ESMA updates MiFID II/ MIFIR investor protection Q&A. ESMA announced that it has added 14 new Q&As to its Q&A document on the implementation of investor protection topics under the MiFID II/ MiFIR. The new Q&As cover the topics of “information on costs and charges,” “post-sale reporting,” and “appropriateness.” (6/6/2017)
ESMA publishes framework for mandatory benchmarks contributions. ESMA announced that it has published a methodological framework developed to promote convergence in relation to the supervision of critical benchmarks. It is addressed to national competent authorities in jurisdictions where critical interest benchmarks are based. (6/2/2017)
ESMA publishes final report on product governance guidelines to safeguard investors. ESMA announced that it has published its Final Report on product governance guidelines under the MiFID II regarding the target market assessment by manufacturers and distributors of financial products. (6/2/2017)
ESMA updates its CSDR Q&As. ESMA announced that it has updated its Q&As on practical questions regarding the implementation of Central Securities Depositories Regulation (CSDR). (6/2/2017)
ESMA issues guidelines on relevant currencies and the substantial importance of a Central Securities Depository for a host Member State. ESMA announced that it has published two sets of guidelines providing further details on the implementation of the CSDR. (6/1/2017)
ESMA consults on measures for CCPs to manage conflicts of interest. ESMA opened a public consultation on future guidelines, which further clarify provisions stemming from the EMIR. Comments are due on August 24, 2017. (6/1/2017)
ESMA updates its MiFID II Q&As. ESMA announced that it has updated its Q&As on practical questions regarding the implementation of MiFID II. (5/31/2017)
MiFID II: ESMA clarifies transparency and position limit regimes for instruments traded on non-EU trading venues. ESMA announced that it has issued two opinions regarding the implementation of the MiFID II and MiFIR. (5/31/2017)
ESMA registers Bloomberg Trade Repository Limited as a trade repository. ESMA announced that it has registered Bloomberg Trade Repository Limited as a trade repository under the European Market Infrastructure Regulation, effective June 7, 2017. (5/31/2017)
ESMA issues principles on supervisory approach to relocations from the UK. ESMA announced that it has published an opinion setting out general principles aimed at fostering consistency in authorization, supervision and enforcement related to the relocation of entities, activities and functions from the UK. (5/31/2017)
ESMA publishes response to consultation on the operation of the ESAs. ESMA announced that it has published its response to the EC’s consultation on the operation of the European Supervisory Authorities. (5/30/2017)
ESMA updates list of recognized third-country CCPs. ESMA announced that it has updated its list of recognized central counterparties based in third countries. (5/30/2017)
ESMA updates its MAR Q&As. ESMA announced that it has updated its Q&A on practical questions regarding the implementation of the MAR. The updated Q&As include new answers regarding disclosure of inside information related to Pillar II requirements; and blanket cancellation of orders policy. (5/30/2017)
ESMA publishes updated AIFMD and UCITS Q&As. ESMA announced that it has published updated questions and answers documents on the application of the Alternative Investment Fund Managers Directive and the Undertakings for the Collective Investment in Transferable Securities Directive. (5/24/2017)
ESMA consults on Money Market Funds rules. ESMA announced its publication of a Consultation Paper on the Money Market Funds Regulation (MMFR). The CP contains proposals on draft technical advice, draft implementing technical standards, and guidelines under the MMFR. The key proposals relate to asset liquidity and credit quality, the establishment of a reporting template, and stress test scenarios. (5/24/2017)
EU reaches agreement on reviving securitization market. The EC announced its agreement to revive the EU’s securitization market. (5/30/2017)
EU agrees to more support for venture capital and social enterprises. The EC announced that it, along with the European Parliament and the Council, agreed to an overhaul of the existing European Venture Capital Funds and European Social Entrepreneurship Funds regulations. (5/30/2017)
European Banking Authority
ESAs consult on technical standards to strengthen group-wide money laundering and terrorist financing risk management. The Joint Committee of the three ESAs announced that they have launched a public consultation on draft Regulatory Technical Standards specifying how credit and financial institutions should manage money laundering and terrorist financing risks where a third country’s law prevents the implementation in their branches or majority-owned subsidiaries of group-wide policies and procedures on anti-money laundering and countering the financing of terrorism. The consultation runs until July 11, 2017. (5/31/2017)
EBA publishes opinion on EU Commission consultation on the operation of the ESAs. The EBA announced that it has published an opinion in response to the EC’s public consultation on the operation of the ESAs. (5/31/2017)
EBA consults on scope of its draft guidelines on connected clients. The EBA announced that it has launched a consultation focusing on the scope of its draft guidelines on connected clients, on which it had already sought the stakeholders’ views in 2016. In the new consultation, the EBA is proposing to extend the scope of these draft guidelines to the remaining aspects of the Capital Requirements Regulation, the EBA technical standards, and the EBA guidelines where the concept of group of connected clients is relevant. The consultation runs through June 26, 2017. (5/25/2017)
European Central Bank
EU structural financial indicators: End of 2016 (preliminary results). The ECB announced that it has updated its comprehensive dataset of structural financial indicators for the banking sector in the EU. The annual report comprises statistics on the number of branches and employees of EU credit institutions, data on the degree of concentration of the banking sector in each EU Member State, and data on the share of foreign-controlled institutions in EU national banking markets. (5/30/2017)
ESCB central banks welcome the publication of FX Global Code of Conduct. The ECB announced the European System of Central Banks’ publication of the Foreign Exchange Global Code of Conduct and related adherence mechanisms material. (5/25/2017)
Risk of further bond market repricing persists but financial market stress is contained. The ECB announced that systemic stress indicators for the euro area have remained low over the past six months, according to the latest Financial Stability Review of the European Central Bank. The risk of a rapid repricing in global fixed income markets nevertheless remains. In the euro area, this could materialize via spillovers from higher yields in other advanced economies, in particular the US. As investors continue to extend the duration of their fixed income portfolios, they are exposed to increased market risk. (5/24/2017)
Report on the results of the Survey on the Access to Finance of Enterprises in the euro area. The ECB announced that it has published its 16th report on the results of the “Survey on the Access to Finance of Enterprises.” The report provides evidence on changes in the financial situation, financing needs and access to financing of small and medium-sized enterprises (SMEs) in the euro area in the six months from October 2016 to March 2017, as well as comparing the situation of SMEs with that of large enterprises. (5/24/2017)
PRA updates firms on risk-based levies for the FSCS deposits class. The Prudential Regulation Authority notified firms that the Financial Services Compensation Scheme compensation levies assessed this year will be adjusted for the degree of risk incurred by deposit takers. The adjustment will be reflected in the invoice firms receive from the UK Financial Conduct Authority in July. (5/31/2017) PRA FSCS update.
PRA issues updates on Capital+ reporting templates and instructions. The PRA issued an update on the submission system, templates, and instructions for Capital+ reporting. The update includes instructions from the PRA for firms to report monetary values for forecast capital data in units rather than in thousands when the requirements take effect on October 1, 2017. The PRA also updated the template for PRA105 “Balance sheet - forecast data (Liabilities)” to correct an administrative error. (5/30/2017) PRA CRD reporting requirements.
FCA finalizes rules on information prompts in the annuity market. The FCA published a policy statement containing final rules that require firms to inform consumers how much they could gain from shopping around and switching providers before they buy an annuity. Firms will need to comply with the final rules beginning on March 1, 2018. (5/26/2017) FCA press release.
BOE announces launch of FX Global Code. The Bank of England announced the publication of the Foreign Exchange Global Code, which establishes a common set of guidelines for good practice and conduct in the FX market. The FX Global Code supersedes and substantively updates existing guidance for participants in FX markets provided by the Non-investment Products Code. (5/25/2017) BOE press release. See also the FCA’s statement welcoming the publication of the FX Global Code.