Italy (and EU regulation)

EBA consults on technical standards for contractual recognition of stay powers under the BRRD

On 15 May 2020, the European Banking Authority (EBA) issued a consultation on draft regulatory technical standards (RTS) for contractual recognition of stay powers laid down in the Bank Recovery and Resolution Directive (BRRD). The draft RTS are made under Article 71a(5) of the BRRD, which requires the EBA to develop RTS to further determine … Continue Reading

EMIR Refit reporting: New documentation requirements, COVID-19 and implementation challenges

By Hannah Meakin (UK), Simon Lovegrove (UK) and Jochen Vester (UK) on May 15, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

While the majority of the new requirements under the EMIR Refit applied upon the regulation entering into force, other requirements are phased in, such as the changes in relation to the current EMIR reporting regime. The new reporting requirements will apply in less than a month’s time, from June 18, 2020 onwards. We have published … Continue Reading

ESMA highlights challenges for rating collateralised loan obligations

By Jochen Vester (UK) on May 14, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 13 May 2020, the European Securities and Markets Authority (ESMA) published a thematic report on collateralised loan obligations (CLOs) credit ratings in the EU. The report provides an overview of CLO rating practices and identifies the main supervisory concerns, and medium-term risks, in this asset class which include credit rating agencies’ (CRAs) internal organisation, … Continue Reading

EBF guidance document on the revised Cross-Border Payments Regulation

By Albert Weatherill (UK) on May 14, 2020 Posted in France, Germany, Italy, Payment Services, Payment services, Payment services, The Netherlands, United Kingdom

On 13 May 2020, the European Banking Federation (EBF) published a guidance document on the revised Cross-Border Payments Regulation. The purpose of the document is to help EBF members in their implementation of the Regulation, in particular with regard to the new obligations related to transparency requirements for currency conversions for card-based payments and credit … Continue Reading

Commission Delegated Regulation amending the list of high risk jurisdictions for 4MLD

By Clarinda Francesca Grundy on May 13, 2020 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 7 May 2020, the European Commission adopted a Delegated Regulation amending Delegated Regulation (EU) 2016/1675 supplementing the Fourth Anti-Money Laundering Directive as regards the Bahamas, Barbados, Botswana, Cambodia, Ghana, Jamaica, Mauritius, Mongolia, Myanmar/Burma, Nicaragua, Panama and Zimbabwe to the table in point I of the Annex and deleting Bosnia-Herzegovina, Ethiopia, Guyana, Lao People’s Democratic … Continue Reading

Member States discuss CRR “quick fix” legislative proposal

By Anna Carrier (BE) on May 13, 2020 Posted in EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, EU policy, regulatory and legislative updates, France, Germany, Italy, The Netherlands, United Kingdom

On 29 April 2020 we blogged that in the context of COVID-19 the European Commission published a legislative proposal for targeted amendments to the Capital Requirements Regulation (CRR). A legislative process is currently underway, with both the Council (Member States) and the European Parliament conducting their respective reviews. On 13 May 2020, a meeting of … Continue Reading

EBA report into dividend arbitrage trading schemes and 10-point action plan to enhance the future regulatory framework

By Simon Lovegrove (UK) on May 13, 2020 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 12 May 2020, the European Banking Authority (EBA) published the results of its inquiry into dividend arbitrage schemes, which looked into the actions of prudential and anti-money laundering and countering the financing of terrorism (AML / CFT) supervisors in dealing with such schemes. In May 2019, the EBA carried out a survey of competent … Continue Reading

European Commission considers MiFID “quick fix” in response to COVID-19

On 11 May 2020, the European Commission hosted a meeting of the Expert Group of European Securities Committee (EGESC), which is composed of Member States experts. One of the agenda items was initial considerations and exchange of views whether any urgent amendments to the Markets in Financial Instruments Directive (MiFID II) are required in the … Continue Reading

FSB compensation workshop 2019: Key takeaways

By Simon Lovegrove (UK) on May 12, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 8 May 2020, the Financial Stability Board (FSB) published the key takeaways from the workshop it hosted on 13 November 2019 for banks, insurance and asset management firms to discuss their experiences in implementing the FSB Principles for Sound Compensation Practices and their Implementation Standards. The workshop focused on: Assessing the effectiveness of compensation … Continue Reading

Commission Delegated Regulation postponing the entry into force of CSDR RTS on settlement discipline

By Hannah Meakin (UK) and Hannah McAslan (UK) on May 12, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 4 February 2020, we blogged that the European Securities and Markets Authority had published a final report on draft regulatory technical standards (RTS) on postponing the date of entry into force of Commission Delegated Regulation EU 2018/1229 (the RTS on settlement discipline) to 1 February 2021. Annex IV to the final report contained a … Continue Reading

FMSB publishes spotlight review on data management in the financial system

By Jochen Vester (UK) on May 12, 2020 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 11 May 2020, the FICC Markets Standards Board (FMSB) published its second spotlight review examining the role of data management in the stability and resilience of wholesale FICC markets and financial systems. The review considers: seven sources of critical data risk covering business continuity, data confidentiality, trading, aggregate exposure, regulatory enforcement, ownership rights and … Continue Reading

Monthly Global FinTech regulatory updater

Every month we provide the Global Blockchain Business Council’s Post-Trade Distributed Ledger group with a global regulatory FinTech updater, the latest version of which can be found here. Post Trade Distributed Ledger (PTDL) Group is composed of over 40 prominent market infrastructure stakeholders whose shared vision of the use of distributed ledger technology has brought … Continue Reading

ESMA consultation on the functioning of the regime for SME Growth Markets under MiFID II and on amendments to MAR for the promotion of the use of SME Growth Markets

By Hannah McAslan (UK) on May 7, 2020 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 6 May 2020, the European Securities and Markets Authority (ESMA) issued a consultation paper on the functioning of the Small and Medium Sized Enterprises (SMEs) Growth Market regime in the EU and on two draft technical standards, introduced by amendments to the Market Abuse Regulation (MAR) for the promotion of the use of SME … Continue Reading

ESMA reminds firms of conduct of business obligations under MiFID II

By Hannah Meakin (UK) and Imogen Garner (UK) on May 7, 2020 Posted in Coronavirus, Coronavirus, Coronavirus, Coronavirus, France, Germany, Italy, The Netherlands, United Kingdom

On 6 May 2020, the European Securities and Markets Authority (ESMA) issued a public statement reminding firms of their conduct of business obligations under MiFID II. ESMA has issued this public statement after several Member State national competent authorities noticed a significant increase in the number of investment accounts opened by retail clients and a … Continue Reading

EBA guidelines on credit risk mitigation for institutions applying the IRB approach with own estimates

By Jochen Vester (UK) on May 7, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 6 May 2020, the European Banking Authority (EBA) published final guidelines on credit risk mitigation (CRM) in the context of the advanced internal ratings-based (A-IRB) approach. The guidelines clarify the application of the CRM provisions currently laid down in the Capital Requirements Regulation (CRR) applicable to institutions using the A-IRB approach. In particular, they … Continue Reading

FATF publishes report on COVID-19-related Money Laundering and Terrorist Financing

By Lisa Lee Lewis (UK) and Weronika Sowa on May 6, 2020 Posted in France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

Further to its communication published last month, the Financial Action Task Force (FATF) has now published a report into COVID-19-associated money laundering (ML) and terrorist financing (TF) risks and expected policy responses. Key ML/TF risks The report identified the following key ML and TF risks: Increased remote transactions – given the closure of many physical … Continue Reading

EBA updated ITS package for 2021 benchmarking exercise includes IFRS9 template

By Jochen Vester (UK) on May 6, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 4 May 2020, the European Banking Authority (EBA) published an update to its implementing technical standards (ITS) on benchmarking of internal approaches. The updated ITS include all benchmarking portfolios that will be used for the 2021 exercise. To analyse potential sources of variability stemming from the implementation of the new accounting standard (IFRS 9), … Continue Reading

EBA publishes final draft technical standards on specific reporting requirements for market risk

By Jochen Vester (UK) on May 5, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 4 May 2020, the European Banking Authority (EBA) published final draft Implementing Technical Standards (ITS) on specific reporting requirements for market risk. The final ITS introduce the first elements of the Fundamental Review of the Trading Book (FRTB) into the EU prudential framework by means of a reporting requirement. The ITS are expected to … Continue Reading

Joint RTS on amendments to the bilateral margin requirements under EMIR in response to the COVID-19 outbreak

By Hannah Meakin (UK) on May 5, 2020 Posted in Consumer credit, Coronavirus, Coronavirus, Coronavirus, France, Germany, Italy, The Netherlands, United Kingdom

On 4 May 2020, the European Supervisory Authorities (ESAs) published joint draft Regulatory Technical Standards (RTS) to amend the Delegated Regulation on the risk mitigation techniques for non-centrally cleared over-the-counter derivatives (bilateral margining), under the European Markets Infrastructure Regulation, to incorporate a one-year deferral of the two implementation phases of the bilateral margining requirements. On … Continue Reading

EBA publishes final guidelines on the methodology to determine the weighted average maturity of contractual payments due under the tranche of a securitisation transaction

By Jochen Vester (UK) on May 5, 2020 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 4 May 2020, the European Banking Authority (EBA) published its final guidelines on the determination of the weighted average maturity (WAM) of the contractual payments due under the tranche of a securitisation transaction, as laid down in the Capital Requirements Regulation (as amended). The guidelines have been developed in accordance with Article 257(4) of … Continue Reading

FSB consults on guidance on assessing the adequacy of financial resources for CCP resolution

By Hannah Meakin (UK) and Jochen Vester (UK) on May 5, 2020 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 4 May 2020, the Financial Stability Board (FSB) issued a public consultation report on guidance on financial resources to support central counterparty (CCP) resolution and on the treatment of CCP equity in resolution. The draft guidance is intended to assist CCP resolution authorities and is based on a discussion paper that the FSB published … Continue Reading

New client briefing note – The Master-KVG: an attractive option post-AIFMD

By Caroline Herkströter and Martin Krause (DE) on May 5, 2020 Posted in Australia, Collective investment schemes, Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, France, Funds management, Germany, Italy, The Netherlands, United Kingdom, United States

In order to sell their expertise to German institutional and retail investors, non-German asset managers must find ways to operate in the German investment market. This has become much more difficult under the Alternative Investment Fund Managers Directive. An attractive option is to cooperate with a German Master-KVG. We have recently published a new client … Continue Reading

Basel Committee publishes stocktake report on climate-related financial risk initiatives

By Imogen Garner (UK) and Daniel Nevzat (UK) on May 1, 2020 Posted in ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 30 April 2020, the Basel Committee on Banking Supervision (Basel Committee) published a stocktake report on its members’ existing regulatory and supervisory initiatives on climate-related financial risks. The stocktake report notes that: the majority of Basel Committee members consider it appropriate to address climate-related financial risks within their existing regulatory and supervisory framework; an … Continue Reading

ESMA issues no action letter on the new ESG disclosure requirements under the BMR

By Hannah Meakin (UK) and Imogen Garner (UK) on May 1, 2020 Posted in Benchmarks, France, Germany, Italy, The Netherlands, United Kingdom

On 29 April 2020, the European Securities and Markets Authority (ESMA) issued a no action letter intended to promote coordinated action by Member State national competent authorities (NCAs) regarding the new environmental, social and governance (ESG) disclosure requirements for benchmark administrators under the Benchmarks Regulation (BMR). ESMA has also issued an opinion to the European … Continue Reading