On 5 October the Joint Committee of the ESAs (the Joint Committee) published their work programme for 2016.

Consumer Protection and Financial Innovation

The work on consumer protection and financial innovation will focus on the following:

  1. Developing draft Regulatory Technical Standards (RTS) in the area of disclosures for PRIIPs. The legal text foresees three RTS:
  • on the content and presentation of the Key Information Document (KID);
  • on the revision and review of the KID; and
  • on timing of the delivery of the KID.

The publication of the final draft RTS is expected in the first half of 2016.

  1. In 2016 the Joint Committee will, where appropriate, develop policy recommendations based on the outcome of analysis of the benefits and risks in the automation in financial advice, including the responses to the joint Discussion Paper to be launched in the Autumn of 2015. The Joint Committee will assess, which, if any, regulatory and/or supervisory measures need to be taken.
  2. The Joint Committee will, in relation to the implementation by financial institutions of the Complaints-Handling Guidelines that the three ESAs issued in their respective sectors in previous years, follow-up with an overall aim to achieve a consistent standard of application across the EU.
  3. A new area of the financial innovation work will focus on the opportunities and challenges related to the use of “big data”, as well as personal data, by financial institutions to profile consumers, identify patterns of consumption and make targeted offers, which raises questions about firms expected behaviours in order to comply with their overarching obligations. The topic aims to analyse the adequacy of sectoral regulatory frameworks and identify any regulatory and/or supervisory measures which may need to be taken.

Risk Assessment

Cross-sectoral risk analysis and assessment will continue to be one of the main areas of focus for the Joint Committee in 2016. The ESAs will continue to produce in 2016, a Report on Risks and Vulnerabilities to the Council’s Economic and Financial Committee’s Financial Stability Table, in spring and in autumn, as part of their joint bi-annual reporting on micro-prudential analysis of cross-sectoral developments. The analyses will highlight the assessments by the ESAs of key trends and vulnerabilities to financial stability and continue to include appropriate cross-referencing in the sectoral risk reports.

The ESAs will continue to develop suitable indicators for cross-sectoral financial risks, and to enhance their analytical approaches. In particular, the ESAs will improve their cooperation on evaluating financial market developments of mutual concern, including their contributions to the European System Risk Board.

Regulatory work

Securitisation: the ESAs will continue to monitor overall developments regarding the securitisation market in the EU.

Anti-Money Laundering (AML): The ESAs will continue their work to fulfil their mandates under the 4th AML Directive and AML Regulation. This will include:

  • Guidelines on money laundering and terrorist financing risk factors and the application of enhanced and simplified customer due diligence;
  • Guidelines on risk-based AML supervision;
  • Guidelines on the information on the payer or the payee accompanying a wire transfer;
  • Draft RTS on central contact points for payment services providers and issuers of electronic money;
  • Draft RTS on the measures the firms should take where a third country’s legislation prohibits the application of equivalent AML/CFT standards; and
  • A Joint Opinion on the money laundering/terrorist financing risks affecting the EU financial sector.

Financial Conglomerates: The ESAs will work on Guidelines on supplementary supervision of mixed financial holding companies under the Financial Conglomerates Directive. Further, the ESAs will continue to update the list of identified Financial Conglomerates and publish it on their websites. The ESAs stand ready to assist the Commission with its possible review of the Financial Conglomerates Directive.

Finally, the Joint Assessment Team of the Joint Committee will continue to assess the compliance of the different initial margin models to the requirements of the draft joint RTS on EMIR and the BCBS-IOSCO framework, and to give some clarification on the supervisory expectations on the models to the developers.

Cooperation with EEA EFTA states

The ESAs will cooperate with the European Commission and EEA EFTA countries in finalising a solution allowing for implementation of the ESAs Regulations as well as financial sectoral legislation in EEA EFTA states.