Commission extends transitional period for CCP exposures: The Commission has adopted an Implementing Act to extend the transitional period for EU banking groups' exposures to Central Counterparties (CCPs) under the Capital Requirements Regulation (CRR). How much the capital requirement is depends on whether the CCP is a "qualifying" CCP under the European Market Infrastructure Regulation (EMIR). Because the EMIR recognition process for CCPs is slow, the Commission has extended the original transitional period within which higher requirements will not apply by six months to 15 June 2015. This will allow capital relief to apply in respect of CCPs which are being assessed by ESMA but are not yet recognised. (Source: Commission Extends Transitional Period for CCP Exposures)

Commission adopts first risk weighting equivalence decision: The Commission has adopted its first equivalence decision for the purposes of risk weighting under the CRR. EU banks can apply preferential risk weights to relevant exposures to entities in third countries that are deemed equivalent. EBA and the Commission will update the list regularly. At the moment, the Commission has made the following equivalence decisions:

  • for exposures to credit institutions: Australia, Brazil, Canada, China, Guernsey, Hong Kong, India, the Isle of Man, Japan, Jersey, Mexico, the Principality of Monaco, Saudi Arabia, Switzerland, Singapore, South Africa and the USA;
  • for exposures to investment firms: Australia, Brazil, Canada, China, Saudi Arabia, Singapore, Mexico, South Africa and the USA;
  • for exposures to exchanges: Brazil, Canada, China, India, Japan, Mexico, Saudi Arabia, Singapore, South Africa and the USA. 

The Implementing Act takes effect from 1 January 2015. (Source: Commission Adopts First Risk Weighting Equivalence Decision)

Commission publishes 2015 work programme: The Commission's work programme for 2015 features little of relevance to financial regulation except work on a framework for non-bank financial institution resolution. However, the proposal for a revised Investor Compensation Directive has been dropped, with the Commission noting there was "no foreseeable hope" of agreement. (Source: Commission Publishes 2015 Work Plan)

Commission publishes AIF reporting legislation: The Commission has published the full text draft of the Delegated Regulation (EU) on the information to be provided by competent authorities to ESMA on the functioning of the EU passport for EU Alternative Investment Fund Managers (AIFMs), the marketing of non-EU Alternative Investment Funds (AIFs) by EU AIFMs and the management/marketing of AIFs by non-EU AIFMs. (Source: Commission Publishes AIF Reporting Legislation)

Commission publishes draft margin periods legislation: The Commission has published its final draft of delegated legislation on the specification of margin periods of risk under the CRR. (Source:Commission Publishes Draft Margin Periods Legislation)