PRA consults on new reporting rules for non-Solvency II insurance firms. The Prudential Regulation Authority requested comments on a consultation paper that proposes new reporting requirements for insurance firms that fall outside the scope of Solvency II. Among other things, the PRA’s proposals would amend reporting rules to align with recent changes to the prudential regime for non-Solvency II firms related to the Senior Insurance Managers Regime and simplify some requirements. Comments are due on or before June 13, 2016. (5/3/2016) PRA press release. 

ESMA publishes public feedback to draft RTS and ITS under SFTR. The European Securities and Markets Authority published the responses it received to its Discussion Paper on proposed Regulatory Technical Standards and Implementing Technical Standards that would implement the reporting framework for securities financing transactions under the Securities Financing Transaction Regulation. (5/3/2016) ESMA press release. 

European Commission releases findings of EU crowdfunding study. The European Commission published its report on the EU crowdfunding sector, which it conducted as part of the Capital Markets Union Action Plan. The report found that crowdfunding in the EU, while still relatively small and largely local, is developing quickly. The report did not recommend developing an EU level framework at this time, but urged the Commission to monitor the sector for changes that may make such a regulatory framework necessary in the future. (5/3/2016) EC press release. 

EBA supports amended HLBA method for calculating additional collateral outflows. The European Banking Authority published an opinion that explains its support for the European Commission’s proposed amendment to the draft RTS on additional collateral outflows that would use the Basel Committee on Banking Supervision’s historical look-back approach to calculate additional collateral outflows. (5/3/2016) EBA press release.

ESMA proposes amendments to MiFID II standards on non-equity transparency and position limits. ESMA published two opinions that propose changes to its draft RTS under the Markets in Financial Instruments Directive and Regulation concerning non-equity transparency and the methodology for the calculation and application of position limits for commodity derivatives. In its opinion on the RTS on non-equity transparency, ESMA proposes an automatic phase-in approach of the new transparency regime with the criteria for all stages established in the RTS. In its opinion on the RTS on position limits for commodity derivatives, ESMA proposes to lower the position limits for derivatives with foodstuffs as an underlying to 2.5 percent and to make adjustments to other months’ position limits in circumstances where deliverable supply and open interest diverge significantly. (5/2/2016) ESMA press release. 

FCA amends Compensation sourcebook rules governing FSCS. The UK Financial Conduct Authority published a policy statement containing the final amendments to rules in its Compensation sourcebook that govern the Financial Services Compensation Scheme. The final rules, which became effective on April 29, 2016, will increase the non-investment insurance mediation compensation limit from 90 percent to 100 percent for claims in relation to certain types of insurance; make changes to the eligibility of trustees of occupational schemes to claim on the FSCS; and include an express reference to how the compensation rules apply where a successor firm is in default or to assist the FSCS in handling claims. (4/29/2016) FCA press release. 

PRA consults on data requirements for reporting of financial statements and forecast capital data. The PRA requested comments on a consultation paper that contains proposals on future reporting of balance sheet, statement of profit or loss, and forecast capital data. Comments are due on or before July 29, 2016. (4/29/2016) PRA press release. 

EU CCPs are resilient, according to results of ESMA stress test. ESMA published the results of its first EU-wide stress test of Central Counterparties, which measured the safety and resilience of European CCPs in response to counterparty credit risk as a result of multiple clearing member default and simultaneous market price shocks. ESMA found that the system of EU CCPs is resilient to the stress scenarios tested. (4/29/2016) ESMA press release.

European Commission welcomes adoption of financial benchmarks regulation by European Parliament. The European Commission issued a statement in which it praised the adoption of new regulations by the European Parliament designed to prevent the manipulation of financial benchmarks for use in instruments such as bonds, shares and derivatives. The final rules will become effective after they are formally adopted by the Council, which is expected sometime in May 2016. (4/28/2016) EC press release. 

FCA policy statement on the implementation of MAR and changes to DTR regarding the disclosure of inside information. The FCA published a policy statement that summarizes the feedback it received to its consultations regarding the implementation of certain EU Market Abuse Regulation requirements in the UK and amendments to Disclosure and Transparency Rules concerning the delay in disclosure of inside information by issuers where the issuer has a legitimate interest. The final rules will become effective on July 3, 2016, to coincide with the application of the EU MAR. (4/28/2016) FCA press release.

FCA proposes changes to Knowledge Base guidance on related party transactions and financial information on guarantors in debt prospectuses. The FCA requested comments on a guidance consultation that proposes to change the Knowledge Base by amending an existing technical note on the requirements for smaller related party transactions and adding a new technical note regarding financial information on guarantors in debt prospectuses and requests for omission. Comments are due on or before June 8, 2016. (4/27/2016) FCA press release.

FCA announces planned improvements to UK primary listed debt markets. The FCA published a report that proposes several measures to improve the effectiveness of the UK’s primary listed debt markets. Among other things, the FCA plans to extend the scope of the FCA’s “Wholesale Debt Approach” to reviewing wholesale debt documents; extend the scope of the FCA’s “Same Day Service” approach to reviewing prospectus supplements; establish an “early engagement team” to help prospective overseas issuers understand the debt securities listing process; and create a new engagement strategy to make the FCA’s UK Listing Authority Department staff more accessible. Most of the proposed measures will be implemented on May 23, 2016. (4/27/2016) FCA press release.

ESMA publishes responses to proposed MAR guidelines. ESMA published the public feedback it received in response to its January 2016 consultation on draft guidelines for the MAR. (4/27/2016) ESMA press release.

ESMA anticipates delays in SFI reporting website. ESMA announced that the Structured Finance Instruments website, which ESMA must set up to publish information on SFI reported by issuers, originators and sponsor entities, will not be available to reporting entities by January 1, 2017, due to several problems it has encountered during the set-up process. ESMA also indicated that it will be unable to publish technical instructions for the website by July 1, 2016, as required by the Credit Rating Agencies Regulation. (4/27/2016) ESMA press release.

ESMA responds to European Commission’s Green Paper on retail financial services. In its response to the European Commission’s Green Paper on retail financial services, ESMA offered its views on the topics addressed in the paper, which generally focuses on the banking and insurance sector, that are relevant to the securities market. (4/26/2016) ESMA press release.

EBA announces first list of European O-SIIs. The EBA published the first list of Other Systemically Important Institutions in the EU, which have been identified as systemically relevant by EU authorities according to criteria established by the EBA. (4/25/2016) EBA press release. 

EBA proposes RTS for the disclosure of encumbered and unencumbered assets. The EBA requested comments on draft RTS that would establish the format, timing, and required data for the disclosure of encumbered and unencumbered assets. Comments are due on or before July 25, 2016. (4/25/2016)EBA press release.

ECB releases report on financial integration in the euro area. The European Central Bank published its 2016 report on Financial Integration in Europe, which found that financial integration in the euro area continues to advance but has slowed since spring/summer 2015. The report credits several policy actions for contributing to increased financial integration and highlights the importance of the European capital markets union in supporting future advances in financial integration. (4/25/2016) ECB press release. 

FCA publishes final rules and guidance related to pension reforms. The FCA issued a policy statement that contains the final rules and guidance following its consultation on proposed changes to its Handbook relating to pension reforms that permit consumers greater freedom in accessing their pension savings. The FCA delayed the effective date for some of the rules based on feedback from the consultation; final rules and guidance related to communications on accessing pension savings and high net worth investors will become effective on October 10, 2016, while final rules and guidance related to SIPP retained interest, pension freedoms communications, determining maximum projection rates, and projections including guarantees will become effective on April 6, 2017. (4/25/2016) FCA press release.

FCA consults on changes to Decision Procedure and Penalties Manual and Enforcement Guide related to the implementation of MAR. The FCA requested comments on a consultation paper that contains proposed changes to the Decision Procedures and Penalties Manual and the Enforcement Guide related to the implementation of MAR. Comments are due on or before May 22, 2016. (4/22/2016) FCA press release. 

ECB provides additional details regarding the corporate sector purchase program. The ECB announced the details of the corporate sector purchase program, which has been added to the asset purchase program. The CSPP, which will begin in June 2016, will involve outright purchases of investment-grade euro-denominated bonds issued by non-bank corporations established in the euro area. Debt instruments that meet certain criteria will also be eligible for purchase. (4/21/2016) ECB press release.

FCA consults on proposed rules and guidance for regulated activities for the secondary annuity market. The FCA published a consultation paper containing proposals for rules to apply to new regulated activities for the secondary annuity market, which include buying annuity incomes, buying back annuity incomes, and acting as a market intermediary. Comments are due on or before June 21, 2016. (4/21/2016) FCA press release. 

ESMA will hold open hearing on proposed MAR guidelines. ESMA announced that it will hold an open hearing on May 3, 2016, regarding the draft guidelines on the information expected or required to be disclosed on commodity derivatives markets or related spot markets under MAR. (4/20/2016) ESMA press release.

EBA releases final Guidelines for disclosing confidential information under the BRRD. The EBA issued final Guidelines that define how confidential information under the Bank Recovery and Resolution Directive should be disclosed in summary or collective form without identifying individual institutions or relevant entities. (4/19/2016) EBA press release. 

Regulation round-up. The FCA published the April 2016 edition of its Regulation round-up. (4/19/2016)