Joint Regulatory Actions
Harmonized Guidelines for Customer Complaints
The European Securities and Markets Authority and the European Banking Authority (“EBA”) published the “Joint Committee final Report on guidelines for handling consumer complaints in the securities and banking sectors.”
European Banking Authority
Asset Disclosure Guidelines
The EBA published final guidelines on the disclosure of encumbered and unencumbered assets. The guidelines provide three disclosure templates and a box for narrative information to be filled in by the institutions about the importance of encumbrance in their funding model.
Countercyclical Capital Buffer Proposal
The EBA has requested comment on draft regulatory technical standards on what information institutions must disclose in relation to their requirements for a countercyclical capital buffer. Two disclosure templates are proposed. Comments should be submitted on or before September 27, 2014.
Capital Requirements Disclosure Consultation
The EBA has requested comment on three proposed guidelines related to the information that institutions in the European Union banking sector should disclose under Part Eight of the Regulation (EU) No 575/2013 (Capital Requirements Regulation - CRR). The proposal addresses materiality, proprietary and confidentiality as well as the frequency of the disclosures. Comments should be submitted on or before September 13, 2014.
The EBA published an analysis of the remuneration practices of sample E.U. banks. The report provides benchmarks for different aspects of remuneration policies.
New European Union rules regarding remuneration in banks and investment firms became effective on June 26, 2014. The new rules relate to the identification of categories of staff whose professional activities have a material impact on an institution's risk profile. See E.C. Memo.
Single Resolution Mechanism
The European Commission requested comment on how credit institutions should contribute to the resolution financing arrangements under the Bank Recovery and Resolution Directive and the Single Resolution Mechanism. Comments should be submitted on or before July 14, 2014.
European Securities and Markets Authority
Draft Regulatory Technical Standards
European Securities and Markets Authority (“ESMA”) published a final report on draft Regulatory Technical Standards (“RTS”) required under the Credit Rating Agencies Regulation. The draft RTS cover structured finance instruments disclosure requirements; the European Rating Platform; and the periodic reporting on fees charged by CRAs. The draft RTS incorporates existing disclosure and reporting requirements adopted by the European Central Bank and Bank of England. The disclosure obligations also provide for standardized investor reporting and disclosure of transaction documents. The draft has been submitted to the European Commission for its approval.
ESMA updated its guidance concerning the implementation of the European Markets Infrastructure Regulation. The guidance addresses the population of specific fields relating to reporting of data on exposures; the reporting start date; and the reporting of contracts with no maturity date, the notional amount field, OTC derivatives novations, and backloading.
Application of IFRS
ESMA published its findings after its review of how firms applied the accounting requirements for business combinations in IFRS financial statements. Although the results of the review show that some good business combination disclosures were provided, ESMA identified certain areas where improvements are warranted.
ESMA published its Annual Report for 2013, which provides an overview of ESMA’s activities