment: 4 key steps

Anti-bribery and corruption (ABC) risk assessments are the cornerstone of an effective compliance programme, ensuring that compliance resources are focused on the most significant ABC risks faced by the business. A genuinely risk-based compliance programme helps to achieve both the primary objective of a compliance programme (preventing ABC issues occurring), the secondary objective (providing a … Continue Reading
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