France

ESMA consults on derivatives clearing and trading obligations in view of the benchmarks transition

On 9 July 2021, the European Securities and Markets Authority (ESMA) issued a consultation paper on draft regulatory technical standards (RTS) that amend the existing RTS on the clearing obligation and derivatives trading obligation that have been developed under the European Market Infrastructure Regulation and the Markets in Financial Instruments Regulation respectively. The draft RTS … Continue Reading

Published in OJ – Commission Delegated Regulation supplementing BRRD with RTS on estimating Pillar 2 and combined buffer requirements for setting MREL

On 8 July 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2021/118 of 26 March 2021 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) specifying the methodology to be used by resolution authorities to estimate the requirement referred to in Article … Continue Reading

FSB publishes three climate-related reports

On 7 July 2021, the Financial Stability Board (FSB) published a letter from its Chair, Randal K. Quarles, to G20 Finance Ministers and Central Bank Governors ahead of their 9 – 10 July 2021 meeting. Among other things the letter stresses the need for coordinated action to address financial risks posed by climate change, noting … Continue Reading

European Commission publishes its Renewed Sustainable Finance Strategy

On 6 July 2021, the European Commission (the Commission) published its Renewed Sustainable Finance Strategy (RSFS). The RSFS follows the Commission’s 2018 Sustainable Finance Action Plan, which aimed to channel more investment towards environmentally sustainable activities. Under the 2018 Sustainable Finance Action Plan, the Commission presented two main legislative proposals establishing the building blocks for … Continue Reading

European Commission publishes legislative proposal on European green bonds

On 6 July 2021, the European Commission published a legislative proposal on European green bonds (the EuGB Regulation). The EuGB Regulation will lay the foundation for a common framework of rules regarding the use of the “European Green Bond” (EuGB) designation for bonds that pursue environmentally sustainable objectives as defined by the Taxonomy Regulation.[1] It … Continue Reading

Published in OJ – Commission Implementing Decisions on equivalence for third country derivatives regimes under EMIR

On 6 July 2021, the following European Commission Implementing Decisions on the equivalence of the regulatory regimes of third countries under the European Market Infrastructure Regulation were published in the Official Journal of the EU: Commission Implementing Decision (EU) 2021/1103 of 5 July 2021 on the recognition of the legal, supervisory and enforcement arrangements of … Continue Reading

Basel Committee’s reforms helped cushion the impact of COVID-19 shock on banks

On 6 July 2021, the Basel Committee on Banking Supervision published a report that gives a preliminary assessment of the impact of the implemented Basel reforms during the COVID-19 pandemic as part of a broader review of their effectiveness. Overall, the report finds that the increased quality and higher levels of capital and liquidity in … Continue Reading

FSB urges action to complete the transition away from LIBOR by end-2021

On 6 July 2021, the Financial Stability Board (FSB) published a progress report to the G20 on LIBOR transition and remaining issues. The progress report to the G20 is structured in four parts: Section 2 sets the scene on issues and risks associated with LIBOR transition. Section 3 presents observations and key themes from the … Continue Reading

Latest FATF papers

 On 1 July 2021, the Financial Action Task Force (FATF) published: A stocktake report that examines commercially available or emerging technologies that facilitate advanced anti-money laundering / countering the financing of terrorism (AML/CFT) analytics within regulated entities or collaborative analytics between financial institutions, while respecting data privacy and protection. A report that highlights the necessary … Continue Reading

ESMA publishes first overview of national rules governing fund marketing

On 1 July 2021, the European Securities and Markets Authority (ESMA) published its first report on national rules governing the marketing of investment funds under the Regulation on cross-border distribution of funds. Specifically, the report presents an overview of marketing requirements referred to in Article 5(1) of the Regulation in all Member States and contains … Continue Reading

Basel Committee – technical amendments to the calculation of minimum haircut floors for securities financing transactions

On 1 July 2021, the Basel Committee on Banking Supervision published two technical amendments to the standard on minimum haircut floors for securities financing transactions (SFTs). The first technical amendment addresses an interpretative issue relating to collateral upgrade transactions and the second corrects for a misstatement of the formula used to calculate haircut floors for … Continue Reading

ECB decision extending leverage ratio relief for banks published in OJ

On 30 June 2021, there was published in the Official Journal of the EU Decision (EU) 2021/1074 of the European Central Bank of 18 June 2021 on the temporary exclusion of certain exposures to central banks from the total exposure measure in view of the COVID-19 pandemic and repealing Decision (EU) 2020/1306. The decision extends … Continue Reading

EBA confirms quality of unsolicited credit assessments

On 1 July 2021, the European Banking Authority (EBA) issued a revised Decision confirming the quality of unsolicited credit assessments assigned by certain External Credit Assessment Institutions (ECAIs) for calculating institutions’ capital requirements. The revised Decision, which reflects the recognition of two additional ECAIs and the de-registering of three ECAIs, is part of the Single … Continue Reading

ESMA guidelines on written agreements between members of CCP colleges

On 1 July 2021, the European Securities and Markets Authority (ESMA) published guidelines on written agreements between members of central counterparty (CCP) colleges. The guidelines apply to Member State competent authorities from 1 July 2021 and are intended to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision and to … Continue Reading

FSB consults on MMF resilience

On 30 June 2021, the Financial Stability Board issued a consultation report setting out policy proposals to enhance money market fund (MMF) resilience, including with respect to the appropriate structure of the sector and of underlying short-term funding markets. The report considers the likely effects of a broad range of policy options to address MMF … Continue Reading

IOSCO consults on sustainability-related regulatory and supervisory expectations in asset management

On 30 June 2021, the International Organization of Securities Commissions (IOSCO) issued a consultation report on recommendations for sustainability-related practices, policies, procedures and disclosure in asset management. The consultation report focuses on investor protection issues and proposes that securities regulators consider setting regulatory and supervisory expectations for asset managers regarding sustainability-related risks and opportunities. The … Continue Reading

New papers from FATF and Wolfsberg Group

On 30 June 2021, there was published: Report from the Financial Action Task Force (FATF) on ethnically or racially motivated terrorism financing. The report, which is based on inputs from around 30 jurisdictions, focuses on the funding behind ethnically or racially motivated terrorism, also referred to as extreme right-wing terrorism. The report highlights the challenges … Continue Reading

Commission draft report on the CSDR

On 30 June 2021, the European Commission (Commission) published a draft of the report that it is required to produce under Article 75 of the Central Securities Depositories Regulation (CSDR). Article 75 of the CSDR requires the Commission to review and prepare a general report on a wide range of issues by 19 September 2019. … Continue Reading

EBA consults on technical standards on risk retention requirements under the Securitisation Regulation

On 30 June 2021, the European Banking Authority (EBA) issued a consultation paper on draft regulatory technical standards (RTS) specifying the requirements for originators, sponsors, original lenders and servicers related to risk retention, in line with the Securitisation Regulation. The draft RTS have been developed in accordance with Article 6(7) of the Securitisation Regulation, as … Continue Reading

FATF guidance on proliferation financing risk assessment and mitigation

On 29 June 2021, the Financial Action Task Force (FATF) published guidance on proliferation financing risk assessment and mitigation. The guidance seeks to develop a common understanding about the impact of the changes that FATF made in October last year to Recommendation 1 and its Interpretative Note to require countries and private sector entities to … Continue Reading

Guidelines on stress test scenarios under the MMF Regulation

On 29 June 2021, the European Securities and Markets Authority (ESMA) published guidelines that apply in relation to Article 28 of the Money Market Funds Regulation and establish common reference parameters for the stress test scenarios to be included in the stress tests conducted by money market funds (MMFs) or managers of MMFs in accordance … Continue Reading

EBA report in RegTech

On 29 June 2021, the European Banking Authority (EBA) published an analysis of the current RegTech landscape in the EU. The report assesses the overall benefits and challenges faced by financial institutions and RegTech providers in the use of RegTech. It also identifies potential risks arising from RegTech solutions that supervisors will need to address … Continue Reading

Published in OJ – Commission Implementing Regulation extending the transitional period for the treatment of exposures to third-country CCPs under CRR

On 25 June 2021, there was published in the Official Journal of the EU a Commission Implementing Regulation that extends the transitional period during which EU credit institutions can treat exposures to a third-country central counterparty (CCP) that has not been recognised in accordance with the European Market Infrastructure Regulation as if they were exposures … Continue Reading
LexBlog