EP committees approve MLD4: The Economic Affairs and the Justice and Home Affairs committees in EP have approved (MLD4). They focused on the new requirement for public listing of the ultimate owners of companies and trusts, backing the need for public central registers (which the original Commission proposal had not included). EP will vote in plenary in March, and the new Parliament which will be elected in May will negotiate in trilogue in the second half of the year. The Council has also published a third compromise text for the Directive. (Source: EP Committees Approve MLD4)
EP and Council back UCITS V: EP and the Council have approved the Commission's proposals to increase protection for investors in UCITS. UCITS V will:
- protect investors' assets in the event of depositary insolvency;
- reform remuneration controls for all risk-takers involved in managing UCITS funds; and
- strengthen sanctions for breach of UCITS Directive requirements.
(Source: EP and Council Back UCITS V)
ECON approves PSD2: The Committee on Economic and Monetary Affairs (ECON) in EP has backed PSD2 and the related Regulation capping interchange fees. For debit card transactions, ECON has placed the cap at 7 euro cents or 0.2% of the transaction value, whichever is lower. The cap on fees applied to credit card transactions remains the same at 0.3%. In a related development, the Commission has made legally binding Visa Europe's commitments to cut interbank fees for credit cards to 0,3% and to allow acquirers to apply the reduced fees for cross-border clients. (Source: MEPs Back Cap on Card Payment Fees, ECON Backs Plan to Update Online Payment Rules and Commission Makes Visa Europe's Commitments to Cut Inter-Bank Fees and to Facilitate Cross-Border Competition Legally Binding)
ECON adopts its position on IMD2: ECON has voted on its amendments to IMD2, which include requirements on sellers of insurance to disclose their remuneration and to take out cover against professional negligence claims. Brokers and sellers would also have to participate in a guarantee fund or have a minimum permanent financial capacity proportional to the sum of premiums received. The other main amendment discussed was a requirement to allow customers to buy each part of an insurance package separately. (Source: Insurance: Better Information, Advice and Protection for Clients)