News from Europe

European Union

ESMA publishes an opinion on MAR-accepted market practices on liquidity contracts. ESMA announced that it has published an opinion on the points for convergence in relation to accepted market practices under the Market Abuse Regulation (MAR) on liquidity contracts. (4/25/2017) 

ESMA advises EC on fees for trade repositories. ESMA announced its publication of its final technical advice to the European Commission regarding supervisory fees for Trade Repositories under the Securities Financing Transactions Regulation. (4/21/2017)

Results of the April 2017 euro area bank lending survey. The ECB announced the release of the results of its April 2017 euro area bank lending survey. Among other things, the survey found that increasing demand and eased lending conditions have been supporting loan growth. (4/25/2017)

ESMA discusses market-based finance in latest Banque de France Financial Stability Review. ESMA announced that it has published an article in the Banque de France’s latest Financial Stability Review No. 21 in which it discusses market-based finance in Europe. (4/20/2017) 

ESAs highlight main risks for the EU financial system. ESMA announced that The Joint Committee of the European Supervisory Authorities (EBA, EIOPA and ESMA) has published its spring 2017 Report on risks and vulnerabilities in the EU’s financial system. The Report highlights the risks to the stability of the European financial sector in an environment subject to political and economic uncertainties. (4/20/2017) 

ECB releases March 2017 survey on credit terms and conditions in euro-dominated securities financing and OTC derivatives markets. Among other things, the ECB’s survey results show less favorable non-price terms for secured funding and for non-cleared OTC derivatives; worsened market liquidity for underlying collateral; and less favorable credit terms than one year ago for most counterparty types. (4/19/2017) 

ESMA to cooperate with New Zealand’s regulators on CCPs. ESMA announced that it has established an MoU under the European Markets Infrastructure Regulation with Reserve Bank of New Zealand and Financial Markets Authority of New Zealand. The MoU establishes cooperation arrangements including the exchange of information, regarding Central Counterparties that are established and authorized or recognized in New Zealand, and which have applied for EU recognition under EMIR. (4/18/2017)

United Kingdom 

FCA finalizes guidance on the treatment of mortgage customers with payment shortfalls. The UK Financial Conduct Authority issued finalized guidance on the treatment of mortgage customers with payment shortfalls. The guidance includes a remediation framework for customers who may have been affected by the way firms calculate customers’ monthly mortgage payments. (4/24/2017) FCA press release. 

FCA announces its Mission and Business Plan. The FCA published its Mission and Business Plan for 2017/18. The Mission explains how the FCA’s overarching mission informs the FCA’s strategic decisions when intervening in financial markets. The Business Plan establishes the FCA’s priorities for the next year, which include, among other things, preparing for the UK’s withdrawal from the EU; encouraging consumers to make a decision about Payment Protection Insurance; and examining the issue of vulnerable consumers. (4/18/2017) FCA press release. 

FCA seeks comments on proposed approach to applying the revised Payment Services Regulations. The FCA published a consultation paper containing a Revised Approach Document that proposes how the FCA will approach the application of the Payment Services Regulations 2017 and the amended Electronic Money Regulations 2011. Comments are due on or before June 8, 2017. (4/13/2017) FCA press release. 

PRA finalizes policy and supervisory statements on remuneration expectations. The Prudential Regulation Authority issued a policy statement that responds to the feedback it received to its proposal to create a unified supervisory statement on remuneration and to provide additional guidance on the EBA Guidelines on Sound Remuneration Policies, material risk takers, and the application of malus and clawback to variable remuneration, among other things. The PRA also published a final supervisory statement on remuneration alongside the policy statement. (4/12/2017) PRA press release. 

FCA proposes guidance as part of implementation of FAMR recommendations. The FCA requested comments on proposed guidance as part of the first phase of implementing the recommendations from the Financial Advice Market Review, which included recommendations for the FCA to develop guidance for streamlined advice, the fact find process, and non-advised services, as well as to devise an employer and trustee factsheet. Comments on non-advised services are due on or before May 23, 2017. Comments on the remaining proposals are due on or before July 11, 2017. (4/11/2017) FCA press release.