The following legislation became effective on or after 1 July 2016: Market Abuse Regulation, Dutch Implementation Act (Mortgage Credit Directive), Securities Financing Transactions Regulation.

Market Abuse Regulation

The EU Market Abuse Regulation (596/2014) is effective as of 3 July 2016. Please see our previous news letters on this subject here and here.

Mortgage Credit Directive for a harmonised European-wide mortgage credit market with a high level of consumer protection

The Dutch Act and Decree implementing the EU Mortgage Credit Directive (2014/17/EU) entered into force on 14 July 2016. The new rules protect consumers against the risks involved in taking out secured housing loans and provide for increased transparency, disclosure of the annual costs, ensuring proper conduct of business, and certain quality standards of services relating to mortgage credit. The changes are implemented in the Dutch Financial Supervision Act (Wet op het financieel toezicht) and the Dutch Civil Code (Burgerlijk Wetboek)

Reporting and transparency of securities financing transactions

On 12 January 2016, the Securities Financing Transactions Regulation (2015/2365/EU) entered into force in stages. The regulation aims to create greater transparency with respect to securities financing transactions. The regulation also lays down rules for the reuse of collateral by clients. Please see our previous newsletter for more detailed information here. On 13 July 2016, the section "re-lending activities" entered into force. This section regulates the reusage of collateral provided by clients by financial institutions.

Source: Banking and Finance Update July 2016