On 17 January 2019, the International Organization of Securities Commissions (IOSCO) published a report setting out its views on good practices for audit committees of listed companies in supporting external audit quality. The report notes that whilst the auditor has primary responsibility for audit quality, the audit committee should promote and support quality and thereby … Continue Reading
On 17 January 2019, the Basel Committee on Banking Supervision (Basel Committee) issued a press release announcing that it has completed a review of its 2008 principles for sound liquidity risk management and supervision. The review confirmed that the sound principles remain fit for purpose, and the Basel Committee advises banks and supervisors to remain … Continue Reading
On 17 January 2019, the European Banking Authority (EBA) published its final report on the guidelines on specification of types of exposures to be associated with high risk under Article 128(3) of the Capital Requirements Regulation (CRR). Article 128(3) CRR provides a mandate to the EBA to draft guidelines that specify which types of exposures, … Continue Reading
On 16 January 2019, the Single Resolution Board (SRB) published the second part of its 2018 policy on the minimum requirement for own funds and eligible liabilities (MREL) pertaining to the second wave of resolution plans – i.e. plans for the most complex banking groups. The second part introduces a series of new elements strengthening … Continue Reading
On 15 January 2019, the European Supervisory Authorities (ESAs) published a multilateral agreement on the practical modalities for the exchange of information pursuant to article 57a(2) of the Fourth Anti-Money Laundering Directive (the Agreement). The purpose of the Agreement is to define practical modalities for the exchange of information between anti-money laundering / counter terrorist … Continue Reading
On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its 2019-2020 work programme. The work programme is structured around four key areas: Policy development: The Basel Committee notes that there now remains only a targeted set of policy initiatives that require finalisation. This includes work related to the leverage ratio treatment … Continue Reading
On 14 January 2019, the Basel Committee on Banking Supervision (Basel Committee) published its final standards on the minimum capital requirements for market risk (the Final Standards). The Final Standards replace the current minimum capital requirements for market risk set out in the Basel II and Basel 2.5 reforms. The revisions made in the Final … Continue Reading
On 15 January 2019, the European Banking Authority (EBA) published a letter from the European Commission’s Director General of FISMA, regarding a Call for Advice to the EBA to gather data for a benchmarking of national loan enforcement frameworks from a bank creditor perspective. The Call for Advice to the EBA has also been published. … Continue Reading
On 10 January 2019, the Joint Money Laundering Steering Group (JMLSG) published a webpage noting that certain amendments to the Money Laundering, Terrorist Financing and Transfer of Funds (Information of the Payer) Regulations 2017 came into effect on 10 January 2019. These amendments have resulted in minor changes to the JMLSG guidance in Part I paragraphs … Continue Reading
On 14 January 2019, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published the following: report on the amended text of the proposed Omnibus Directive; and report on the amended text of the proposed Regulation amending the Regulation that established the European Systemic Risk Board (ESRB). ECON voted to adopt these reports on 10 January … Continue Reading
On 14 January 2019, the European Commission launched a consultation evaluating whether the Consumer Credit Directive (CCD) is still fit for purpose given all the market developments since its launch in in April 2008. Stakeholders can contribute to the consultation by filling in an online questionnaire. The deadline for responses is 8 April 2019.… Continue Reading
On 11 January 2019, the European Parliament’s Economic and Monetary Affairs Committee (ECON) published a report on the European Commission’s proposed Regulation amending the Benchmarks Regulation on low carbon benchmarks and positive carbon impact benchmarks. ECON voted to adopt the report on 13 December 2018. The European Parliament will consider the report in plenary.… Continue Reading
On 9 January 2019, the European Commission published a draft of a Commission Delegated Regulation (EU) amending Delegated Regulation (EU) 2017/1799 as regards the exemption of the People’s Bank of China from the pre- and post-trade transparency requirements in MiFIR, together with an annex. The draft Delegated Regulation adds the People’s Bank of China to … Continue Reading
On 10 January 2019, the European Securities and Markets Authority (ESMA) published its first annual statistical report on the performance and costs of retail investment products in the EU. The report is focused on UCITS, alternative investment funds sold to retail investors (retail AIFs) and structured retail products (SRPs). The report provides a comprehensive overview … Continue Reading
On 10 January 2019, the European Central Bank (ECB) published a recommendation on dividend distribution policies. The ECB has also published a letter that it has sent to credit institutions concerning variable remuneration policy. The letter note that, as with dividend distribution policies in the recommendation, an institution’s variable remuneration policy may have a significant … Continue Reading
On 10 January 2019, the European Banking Authority (EBA) published two reports on the consistency of risk weighted assets across all EU institutions authorised to use internal approaches for the calculation of capital requirements. The reports cover credit risk for high and low default portfolios, as well as market risk. The results confirm previous findings, … Continue Reading
On 10 January 2019, the European Banking Authority (EBA) published a report on cost and past performance of structured deposits. Structured deposits are legally defined under article 4(43) of MiFID II. Structured deposits are a subset of the wider product category of ‘structured products’. The report is a response to a request from the European … Continue Reading
On 10 January 2019, the European Commission released a report on the operation of the Alternative Investment Fund Managers Directive (AIFMD). The report confirms that current rules in the AIFMD have significantly contributed to creating a single market for alternative investment funds by establishing a harmonised regulatory and supervisory framework. Most of the AIFMD provisions … Continue Reading
On 9 January 2019, the European Securities and Markets Authority (ESMA) published its advice to the EU institutions (the European Commission, the Council of the EU and the European Parliament) on initial coin offerings (ICOs) and crypto-assets. Prior to the publication of the advice ESMA has been working with Member State national competent authorities (NCAs) … Continue Reading
On 9 January 2019, the European Banking Authority (EBA) published a report containing the results of its assessment of the applicability and suitability of EU law to crypto-assets. The report states that based on the analysis conducted by the EBA, crypto-assets typically fall outside the scope of EU financial services legislation and specific services relating … Continue Reading
On 9 January 2019, the European Central Bank (ECB) has published a consolidated version of its guide to assessments of licence applications. The text, which is not legally binding, combines the content of the first guide published in March 2018 and that of Part 2 (which focuses on capital requirements and programme of operations, including … Continue Reading
On 7 January 2019, the Joint Committee of European Supervisory Authorities (ESAs) published a report on FinTech, concerning regulatory sandboxes and innovation hubs (together, innovation facilitators). In the report, the ESAs analyse the innovation facilitators established to date within the EU. The ESAs also set out ‘best practices’ regarding the design and operation of innovation … Continue Reading
On 4 January 2019, the European Commission published the following draft Delegated Regulations on how investment firms and insurance distributors should take sustainability issues into account when advising clients: Commission Delegated Regulation (EU) …/… of XXX amending Delegated Regulation (EU) 2017/565 as regards the integration of Environmental, Social and Governance (ESG) considerations and preferences into … Continue Reading
On 4 January 2019, the European Securities and Markets Authority (ESMA) published updated Q&As on MiFID II and MiFIR commodity derivatives topics. In the updated Q&As ESMA clarifies the correct application of the field “price multiplier” when reporting electricity contracts, in order to mitigate the risk of different contracts receiving the same ISIN.… Continue Reading
