Source/Date Brief description

European Supervisory Authorities (ESAs)

June 1, 2022

ESAs publish joint report on withdrawal of authorization for serious breaches of AML/CFT rules

The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) published a joint report, which provides a comprehensive analysis on the completeness, adequacy and uniformity of the applicable laws and practices on the withdrawal of license for serious breaches of the rules on anti-money laundering and countering the financing of terrorism (AML/CFT). The joint Report advocates for the introduction in all relevant EU sectoral laws of a specific legal ground to revoke licenses for serious breaches of AML/CFT rules.

More information is available here.

Basel Committee on Banking Supervision (BCBS)

May 31, 2022

Basel committee finalizes principles on climate-related financial risks

The Basel Committee published a finalized set of principles for the effective management and supervision of climate-related financial risks. It also furthered its work on specifying a prudential treatment of crypto-assets and issuing a second consultation paper and also agreed on a way forward to reflect developments in the European banking union on the assessment methodology for global systemically important banks (G-SIBs). In addition, the Committee is continuing to assess risks to and vulnerabilities of the global banking system, including those ensuing from the war in Ukraine.

More information is available here.

European Securities and Markets Authority (ESMA)

May 31, 2022

ESMA provides supervisors with guidance on integration of sustainability risks and disclosures related to asset management

ESMA published a supervisory briefing to ensure a convergence across the EU in the supervision of investment funds with sustainability features, and in combating greenwashing by investment funds. This work will help combat greenwashing by establishing common supervisory criteria for National Competent Authorities, to effectively supervise investment funds with sustainability features.

More information is available here.

European Central Bank (ECB)

May 25, 2022

Russia-Ukraine war increases financial stability risks

In its May 2022 Financial Stability Review, the ECB concluded that financial stability conditions in the euro area have worsened due to the Russian invasion of Ukraine, which has led to higher energy and commodity prices and an increased risk of euro area inflation and slower growth. Prices for commodities and energy have remained elevated and volatile, which has caused some stress in the derivatives markets for these products.

More information is available here.

European Commission (EC)

May 24, 2022

CRD 4: EU Commission adopts amendments to ITS on benchmark portfolios, reporting templates and reporting instructions

The European Commission adopted an implementing regulation amending (i) the implementing technical standards (ITS) on benchmark portfolios, (ii) reporting templates and (iii) instructions for reporting under the Capital Requirements Directive (CRD 4). The adoption of International Financial Reporting Standard 9 (IFRS9) introduces new rules for the measurement of credit losses and directly impacts the amount of own funds and regulatory ratios reported.

More information is available here.

European Securities and Markets Authority (ESMA)

May 23, 2022

ESMA study looks at reasons for lower costs in ESG funds

The ESMA study analyzed the potential reasons behind the relatively lower ongoing costs and better performance, of environmental, social and governance (ESG) funds, between April 2019 and September 2021, when compared with other funds. ESMA recently determined that ESG equity undertakings for collective investment in transferable securities (UCITS), excluding exchange-traded funds were cheaper and better performers in 2019 and 2020 compared with non-ESG peers. In its article ESMA is looking at some of the potential drivers behind this relative cheapness, and outperformance, of ESG funds, and finds several differences between the two categories of funds.

More information is available here.

European Banking Authority (EBA)

May 23, 2022

EBA publishes final technical standards to identify shadow banking entities

The EBA’s final draft Regulatory Standards (RTS) specify the criteria to identify shadow banking entities for the purposes of reporting large exposures. It clarifies that entities carrying out banking activities or services are not considered shadow banking entities, provided that they have been authorized and supervised in accordance with the EU prudential framework.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

May 20, 2022

EIOPA assesses European insurers’ exposure to physical climate change risks

EIOPA published a report providing an initial assessment of the European insurance sector’s exposure to climate-related hazards based on a large data collection exercise from the industry. It focuses on property, content and business interruption insurance against wind storms, wildfires, river floods and coastal floods. The report further aims to inform future work in this relatively new field.

More information is available here.

European Securities and Markets Authority (ESMA)

May 19, 2022

ESMA launches four consultation on CCP resolution regime

ESMA’s four consultation papers on its proposed Guidelines for the EU central counterparty (CCP) resolution regime cover two mandated proposals for Guidelines on assessing resolvability by resolution authorities and on the type and content of provisions included in cooperation arrangements between member states and third-country authorities. The consultations are intended to further advance the recovery and resolution regime for CCPs, with the proposed Guidelines complementing the new Recovery and Resolution Regulation, and will provide further guidance on cooperation as well as provide EU regulators with the necessary tools to ensure supervisory convergence across the EU.

More information is available here.

European Securities and Markets Authority (ESMA)

May 19, 2022

ESMA encourages crowdfunding service providers to accelerate their transition to the new regime

ESMA published its final report on the relevance of extending the transitional period set out in Article 48 of the Crowdfunding Regulation. Crowdfunding service providers (CSPs) that provide their services only on a national basis currently benefit from a transitional period that is set to expire on November 10, 2022. In its final report, ESMA discusses the application of the CR to these CSPs as well as the relevance of extending the transitional period set out in Article 48.

More information is available here.

European Commission (EC)

May 17, 2022

EU Commission adopts RTS specifying emerging markets and advanced economies

The European Commission adopted a delegated regulation setting out Regulatory Technical Standards (RTS) on emerging markets and advanced economies under the CRR. The RTS identify countries that are considered advanced economies for the purpose of identifying the appropriate risk weight to capture equity risk under the market risk framework. Markets not considered as advanced economies should be regarded as emerging markets.

More information is available here.

European Banking Authority (EBA)

May 17, 2022

EBA publishes peer review on management of non-performing exposures

EBA has published the conclusion of its peer review of how prudential and consumer protection authorities supervise the management of non-performing exposures (NPE) by institutions and have implemented the EBA Guidelines on the management of NPE. The analysis suggests that the competent authorities across the EU have applied a risk-based approach to the supervision of NPE management.

More information is available here.

European Securities and Markets Authority (ESMA)

May 16, 2022

ESMA publishes final reports on CCP resolution regime

ESMA published six final reports on the central counterparties (CCPs) resolution regime under the CCP Recovery and Resolution Regulation. The reports set out proposals for Regulatory Technical Standards (RTS) on the content of CCP resolution plans, resolution colleges, valuation of CCPs’ assets and liabilities in resolution as well as on safeguards for clients and indirect clients.

More information is available here.

European Banking Authority (EBA)

May 13, 2022

EBA publishes final technical standards on crowdfunding service providers

The EBA published its final draft Regulatory Technical Standards (RTS) specifying the information that crowdfunding service providers must provide to investors for calculating credit scores and prices of crowdfunding offers. The final draft RTS also specify the minimum common standards with regard to (i) information to be considered in credit risk assessments and loan valuations and (ii) the underlying policies and governance arrangements.

More information is available here.

European Securities and Markets Authority (ESMA)

May 13, 2022

ESMA reminds issuers of the main IFRS requirements amid the war in Ukraine

ESMA published a public statement on the implications of Russia’s invasion of Ukraine on half-yearly financial reports. In its statement, ESMA sets out the human cost of Russia’s military aggression against Ukraine, and the significant challenges to business activities and effects on the global economic and financial system posed by the invasion.

More information is available here.

European Commission (EC)

May 11, 2022

EC publishes proposal for directive on distance contracts for financial services

The European Commission published a legislative proposal for a directive concerning financial services contracts concluded at a distance. The proposed directive will repeal the Distance Marketing Directive (2002/65/EC) and transfer the framework for consumer protections relating to financial services distance contracts to the Consumer Rights Directive (2011/83/EU).

More information is available here.

European Banking Authority (EBA)

May 11, 2022

EBA publishes annual report on convergence of supervisory practices for 2021, noting places for improvement

The report points out that Competent Authorities have made progress in implementing the EBA Guidelines on the supervisory review and evaluation process. It also identified Competent Authorities’ consistent implementation into their supervisory practices of the key supervisory priorities for 2021 and sets expectations for improvement in areas such as ICT risks (cyber risk and business model challenges) and the respective digital transformation.

More information is available here.

European Supervisory Authorities (ESAs)

May 10, 2022

ESAs call for improvements in product descriptions intended for retail investors

The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) issued a joint supervisory statement regarding the “What is this product?” section of the key information document (KID) for packaged retail and insurance-based investment products (PRIIPs). The expectations put forward in the supervisory statement are to improve the quality of descriptions provided by PRIIPs manufacturers and thereby contribute to better protection of retail investors.

Most issues that ESAs have identified relate to a general lack of text clarity, which makes it difficult for retail investors to understand a product’s key features.

More information is available here.

European Banking Authority (EBA)

May 10, 2022

EBA designs efficient framework for reporting deposits subject to Russian and Belarusian economic sanctions

Following a request from the European Commission, the EBA has developed a template for the annual reporting of information on deposits subject to the Russia and Belarus Economic Sanctions Regulations. The EBA is making the template available for voluntary use by the relevant nationally competent authorities and by the EC, with the aim of promoting a convergent approach and to reduce any associated reporting costs, especially for cross-border banks.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

May 6, 2022

EIOPA reacts to stakeholder views on blockchain in insurance

The European Insurance and Occupation Pensions Authority (EIOPA) published a feedback statement on blockchain and smart contracts in insurance that provides a high-level summary of the responses received from stakeholders during a public consultation on the topic as well as EIOPA’s reactions to them. EIOPA notes that insurers see potential in blockchain and are exploring possible use cases across the insurance value chain to streamline business and better serve customers.

More information is available here.

European Banking Authority (EBA)

May 5, 2022

EBA updates technical standards in view of its 2023 benchmarking of internal approaches

EBA published an update to its Implementing Technical Standards, which specifies the data to be collected for the supervisory benchmarking exercise of 2023 in relation to the internal approaches used in market and credit risk and IFRS9 accounting. It includes all benchmarking portfolios and metrics that will be used for the 2023 exercise, which is an essential supervisory tool to monitor and enhance the quality of internal models.

More information is available here.

European Central Bank (ECB)

May 5, 2022

ECB amends monetary policy implementation guidelines

The ECB published amendments to its guidelines on the implementation of monetary policy in the Eurosystem. Among other changes the amended guidelines contain the first step in gradually phasing out the pandemic collateral easing measures introduced in April 2020 as announced on March 24, 2022.

More information is available here.

European Banking Authority (EBA)

May 3, 2022

EBA publishes amended final draft technical standards on mapping of ECAIs for securitization positions

EBA published its final draft Implementing Technical Standards to amend the implementing regulation on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for securitization positions. The changes reflect the relevant amendments introduced by the new Securitization Framework, as well as the mappings for three ECAIs that extended their credit assessments to cover securitizations.

More information is available here.

European Banking Authority (EBA)

May 3, 2022

EBA updates guidelines for assessing professional secrecy regime equivalence for third-country authorities

The EBA published its updated Guidelines for assessing the equivalence of professional secrecy and confidentially regimes of third-country authorities. The scope of the assessment has been widened to include all relevant provisions in the CRD, PSD2, BRRD and AMLD, as applicable to the specific third-country authorities, as has its purpose—to support cooperation arrangements and facilitate participation in supervisory, resolution and AML colleges.

More information is available here.

European Supervisory Authorities (ESAs)

May 2, 2022

ESAs consult on sustainability disclosures for STS securitizations

The European Supervisory Authorities (EBA, EIOPA and ESMA) published a joint Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) on the content, methodologies and presentation of information in respect of the sustainability indicators for simple, transparent and standardized (STS) securitizations.

More information is available here.

Financial Stability Board (FSB)

April 29, 2022

FSB launches consultation on supervisory and regulatory approaches to climate-related risks

The FSB published a report to assist supervisory and regulatory authorities in developing their approaches to monitor, manage and mitigate cross-sectoral and system-wide risks arising from climate change and to promote consistent approaches across sectors and jurisdictions.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 29, 2022

EIOPA publishes advice on retail investor protection

EIOPA published its final report including advice to the European Commission on retail investor protection in connection with the sale of Insurance-Based Investment Products (IBIPs).

More information with the main findings in the areas which the Commission asked EIOPA to address in it Call for Advice can be found here.