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Topic: Regulation and Compliance

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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

ESMA updates Q&As

On 28 May 2021, the European Securities and Markets Authority announced that it had updated its Q&As on the following: AIFMD. UCITS. EMIR implementation. MiFID II and MiFIR Investor Protection topics. MiFIR data reporting topics. SFTR reporting. CSDR Sustainability-related disclosures for benchmarks. Securitisation… Continue Reading

ESMA consults on guidelines for data transfer between trade repositories under EMIR and SFTR

On 28 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation regarding amendments to its guidelines on data transfer between trade repositories (TRs) under the European Market Infrastructure Regulation, as well as on guidelines regarding data transfer between TRs under the Securities Financing Transactions Regulation (SFTR). The deadline for responding to the … Continue Reading

ESMA supervisory briefing on benchmarks administrators’ presence in their Member States of location and outsourcing

On 28 May 2021, the European Securities and Markets Authority issued a supervisory briefing designed to provide guidance to Member State competent authorities (NCAs) in respect of the presence of an administrator in its Member State of location and the outsourcing of functions or any relevant services and activities in the provision of a benchmark … Continue Reading

MiFID Quick Fix: ESMA consults on revised commodity derivatives RTS

On 26 May 2021, the European Securities and Markets Authority (ESMA) launched a public consultation on its new technical standards on commodity derivatives. By way of background, ESMA was mandated by the recent amendments to MiFID II – the so called MiFID Quick Fix – to develop a set of new regulatory technical standards (RTS) … Continue Reading

MiFID Quick Fix: draft delegated act on ancillary activity exemption published for consultation

On 27 May 2021, the European Commission (“the Commission”) published a draft delegated act on the ancillary activity exemption, which started a four-week public consultation period. By way of background, the Commission was mandated by the recent amendments to MiFID II – the so called MiFID Quick Fix – to adopt, by 31 July 2021, … Continue Reading

ESMA consults on disclosure requirements for initial reviews and preliminary ratings

On 26 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on disclosure requirements for initial reviews and preliminary ratings. The purpose of the consultation paper is to propose guidance that will address existing inconsistencies and reduce the risks that are posed by rating shopping to the extent it is possible … Continue Reading

EU Blocking Regulation Opinion

On 12 May 2021, Advocate General Hogan issued his opinion in the first case by the Court of Justice of the European Union (CJEU) considering the Blocking Regulation. The Opinion, in Case C-123/20 Bank Melli Iran v Telekom Deutschland GmBH [2018], sets out proposals for how the CJEU should respond to a reference from the Regional … Continue Reading

Commission consults on a roadmap for a strategy on supervisory data collection in EU financial services

On 18 May 2021, the European Commission published for consultation a roadmap regarding a strategy on supervisory data collection in EU financial services. The supervisory data strategy will consider a number of co-ordinated sectoral and horizontal measures that will contribute to the overall objective of improving and modernising supervisory data collection, which will likely be … Continue Reading

EBA publishes report on Member States’ reliance on external credit ratings

On 17 May 2021, the European Banking Authority (EBA) published a report analysing the extent to which Member States’ national law relies on external credit ratings. Based on a survey among EU banking supervisors, no mechanistic reliance on external credit ratings was identified. The report also shows that the use of external credit ratings in … Continue Reading

ESMA consults on its MiFID II / MiFIR annual report

On 12 May 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper seeking views from market participants on its MiFID II / MiFIR annual review report under Commission Delegated Regulation (EU) 2017/583 (RTS 2). The consultation paper sets out ESMA’s assessment of the operation of the thresholds for the liquidity determination of … Continue Reading

Commission report on the MCD

On 11 May 2021, the European Commission published a report that it had sent to the European Parliament and the Council on the review of the Mortgage Credit Directive (MCD) together with an annex. The report has been prepared under Article 44 MCD, which requires the Commission to review the effectiveness and appropriateness of the … Continue Reading

ESMA issues latest double volume cap data

On 7 May 2021, the European Securities and Markets Authority (ESMA) updated its public register with the latest set of double volume cap (DVC) data under MiFID II. The update includes DVC data and calculations for the period 1 April 2020 to 31 March 2021 as well as updates to already published DVC periods. The … Continue Reading

ESMA updates its opinion on ancillary activity calculations

On 6 May 2021, the European Securities and Markets Authority (ESMA) published an updated opinion on ancillary activity calculations. The opinion provides the estimation of the market size of commodity derivatives and emission allowances for 2020.… Continue Reading

Making it count: Transparency International’s key recommendations on measuring the effectiveness of an ABC compliance programme

On 4 May 2021, Transparency International published its “Making it count” report on measuring the effectiveness of anti-bribery and corruption (ABC) programmes (the TI Report). Authorities globally are focused on the practical effectiveness of companies’ ABC programmes. As the Department of Justice (DOJ) and Securities and Exchange Commission (SEC) Resource Guide puts it, authorities’ primary … Continue Reading

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
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