The Netherlands (and EU regulation)

Delegated Regulations under EMIR preparing for no-deal Brexit published in OJ

On 13 March 2019, two Commission Delegated Regulations were published in the Official Journal of the EU (OJ): Commission Delegated Regulation (EU) 2019/396 of 19 December 2018 amending Delegated Regulation (EU) 2015/2205, Delegated Regulation (EU) 2016/592 and Delegated Regulation (EU) 2016/1178 supplementing EMIR as regards the date at which the clearing obligation takes effect for … Continue Reading

EEA Joint Committee Decision incorporating MiFIR and MiFID II Directive into EEA Agreement published in OJ

On 12 March 2019, there was published in the Official Journal of the EU (OJ) the European Council Decision 2019/389 concerning the incorporation into Annex IX (Financial Services) of the EEA Agreement of MiFID II and MiFIR. The Decision incorporates Annex IX of the EEA agreement MiFID II and MiFIR. The Decision entered into force … Continue Reading

EEA Joint Committee Decision incorporating MCD into EEA Agreement

On 11 March 2019, Council Decision 2019/380 of the EEA Joint Committee concerning the incorporation of the Mortgage Credit Directive (MCD) into Annex IX (Financial Services) and Annex XIX (Consumer protection) to the EEA Agreement was published in the Official Journal of the EU. The decision provides that Annex IX (Financial Services) to the EEA … Continue Reading

EBA observes a slight increase of high earners in EU banks for 2017

On 11 March 2019, the European Banking Authority (EBA) published its report on high earners for 2017. The data shows that the number of high earners in EU banks receiving a remuneration of more than EUR 1 million slightly increased from 4,597 in 2016 to 4,859 in 2017. The average ratio between the variable and … Continue Reading

EBA publishes clarifications to the first set of issues raised by its Working Group on APIs under PSD2

On 11 March 2019, the European Banking Authority (EBA) published clarifications to the first set of issues that have been raised and discussed by participants of its working group on application programming interfaces (APIs) under the revised Payment Services Directive (PSD2), which met for the first time on 21 February 2019. The clarifications relate to … Continue Reading

ECB consults on draft Decision on oversight of SIPS

On 8 March 2019, the European Central Bank (ECB) published for consultation the draft Decision of the ECB on the procedure and conditions for exercise by a competent authority of certain powers in relation to oversight of systemically important payment systems (SIPS). The decision has been drafted on the basis of Article 21(1) of the … Continue Reading

FSB takeaways from banking workshop on compensation

On 8 March 2019 the Financial Stability Board (FSB) published a document containing the key takeaways of its London workshop on supervisory practices that implement the FSB’s Principles for Sound Compensation Practices and their Implementation Standards. Key takeaways from the workshop included: firms reported significant changes to compensation structures post-financial crisis following the introduction of … Continue Reading

ESAs propose draft RTS to clarify application date of KID to investment funds

On 8 March 2019, the Joint Committee of European Supervisory Authorities (ESAs) published a letter to the European Commission regarding amending the PRIIPs Regulation to  clarify the application of the key information document (KID) to multi-option products. The text of the draft regulatory technical standards (RTS) amending PRIIPs are annexed to the letter. In their … Continue Reading

ECB speech: Supervising banks – principles and priorities

On 7 March 2019, the European Central Bank (ECB) published a speech by the Chair of its Supervisory Board, Andrea Enria. Key points in the speech include: a highly integrated EU market remains a long-term goal. Despite the progress achieved, the European banking sector is still fragmented, as the restructuring process has taken place mainly … Continue Reading

ESMA sets out its approach to several MiFID II / MiFIR and BMR provisions under a no-deal Brexit

On 7 March 2019, the European Securities and Markets Authority (ESMA) published a statement on its approach to the application of some key MiFID II / MiFIR and Benchmark Regulation (BMR) provisions in the event that the UK exits the EU without a deal. Specifically the statement covers: the MiFID II C(6) carve-out. To be … Continue Reading

ESMA’s priorities for the asset management sector

On 6 March 2019, the European Securities and Markets Authority (ESMA) published a speech by its Chair, Steven Maijoor, which discusses priorities for the asset management sector. Mr Maijoor focuses his remarks on how people’s investments in financial products progress over time, and the role of costs. Firstly, Mr Maijoor talks through ESMA’s first annual … Continue Reading

AFM prepares national measures relating to binary options and CFDs

Following an investigation in January 2019, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) announced its intention to introduce two national product intervention measures, following the European Securities and Markets Authority’s (ESMA) EU-wide temporary measures relating to binary options and CFDs introduced last year. The investigation has made it clear that … Continue Reading

EBA guidelines on the estimation of LGD under an economic downturn

On 6 March 2019, the European Banking Authority (EBA) published final guidelines specifying how institutions should quantify the estimation of loss given default (LGD) appropriate for conditions of an economic downturn. In particular, the guidelines focus on requirements for the quantification of the calibration target used for downturn LGD estimation. The guidelines are an addendum … Continue Reading

Basel Committee and IOSCO guidance on implementation of margin requirements for non-centrally cleared derivatives

On 5 March 2019, the Basel Committee on Banking Supervision (Basel Committee) and  the International Organization of Securities Commissions (IOSCO) published a joint press release on the final implementation phases of the margin requirements for non-centrally cleared derivatives. The press release notes that: the Basel Committee and IOSCO realise that market participants may need to … Continue Reading

EBA consults on guidelines for the reporting of funding plans

On 5 March 2019, the European Banking Authority (EBA) issued a consultation on updating its guidelines on harmonised definitions and templates for the reporting of funding plans. The majority of the proposed changes are designed to align the definitions and breakdowns used in the guidelines with those used in FINREP to facilitate the implementation and … Continue Reading

Council of EU adopts Regulation amending Regulation on cross-border payments

On 4 March 2019, the Council of the EU announced that it had adopted a Regulation on aligning the costs of cross-border payments in euros between euro and non-euro countries and increasing the transparency of charges related to currency conversion services across the EU. The reform will align the charges for cross-border payments in euros … Continue Reading

Delegated Regulation on RTS specifying criteria for assessing impact of institution’s failure under BRRD

On 4 March 2019, there was published in the Official Journal of the EU (OJ) Commission Delegated Regulation (EU) 2019/348 of 25 October 2018 supplementing the Bank Recovery and Resolution Directive (BRRD) with regard to regulatory technical standards (RTS) specifying the criteria for assessing the impact of an institution’s failure on financial markets, on other institutions … Continue Reading

ESMA publishes results of annual transparency calculations for equity and equity-like instruments

On 1 March 2019, the European Securities and Markets Authority (ESMA) announced that it had made available the results of the annual transparency calculations for equity and equity-like instruments. The calculations include: the liquidity assessment as per Articles 1 to 5 of Commission Delegated Regulation 2017/567 supplementing MiFIR; the determination of the most relevant market … Continue Reading

ESMA delays publication of annual calculation of the LIS and SSTI thresholds for bonds

On 1 March 2019, the European Securities and Markets Authority (ESMA) announced that it would delay the publication of the annual calculation of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds. The delay is due to the IT systems needing more time than expected to complete the required … Continue Reading

Basel Committee discusses policy and supervisory initiatives and approves implementation reports

On 1 March 2019, the Basel Committee published a press release of its meeting of 27 – 28 February in which the Basel Committee discussed a range of topics including: the implementation status of margin requirements for non-centrally cleared derivatives. The Basel Committee will publish a joint statement in March with IOSCO to clarify certain … Continue Reading

PSD2 update from the Dutch Central Bank

On 28 February 2019, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a PSD2 update on its website. In its PSD2 update, DNB points out that: the revised Payment Services Directive (PSD2) entered into force in the Netherlands on 19 February 2019 and market operators are able to apply for a PSD2 licence with … Continue Reading

EEA Joint Committee Decisions published in OJ

On 28 February 2019, the following were published in the Official Journal of the EU: Decision 21/2019 of the EEA Joint Committee concerning the incorporation of the Interchange Fee Regulation into the EEA Agreement. The date of entry into force is specified as 9 February 2019, provided that all notifications under Article 103(1) of the … Continue Reading

Global Asset Management Quarterly

The latest issue of Global Asset Management Quarterly is now available here. In this issue we cover: UK and European overview Brexit: Financial Services Contracts Regime Brexit: EU Level 3 measures London financial services team client briefing: buy-side focus FCA Asset Management Market Study: FCA tightens the rules further VAT: Apportionment of a single supply … Continue Reading
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