BANKING

BCBS second consultation on guidelines for identification and management of step-in risk

The Basel Committee on Banking Supervision (BCBS) has published a second consultation document on guidelines for the identification and management of step-in risk, following its previous consultation in December 2015. The proposed framework is intended to help mitigate potential problems at shadow banks from spilling over to banks. The work is part of the G20's initiative to strengthen the oversight and regulation of the shadow banking system with the aim of mitigating systemic risks, in particular, those arising from banks' involvement with shadow banking entities. The consultation is open until 15 May 2017. The BCBS views the revised framework as near final and does not envisage making significant changes to it. The BCBS states that the present framework should enter into force as soon as possible and no later than the end of 2019. It intends to monitor jurisdictions' progress in implementing the guidelines to keep itself informed of the approaches taken to identify step-in risk and the range of supervisory responses employed. BCBS, 15 March 2017

HM Treasury consults on Money Laundering Regulations 2017

HM Treasury has launched a policy consultation (PC) on the draft Money Laundering Regulations 2017 (MLRs). This follows an earlier consultation launched on 15 September 2016, ‘Transposition of the Fourth Money Laundering Directive (MLD4) and Fund Transfer Regulation (FTR)’ (the Consultation) which aimed to set out how the government intended to implement MLD4 and the FTR, and sought views and evidence on the steps it proposed to take or should take, to transpose MLD4 and those aspects of the FTR that need to be transposed into national law. The PC closes on 12 April 2017. The PC provides an outline of the responses submitted during the Consultation which informed the MLRs and the government’s policy positions following the Consultation. A draft of the Money Laundering Regulations 2017 has been issued alongside the PC. The government intends to transpose MLD4 in full by 26 June 2017 and will separately consult on the amended Directive once it has been published in the Official Journal of the European Union and has come into force. HM Treasury, 15 March 2017

EBA publishes 2017 list of O-SIIs

EBA has updated the 2016 list of Other Systemically Important Institutions (O-SIIs) in the EU. O-SIIs, along with Global Systemically Important Institutions (G-SIIs), are those deemed systemically important under the EBA guidelines. This list also reflects the additional capital buffers that the relevant authorities have set for the identified O-SIIs. PLSA, 15 March 2017

PLSA publishes new ‘Made Simple’ guide on indices and benchmarks

The Pensions and Lifetime Savings Association (PLSA) has launched a guide providing simple information to help trustees when benchmarking and selecting an index. The Made Simple Guide was launched at the Pensions and Lifetime Savings Association’s Investment Conference in Edinburgh on 8 March 2017. PLSA, 15 March 2017

INSURANCE

EIOPA Chair speech on building common supervisory culture

EIOPA has published a speech (dated 3 March 2017) by Gabriel Bernardino, EIOPA Chair, on building a common supervisory culture. The speech covers the following three main challenges that Mr Bernardino believes are important for the EU insurance market:

  • Proportionality
  • Supervisory convergence
  • Digitisation

EIOPA, 15 March 2017

ABI Response to FCA proposed Handbook changes to reflect the new regulatory framework for Insurance Linked Securities

In response to a FCA consultation on proposals for the changes required to the FCA Handbook to incorporate the new regulated activity of insurance risk transformation, the ABI states that the timescales for authorisations of new cells in multi-arrangement insurance special purpose vehicles are "unrealistic" and would damage the competitiveness of a UK insurance linked securities (ILS) market, given the launch period for most typical ILS transactions. ABI, 14 March 2017

INVESTMENTS AND FUNDS

European Parliament draft report on the extension of the duration of EFSIs

The European Parliament’s committees on budgets and on economic and monetary affairs have issued a draft report on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of the European Fund for Strategic Investments (EFSIs) as well as the introduction of technical enhancements for that Fund and the European Investment Advisory Hub. The joint committee will meet on 20 March 2017 to discuss the draft report on the extension of duration for EFSIs. The deadline for tabling amendments is 23 March 2017. European Parliament, 15 March 2017