Italy (and EU regulation)

ECB publishes results of the 2022 supervisory assessment of institutions’ climate-related and environmental risks disclosures

On 21 April 2023, the European Central Bank (ECB) published a report containing the results of its third review of the disclosure of climate-related and environmental (C&E) risks among significant institutions (SIs) and a selected number of less significant institutions (LSIs). The review was conducted by the ECB and Member State competent authorities and covered … Continue Reading

Commission Delegated Regulation on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange risk or commodity risk and the treatment for those positions for the purposes of the regulatory back-testing requirements and the profit and loss attribution requirement under the alternative internal model approach

By Jochen Vester (UK) on April 21, 2023 Posted in France, Germany, Italy, Regulation and compliance, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, The Netherlands, United Kingdom

On 21 April 2023, the European Commission published Commission Delegated Regulation (EU) of 20 April 2023 supplementing the Capital Requirements Regulation on the calculation of the own funds requirements for market risk for non-trading book positions subject to foreign exchange risk or commodity risk and the treatment for those positions for the purposes of the … Continue Reading

European Commission publishes Commission Delegated Regulation specifying the requirements for the internal methodology or external sources used under the internal default risk model for estimating default probabilities and losses given default

On 21 April 2023, the European Commission published Commission Delegated Regulation (EU) of 20 April 2023, supplementing the Capital Requirements Regulation with regard to regulatory technical standards (RTS) specifying the requirements for the internal methodology or external sources used under the internal draft risk model for estimating default probabilities and losses given default. The final … Continue Reading

FSB report on climate-related financial risk factors in compensation frameworks

By Haney Saadah and Simon Lovegrove (UK) on April 21, 2023 Posted in Africa, Asia, Australia, Canada, Dubai and Saudi, ESG, ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Arab Emirates, United Kingdom, United States

On 20 April 2023, the Financial Stability Board (FSB) published a report on climate-related financial risk factors in compensation frameworks. The impact of climate change on the financial system is becoming a strategic priority for financial institutions and regulators. In turn, financial institutions are increasingly adopting climate-related metrics in compensation frameworks and many jurisdictions have … Continue Reading

Joint EBA and ESMA Guidelines on common procedures and methodologies for the SREP – translations published

By Simon Lovegrove (UK) on April 19, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 19 April 2023, there was published the official translations of the joint European Banking Authority and European Securities and Markets Authority guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP). The guidelines apply from 19 June 2023. They are immediately applicable to the SREP exercises initiated in 2023.… Continue Reading

EBA consults on guidance to assess knowledge and experience of the management or administrative organ of a credit servicer

By Simon Lovegrove (UK) on April 19, 2023 Posted in France, Germany, Italy, Regulation and compliance, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, The Netherlands, United Kingdom

On 19 April 2023, the European Banking Authority issued a consultation on draft guidelines on the assessment of adequate knowledge and experience of the management or administrative organ of credit servicers, as a whole, under the Non-Performing Loans Directive. According to Article 5(1) (c) of the Non-Performing Loans Directive, the credit servicer’s management or administrative … Continue Reading

Commission Delegated Regulation on amending the RTS in Delegated Regulation 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement

By Jochen Vester (UK) on April 19, 2023 Posted in Clearing and settlement, Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and Settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 19 April 2023, the European Commission published Commission Delegated Regulation (EU) of 19.4.2023 on amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/1229 as regards the penalty mechanism for settlement fails relating to cleared transactions submitted by CCPs for settlement. The Commission Delegated Regulation removes the separate process established in Article … Continue Reading

European Commission report on the single supervisory mechanism

By Simon Lovegrove (UK) on April 19, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 18 April 2023, the European Commission (Commission) published a report to the European Parliament and the Council on the single supervisory mechanism (SSM) established pursuant to Regulation (EU) No 1024/2013 (SSM Regulation). The SSM was established in November 2014 as a key first step towards EU Banking Union to ensure high-quality supervision of credit … Continue Reading

MEPs to open talks with the Council of the EU on reforming the EU’s AML rules

By Simon Lovegrove (UK) on April 19, 2023 Posted in Anti-Money Laundering, Anti-Money Laundering, France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 19 April 2023, the European Parliament announced that, MEPs will open talks with the Council of the EU on reforming the EU’s anti-money laundering rules to help authorities crack down on the illicit flow on money and assets. The European Parliament has approved its negotiating mandates for proposals reforming the EU’s policies on anti-money … Continue Reading

ESMA publishes 2022 report on quality and use of transaction data

By Hannah Meakin (UK) on April 19, 2023 Posted in Fintech, Fintech, Fintech, Fintech, Fintech, France, Germany, Italy, The Netherlands, United Kingdom

On 19 April 2023, the European Securities and Markets Authority (ESMA) published the 2022 report on quality and use of transaction data. The report highlights the increased use of transaction data by EU financial regulatory authorities in their day-to-day supervision and identifies significant quality improvements following a new approach to data monitoring. In addition, it … Continue Reading

Published in the OJ: Commission Delegated Regulation (EU) 2023/827

By Simon Lovegrove (UK) on April 19, 2023 Posted in Capital adequacy, Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 19 April 2023, there was published in the Official Journal of the European Union (OJ), Commission Delegated Regulation (EU) 2023/827 of 11 October 2022 laying down regulatory technical standards amending Delegated Regulation (EU) No 241/2014 as regards the prior permission to reduce own funds and the requirements related to eligible liabilities instruments. The Delegated … Continue Reading

EBA consults on draft guidelines on the resubmission of historical data under the EBA reporting framework

By Simon Lovegrove (UK) on April 18, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 18 April 2023, the European Banking Authority (EBA) published a consultation paper on draft guidelines on the resubmission of historical data under the EBA reporting framework. The proposed guidelines set out a common approach to the resubmission by financial institutions of historical data to Member State competent and resolution authorities in case there are … Continue Reading

ECB publishes assessment of the Supervisory Review and Evaluation Process

By Simon Lovegrove (UK) on April 18, 2023 Posted in Capital adequacy, Capital Adequacy, Capital adequacy, Capital adequacy, Capital Adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 17 April 2023, the European Central Bank (ECB) published a report containing the results of an external assessment of the Supervisory Review and Evaluation Process (SREP), which includes recommendations to make the SREP more efficient and effective. The report of the assessment was drafted by a group of independent experts. The report: The ECB’s … Continue Reading

Wolfsburg Group publishes updated ABC programme guidance

On 17 April 2023, the Wolfsburg Group published an updated version of its anti-bribery and corruption compliance programme guidance. The publication is designed to provide guidance to the financial services industry on how to develop, implement and maintain an effective anti-bribery and corruption (ABC) compliance programme, and should be read in conjunction with applicable legislation, … Continue Reading

ESMA publishes letter from the European Commission on the Questions and Answers pursuant to article 16b(5) of the founding Regulations of the ESAs

On 14 April 2023, the European Securities and Markets Authority (ESMA) published a letter from the European Commission (the Commission) on the Questions and Answers (Q&As) pursuant to article 16b(5) of the founding Regulations of the European Supervisory Authorities (ESAs). The aim of these Q&As is to help financial market participants apply the Regulation, especially … Continue Reading

Clearing obligation for pension scheme arrangements – differing EU and UK approaches to the 18 June 2023 deadline

Introduction UK and EU pension funds are currently exempt from the clearing obligation under the European Market Infrastructure Regulation (EMIR) as a result of the transitional provisions in Article 89 EMIR, which provide that the clearing obligation does not apply to over-the-counter (OTC) derivative contracts that are objectively measurable as reducing investment risks directly relating … Continue Reading

New Webinar series – Artificial intelligence and business liability

In two recent webinars, we explore some of the key situations in which AI liability can arise and consider what businesses (including financial institutions) can do to manage these risks. Regulatory liability – In this session, we explore the regulatory framework that governs the use of AI through the lens of the proposed EU AI … Continue Reading

FSB publishes final report on recommendations to achieve greater convergence in cyber incident reporting

On 13 April 2023, the Financial Stability Board (FSB) published a Final Report on recommendations to achieve greater convergence in cyber incident reporting. The report notes that cyber incidents are rapidly growing in frequency and sophistication. At the same time, the cyber threat landscape is expanding amid digital transformation, increased dependencies on third-party service providers … Continue Reading

FSB publishes letter to G20 on recent banking turmoil and cyber threats

On 12 April 2023, the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors, ahead of their meeting on 12-13 April. The letter discusses the recent turmoil in the banking sector and touches on its recommendations to address increasing cyber threats. Mr Knot notes … Continue Reading

ESAs consult on proposed amendments to extend and simplify sustainability disclosures under SFDR

By Simon Lovegrove (UK) and Anita Edwards on April 12, 2023 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 12 April 2023, the three European Supervisory Authorities (the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA)) published a joint Consultation Paper setting out proposed amendments to the disclosure framework under Regulation (EU) 2019/2088 (the Sustainable Finance Disclosure Regulation or SFDR). The … Continue Reading

Commission call for feedback on a new set of EU Taxonomy criteria

By Haney Saadah and Daniel Nevzat (UK) on April 6, 2023 Posted in ESG, ESG, ESG, ESG, ESG, France, Germany, Italy, The Netherlands, United Kingdom

On 5 April 2023, the European Commission issued a call for feedback on a proposed Delegated Regulation containing a new set of EU Taxonomy criteria for economic activities making a substantial contribution to one or more of the following environmental objectives: sustainable use and protection of water and marine resources, transition to a circular economy, … Continue Reading

ICMA publishes updated version of its SFTR reporting recommendations

By Jochen Vester (UK) on April 6, 2023 Posted in Banking, Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 6 April 2023, the International Capital Market Association (ICMA) published the ninth update to its recommendations for reporting under SFTR. These ICMA recommendations for reporting under the EU Securities Financing Transactions Regulation (SFTR) have been created to support ICMA members in their efforts to implement and apply the complex SFTR reporting requirements. They offer … Continue Reading

ESMA guidelines on certain aspects of the MiFID II remuneration requirements

By Simon Lovegrove (UK) and Matthew Gregory (UK) on April 4, 2023 Posted in France, Germany, Italy, Regulation and compliance, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and Compliance, The Netherlands, United Kingdom

On 3 April 2023, the European Securities and Markets Authority (ESMA) published the official translations, including the English language version, of the guidelines on certain aspects of the MiFID II remuneration requirements. These guidelines apply in relation to the requirements set out in Article 27 of Delegated Regulation 2017/565 of 25 April 2016 (MiFID II … Continue Reading

ESMA guidelines on certain aspects of the MiFID II suitability requirements

On 3 April 2023, the European Securities and Markets Authority (ESMA) published the official translations, including the English language version, of the guidelines on certain aspects of the MiFID II suitability requirements. These guidelines apply in relation to Article 25(2) of MiFID II and Articles 54 and 55 of Delegated Regulation 2017/565 of 25 April … Continue Reading