Latest news of financial regulation
27 April 2015
The Basel Committee on Banking Supervision (BCBS) published eighth progress report on adoption of the Basel regulatory framework.
The report focuses on the status of domestic rule-making processes to ensure that the Basel standards are transformed into national law or regulation according to the internationally agreed timeframes. The report is based on information provided by individual members as part of the Committee's Regulatory Consistency Assessment Programme (RCAP). The report includes the status of adoption of the risk-based capital standards, the standards for global and domestic systemically important banks (SIBs), the Basel III leverage ratio and the liquidity coverage ratio (LCR).
27 April 2015
The ESMA issued the 13th update of its Q&A document on the implementation of the European Markets Infrastructure Regulation (EMIR). This update relates to the second level of the EMIR validation specifications to be commonly applied by the Trade Repositories (TR) to ensure that reporting is performed according to the EMIR regime.
The ESMA expects the TRs to be able to implement the validation by end October 2015.
25 April 2015
Decision (EU) 2015/656 of the ECB of 4 February 2015 on the conditions under which credit institutions are permitted to include interim or year-end profits in Common Equity Tier 1 capital in accordance with Article 26(2) of Regulation (EU) No 575/2013 (ECB/2015/4) has been published in the O.J. of EU.
This Decision entered into force on 6 February 2015.
24 April 2015
The Monetary Authority of Singapore (MAS) issued revised notices to financial institutions (FIs) on anti-money laundering (AML) and countering the financing of terrorism (CFT). The revisions are benchmarked against international best practices and the latest recommendations of the Financial Action Task Force (FATF), the global standard-setter for AML/CFT measures.
22 April 2015
The PRA published a supervisory statement on applying the Solvency II Set 1 Guidelines, issued by the EIOPA on 2 February 2015. This supervisory statement expands on the Prudential Regulation Authority’s (PRA’s) general approach set out in the PRA’s Approach to Insurance Supervision.
ESMA consults on draft guidelines specifying criteria for the assessment of knowledge and competence in MiFID II
23 April 2015
The ESMA launched a consultation on draft guidelines specifying criteria for the assessment of knowledge and competence of natural persons in investment firms that provide investment advice or information about financial instruments, investment services or ancillary services to clients.
The consultation will be open until 10 July 2015.
Basel Committee removes selected national discretions and replies to frequently asked question on funding valuation adjustment
21 April 2015
The Basel Committee agreed to remove certain national discretions from the Basel capital framework. National discretion allows countries to adapt the Basel standards to reflect differences in local financial systems. However, the use of national discretions can also impair comparability across jurisdictions and increase variability in risk-weighted assets.
20 April 2015
The Council adopted a regulation aimed at increasing the pool of capital available for long-terminvestment in the EU economyby creating a new form of fund vehicle.
European long-term investment funds (ELTIFs), by virtue of the asset classes that they will be allowed to invest in, are expected to provide investors with long-term, stable returns.
Publication on the Official Journal of the EU.
The Regulation shall enter into force on the twentieth day following that of this publication.
20 April 2015
The Council adopted its position at first reading on new rules aimed at preventing money laundering and terrorist financing. The directive and regulation will strengthen EU rules against money laundering and ensure consistency with the approach followed at international level. The regulation deals more specifically with information accompanying transfers of funds.
The decision will enable the European Parliament, with which agreement was reached on 16 December 2014, to adopt the package at second reading at a forthcoming plenary session.
EP’s ECON Committee published report on the proposed regulation on reporting and transparency of securities financing transactions
The European Parliament’s ECON Committee published report tabled for plenary on the proposed regulation on reporting and transparency of securities financing transactions (STFs). This Regulation responds to the need to enhance transparency of securities financing markets and thus of the financial system. In order to ensure equivalent conditions of competition and international convergence, this Regulation follows the FSB Recommendations. It creates a Union framework under which information on SFTs can be efficiently reported to trade repositories and investors.
EP: Plenary session scheduled for 8 September 2015
09 April 2015
The EBA published its first annual report addressed to the EU Parliament and the Council on the convergence of supervisory review practices in the EU banking sector. The Report covers the findings of an assessment carried out over the past 3 years and focuses on Supervisory Review and Evaluation Process and assessment of risks (SREP), supervisory stress testing, ongoing review of internal models, and supervisory measures and powers.
EBA issues recommendation on equivalence of non-EU authorities for participation in supervisory colleges
01 April 2015
The European Banking Authority (EBA) published a recommendation specifying its opinion on the confidentiality regime of several non-EU supervisory authorities to facilitate their participation in supervisory colleges overseeing international banks, led by EU supervisors. The paper looks at the conditions that need to be met in terms of confidentiality requirements and gives an overview of equivalence to EU standards.
Competent Authorities must notify the EBA as to whether they comply or intend to comply by 02 June 2015.
07 April 2015
The International Organization of Securities Commissions (IOSCO) published two consultation reports aimed at further enhancing the ability of financial markets and intermediaries to manage risks, withstand catastrophic events, and swiftly resume their services in the event of disruption.
First consultation report “Mechanisms for Trading Venues to Effectively Manage Electronic Trading Risks and Plans for Business Continuity” provides a comprehensive overview of the steps trading venues take to manage the risks associated with electronic trading and the ways they plan for and manage disruptions through business continuity plans.
Second consultation report “Market Intermediary Business Continuity and Recovery Planning” proposes standards and sound practices that regulators could consider as part of their oversight of the business continuity and recovery planning by market intermediaries.
Consultations will run until 6 June 2015.
ISDA publishes a set of principles aimed at promoting regulatory consistency in the development and application of centralized trading rules for derivatives
01 April 2015
The International Swaps and Derivatives Association, Inc. (ISDA) published a set of principles aimed at promoting regulatory consistency in the development and application of centralized trading rules for derivatives.
The execution of standardized derivatives on an exchange or electronic trading platform was a key objective from the Group of 20 summit in 2009, and regulations have either been implemented or are being developed in several key jurisdictions. However, ISDA and its members are concerned about the potential for divergences in how these rules are applied in each jurisdiction, which could lead to market fragmentation, low trading liquidity, duplicative compliance requirements and increased risk.
01 April 2015
The ESMA launched two major projects at the request of a number of National Competent Authorities (NCAs) who have delegated the following tasks to ESMA:
- to provide a central facility in relation to instrument and trading data and the calculation of the MiFIR transparency and liquidity thresholds - Instrument Reference Data Project, and
- to provide a single access point to trade repositories data under EMIR – the Trade Repositories Project.
The projects are currently being developed by ESMA, with the Instrument Reference Data Project expected to go live in early 2017, and the Trade Repositories Project will go live in 2016.
26 March 2015
The FCA launched a discussion on MiFID II conduct of business and organisational requirements.
This paper discusses the implications of certain MiFID II conduct of business and organizational requirements for firms, primarily contained within Articles 24 and 25. It also discusses certain changes to domestic rules to implement the new minimum regulatory framework required under MiFID II for firms exempt from MiFID II (‘Article 3 exempt’ firms), and suggests options for alternative domestic criteria for the categorisation of local authorities.
The consultation will close on 26 May 2015.
News & articles
ECB and BoE announce measures to enhance financial stability in relation to centrally cleared markets in the EU.
29 March 2015
The European Central Bank (ECB) and the Bank of England (BoE) announced a series of measures aimed at enhancing financial stability in relation to centrally cleared markets within the EU. They agreed enhanced arrangements for information exchange and cooperation regarding UK Central Counterparties (CCPs) with significant euro-denominated business.
News & articles
ECB, BOE to guard clearinghouse stability after EU ruling (Bloomberg Business)
ESMA publishes final draft technical standards on the assessment of acquisitions and increases in qualifying holdings in investment firms
27 March 2015
The ESMA published final draft technical standards (TS) on the assessment of acquisitions and increases in qualifying holdings in investment firms.
Article 10b(4) of the Markets in Financial Instruments Directive (MiFID ) requires Member States to make publicly available the information necessary to carry out the assessment of a proposed acquirer of an investment firm. This information must be provided by the proposed acquirer at the time of the initial notification. ESMA submitted the updated draft TS to the Commission on 27 March 2015. The Commission has three months to decide whether to endorse ESMA’s draft TS.
Regulation (EU) 2015/534 of the ECB on reporting of supervisory financial information published in the O.J. of EU.
31 March 2015
Regulation (EU) 2015/534 of the ECB on reporting of supervisory financial information has been published in the O.J. of EU.
This Regulation entered into force on 1° April 2015.
31 March 2015
The PRA published a consultation paper on treatment of sovereign debt in internal models. This consultation paper seeks feedback on a draft supervisory statement which sets out the PRA expectations of firms in relation to treatment of sovereign debt in internal models.
The consultation will close on 1 May 2015.
- Last Update: Saturday 30 May 2015, 06:22.