PRA consults on capital adequacy. The UK Prudential Regulation Authority proposed changes to the PRA’s Pillar 2 framework for the banking sector, including changes to rules and supervisory statements. The proposed policy is intended to ensure that firms have adequate capital to support the relevant risks in their business and that they have appropriate processes to ensure compliance with the Capital Requirements Regulation and Capital Requirements Directive. It is also intended to encourage firms to develop and use better risk management techniques in monitoring and managing their risks. Comments should be submitted by April 17, 2015. (1/19/2015) PRA press release.
PRA and FCA consult on management expenses levy limit. The UK Prudential Regulation Authority and the Financial Conduct Authority seek views on the management expenses levy limit (MELL) for the Financial Services Compensation Scheme for 2015-16. Comments should be submitted by February 16, 2015. (1/19/2015) PRA press release; FCA press release.
UK implementation of the Bank Recovery and Resolution Directive. The UK Prudential Regulation Authority issued a policy statement and two supervisory statements containing final rules and guidance on implementing the Bank Recovery and Resolution Directive. Together the documents set out the PRA’s recovery and resolution planning framework for PRA-regulated entities. (1/16/2015) PRA press release. Separately, the UK Financial Conduct Authority issued its own policy statement transposing the Recovery and Resolution Directive into the UK regulatory regime for the investment firms and group entities that it regulates. (1/16/2015) FCA press release.
Bank of England working paper on contractionary monetary policy and shadow banks. The Bank of England published a working paper which found that a contractionary monetary policy shock has a persistent negative impact on the asset growth of commercial banks, but increases the asset growth of shadow banks and securitization activity. The findings cast doubt on the idea that monetary policy can usefully “get in all the cracks” of the financial sector in a uniform way. (1/16/2015)
FCA consults on Competition Act. The UK Financial Conduct Authority published a consultation paper on the powers that it will receive on April 1, 2015, to enforce the Competition Act 1998. Comments should be submitted by March 13, 2015. (1/15/2015) FCA press release.
Impact assessment of liquidity coverage requirements for EU banks. The European Banking Authority published its impact assessment report on the liquidity coverage requirement. The assessment found improvements in EU banks’ compliance with liquidity coverage ratio (LCR) requirements and that the implementation of the LCR is not likely to have a negative impact on the stability of financial markets and of the supply of bank lending. (1/15/2015) EBA press release.
EBA consults on resolution planning. The European Banking Authority launched a public consultation on draft Implementing Technical Standards on procedures, forms and templates for resolution planning. Comments should be submitted by April 14, 2015. (1/14/2015) EBA press release.
ECB signs cooperation agreement with India’s central bank. Mario Draghi, President of the European Central Bank, and Raghuram Rajan, Governor of the Reserve Bank of India, signed a Memorandum of Understanding on cooperation in the field of central banking. (1/12/2015) ECB press release.
ESMA open hearing on MiFIDII/MiFIR. The European Securities and Markets Authority will hold an open hearing on February 19, 2015, concerning the issues set out in its Consultation Paper on MiFID II/MiFIR published in December 2014. Registration is open until January 25, 2015. (1/12/2015) ESMA notice.
Updated ESMA guidance. The European Securities and Markets Authority published two sets of updated questions and answers on the application of the AIFMD and on the guidelines on ETFs and other UCITS issues. (1/9/2015) ESMA notice.
List of authorized CCPs. The European Securities and Markets Authority published an update of its list of central clearinghouses authorized under the European Markets Infrastructure Regulation. (1/9/2015) ESMA notice.
Peer review of CCPs. The European Securities and Markets Authorities published a peer review report on supervisory activities of all competent authorities in relation to the authorization and the supervision of central counterparties in accordance with Article 30 of Regulation (EU) No 1095/2010. (1/8/2014) ESMA notice.