Latest news of financial regulation
Prospectus Directive: ESMA updates its set of questions and answers
The ESMA updated its set of questions and answers on the Prospectus Directive (PD). The purpose of the document is to promote common supervisory approaches and practices in the application of the PD and its implementing measures. It does this by providing responses to questions posed by the general public and competent authorities in relation to the practical application of the PD.
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Transparency requirements for listed companies: approval of the final compromise text
The General Secretariat of the Council published the final compromise text following a provisional agreement reached by EP negotiators and Irish Presidency on the Commission’s proposal for a directive amending directive 2004/109/EC on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market.
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Next step
EP: Vote in plenary, 12 June 2013
Alternative Investment Fund Managers: ESMA’s consultation paper on AIFMD reporting obligations
The ESMA published a consultation paper on AIFMD reporting obligations. It contains in draft guidelines to national competent authorities (NCAs) for securities markets on reporting obligations for AIFMs under Articles 3 and 24 of the AIFMD. These draft guidelines provide clarification on the information that AIFMs should report to NCAs, the timing of such reporting together with the procedures to be followed when AIFMs move from one reporting obligation to another.
ESMA will consider all comments received by 01 July 2013.
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The consultation paper is accompanied by the publication of the AIFM reporting XSD schema that AIFMs will have to use to report the information under Articles 3 and 24 to NCAs and on which ESMA is also seeking feedback from stakeholders.
The Hong Kong Monetary Authority: implementation of Basel III
Further to our letter of 12 April 2013, I write to inform you that the 28-day period for the negative vetting by the Legislative Council of the Banking (Disclosure) (Amendment) Rules 2013 and the Banking (Capital) (Amendment) Rules 2013 has expired without extension. As a result, the two pieces of subsidiary legislation, which were gazetted on 12 April 2013, will come into operation on 30 June 2013.
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Financial Regulatory Reforms: the FSB hosted the fourth meeting
The FSB hosted the fourth meeting of the FSB Regional Consultative Group for Europe. Members were updated on the status of reforms to OTC derivatives markets to meet the G20 commitments relating to central clearing, exchange and electronic platform trading, reporting to trade repositories, capital requirements, and standardization of OTC derivatives, and discussed the work needed and remaining challenges to finalise implementation of these reforms. The Group also discussed work underway across Europe for structural reform of banking and the potential implications for financial markets.
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European Banking Supervision: texts adopted in plenary have been published
FTT: U.K. lobby groups wrote a letter to EU leaders
The Confederation of British Industry, the British Bankers' Association and UK manufacturers organisation EEF wrote in a joint letter to EU leaders that a proposed financial transaction tax would make the european bloc less competitive and therefore risk derailing economic recovery.
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News & articles
U.K. lobby groups say EU transaction tax will risk recovery (Bloomberg)
The EBA consults on draft guidelines on capital measures for foreign currency lending
The EBA launched a consultation on draft Guidelines on capital measures for foreign currency lending (FX lending) aimed at providing guidance to national competent authorities on how to deal with the specific risk of FX lending to unhedged borrowers as part of the Supervisory Review and Evaluation Process (SREP). The consultation runs until 23 August 2013.
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The EBA consults on draft technical standards on liquidity
The EBA launched two consultations on (i) draft Implementing Technical Standards (ITS) related to supervisory reporting of additional monitoring metrics for liquidity and (ii) draft Regulatory Technical Standards (RTS) on additional collateral outflows.
Both consultations run until 14 August 2013.
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Consultation paper on draft ITS on additional liquidity monitoring metrics
Consultation paper on draft RTS on additional collateral outflows
The EBA launched a consultation on technical standards for own funds – Part III
The EBA launched a consultation on Draft Regulatory Technical Standards (RTS) on own funds (Part III) related to criteria to define broad market indices, the calculation of minority interest and the deduction of indirect and synthetic holdings.
The consultation runs until 18 July 2013.
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The EBA consults on draft technical standards on the definition of market and on option risks under the standardised approach for market risk
The EBA launched two consultation papers on draft Regulatory Technical Standards (RTS) to define (i) the term market for the purpose of calculating the ‘general’ component of market risk for equities under the standardised rules; and (ii) a range of methods to reflect in the own funds requirements non-delta risks for options and warrants.
The consultation of both draft RTS runs until 31 August 2013.
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The EBA consults on draft technical standards on securitisation retention rules
The EBA launched a consultation paper on (i) draft Regulatory Technical Standards (RTS) to specify the securitisation retention rules and related requirements and (ii) draft Implementing Technical Standards (ITS) to clarify the measures to be taken in the case of non-compliance with such obligations. Both the RTS and the ITS ultimately aim at re-establishing securitisation on a sustainable basis mainly by encouraging market participants to develop a more transparent and uniform securitisation market and by enabling more convergence of supervisory practices across Europe with regards to the securitisation retention rules and related requirements.
The consultation runs until 22 August 2013.
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Parliament backs EU banking supervisory system plans
Draft laws setting up a single EU bank supervisory system were approved in a plenary vote. The European Central Bank will supervise the Eurozone's largest banks directly and have a say in supervising other banks. However, Parliament will give its final seal of approval only later, to allow time for parallel talks with the ECB on detailed accountability arrangements.
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MiFID Review: new compromise texts published
The Irish EU Council Presidency published new compromise texts for the proposals for a directive on markets in financial instruments and a regulation on markets in financial instruments and amending regulation (EMIR) on OTC derivatives, central counterparties and trade repositories.
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G20 high-level principles of financial consumer protection: OECD launches an informal consultation
The G20/Organisation for Economic Co-operation and Development (OECD) Task Force on Financial Consumer Protection published an informal consultation report on effective approaches to support the implementation of the G20 High-level Principles.
The effective approaches report follows three priority principles:
- Disclosure and transparency;
- Responsible business conduct of financial services providers and their authorised agents;
- Complaints handling and redress.
The consultation closes on 30 May 2013.
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Next step
Based on comments received, a further draft will be discussed by the Task Force at its next meeting in June 2013. An updated draft will then be submitted to G20 Finance Ministers and Central Bank Governors at their July 2013 meeting for transmission to the G20 Leaders Summit in Saint Petersburg on 5-6 September 2013.
Bank recovery and resolution: taxpayers and savers last in line to save banks
The European Parliament’s ECON Committee approved draft rules on saving struggling banks. The text rules out using deposits below €100,000 and says that even deposits above €100,000 should be the last to be called in. The committee voted against using deposit guarantee funds for resolution actions and also set out strict conditions for using taxpayer's money.
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Next step
The Council must now adopt its position, after which MEPs and the Council Presidency will begin negotiations to hammer out a deal.
Meanwhile, the Commission is expected to table a further proposal supplementing this system with an EU recovery and resolution authority and fund.
News & articles
EU draft bank rescue law would not shield big deposits (Reuters)
The EBA launches a consultation on draft Technical Standards for the definition of material risk takers for remuneration purposes
The EBA launched a consultation paper on draft Regulatory Technical Standards on criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile. These material risk takers will be subject to specific provisions of the Capital Requirements Directive related, in particular, to the payment of variable remuneration. The EBA proposes an identification process based on a combination of standard qualitative and quantitative criteria and internal criteria developed by the institutions.
The consultation runs until 21 August.
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News & articles
The EBA launches two consultations on draft Regulatory and Implementing Technical Standards (RTS and ITS) on Passport Notifications
The EBA launched two consultations on draft Regulatory and Implementing Technical Standards (RTS and ITS) on passport notifications aimed at specifying the information to be notified to the competent authorities as well as to develop standard forms, templates and procedures underlying the submission of passport notifications.
Both consultations run until 21 August 2013.
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Recovery plans: the EBA launches two consultations
The EBA launched two consultations on Draft Regulatory Technical Standard (RTS) related to the:
assessment process of recovery plans by competent supervisors: these draft RTS outline the matters that competent supervisors must assess when reviewing individual and group recovery plans developed by financial institutions;
range of scenarios to be used in those plans: these draft RTS intend to specify the range of scenarios to be designed by financial institutions when testing their recovery plans.
The consultations run until 20 August 2013.
Institution-specific prudential requirements: the EBA launches a consultation
The EBA launched a consultation on Draft Implementing Technical Standards (ITS) on institution-specific prudential requirements with a view to facilitating the reaching of effective joint decisions between the consolidating supervisor and the competent authorities responsible for the supervision of subsidiaries in a Member State.
The consultation runs until 16 August 2013.
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Annex 1 (SREP report template and common scores)
Annex 2 (Liquidity SREP report template)
- Last Update: Friday 24 May 2013, 16:34.
