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Changes to the EU Securitisation Regulation – a more liberal approach to NPE securitisations and extending the STS framework – EU/UK regulatory divergence in action?

Regulation (EU) 2021/557 and Regulation (EU) 2021/558 (together, the Regulations) were published in the Official Journal of the European Union on 6 April 2021 and came into force on 9 April 2021. Regulation (EU) 2021/557 amended European Regulation 2017/2402 (EUSR)[i] extending the Simple, Transparent and Standardised (STS) framework to on-balance sheet synthetic securitisations (previously only … Continue Reading

ECB project report on TRIM

On 19 April 2021, the European Central Bank (ECB) published a project report concerning a targeted review of internal models. The targeted review of internal models (TRIM) was a multi-year project launched by the ECB at the beginning of 2016 in close cooperation with the national competent authorities (NCAs) that are part of European banking … Continue Reading

Basel Committee publishes work programme and strategic priorities for 2021-22

On 16 April 2021, the Basel Committee on Banking Supervision (Basel Committee) published its work programme for 2021-22. The work programme focuses on three key themes: COVID-19 resilience and recovery. This includes ongoing monitoring and assessment of risks and vulnerabilities to the global banking system. Horizon scanning and mitigation of medium-term risks and trends. This … Continue Reading

Published in OJ – Updated Implementing Regulation on ITS on MREL reporting by resolution authorities

On 16 April 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Regulation (EU) 2021/622 of 15 April 2021 laying down implementing technical standards for the application of Directive 2014/59/EU of the European Parliament and of the Council with regard to uniform reporting templates, instructions and methodology for reporting on … Continue Reading

The PRA’s approach to new and growing banks – PS8/21

On 15 April 2021, the PRA published Policy Statement 8/21 ‘The Prudential Regulation Authority’s approach to new and growing banks’ (PS8/21). PS8/21 follows Consultation Paper 9/20 ‘Non-systemic UK banks: the PRA’s approach to new and growing banks’ (CP9/20) that the PRA published last summer setting out the regulator’s proposed approach to supervising new and growing … Continue Reading

FCA Dear CEO letter – Obtaining deposits via deposit aggregators

Introduction On 14 April 2021, the FCA published a Dear CEO letter that highlights the risks associated with the increasing volumes of deposits that are placed with banks and building societies (firms) via deposit aggregators and how to mitigate them. The FCA also outlines some of the key responsibilities that firms will be held accountable … Continue Reading

ESMA updates its LEI statement

On 13 April 2021, the European Securities and Markets Authority (ESMA) issued an updated statement on the implementation of LEI requirements for third-country issuers under the Securities Financing Transaction Regulation (SFTR) reporting regime. ESMA maintains its position regarding third-country issuer LEI reporting included in its statement published on 6 January 2020 (ESMA74-362-388) until 10 October … Continue Reading

ESMA publishes interim templates for STS synthetic securitization notifications

On 9 April 2021, the European Securities and Markets Authority (ESMA) published the interim simple, transparent and standardised (STS) notification templates for synthetic securitisations following amendments to the Securitisation Regulation. The interim templates allow originators to notify ESMA of synthetic securitisations that meet the STS criteria until the date of the application of the regulatory … Continue Reading

Latest publications in the OJ

On 6 April 2021, there was published in the Official Journal of the EU (OJ): Regulation (EU) 2021/557 of the European Parliament and of the Council of 31 March 2021 amending Regulation (EU) 2017/2402 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation to help the … Continue Reading

Commission adopts Delegated Regulation supplementing BRRD with RTS on estimating Pillar 2 and combined buffer requirements for setting MREL

On 26 March 2021, the European Commission adopted a Delegated Regulation that specifies the methodology to be used by resolution authorities to estimate the requirement referred to in Article 104a of the Bank Recovery and Resolution Directive (BRRD) and the combined buffer requirement for resolution entities at the resolution group consolidated level for the purpose … Continue Reading

Securitisation Regulation – Q&As and opinion

On 26 March 2021, the Joint Committee of the European Supervisory Authorities (ESAs) published Q&As relating to the Securitisation Regulation. The Q&As contain answers to questions that fall outside the exclusive competence of any of the ESAs. On the same date the ESAs published a joint opinion on the jurisdictional scope of the obligations of … Continue Reading

PS4/21 ‘Depositor protection: Identity verification’

On 24 March 2021, the PRA published Policy Statement 4/21’Depositor protection: Identity verification’ (PS4/21). In PS4/21 the PRA provides feedback to Consultation Paper 3/21 ‘Depositor protection: Identity verification’ (CP3/21). In CP3/21 the PRA proposed to: Amend existing depositor protection rules to allow identity verification to be carried out retrospectively, if a responsible person had not … Continue Reading

SRB communication on approach to eligibility of UK law instruments without bail-in clauses after Brexit

On 22 March 2021, the Single Resolution Board (SRB) issued a communication on its approach to liabilities governed by UK law without a contractual bail-in recognition clause as eligible for the minimum requirement for own funds and liabilities (MREL). The SRB will consider liabilities governed by UK law without a contractual bail-in recognition clause as … Continue Reading

EBA consults on its revised guidelines on recovery plan indicators

On 18 March 2021, the European Banking Authority (EBA) issued a consultation paper on its revised guidelines on recovery plan indicators. Under the mandate of Article 9(2) of the Bank Recovery and Resolution Directive (BRRD), in 2015 the EBA issued guidelines to specify the minimum list of quantitative and qualitative indicators for the purposes of … Continue Reading

EBA consults on its draft guidelines for institutions and resolution authorities on improving resolvability

On 17 March 2021, the European Banking Authority (EBA) issued a consultation paper on draft guidelines for institutions and resolution authorities on improving resolvability. When finalised the guidelines will be a point of reference for both Member State competent authorities and institutions on resolvability related topics in the EU. The guidelines seek to implement existing … Continue Reading

Commission call for feedback to stakeholders on the feasibility assessment for a potential EU referral scheme

On 12 March 2021, the European Commission (Commission) issued a targeted consultation seeking feedback on whether there is potential for a referral scheme to help small and medium sized enterprises (SMEs) whose funding applications have been rejected by a finance provider and options for the scope, features and governance of such a possible scheme. The … Continue Reading

EBA launches public consultation on draft revised Guidelines on stress tests of DGSs

On 11 March 2021, the European Banking Authority (EBA) issued a public consultation on revised guidelines on the stress tests conducted by Member State deposit guarantee schemes (DGSs) under the Deposit Guarantee Schemes Directive (DGSD). The proposed revision to the guidelines will extend the scope of DGS stress testing, by requiring more tests that will … Continue Reading

The NRF Outsourcing Toolkit – end to end assistance for contractual remediation projects

There are a broad range of regulatory requirements for financial services firms when it comes to outsourcing business activities, perhaps most significantly, the EBA’s Guidelines on outsourcing (the ‘Guidelines’). The Guidelines require firms to (i) identify their outsourcing arrangements and (ii) ensure that any contracts meet specific requirements and are aligned to broader regulatory expectations. … Continue Reading
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