The Netherlands (and EU regulation)

BIS publishes working paper on embedded supervision in blockchain finance

On 16 September 2019 the Bank for International Settlements (BIS) published a working paper by its Monetary and Economic Department on Embedded supervision: how to build regulation into blockchain finance. The working paper suggests that asset tokenisation and the use of the underlying distributed ledger technology (DLT) in finance provides new avenues for the supervision … Continue Reading

HM Treasury letter concerning proposed Regulation on recovery and resolution of CCPs

By Hannah Meakin (UK) on September 18, 2019 Posted in Clearing and Settlement, Clearing and settlement, Clearing and settlement, Clearing and settlement, France, Germany, Italy, The Netherlands, United Kingdom

On 16 September 2019, HM Treasury published a letter from John Glen, Economic Secretary to the Treasury to Sir William Cash, House of Commons European Committee Chair, providing an update on the current status of the proposal for an EU Regulation on the recovery and resolution of central counterparties (CCPs). Mr Glen states that the … Continue Reading

AFM anticipates legislative proposal on remuneration rules for proprietary traders and continues tolerance policy in 2020

By Nikolai de Koning (NL) and Floortje Nagelkerke (NL) on September 17, 2019 Posted in DNB/AFM, Investment firms, Regulation and compliance, The Netherlands

The Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) currently allows certain groups of proprietary traders (persons dealing on own account) not to comply with the 20% bonus cap. In 2017, propriety traders faced a situation where they would be subject to the bonus cap with immediate effect, while they were first … Continue Reading

Commission FAQs on PSD2 and SCA

By Albert Weatherill (UK) on September 16, 2019 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 13 September 2019, the European Commission (Commission) published a set of FAQs on the revised Payment Services Directive (PSD2). The FAQs provide an overview of PSD2 and how it benefits consumers. They also detail the requirements of Strong Customer Authentication (SCA), which came into force on 14 September 2019, and set out the exemptions … Continue Reading

EEA Joint Committee Decision incorporating Benchmarks Regulation into EEA Agreement

By Simon Lovegrove (UK) on September 13, 2019 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 12 September 2019, there was published in the Official Journal of the EU, Decision of the EEA Joint Committee No 190/2019 of 10 July 2019 amending Annex IX (Financial services) and Annex XIX (Consumer protection) to the EEA Agreement. The decision states that Annexes IX and XIX to the EEA Agreement should be amended … Continue Reading

Amendment to the maximum amount per SCT Inst transaction to 100,000 euros

By Albert Weatherill (UK) on September 13, 2019 Posted in Banking, Banking, Banking, Banking, Germany, Italy, The Netherlands, United Kingdom

On 10 September 2019, the European Payments Council (EPC) decided to amend the maximum amount per Single Euro Payments Area (SEPA) Instant Credit Transfer (SCT Inst) transaction to 100,000 euros, effective as of 1 July 2020. For the time being, the maximum amount an originator can transfer via a single SCT Inst transaction is set … Continue Reading

Supervising international banks: Revision of the Branch Return

By Jochen Vester (UK) on September 13, 2019 Posted in Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 12 September 2019, the PRA published Policy Statement 17/19: Supervising international banks: Revision of the Branch Return (PS17/19). PS17/19 is relevant to all existing and prospective PRA-supervised branches of deposit takers and PRA-designated investment firms which are not UK headquartered firms. In PS17/19 the PRA provides feedback to responses to Consultation Paper 8/19: Supervising … Continue Reading

IOSCO consults on UTC clock synchronisation of timestamped events

By Simon Lovegrove (UK) on September 12, 2019 Posted in Financial Institutions, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 11 September 2019, the International Organization of Securities Commissions (IOSCO) published a consultation paper (CR04/19) recommending that trading venues and their participants synchronise the business clocks used to record the time and date of a reportable event with co-ordinated universal time (UTC). The proposal follows a recommendation from an earlier IOSCO report published in … Continue Reading

New leadership of the European Commission announced: Valdis Dombrovskis to keep financial services portfolio

By Anna Carrier (BE) on September 10, 2019 Posted in France, General, General, General, Germany, Italy, The Netherlands, United Kingdom

On 10 September 2019 the President-elect of the European Commission, Ursula von der Leyen, announced the list of Commissioner-designates and the allocation of their respective portfolios. Under a new structure of the College of Commissioners with its eight Vice-Presidents, the responsibility for DG Financial Stability, Financial Services and Capital Markets Union (DG FISMA) will remain … Continue Reading

EBA to clarify prudential treatment applicable to own funds instruments at the end 2021

By Jochen Vester (UK) and Simon Lovegrove (UK) on September 10, 2019 Posted in Capital Adequacy, Capital adequacy, Capital adequacy, Capital adequacy, France, Germany, Italy, The Netherlands, United Kingdom

On 9 September 2019, the European Banking Authority (EBA) announced that it intends to provide clarity on the appropriate treatment of legacy instruments at the end of 2021. When the Capital Requirements Regulation (CRR) entered into force, grandfathering provisions were introduced to ensure that institutions had sufficient time to meet the requirements set out by … Continue Reading

EBA speech on AML and CTF powers

By John Coley (UK) and Lisa Lee Lewis (UK) on September 6, 2019 Posted in Anti-Money Laundering, France, Germany, Italy, Money laundering, Money laundering, Money laundering, The Netherlands, United Kingdom

On 5 September 2019, the European Banking Authority (EBA) published a speech given by Jose Manuel Campa, EBA Chair, on the EBA’s current and future anti-money laundering (AML) and counter terrorist financing (CTF) powers. Mr Campa discusses the limitation of the EBA’s existing powers in relation to enforcing its standards and guidelines and to promote … Continue Reading

ESMA publishes stress simulation framework for investment funds

By Imogen Garner (UK) and Iona Wright (UK) on September 6, 2019 Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 2 September 2019, the European Securities and Markets Authority (ESMA) published a final report on guidelines on liquidity stress testing in UCITS and AIFs (the Guidelines). In April 2018, the European Systemic Risk Board (ESRB) published a set of recommendations to address liquidity and leverage risk in investment funds. One of the ESRB’s recommendations … Continue Reading

Exemption from licence obligation for Singapore and US market operators

By Floortje Nagelkerke (NL) on September 6, 2019 Posted in Investment firms, Regulation and compliance, The Netherlands

On 4 September 2019, the Dutch Minister of Finance published a regulation adding a new provision to the Exemption Regulation AFS (Vrijstellingsregeling Wft) containing an exemption from the Dutch licence obligation for Singapore and US market operators that operate trading venues (organised trading facilities and multilateral trading facilities) in the Netherlands (the Regulation). The Regulation stipulates … Continue Reading

PSD2: German regulator postpones strong costumer authentication requirements for online credit card payments

By Michael Born (DE) and Alisa Kuznetsova on September 6, 2019 Posted in Banking, Banking, Banking, Banking, Germany, Italy, Regulation and compliance, Regulation and compliance, Regulation and Compliance, Regulation and compliance, The Netherlands, United Kingdom

The German Federal Financial Supervisory Authority (BaFin) will allow payment service providers domiciled in Germany to execute credit card payments online without strong customer authentication (SCA) as a temporary measure after 14 September 2019. Pursuant to a press release published on 21 August 2019, BaFin will not object to such transactions for the time being in order … Continue Reading

ECB Chair introductory statement to European Parliament’s Economic and Monetary Affairs Committee

By Simon Lovegrove (UK) on September 5, 2019 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 4 September 2019, the European Central Bank (ECB) published the introductory statement given by its chair, Andrea Enria, at the first ordinary hearing in 2019 at the European Parliament’s Economic and Monetary Affairs Committee. Among other things, the statement lists the ECB’s work and priorities for the near future. In particular, the ECB will: … Continue Reading

EBA adds Securitisation Regulation to its online Interactive Single Rulebook and Q&A tools

By Jochen Vester (UK) on September 4, 2019 Posted in Banking, Banking, Banking, Banking, France, Germany, Italy, The Netherlands, United Kingdom

On 2 September 2019, the European Banking Authority (EBA) updated its Interactive Single Rulebook and Q&A tool on the “simple, transparent and standardised” (STS) Securitisation Regulation. The update allows users to review all the EBA’s final technical standards and guidelines associated with the Securitisation Regulation by navigating through the legislation on an article by article … Continue Reading

Crypto operators urged to prepare for DNB supervision as of January 2020

By Nikolai de Koning (NL) on September 3, 2019 Posted in Fintech, Money laundering, Regulation and compliance, The Netherlands

On 3 September 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) issued a press release announcing that firms that offer services for the exchange between virtual money (cryptos) and regular money, and crypto wallet providers are expected to become subject to DNB’s integrity supervision as of 10 January 2020 as a result of the … Continue Reading

ESMA final guidance on liquidity stress test guidance for investment funds

By Imogen Garner (UK) on September 3, 2019 Posted in Collective Investment Schemes, Collective investment schemes, Collective investment schemes, Collective investment schemes, France, Germany, Italy, The Netherlands, United Kingdom

On 2 September 2019, the European Securities and Markets Authority (ESMA) published its final guidance regarding liquidity stress testing of investment funds – applicable to Alternative Investment Funds (AIFs) and Undertakings for the Collective Investments in Transferable Securities (UCITS). The report follows an earlier consultation in February 2019 (see previous blog post here) on draft … Continue Reading

EPC update on Brexit and SEPA transactions involving UK-based participants

By Simon Lovegrove (UK) on September 3, 2019 Posted in Brexit, France, Germany, Italy, The Netherlands, United Kingdom

On 2 September 2019, the European Payments Council (EPC) published recommendations for all participants in Single Euro Payments Area (SEPA) schemes in the event of a no-deal Brexit on 31 October 2019. The guidance follows an earlier EPC decision in March 2019 that approved an application from UK Finance for the continued participation of UK … Continue Reading

HM Treasury letter addressing concerns on proposed crowdfunding legislation

By Matthew Gregory (UK) on September 2, 2019 Posted in France, Germany, Italy, Regulation and Compliance, Regulation and compliance, Regulation and compliance, Regulation and compliance, The Netherlands, United Kingdom

On 30 August 2019, HM Treasury published a letter (dated 27 August 2019) from John Glen, Economic Secretary to the Treasury to Lord Boswell of Aynho, House of Lords EU Committee Chair, addressing concerns regarding uncertainty around the content of the European Commission’s (the Commission) proposed Regulation on European crowdfunding service providers for business and … Continue Reading

Commission update on work relating to cryptoassets

By Hannah Meakin (UK) and Albert Weatherill (UK) on August 30, 2019 Posted in Fintech, Fintech, Fintech, Fintech, France, Germany, Italy, The Netherlands, United Kingdom

On 28 August 2019, the European Commission (the Commission) published an answer given by Valdis Dombrovskis (Vice-President European Commission, Financial Stability, Financial Services and Capital Markets Union) concerning cryptoassets. In its response, the Commission refers to an announcement made in its 2018 Action Plan on FinTech (see previous blog post here) that it is looking … Continue Reading

DNB publishes good practices for non-life insurers on the control of authorized agents

By Floortje Nagelkerke (NL) on August 30, 2019 Posted in DNB/AFM, Insurance, The Netherlands

On 28 August 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) published good practices for non-life insurers (schadeverzekeraars) in relation to the adequate risk control of authorised agents (gevolmachtigd agenten). The good practices set out the regulatory requirements for the use of authorized agents and how DNB expects that these requirements are complied with. … Continue Reading

Several updates from DNB on PSD2

By Nikolai de Koning (NL) and Anka Langedijk (NL) on August 29, 2019 Posted in DNB/AFM, Payment services, The Netherlands

On 28 August 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) published several updates in relation to PSD2. Exemptions from contingency mechanism: sixteen account servicing payment service providers (ASPSP) have applied with DNB for an exemption from the contingency mechanism requirement under Article 33(6) of Delegated Regulation (EU) 2018/389. DNB is currently considering these … Continue Reading

DNB publishes Q&A on the possible qualification of subscriptions as non-life insurance

By Nikolai de Koning (NL) and Anka Langedijk (NL) on August 29, 2019 Posted in DNB/AFM, Insurance, The Netherlands

On 28 August 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a final Q&A which provides clarification on whether subscriptions (abonnementen) offered to consumers may be considered as a non-life insurance (schadeverzekering) product DNB indicates that subscriptions exist in various sectors in multiple variations and that the specific content and context of the … Continue Reading