There have been many developments in national and European financial markets regulation during the past month. Among other things, the European Commission has launched its action plan for a Capital Markets Union. In addition, supervisory authorities have published a large number of consultation documents, draft rules and other information since the last edition of In context.

Dutch regulation

Financial Markets Amendment Bill 2016 to take effect on 1 April 2016 The Second Chamber has adopted the Financial Markets Amendment Bill 2016. This bill was expected to enter into force on 1 January. However, as a result of the recent Act on the advisory referendum, the bill is now expected to enter into force on 1 April 2016. The reason for the delay is that acts qualifying for a referendum can only enter into force eight weeks after their ratification was published in the Government Gazette. An exception is made for provisions amending the Act on Funding of Financial Supervision. These will take effect on 1 January 2016.

For more on the Financial Markets Amendment Act 2016, see In context of June 2015.

Implementation of the Mortgage Credit Directive

The Ministry of Finance has submitted a bill implementing the Mortgage Credit Directive. This directive includes an article on the financial education of customers, consumer information requirements and an obligation to assess the borrower’s creditworthiness. The proposals will be included in the Financial Markets Supervision Act and in the new title 2B of the Dutch Civil Code.

European regulation

Action Plan on building a Capital Markets Union

The European Commission has launched its action plan for the Capital Markets Union, which should result in a true single market for capital for all 28 Member States. The action plan sets out the priority actions needed to put in place the building blocks of a Capital Markets Union by 2019. The first concrete proposals concern securitisation and long term investments in infrastructure. The Commission has also launched consultations on venture capital and covered bonds. By the end of the year, the Commission will review the Prospectus Directive to reduce barriers to smaller firms listing on markets.

European and international supervisors

ESMA Final technical standards on the Market Abuse Regulation

ESMA has published its final technical standards on the Market Abuse Regulation. They contain prohibitions for insider trading and market manipulation and focus on:

  • conditions under which transactions in buy-back programmes and stabilisation measures are not considered market abuse;
  • requirements for market participants conducting market soundings and for competent authorities establishing accepted market practices;
  • specific requirements to report suspicious orders and transactions;
  • rules for public disclosure of insider information;
  • specific formats for establishing insider lists and for the notification and disclosure of managers’ transactions; and
  • specific arrangements on how to present investment recommendations or other information recommending or suggesting an investment strategy.

ESMA has also published final technical standards on MiFID II and the Regulation on improving securities settlement in the European Union and on central securities depositories

European Securities and Markets Authority – other publications

European Banking Authority – publications

Joint Committee of the European Supervisory Authorities – publications

International Organization of Securities Commissions – publications