ESAs’ paper on PRIIPs key information documents. The Joint Committee of the European Supervisory Authorities (ESAs) published a Technical Discussion Paper on risk, performance scenarios and cost disclosures for Key Information Documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs). Comments are due by August 17, 2015. (6/23/2015) ESMA news release.
EC’s Hill speech on Capital Markets Union audits. Jonathan Hill, of the European Commission, spoke at the FEE Audit Conference on the importance of audits to financial stability. He set out three principles which are important to audit reform and in the Capital Markets Union: transparency, choice, and competition. (6/23/2015) EC press release.
PRA and FCA strengthen remuneration rules. The Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) issued new remuneration rules which tighten deferral and clawback provisions surrounding bonuses for UK bankers. Among other things, the new rules extend the deferral period for senior managers to seven years, for risk managers to five years, and for all other staff to three to five years; extend the clawback period to seven years from award of variable remuneration for all material risk takers, with the possibility of three additional years for senior managers; and prohibit variable pay for non-executive directors. (6/23/2015) FCA press release; PRA press release. According to DealBook, the new rules reflect a trend across European nations strengthening rules surrounding remuneration, with some countries imposing even stricter guidelines.
FCA proposes to revoke rules on investing in authorized funds. The FCA proposes to revoke rules and guidance in the Conduct of Business sourcebook (COBS) related to investing in authorized funds through nominees which were to become effective on December 31, 2015. They plan on conducting research that would affect the rationale for most of COBS 14.4. Comments are due by July 17, 2015. (6/22/2015) FCA press release.
ECB launches TARGET2-Securities. The European Central Bank (ECB) launched TARGET2-Securities (T2S), a platform that will enable integrated securities settlement across Europe. T2S will be fully deployed across 21 European countries by February 2017. (6/22/2015) ECB press release.
EMU strategy published. The presidents of five EU institutions published their strategy for the future of the Economic and Monetary Union (EMU), “Completing Europe’s Economic and Monetary Union,” which lays out a roadmap for further integration of the euro area. (6/22/2015) ECB press release. See also EC news release.
EBA publishes consumer trends report. The European Banking Authority (EBA) in its fourth annual “Consumer Trends Report” looks at trends in mortgages, personal loans, deposits, payment accounts, and electronic money, and identifies in which areas the EBA will take action. (6/18/2015) EBA press release.
UK’s new bank accountability praised by SEC’s White. US SEC Chair Mary Jo White praised new British bank rules that make individual managers more accountable and said that the US should put more emphasis on personal accountability. (6/18/2015) Reuters.
FCA’s Wheatley speech on financial confidence. Martin Wheatley, CEO of the FCA, spoke at the International Organization of Securities Commissions (IOSCO) conference about the financial environment since the 2008 crisis and how it is now rebuilding and becoming more confident. He went on to discuss the importance of personal accountability and regulation. (6/17/2015) FCA press release.
FCA’s Woolard on new priorities for banking reform. Christopher Woolard, Director of Strategy & Competition at FCA, in a speech at the Warwick Business School, outlined FCA’s priorities including accountability, competition and consumer protection, and innovation. (6/17/2015) FCA press release.
EC welcomes shadow banking agreement. The European Commission (EC) welcomes the agreement between the EC, the European Parliament and the Council of the EU on the regulation proposal on reporting and transparency of securities financing transactions (SFTR). The proposed regulation aims to increase the transparency in the shadow banking sector. (6/17/2015) EC press release.
EBA issues annual report. The EBA issued its 2014 Annual Report, which looks at past accomplishments and areas of future focus. (6/15/2015) EBA press release.
PRA publishes annual report. The PRA published “Prudential Regulation Authority Annual Report and Accounts 2015.” (6/15/2015) PRA press release.
PRA publishes Solvency II reports. PRA published “Solvency II: ORSA and the ultimate time horizon — non-life firms — SS26/15,” which sets out expectations of how non-life firms should identify and manage all risks. In addition, PRA published “Solvency II: regulatory reporting, internal model outputs — SS25/15,” which provides further clarity on the information to be reported by firms using an internal model to calculate the solvency capital requirement. (6/15/2015) PRA press release (non-life); PRA press release (internal model).
ESMA annual report and strategy. The European Securities and Markets Authority (ESMA) published its strategy for 2016-2020 and its annual report for 2014. (6/15/2015) ESMA press release.
FCA publishes restrictions on retail distribution of CoCos. FCA published “PS15/14: Restrictions on the retail distribution of regulatory capital instruments,” which sets out the rules for contingent convertible securities (CoCos) that become effective October 1, 2015, and mutual society shares that become effective July 1, 2015. (6/12/2015) FCA press release.
FCA publishes final rules on Guaranteed Asset Protection insurance. The FCA published “PS15/13: Guaranteed Asset Protection insurance: competition remedy” which outlines the final rules that become effective September 1, 2015. (6/10/2015) FCA press release.
ESAs request comments on margin requirements for OTC derivatives. The ESAs request comments on draft Regulatory Technical Standards (RTS) on risk mitigation techniques for over-the-counter derivative contracts not cleared by central clearing. Comments are due by July 10, 2015. (6/10/2015) ESMA press release.