Italy (and EU regulation)

Commission communication on readiness at the end of the transition period between the EU and the UK

On 9 July 2020, the European Commission issued a communication on readiness at the end of the transition period between the EU and the UK. The communication includes a section on financial services (section B1, pages 12 to 15) and the key points include: In most areas, such as insurance, commercial bank lending or deposit-taking, … Continue Reading

ESMA highlights further aspects to consider in the finalisation of the framework for third-country CCPs

By Jochen Vester (UK) on July 10, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 9 July 2020, the European Securities and Markets Authority (ESMA) published a letter it sent to the European Commission (Commission) as a contribution to the Commission consultation on the delegated acts on tiering, comparable compliance and fees related to third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2). ESMA … Continue Reading

AFME: CSDR settlement discipline penalties – market practice for bilateral claims

By Hannah McAslan (UK) on July 10, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 9 July 2020, the Association for Financial Markets in Europe (AFME) issued a document intended to provide guidelines for its members to handle bilateral claims between trading counterparties, related to penalties applied under the CSDR on failed instructions. The document has been created collaboratively by AFME members and is subject to change. The AFME … Continue Reading

ESMA clarifies external support within the meaning of Article 35 of the MMF Regulation

By Iona Wright (UK) and Imogen Garner (UK) on July 10, 2020 Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 9 July 2020, the European Securities and Markets Authority (ESMA) issued a public statement on external support under Article 35 of the Money Market Funds Regulation (MMF Regulation). The statement has been issued by ESMA in light of financial markets authorities recent actions to mitigate the impact of COVID-19 on the EU’s financial markets, … Continue Reading

ESMA consults on guidelines on calculation of positions under SFTR

By Matthew Gregory (UK) on July 10, 2020 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 9 July 2020, the European Securities and Markets Authority (ESMA) launched a consultation on draft guidelines on the calculation of positions by trade repositories (TRs) under the Securities Financing Transactions Regulation (SFTR). The draft guidelines set out the relevant clarification to TRs with regards to the compliance with Article 4(6) of SFTR setting out … Continue Reading

EBA calls on resolution authorities to consider the impact of COVID-19 on resolution strategies and resolvability assessments

By Simon Lovegrove (UK) on July 10, 2020 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 9 July 2020, the European Banking Authority (EBA) published a statement on resolution planning in light of the COVID-19 pandemic. With this statement, the EBA intends to reiterate the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option in times of stress. In addition, the EBA … Continue Reading

EACH updates CSDR settlement discipline framework

On 9 July 2020, the European Association of Clearing Houses (EACH) published an updated version of its CSDR settlement discipline framework. The objective of the framework is to provide the European Securities and Markets Authority, relevant authorities and market participants with details of EACH’s implementation of the CSDR settlement discipline provisions that affect central counterparties … Continue Reading

FSB and Basel Committee set out supervisory recommendations for benchmark transition

On 9 July 2020, the Financial Stability Board (FSB) and the Basel Committee on Banking Supervision (Basel Committee) issued a report on supervisory issues associated with benchmark transition. The report includes insights on remaining challenges to LIBOR transition based on surveys undertaken by the FSB, the Basel Committee and the International Association of Insurance Supervisors. … Continue Reading

Basel Committee publication: Targeted revisions to the CVA risk framework

On 8 July 2020, the Basel Committee on Banking Supervision (Basel Committee) published a paper setting out the final targeted revisions to the credit valuation adjustment (CVA) risk framework. In January 2019 the Basel Committee published the revised market risk framework. In November 2019 the Basel Committee consulted on a set of targeted final revisions … Continue Reading

Last chance to take part – Global operational resilience survey

Operational resilience, which has risen to increased prominence over recent years, has been brought into even sharper focus following the outbreak of COVID-19. Our risk consulting team is carrying out a survey to explore how financial institutions are managing their crisis response planning and preparedness in the event of severe operational disruption, particularly leading up … Continue Reading

ESMA updates CSDR Q&As

By Hannah Meakin (UK) on July 9, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 8 July 2020, the European Securities and Markets Authority updated its Q&As on the Regulation on improving securities settlement in the EU and on central securities depositories. Part III of the Q&As dealing with settlement discipline have been updated with the addition of a new item in Q&A 7 dealing with buy-in timeframes. The … Continue Reading

ECB guideline on definition of default for banks directly supervised by national supervisors

By Jochen Vester (UK) on July 9, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 8 July 2020, the European Central Bank (ECB) issued guidance on the definition of the materiality threshold for banks that are directly supervised by Member State national competent authorities (NCAs). The guidance specifies how NCAs shall exercise the discretion conferred on competent authorities under Article178(2)(d) of the Capital Requirements Regulation in relation to less … Continue Reading

IFSB statements on the implications of COVID-19 on aspects of Islamic banking and Islamic capital markets

By Peter Snowdon (UK) on July 9, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 8 July 2020, the Islamic Financial Services Board (IFSB) issued two statements addressing the implications of the COVID-19 pandemic on certain elements of Islamic banking and Islamic capital markets. The statement on Islamic banking aims to clarify the treatment of payment moratoriums, the expected credit loss approach and profit sharing investment accounts in-line with … Continue Reading

ESMA updates Q&As on MiFIR data reporting

By Hannah McAslan (UK) on July 9, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 8 July 2020, the European Securities and Markets Authority updated its Q&As on MiFIR data reporting. A new Q&A in the transaction reporting section has been added dealing with algorithmic trading. The new Q&A answers the following question: Consider a scenario where an Investment Firm A executes a reportable transaction through an execution algorithm … Continue Reading

ESMA updates EMIR Q&As

On 8 July 2020, the European Securities and Markets Authority (ESMA) updated its Q&As on the European Market Infrastructure Regulation (EMIR). ESMA has updated Trade Repository Q&A 11(b) clarifying that the counterparties should follow their local time and the relevant calendar of their Member State to specify the “working day” in the context of determining … Continue Reading

FATF reports on stablecoins and virtual assets

By Simon Lovegrove (UK) on July 8, 2020 Posted in Africa, Asia, Australia, Canada, France, Germany, Italy, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, Money laundering, The Netherlands, United Arab Emirates, United Kingdom, United States

On 7 July 2020, the Financial Action Task Force (FATF) issued a report to G20 Finance Ministers and Central Bank Governors regarding stablecoins. The June 2019 revisions to the FATF Standards place anti-money laundering and counter-terrorism financing (AML/CFT) requirements on virtual assets and virtual asset service providers (VASPs). The FATF report finds that stablecoins share … Continue Reading

EBA provides clarity on the implementation of the prudential framework in the context of COVID-19

By Jochen Vester (UK) on July 8, 2020 Posted in Coronavirus, Coronavirus, Coronavirus, Coronavirus, France, Germany, Italy, The Netherlands, United Kingdom

On 7 July 2020, the European Banking Authority (EBA) published a report providing clarification on certain issues concerning the application of the prudential framework that have been raised as a consequence of the COVID-19 pandemic. Specifically the report is intended to provide clarity on the implementation of the EBA guidelines on legislative and non-legislative moratoria … Continue Reading

Corrigendum to CRD V

By Albert Weatherill (UK) on July 7, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 3 July 2020, there was published in the Official Journal of the EU a Corrigendum to the Capital Requirements Directive V (CRD V). The Corrigendum makes amendments to the following articles of the CRD V: 21a (approval of financial holding companies and mixed financial holding companies), 21b (intermediate EU parent undertaking), 104a (additional own … Continue Reading

Anne IX (Financial Services) to the EEA Agreement amended

By Joe Bamford (UK) on July 7, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 2 July 2020, there was published in the Official Journal of the EU (OJ) the following Decisions of the EEA Joint Committee amending Annex IX (Financial Services) to the EEA Agreement: Decision 80/2019 of 29 March 2019 amending Annex IX (Financial Services) to the EEA Agreement [2020/830], which incorporates Delegated Regulations and Implementing Regulations … Continue Reading

Basel Committee reports on Basel III implementation

By Simon Lovegrove (UK) on July 7, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 6 July 2020, the Basel Committee on Banking Supervision (Basel Committee) published a report setting out the adoption status of the Basel III standards in member jurisdictions as of end-May 2020. The report notes that as of end-May 2020, all 27 member jurisdictions have risk-based capital rules, liquidity coverage ratio regulations and capital conservation … Continue Reading

Notice of information on postponement of entry into application of MiFIR open access provisions with regard to exchange-traded derivatives

By Hannah Meakin (UK) on July 6, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, Germany, Italy, The Netherlands, United Kingdom

On 3 July 2020, there was published in the Official Journal of the EU (OJ) a Notice of information on postponement of entry into application of MiFIR open access provisions with regard to exchange-traded derivatives. Article 54(2) of MiFIR provides for a transitional period during which Articles 35 or 36 of MiFIR do not apply … Continue Reading

Basel Committee finalises AML/CFT guidelines on supervisory cooperation

By Simon Lovegrove (UK) on July 3, 2020 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 2 July 2020, the Basel Committee on Banking Supervision issued an updated version of its guidelines on ‘Sound management of risks related to money laundering and financing of terrorism’. The updated version of the guidelines contains a new paragraph 96 in Part IV (role of supervisors) and Annex 5 (interaction and cooperation between prudential … Continue Reading

Commission decides to refer Austria, Belgium and the Netherlands to the Court of Justice of the EU for failing to fully implement EU anti-money laundering rules

By Lisa Lee Lewis (UK) on July 3, 2020 Posted in Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 2 July 2020, the European Commission announced that it had referred Austria, Belgium and the Netherlands to the Court of Justice of the European Union, with a request for financial sanctions, for failing to fully implement the Fourth Anti-Money Laundering Directive into their national law. The Commission states that incomplete transposition concerns fundamental aspects … Continue Reading

European Commission launches consultation on Solvency II

By Laura Hodgson (UK) on July 3, 2020 Posted in Germany, Italy, The Netherlands

The European Commission has launched a consultation on key elements of the prudential framework for insurance and reinsurance firms required by the Solvency II Directive. While the European Insurance and Occupational Pensions Authority (EIOPA) is undertaking a technical consultation and data gathering exercise on Solvency II, the Commission seeks to obtain stakeholders views on the … Continue Reading