The Netherlands (and EU regulation)

Dutch Minister of Finance answer questions on potential liquidity issues in the financial sector due to COVID-19

On 27 March 2020, the Dutch Minister of Finance (the Minister) sent a letter to the Dutch Parliament containing answers to questions raised by members of the Dutch Parliament on potential liquidity issues in the financial sector as a result of the COVID-19 crisis. The questions in the letter among other things relate to the … Continue Reading

ESMA consults on guidance to address leverage risk under the AIFMD

On 27 March 2020, the European Securities and Markets Authority (ESMA) issued a public consultation on draft guidelines to address leverage risks in the alternative investment fund sector. The consultation has been drafted in response to a recommendation by the European Systemic Risk Board for ESMA to produce guidance on Article 25 of the Alternative … Continue Reading

ESMA confirms application date of equity transparency calculations

On 27 March 2020, the European Securities and Markets Authority (ESMA) announced that it had decided to keep the date of application of the transparency calculations for equity instruments of 1 April 2020 unchanged. ESMA has recently been asked by some stakeholders to postpone the date of application – required by MiFID II / MiFIR … Continue Reading

ESMA guidance on financial reporting deadlines in light of COVID-19

On 27 March 2020, the European Securities and Markets Authority (ESMA) issued a statement on the implication of the COVID-19 pandemic on the deadlines for publishing financial reports which apply to listed issuers under the Transparency Directive (TD). In the statement ESMA notes that issuers maybe prevented from fulfilling their reporting requirements due to COVID-19, … Continue Reading

ESMA consults on post-trade risk reduction services under the EMIR Refit Regulation

On 26 March 2020, the European Securities and Markets Authority (ESMA) launched a public consultation on post trade risk reduction services (PTRR) under the European Market Infrastructure Regulation (EMIR). ESMA is mandated to provide a final report to the European Commission, in cooperation with the European Systemic Risk Board, on whether any trades that directly … Continue Reading

ESMA consults on draft technical standards relating to trade repositories under EMIR Refit Regulation

On 26 March 2020, the European Securities and Markets Authority (ESMA) launched a consultation paper on draft Regulatory and Implementing Technical Standards (RTS and ITS) under Regulation (EU) 2019/834 (EMIR REFIT). The ESMA consultation paper covers the technical standards on reporting requirements, procedures to reconcile and validate the data and access by relevant authorities under … Continue Reading

Delegated Regulation amending RTS on risk mitigation techniques on uncleared OTC derivatives under EMIR in context of STS securitisations published in OJ

On 27 March 2020, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2020/448 amending Commission Delegated Regulation (EU) 2016/2251, which contains regulatory technical standards (RTS) supplementing the European Market Infrastructure Regulation on risk mitigation techniques for over-the-counter derivative contracts, in connection with certain simple, transparent and standardised securitisations for … Continue Reading

Delegated Regulation with RTS specifying criteria for arrangements to mitigate CCP credit risk associated with covered bonds and securitisations under EMIR published in OJ

On 27 March 2020, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) 2020/447 supplementing the European Market Infrastructure Regulation with regard to regulatory technical standards on the specification of criteria for establishing the arrangements to adequately mitigate counterparty credit risk associated with covered bonds and securitisations and amending Delegated … Continue Reading

Basel Committee announces deferral of Basel III implementation

On 27 March 2020, the Basel Committee on Banking Supervision (Basel Committee) announced the following changes to its implementation timeline of the outstanding Basel III standards: implementation date of the Basel III standards finalised in December 2017 has been deferred by one year to 1 January 2023. The accompanying transitional arrangements for the output floor … Continue Reading

Short selling update

As market volatility has increased in the wake of the Covid-19 outbreak, several competent authorities have imposed bans on short sales in certain shares. Approach taken by the FCA To date, the FCA has introduced only temporary prohibitions on short selling in certain listed instruments, on the 13 and 17 March 2020, as set out … Continue Reading

Are you prepared for the new EU prudential regime impacting investment firms?

Read Jochen Vester’s analysis which features in the latest issue of Citibank’s ‘Global Fiduciary and Trustee Services news and views’. To help our financial services clients navigate the implications of the new prudential regime, we have created an IFR transition hub on the NRF Institute. The hub includes our latest views and analysis on regulatory … Continue Reading

ESMA and FCA revise supervisory approach to SFTR reporting obligations

On 26 March 2020, the European Securities and Markets Authority (ESMA) issued a revised version of its earlier statement on coordinated supervisory actions on the application of the Securities Finance Transactions Regulation (SFTR). The revised statement clarifies that SFTs concluded between 13 April 2020 and 13 July 2020 and SFTs subject to backloading under the … Continue Reading

AFM suspends large data requests from financial undertakings until 1 June 2020

On 26 March 2020, the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten, the AFM) published a news item stating that due to the impact of the coronavirus it will be suspending large data requests to financial undertakings until 1 June 2020. The AFM wants to give the financial sector space to fully focus … Continue Reading

DNB postpones reporting periods for insurers due to COVID-19

On 25 March 2020, the Dutch Central Bank (De Nederlandsche Bank, DNB) published a news item on postponing the reporting periods for insurers due to the COVID-19 outbreak. DNB follows the recommendations published on 20 March 2020 by the European Insurance and Occupational Pensions Authority (EIOPA) on supervisory flexibility regarding the deadline of supervisory reporting … Continue Reading

ESMA guidance on accounting implications of COVID-19

On 25 March 2020, the European Securities and Markets Authority (ESMA) issued a public statement designed to promote consistent application of International Financial Reporting Standards (IFRS) in the EU and avoid divergence in practice on the application of IFRS 9 Financial Instruments in the specific context of the COVID-19 pandemic. The statement addresses in particular … Continue Reading

EBA provides clarity to banks and consumers on the application of the prudential framework in light of COVID-19 measures

On 25 March 2020, the European Banking Authority (EBA) issued the following statements related to the COVID-19 pandemic: Statement on the application of the prudential framework regarding default, forbearance and IFRS9 in light of COVID-19 measures. The EBA is supportive of the measures taken and proposed by Member State national governments and EU bodies to … Continue Reading

Dutch Minister of Finance answers questions regarding Act implementing 5MLD

On 24 March 2020, the Dutch Minister of Finance (the Minister) sent the Further Memorandum of Reply (nadere memorie van antwoord) with regard to the Act implementing the Fifth Anti-Money Laundering Directive (5MLD) (Implementatiewet wijziging vierde anti-witwasrichtlijn, the Act) to the Dutch Senate. In the Further Memorandum of Reply the Minister answers a number of … Continue Reading

IOSCO report on global stablecoin initiatives

On 23 March 2020, the International Organization of Securities Commissions (IOSCO) published a report identifying the possible implications of global stablecoin initiatives for securities markets regulators. The report, Global Stablecoin Initiatives, examines the regulatory issues arising from the use of global stablecoins and explores how existing IOSCO Principles and Standards could apply to these arrangements. … Continue Reading

Basel Committee statement on policy and supervisory response

On 20 March 2020, the Basel Committee on Banking Supervision (Basel Committee) reported that it had held a conference call with its members to discuss the impact of the COVID-19 pandemic on the global banking system. The Basel Committee reports that following the strengthening of the Basel III standards the global banking system has significantly … Continue Reading

ESMA extends closing dates for open consultations by four weeks

On 20 March 2020, the European Securities and Markets Authority (ESMA) announced that it was extending the response date for a number of ongoing consultations with a closing date on, or after, 16 March 2020 by four weeks. The consultations include those on the MiFIR report in systematic internalisers and draft technical standards under the … Continue Reading

EIOPA issues recommendations on flexibility for supervisory reporting and public disclosure deadlines

On 23 March 2020, the European Insurance and Occupational Pensions Authority (EIOPA) published recommendations to European National Competent Authorities that aim to offer operational relief and support business continuity to insurance and reinsurance undertakings by extending deadlines for supervisory reporting and public disclosure during the Covid-19 outbreak.  EIOPA states that “undertakings need to concentrate their … Continue Reading

ECB gives banks more flexibility to help fund households and corporations

On 20 March 2020, the European Central Bank (ECB) announced further measures to ensure that directly supervised banks can weather the coronavirus related economic shock. The ECB has introduced supervisory flexibility regarding the treatment of non-performing loans (NPLs), in particular to allow banks to fully benefit from guarantees and moratoriums put in place by public … Continue Reading

ESMA delays application of MiFIR tick size regime to systematic internalisers

On Friday, 20 March 2020, the European Securities and Markets Authority (ESMA) published a Public Statement to ensure coordinated supervisory actions by national competent authorities on the application of the new tick size regime for systematic internalisers (SIs) under Regulation (EU) 600/2014 on markets in financial instruments (MiFIR), as amended by Regulation (EU) 2019/2033 on the … Continue Reading

FSB coordinates financial sector work to buttress the economy in response to COVID-19

On 20 March 2020, the Financial Stability Board (FSB) issued a press release stating that it is actively cooperating with its members to maintain financial stability during market stress related to the COVID-19 pandemic. The FSB explains that the global financial system is today in a better position to withstand shocks as a result of … Continue Reading
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