The regulation on transparency of securities financing transactions and of reuse (the “SFTR”) was published on 23 December 2015. The SFTR will eventually bring an EMIR-style transaction reporting regime to securities lending, requiring counterparties to report securities financing transactions to a trade repository.
For more detailed information, see the Dechert OnPoint 'New EU Regulation on Securities Financing Transactions and Reuse of Collateral'
The EBA published final guidelines on sound remuneration policies and its opinion on the application of proportionality on 21 December 2015. The guidelines aim to ensure that institutions calculate correctly and consistently the so called ‘bonus cap' by setting out specific criteria for mapping all remuneration components into either fixed or variable pay and detailing how specific remuneration elements such as allowances, sign-on bonuses, retention bonuses and severance pay are to be recognised.
The opinion is available on the EBA website.
The EU Council published its work programme for the next 18 months on 30 December. The following areas will be priorities:
- Money Market Funds Regulation
- Banking Structural Reform Regulation
- Single Resolution Mechanism implementation
- Upcoming proposal on the Resolution of Central Counterparties ("non-bank resolution")
- Review of funding and governance of structures of European Supervisory Authorities
- European Deposit Insurance Scheme
- Capital Markets Union Action Plan, including a reduction of capital charges for infrastructure investments
- Securitisation proposal
- Review of the Prospectus Directive
Read the press release '18-month Programme of the EU Council for the Dutch, Slovak and Maltese Presidencies'