EBA consults on simple, standard and transparent securitizations. The European Banking Authority launched a consultation on its discussion paper on simple, standard and transparent securitizations. Comments should be submitted by January 14, 2015. (10/14/2014) EBA press release.
ESMA announces open hearing on EuSEF regulation. The European Securities and Markets Authority announced that it will hold an open hearing on November 10, 2014 to discuss the European Social Entrepreneurship Funds Regulation and the European Venture Capital Fund Regulation. ESMA had published earlier a consultation on the Technical Advice to the European Commission on the implementing measures of the European Social Entrepreneurship Funds Regulation and the European Venture Capital Fund Regulation. The consultation closes on December 10, 2014. (10/14/2014) ESMA notice.
ESMA updates CRA data. The European Securities and Markets Authority published its latest set of semi-annual statistical data on the performance of credit ratings, including transition matrices and default rates. (10/14/2014) ESMA notice.
UK PRA consults on proposed regulation of with-profit insurance. The UK Prudential Regulatory Authority published a consultation paper proposing changes to its regulation of UK with-profits insurance business. The paper consults on changes to the rules that would apply to firms that write with-profits business, and contains a draft supervisory statement which sets out the PRA’s expectations of firms. The Financial Conduct Authority simultaneously published feedback statement FS14/1 which describes the FCA’s conduct approach to regulation of with-profits insurance business, and provides feedback on responses to the amendments to COBS 20 proposed by the Financial Services Authority. Comments on the PRA’s consultation should be submitted by January 14, 2015. (10/14/2014)PRA press release. See also FCA press release.
EBA 2015 work plan. The European Banking Authority published its work program for 2015. (10/13/2014) EBA press release.
EC adopts rules for insurers. The European Commission adopted delegated acts under the Solvency II Directive and the Capital Requirements Regulation. The implementing rules adopted by the delegated acts make up the core of the single prudential rulebook for insurance and reinsurance undertakings in the European Union. (10/10/2014) Delegated acts webpage.
Stress test results. The European Banking Authority will publish the 2014 EU-wide stress test results on October 26, 2014. (10/10/2014) EBA press release. The UK variant stress test results will be published on December 16, 2014. (10/10/2014) Bank of England press release.
Joint Committee’s 2015 agenda. The Joint Committee of the European Supervisory Authorities (EBA, ESMA and EIOPA) published its Work Program for the upcoming year. Throughout 2015, the Joint Committee will continue to give high priority to consumer protection and cross-sectoral risk analysis. (10/10/2014) ESMA notice.
UK FCA confirms definition of “platform service.” The UK Financial Conduct Authority has confirmed the definition of “platform service” as an online administration service with a single point of contact to the investment market for consumers or their advisers. (10/8/2014) FCA notice.
ECB survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets. The European Central Bank published the results of its September 2014 survey of credit terms and conditions in euro-denominated securities financing and OTC derivatives markets. Survey results suggest that credit terms have become somewhat more favorable for many counterparty types and credit terms for funding that is collateralized by euro-denominated securities have become less stringent for many collateral types. (10/8/2014) ECB press release.
EBA reports on Additional Tier 1 of EU institutions. The European Banking Authority reported the first results of its review of the issuances of Additional Tier 1 capital instruments by EU institutions. (10/7/2014) EBA press release.
UK PRA publishes financial reform proposals. The UK Prudential Regulation Authority published four proposals aimed at protecting customers if a deposit-taking bank or an insurer collapses. The proposals implement the Banking Reform Act of 2013 which requires the implementation of rules to “ring-fence” core banking services in the UK from activities associated with trading and financial interconnectedness. The four proposals address the implementation of ring-fencing, depositor protection, policyholder protection and a discussion paper on operational continuity in resolution. Comments on any of the consultations should be submitted by January 6, 2015. (10/6/2014) Bank of England press release.
EBA consults on group financial support. The European Banking Authority launched a consultation on draft Regulatory Technical Standards and Guidelines specifying the various conditions for the provision of group financial support, and on draft Implementing Technical Standards on the disclosure of group financial support agreements. The draft standards aim at strengthening integrated risk management by removing possible uncertainties around supporting entities in distress within the same group. Comments should be submitted by January 4, 2015. (10/3/2014) EBA press release.
FCA consultation on registrations under the Co-operative and Community Benefit Societies Act 2014. The UK Financial Conduct Authority published a consultation paper on the general guidance it plans to provide on the exercise of its functions related to societies registered under the Co-operative and Community Benefit Societies Act 2014. The proposed guidance sets out the FCA’s approach as registering authority and explains societies’ obligations and legal processes, and is aimed at making the registration process more transparent. Comments should be submitted by November 28, 2014. (10/2/2014) FCA press release.
ECB announces operational details of ABS and covered bond purchase program. The European Central Bank agreed on the details for the operation of its new program to buy asset-backed securities and a broad portfolio of euro-denominated covered bonds as part of its effort to facilitate credit provision to the euro area economy. (10/2/2014) ECB press release.
ESMA consults on draft standards for the clearing of forex non-deliverable forwards. The European Securities and Markets Authority published a consultation on the draft regulatory technical standards it has to develop under the European Markets Infrastructure Regulation for the clearing of foreign-exchange non-deliverable forwards. Comments should be submitted by November 6, 2014. (10/1/2014) ESMA notice.
ESMA 2015 work program. The European Securities and Markets Authority published its 2015 Work Program. (10/1/2014) ESMA notice.
EBA consults on treatment of liability in bail-in. The European Banking Authority launched a consultation on draft guidelines clarifying the interrelationship between the sequence in which liabilities should be written down or converted when the bail-in power introduced by the Bank Recovery and Resolution Directive is used, and the hierarchy of capital instruments in the Capital Requirements Regulation. Comments should be submitted by January 3, 2015. (10/1/2014) EBA press release.
European Commission adopts credit rating agency rules. The European Commission adopted three Regulatory Technical Standards (RTS) that implement provisions of the Regulation on Credit Rating Agencies. The RTS set out the disclosure requirements for issuers, originators and sponsors on structured finance instruments; reporting requirements to credit rating agencies for the European Rating Platform; and reporting requirements for CRAs on fees for the purpose of ongoing supervision by the European Securities and Markets Authority. (9/30/2014) EC press release.