ESMA consults on structured finance disclosure: ESMA has published a call for evidence seeking views on the approach to disclosure for Structured Finance Instruments (SFIs) originated and/or traded on a private and/or bilateral basis. Responses will serve as an input for the “phase-in approach” on the extension of the disclosure requirements for private and bilateral transactions in SFIs. The call for evidence:
- seeks the views of market participants and information that may help ESMA to define private and bilateral transactions in SFIs and to establish whether the two categories should be kept separate; and
- aims to gather evidence to assess whether the disclosure requirements could be used in their entirety for private and bilateral SFIs transactions or whether they should be adapted.
Consultation closes on 20 May. (Source: ESMA Consults on Disclosure Requirements for Private and Bilateral Structured Finance Instruments)
ESMA consults on complex debt instruments and structured deposits: ESMA is consulting on draft guidelines on complex debt instruments and structured deposits under the revised Markets in Financial Instruments Directive (MiFID 2). The paper covers:
- bonds, other forms of securitised debt and money market instruments incorporating a structure which makes it difficult for the client to understand the risk involved;
- structured deposits incorporating a structure which makes it difficult for the client to understand the risk of return or the cost of exiting the product before term; and
- the concept of embedded derivatives for debt instruments.
The guidelines are short, focusing on interpretation of key terms and concepts in MiFID 2. Consultation closes on 15 June and ESMA plans to publish its guidelines towards the end of 2015. (Source: ESMA Consults on Complex Debt Instruments and Structured Deposits)
ESMA publishes CRA reporting Guidelines: ESMA has published Guidelines regarding the information that credit rating agencies (CRAs) must periodically submit to it. The Guidelines outline in detail the information CRAs should submit:
- to ESMA as part of its ongoing supervision; and
- for the calculation of supervisory fees and market share.
The Guidelines only apply to registered, and not to certified, CRAs. (Source: ESMA Publishes Guidelines on Periodic Reporting for CRAs)
ESMA publishes revised work programme: ESMA has published its revised 2015 regulatory work programme. The programme consists of nearly 200 initiatives under various pieces of legislation. (Source: ESMA Publishes Revised Work Programme)