EP approves benchmarks Regulation: EP has approved the draft Regulation designed to curb conflicts of interest in the benchmark setting process. The Economic and Monetary Affairs Committee had previously voted to approve it. Key provisions of the draft law include:
- a “college” of supervisors, including ESMA and other competent authorities, to oversee the setting of critical benchmarks that affect more than one country;
- critical benchmark administrators would have to have a clear organisational structure to prevent conflicts of interest, and be subject to effective control procedures;
- all benchmark administrators would have to register with ESMA and would have to publish a “benchmark statement” defining precisely what their benchmark measures and to what extent it is reliable. They would also have to publish or disclose existing and potential conflicts of interest and meet accountability, record keeping, audit and review requirements.
EP approval will now lead to trilogue talks between EP, the Commission and Member States with a view to having benchmark regulation ready for 2016. (Source: MEPs Voted for Robust and Transparent Benchmark Setting)
EP approves MLD4: EP has approved in plenary session the fourth Money Laundering Directive and Payment Transfer Regulation (the MLD4 package). MLD4 should now appear in the OJEU around June or July, and, with a two-year implementation period, should become effective in mid-2017. (Source: EP Approves MLD4)