BANKING

Consultation on draft ITS amending CRR supervisory reporting 

The EBA has published a consultation paper on draft ITS amending the Commission Implementing Regulation on ITS on supervisory reporting.

EBA, 16 November 2016

Final version of guidelines on risk-based supervision under MLD4

The final version of guidelines on risk-based supervision under MLD4 has been published. The guidelines are based on a mandate in Article 48(10) of MLD4 and are addressed to NCAs responsible for supervising the compliance of credit and financial institutions with AML and CTF obligations.

Joint Committee of the ESAs, 16 November 2016

Policy statement on forecast capital data from PRA

The PRA has published a policy statement on its proposals relating to forecast capital data. This provides feedback on responses received to its April 2016 consultation on future reporting of balance sheet, statement of P&L and forecast capital data. The PRA has concluded no significant changes to the proposals are required.

PRA, 16 November 2016

Speech on banking reforms from EC

The European Commissioner for Financial Stability, Financial Services and Capital Markets Union has given a speech on the EC's approach to regulating the banking sector in the EU. Reforms have been proposed in the following areas:

  • Leverage ratio and NSFR
  • Pillar 2
  • Bank financing of the economy
  • Proportionality
  • Trading Book

European Commission, 15 November 2016

INSURANCE

Commission Implementing Regulation laying down technical information regarding the calculation of technical provisions and basic own funds

The Commission Implementing Regulation laying down technical information for the calculation of technical provisions and basic own funds has been published in the OJ. The Annexes to the Implementing Regulation set out the technical information to be used by insurance and reinsurance undertakings. The Implementing Regulation will come into force on 17 November and apply from 30 September 2016.

Official Journal of the EU, 16 November 2016

Consultation on reporting national specific templates under Solvency II withdrawn by PRA

The PRA had updated its webpage regarding the Solvency II Directive, giving notice that it has withdrawn the consultation paper on the reporting NSTs. This follows the information that a number of firms plan to report in XBRL-enabled excel format for financial year-end 2016. Two separate consultations will now be issued as follows:

  • Proposals for reporting of NSTs for financial year-end 2016 and future years, using excel templates designed using XBRL principles
  • Proposals for the future reporting of NSTs

The PRA has also announced that its Solvency II national specific and standard formula reporting templates briefing on 17 November 2016 has been cancelled.

PRA, 16 November 2016

EIPA review of methodology to derive ultimate forward rate: ECON comment

ECON has published a letter sent to EIOPA relating to the review of the methodology to calculate the ultimate forward rate under Solvency II.  The following comments have been made:

  • Timing of the review
  • Impact assessment
  • Phasing-in and annual changes

The focus is on timing of the review rather than criticism of the underlying calculation proposed.

European Parliament's Committee on Economic and Monetary Affairs, 16 November 2016


INVESTMENTS AND FUNDS

Political agreement on MMF Regulation

A press release has been published by the Council of the EU announcing that its Presidency has reached provisional agreement with representatives of the European Parliament on the proposed MMF Regulation. A number of technical issues are still to be finalised. A related Parliament press release describes the Money Market Funds Regulation as a complex and contentious piece of legislation.

Council of the EU, 16 November 2016

Consultation on Handbook changes to reflect Lifetime ISA

The FCA has published a consultation paper relating to Handbook changes to reflect the introduction of LISA which the government announced in the 2016 Budget. The paper sets out the FCA's proposed approach to regulating LISAs. The consultation closes on 25 January 2017.

FCA, 16 November 2016

Consultation on regulatory fees and levies 2017/18

The FCA has published a consultation on regulatory fees and levies from 2017/18.  The consultation will close on 16 January 2017 and the FCA will consider responses and publish feedback in a Handbook Notice early next year.

FCA, 16 November 2016

Speech on improving outcomes for investors in EU-based investment funds

ESMA has published a speech on ways to improve outcomes for investors in EU-based investment funds. Key points include:

  • Improving transparency and the information available to fund investors to help them choose funds offering value for money
  • Asset management has been identified as a key activity
  • ESMA will contribute to the Capital Markets Union in relation to the net returns and performance of long-term investment products
  • Innovation in the private sector will improve outcomes for investors

ESMA, 16 November 2016

Updated Q&A on application of AIFMD

ESMA has published an updated version of its Q&A paper on AIFMD, amended to include questions relating to the notification of AIFs and delegation.

ESMA, 16 November 2016

WEALTH MANAGEMENT

Response to EC consultation on EU personal pension framework from ESMA

ESMA has published its response to the European Commission's July 2016 consultation on a potential EU personal pension framework. The Commission's proposals were included in its communication relating to accelerating the CMU reforms in September 2016. ESMA has responded as follows:

  • With regulatory differences likely to impact the objective of a well-functioning market, the Commission should consider aligning certain future minimum requirements
  • If a voluntary EU personal pension product is set up, the sectoral asset management legislation could be a useful source of elements to be taken into account in designing governance
  • A product passport for PEPPs is to be welcomed to tackle some portability issues
  • The nature of disclosure should be a key element of the pension products
  • Distribution of personal pension products should be limited to authorised intermediaries and comply with the Insurance Distribution Directive or MiFID

ESMA, 16 November 2016