France

Speech given by Erik Thedéen, Chair IOSCO Sustainable Finance Task Force at the Green Horizon Summit

On 4 November 2021, Erik Thedéen, the Chair of the International Organisation of Securities Commissions (IOSCO) Sustainable Finance Task Force gave a speech at the Green Horizons Summit during COP26, to discuss the IOSCO’s recent work on sustainable finance. The IOSCO’s work has focused on issuers and asset managers’ disclosures, alongside the role of ESG … Continue Reading

Effective Implementation of FSB Principles for Sound Compensation Practices and Implementation Standards 2021 progress report

On 4 November 2021, the Financial Stability Board (FSB) issued a progress report on the implementation of its Principles for Sound Compensation Practices (Principles) and their Implementation Standards in financial institutions. The progress report focusses on: The effectiveness of compensation frameworks. While in-year adjustments and malus are commonly used, the use of clawback is not … Continue Reading

IIF launches new guidance template to support effective climate disclosures

On 3 November 2021, the Institute of International Finance (IIF) launched a new TCFD Guidance Template to help financial institutions align their climate-related disclosures with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), with a focus on the banking sector. Drawing in observed industry practices, including mapping and benchmarking of TCFD reports … Continue Reading

IOSCO recommendations on sustainability-related practices, policies, procedures and disclosure in asset management

On 2 November 2021, the International Organisation of Securities Commissions (IOSCO) published a final report containing a set of  recommendations on sustainability-related practices, policies, procedures and disclosure in asset management.  The final report also sets out the findings from IOSCO fact finding exercises that included a survey of its members concerning regulatory and supervisory approaches … Continue Reading

FSB progress report ‘Enhancing the Resilience of Non-Bank Financial Intermediation’

On 1 November 2021, the Financial Stability Board (FSB) published its progress report, ‘Enhancing the Resilience of Non-Bank Financial Intermediation’, which was delivered to G20 Leaders ahead of their Summit last weekend. This report details the progress over the past year and the planned work set out by the FSB alongside, standard-setting bodies and other … Continue Reading

FATF update guidance on risk-based approaches for virtual assets and virtual asset service providers

On 28 October 2021, the Financial Action Task Force (FATF) published updated guidance for a risk-based approach for virtual assets (VA) and virtual asset service providers (VASP). This guidance mentions how the FATF plans to closely monitor the VA and VASP sector for any material changes that necessitate further clarification of the FATF standards. This … Continue Reading

EBA publishes Consultation Paper on amending RTS on SCA and CSC under PSD2

On 28 October 2021, the European Banking Authority (EBA) launched a public consultation on the amendment of its Regulatory Technical Standards (RTS) on strong consumer authentication and secure communication (SCA&CSC) under the Payment Directive (PSD2) with regard to the 90-day exemption for account access. The amendments proposed in the Consultation Paper aim to address a … Continue Reading

European Commission publish a banking package for 2021, implementing new EU rules to strengthen banks’ resilience and better prepare for the future

On 27 October 2021, the European Commission published a new banking package. Adopting a review of EU banking rules (the Capital Requirements Regulation and the Capital Requirements Directive). The new rules will ensure that EU banks become more resilient to potential future economic shocks, while helping towards Europe’s recovery from COVID-19 and the transition to … Continue Reading

IOSCO publish its final report setting out principles on outsourcing

On 27 October 2021, the Board of International Organization of Securities Commissions (IOSCO) published a report titled, ‘Principles on Outsourcing’. The principles are intended for regulated entities that outsource tasks to service providers. They have been developed based on the earlier 2005 Outsourcing Principles for Market Intermediaries and the 2009 Outsourcing Principles for Markets, but … Continue Reading

The FATF publish its high-level synopsis of the stocktake in regards to the unintended consequences of the FATF Standards

The Financial Action Task Force (FATF) launched a project in February 2021 which studies and mitigates the unintended consequences resulting from the incorrect implementation of the FATF Standards. There are four areas of focus for this project which are: de-risking; financial exclusion; undue targeting of NPOs; and curtailment of human rights (with a focus on due … Continue Reading

AFME publish responses made to HMT call for evidence on AML/CTF supervisory regime and on amendments to AML legislation

On 26 October 2021, the Association for Financial Markets in Europe (AFME) published two Consultation Responses (CR) in response to two publications that the HM Treasury released. The AFME is the European member of the Global Financial Markets Association (GFMA) a global alliance with the Securities Industry and Financial Markets Association (SIFMA) in the US, … Continue Reading

ESAs propose new rules for taxonomy-related product disclosures

On 22 October 2021, the ESAs delivered to the European Commission their Final Report with the draft RTS regarding disclosures under the Sustainable Finance Disclosure Regulation (SFDR) as amended by the Regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation). The disclosures relate to financial products that make sustainable investments contributing … Continue Reading

Cross Border Payments – Survey Results on Implementation of the FATF

On 22 October 2021, the Financial Action Task Force (FATF) published the results of its survey that was designed to identify key areas of divergence in the implementation of its AML/CFT requirements across different states, which create frictions for cross-border payments and their potential solutions. The survey results highlight, among others, that lack of a … Continue Reading

Commission Implementing Regulations related to benchmark reform

On 22 October 2021, there was published in the Official Journal of the EU: Commission Implementing Regulation (EU) 2021/1848 of 21 October 2021 on the designation of a replacement for the benchmark Euro overnight index average Commission Implementing Regulation (EU) 2021/1847 of 14 October 2021 on the designation of a statutory replacement for certain settings … Continue Reading

Final Draft Regulatory Technical Standards on gross JTD amounts under Article 325w(8) of Regulation (EU) No 575/2013

On 22 October 2021, the European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) on gross jump-to-default (JTD) amounts and on residual risk add-on (RRAO). These final drafts provide specifications for implementing these two elements of the alternative standardised approach for market risk. Institutions using this approach are required to compute, on … Continue Reading

EBA replies to the European Commission’s call for advice on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance framework

On 22 October 2021, The European Banking Authority (EBA) published its advice to the EU Commission on funding in resolution and insolvency as part of the review of the crisis management and deposit insurance (CMDI) framework. In 2020, the European Commission (EC) initiated a review of the EU CMDI framework, which lays out rules for … Continue Reading

Delegated Regulation on RTS on assessment methodology for IRB approach under CRR

On 20 October 2021, the European Commission adopted a Delegated Regulation containing regulatory technical standards (RTS) for the specification of the assessment methodology competent authorities are to follow when assessing the compliance of credit institutions with the requirements to use the Internal Ratings Based (IRB) Approach. Under the Capital Requirements Regulation (CRR), credit institutions are … Continue Reading

European Commission adopts Delegated Regulation amending RTS on passporting notifications under CRD IV

On 20 October 2021, the European Commission adopted a Delegated Regulation containing amendments to the regulatory technical standards (RTS) in Commission Delegated Regulation 1151/2014 which contains information to be notified when exercising the right of establishment and the freedom to provide services under the CRD IV. The Delegated Regulation introduces amendments to improve the quality … Continue Reading

ESAs call for evidence on the PRIIPs Regulation

On 21 October 2021, the European Supervisory Authorities (ESAs) opened a call for evidence regarding the Regulation on packaged retail and insurance-based investment products (PRIIPs Regulation). The call for evidence follows a call for advice on the PRIIPs Regulation that the ESAs received earlier this year from the European Commission. The ESAs are requesting information … Continue Reading

AFME report – AML transaction monitoring in the markets sector

On 20 October 2021, the Association for Financial Markets in Europe (AFME) published a paper, Anti-Money Laundering Transaction Monitoring in the Markets Sector. Firms have already established Anti-Financial Crime programmes designed to detect suspicion of money laundering, supported by anti-money laundering (AML) transaction monitoring (TM). This has been a regulatory requirement for financial services firms across Europe … Continue Reading

Commission Delegated Regulation (EU) 2021/1833 of 14 July 2021 supplementing Directive 2014/65/EU of the European Parliament and of the Council by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level

On 20 October 2021, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2021/1833 of 14 July 2021 supplementing MiFID II by specifying the criteria for establishing when an activity is to be considered to be ancillary to the main business at group level. The Delegated Regulation enters into … Continue Reading

ECB speech – Overcoming the tragedy of the horizon: requiring banks to translate 2050 targets into milestones

On 20 October 2021, Frank Elderson, Member of the Executive Board of the European Central Bank (ECB) gave a keynote speech at the Financial Market Authority’s Supervisory Conference, regarding the need for banks to translate their 2050 carbon-neutral targets into milestones. Key points in the speech include: Banks can no longer simply declare their intention … Continue Reading

FSB report – Cyber incident reporting – existing approaches and next steps for broader convergence

On 19 October 2021, the Financial Stability Board (FSB) published a report exploring whether greater convergence in the reporting of cyber incidents is achievable in light of increasing financial stability concerns, especially given the digitalisation of financial services and increased use of third party service providers. The FSB found that fragmentation exists across sectors and … Continue Reading

NGFS report – Scenarios in action: a progress report on global supervisory and central bank climate scenario exercises

On 19 October 2021, the Network for Greening the Financial System (NGFS) published the report “Scenarios in action: a progress report on global supervisory and central bank climate scenario exercises”. The report sets out how a growing number of NGFS members, across all continents, are using climate scenarios to identify, assess and understand climate risk … Continue Reading
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