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Bank Capital Requirements: EBA publishes final draft technical standards on own funds requirements for investment firms

Created
Wednesday, 29 January 2014

                                                                29 Jan 2014

 

The EBA published its final draft Regulatory Technical Standards (RTS) on own funds requirements for investment firms based on fixed overheads. For the calculation of the fixed overheads, these final draft RTS use the so-called ‘subtractive' approach whereby variable cost items are deducted from the total expenses as calculated according to the applicable accounting framework. They also introduce a special treatment of tied agents, since a tied agent exposes an investment firm to the same risk it is exposed to when it carries out business on its own.

Related documents

Press release

Final draft RTS on own funds requirements for investment firms

Next step

The final draft standards have been sent to the EC for their adoption as EU Regulations that will be directly applicable throughout the EU.

Payment system: The EP’s ECON Committee publishes amendments on PSD II and on the proposed regulation on interchange fees for card-based payment transactions

Created
Tuesday, 28 January 2014

                                                                20 Jan 2014

 

The EP’s ECON Committee published new set of amendments on the proposed directive on payment services in the internal market. This proposal incorporates and repeals Directive 2007/64/EC (Payment Services Directive – PSD) which sets the basis for a harmonised legal framework for the creation of an integrated payments market. It aims to update and complement the current framework on payments services by providing for rules that enhance transparency, innovation and security in the field of retail payments.

Related documents

Amendments 118-374

Amendments 375-591

Next step

EP: Vote in ECON Committee, 20 February

 

The EP’s ECON Committee published amendments on the proposed regulation on interchange fees for card-based payment transactions. This regulation, combined with the above mentioned proposed revised Payment Services Directive (PSD II), proposes to create common rules for interchange fees in the EU by introducing maximum fee levels for transactions with payment cards that are widely used by consumers and thereby difficult to refuse or surcharge by retailers.

Related documents

Amendments 29-318

Next step

EP: Vote in ECON Committee, 20 February

Mortgage credits: Council adopts directive

Created
Tuesday, 28 January 2014

                                                                28 Jan 2014

 

The Council adopted, by qualified majority, the directive aimed at creating a single market for mortgage credits in the EU, with a high degree of consumer protection. EU rules on misleading advertising and on unfair terms in consumer contracts do not take account of the specificities of mortgage credit. Pre-contractual information for mortgage loans is the subject of a voluntary code of conduct, though its implementation has been inconsistent. Mortgage and renovation loans in excess of € 75.000 are outside the scope of EU rules on consumer credit, and there are currently no EU requirements for non-credit institutions providing credit or for credit intermediaries.

Related document

Council press release

Next step

Publication of the final act

Financial markets: ESMA publishes final technical advice on procedural rules to impose fines and periodic penalty payments to TRs

Created
Tuesday, 28 January 2014

                                                                24 Jan 2014

 

ESMA published final technical advice to the Commission on the future Regulation on the procedural rules to impose fines and periodic penalty payments to TRs which will be adopted by the Commission in the form of a delegated act.

Related documents

Press release

Final report

Supervisory colleges: BCBS publishes a consultative document on revised good practice principles

Created
Thursday, 23 January 2014

                                                                23 Jan 2014

 

The BCBS issued a consultative document on revised good practice principles for supervisory colleges. This consultative document updates the principles following a review of practical challenges in their implementation and possible areas of additional best practices.

Comments should be uploaded by 18 April 2014.

Related documents

Press release

Revised good practice principles for supervisory colleges

 

Banks' capital planning practices: BCBS publishes fundamental elements

Created
Thursday, 23 January 2014

                                                                23 Jan 2014

 

The BCBS issues a paper which sets out sound practices that foster overall improvement in banks' capital planning practices.

An important lesson from the financial crisis points to the need for banks to improve and strengthen their capital planning processes. Some of the observed weaknesses reflected processes that were not sufficiently comprehensive, appropriately forward-looking or adequately formalised. As a consequence, some banks underestimated the risks inherent in their business strategies and, in turn, misjudged capital needs.

Related documents

Press release

A sound capital planning process: fundamental elements

FCA publishes CRD IV (Reporting Guidance) Instrument 2014

Created
Thursday, 23 January 2014

                                                                20 Jan 2014

 

The Financial Conduct Authority published CRD IV (reporting guidance) Instrument 2014 which contains amendments to the Supervision manual.

This instrument came into force on 20 January 2014.

Related document

Reporting guidance

Corrigendum on Transparency Directive has been published on the Official Journal

Created
Thursday, 23 January 2014

                                                                18 Jan 2014

 

Corrigendum to directive on updated transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market has been published in the Official Journal of the EU. It changes the date by which the EC shall report on the operation of the Directive to the EP and the EU Council from 27 November 2015 to 27 November 2018.

Related document

Corrigendum

Single Euro Payments Area: Council confirms deal with the EP on the proposed regulation

Created
Thursday, 23 January 2014

                                                                22 Jan 2014

 

The Council confirmed deal with the European Parliament on a proposed regulation that postpones to 1 August 2014 the end-date in the euro area for the migration of domestic and intra-

European credit transfers and direct debits in euros towards SEPA credit transfers and SEPA direct debits.

Related documents

Council press release

Council final compromise text

EP report tabled for plenary

Next step

EP: Vote in plenary, February 2014

European System of Financial Supervision: The EP’s ECON Committee publishes amendments to motion for resolution

Created
Wednesday, 22 January 2014

                                                                15 Jan 2014

 

The EP’s ECON Committee published amendments to motion for resolution on the review of the European System of Financial Supervision.

Related document

Amendments 1 – 334

Next step

EP: Vote in ECON Committee, 27 January 2014

ESMA publishes un updated list of applicant central counterparties (CCPs) establishes in non-EEA countries

Created
Wednesday, 22 January 2014

                                                                20 Jan 2014

 

ESMA published un updated list of applicant central counterparties (CCPs) established in non-EEA countries.

Related document

List

 

Prospectus Directive: ESMA publishes updated Q&A

Created
Friday, 17 January 2014

                                                                15 Jan 2014

 

The ESMA published updated Q&A on prospectus related issues by including two new questions and answers.

The newly added items concern the format of the individual summary for several securities and the applicable registration document schedule where a listed issuer proposes to issue convertible or exchangeable debt securities where the underlying securities are the issuer’s shares.

Related document

Questions and Answers

 

Single resolution mechanism: the Conference of Presidents, the leaders of the political groups, President Schulz and the EP negotiating team discuss on state of play

Created
Friday, 17 January 2014

                                                                16 Jan 2014

 

The Conference of Presidents (CoP), the leaders of the political groups, President Schulz and the EP negotiating team on the Single Resolution Mechanism (SRM) held an intensive discussion on the state of play of the negotiations. The current state of play in the negotiations is not promising, given the wide differences between the Council and Parliament, meaning that no deal before the European elections in May is a distinct possibility.

Related documents

Letter

 

Conference of Presidents' statement

 

Anti – Money Laundering: BCBS publishes a set of guidelines on the management of risks

Created
Friday, 17 January 2014

                                                                16 Jan 2014

 

The BCBS issued a set of guidelines to describe how banks should include the management of risks related to money laundering and financing of terrorism within their overall risk management framework. Prudent management of these risks, together with effective supervisory oversight, is critical in protecting the safety and soundness of banks as well as the integrity of the financial system. Failure to manage these risks can expose banks to serious reputational, operational, compliance and other risks.

Related documents

Press release

Guidelines

The EP and Council reach agreement on proposals to revise EU legislation on markets in financial instruments (MiFIR and MiFID II)

Created
Thursday, 16 January 2014

                                                                14 Jan 2014

 

The European Parliament and Council reached agreement on proposals to revise EU legislation on markets in financial instruments (MiFID/MiFIR).

Key elements of the agreement reached by the co-legislators:

1. MiFID II introduces a market structure framework which closes loopholes and ensures that trading, wherever appropriate, takes place on regulated platforms.

2. MIFID II increases equity market transparency and for the first time establishes a principle of transparency for non-equity instruments such as bonds and derivatives.

3. To meet the G20 commitments, MiFID II provides for strengthened supervisory powers and a harmonised position-limits regime for commodity derivatives.

4. A new framework will improve conditions for competition in the trading and clearing of financial instruments.

5. MiFID II will introduce trading controls for algorithmic trading activities.

6. Stronger investor protection is achieved by introducing better organisational requirements, such as client asset protection or product governance.

7. The agreement strengthens the existing regime to ensure effective and harmonised administrative sanctions.

8. A harmonised regime for granting access to EU markets for firms from third countries is based on an equivalence assessment of third country jurisdictions by the Commission.

Related documents

EP press release

EU Council press release

Statement by Commissioner M. Barnier

Next steps

The details of this deal will be now fine-tuned in technical meetings.

EP: Vote in plenary

News & articles

EU reaches deal on sweeping securities reform (Reuters)

Agencies approve interim final rule authorizing retention of interests in and sponsorship of collateralized debt obligations backed primarily by bank-issued trust preferred securities

Created
Thursday, 16 January 2014

                                                                14 Jan 2014

 

Five federal agencies approved an interim final rule to permit banking entities to retain interests in certain collateralized debt obligations backed primarily by trust preferred securities (TruPS CDOs) from the investment prohibitions of section 619 of the Dodd-Frank Act, known as the “Volcker rule”.

Under the interim final rule, the agencies permit the retention of an interest in or sponsorship of covered funds by banking entities if the following qualifications are met:

- the TruPS CDO was established, and the interest was issued, before 19 May 2010;

- the banking entity reasonably believes that the offering proceeds received by the TruPS CDO were invested primarily in Qualifying TruPS Collateral; and

- the banking entity's interest in the TruPS CDO was acquired on or before 10 December 2013, the date the agencies issued final rules implementing section 619 of the Dodd-Frank Act.

The agencies will accept comment on the interim final rule for 30 days following publication of the interim final rule in the Federal Register.

Related documents

Press release

//www.cftc.gov/ucm/groups/public/@newsroom/documents/file/federalregister011414.pdf" style="line-height:1,5em;">Interim final rule

Bank Capital Requirements: The EC's Directorate General for the Internal Market and Services publishes the draft content of the forthcoming implementing technical standard with regard to supervisory reporting of institutions

Created
Monday, 13 January 2014

                                                                08 Jan 2014

 

The EU Commission's Directorate General for the Internal Market and Services published for information purposes the draft content of the forthcoming implementing technical standard (ITS) with regard to supervisory reporting of institutions in order to help all interested parties to begin to prepare for the new requirements for Supervisory Reporting by institutions under the Capital Requirements Directive/Regulation framework.

Related document

Draft ITS

Single Supervisory Mechanism: The ECB publishes the memorandum of understanding between the EU Council and the ECB

Created
Monday, 13 January 2014

                                                               20 Dec 2013

 

The ECB published the memorandum of understanding between the EU Council and the ECB on the cooperation on procedures related to the SSM. The memorandum, which was signed in December 2013, covers the accountability and reporting obligation of the ECB to the Council and the Euro Group under Regulation (EU) No 1024/2013.

Related document

Memorandum of Understanding

Financial Benchmarks: The EP’s ECON Committee publishes a new set of amendments to EC proposed regulation

Created
Monday, 13 January 2014

                                                               20 Dec 2013

 

The EP’s ECON Committee published a new set of amendments to EC proposed regulation on indices used as benchmarks in financial instruments and financial contracts.

Related document

Amendments 351 - 677

Next step

EP: Vote in ECON Committee, 30 January 2014

Basel III: Important steps towards completion of post-crisis regulatory reforms endorsed by Group of Governors and Heads of Supervision

Created
Monday, 13 January 2014

                                                                12 Jan 2014

 

At its meeting in Basel, the Basel Committee's oversight body, the Group of Governors and Heads of Supervision (GHOS), endorsed a number of important steps in the completion of the post-crisis reform agenda.

Related document

Press release

News & articles

Regulators ease new bank rule on leverage to aid economy (Reuters)

Basel regulators ease leverage-ratio rule for banks (Bloomberg)

- LEVERAGE RATIO

The GHOS endorsed proposals from the Basel Committee on a common definition of the leverage ratio, which has been formulated to overcome differences in national accounting frameworks that have previously prevented ready comparison of bank leverage ratios across borders. The final calibration, and any further adjustments to the definition, will be completed by 2017, with a view to migrating to a Pillar 1 (minimum capital requirement) treatment on 1 January 2018.

Related documents

Press release

Full text

- NET STABLE FUNDING RATIO

The GHOS also endorsed proposed changes to the Net Stable Funding Ratio. The NSFR is another important component of the Basel III framework; it complements the Liquidity Coverage Ratio and is designed to promote prudent funding structures by banks, with a particular focus on preventing over-reliance on short-term wholesale funding.

The consultation runs until 11 April 2014.

Related documents

Press release

Consultative document

- LIQUIDITY COVERAGE RATIO

The GHOS endorsed Basel Committee proposals regarding minimum requirements for liquidity-related disclosures. The GHOS also endorsed the Committee's intention to publish further guidance on how national authorities can utilise market-based indicators of liquidity within their own frameworks for assessing whether assets qualify as High Quality Liquid Assets under the LCR.

Related documents

Press release

LCR disclosure standards

Guidance for Supervisors

  • Last Update: Thursday 17 April 2014, 16:09.
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