European Union European Central Bank
Results of the October euro area bank lending survey. The ECB announced the release of its October 2017 euro area bank lending survey which determined, among other things, that standards for loans to enterprises remained broadly unchanged in the third quarter of 2017, despite expectations in the previous survey round that they would continue to ease. (10/24/2017)
Report on financial structures shows ongoing consolidation in the banking sector. The ECB announced the release of its report on financial structures which determined, among other things, that the number of credit institutions in the euro area banking sector declined by 25 percent between 2008 and 2016. (10/23/2017)
Survey results on credit terms and conditions in euro-denominated SESFOD markets. The ECB announced that it has released the results of the September 2017 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter derivatives markets (SESFOD). Survey respondents reported that, on balance, credit terms offered to counterparties in both securities financing and over-the-counter derivatives transactions over the three-month reference period remained basically unchanged. The relative stability in overall credit terms over the past two reference periods follows the considerable net tightening of credit terms reported throughout the previous two years. (10/19/2017)
ESMA agrees MiFID II position limits proposed by FCA. ESMA announced that it has published nine opinions on position limits regarding commodity derivatives under the Markets in Financial Instruments Directive and Regulation (MiFID II/MIFIR). (10/24/2017)
Watch the ESMA conference. ESMA announced that its first conference, entitled The State of European Financial Markets, which took place on October 17 at the Westin Grand Paris – Vendôme, is now available on video playback. (10/20/2017)
ESMA receives mandate on fund performance from EC. ESMA announced that it has received a mandate from the EC requesting the ESAs to issue recurrent reports on the cost and past performance of the main categories of retail investment, insurance and pension products. (10/19/2017)
ESMA produces first overview of EU derivative markets size. ESMA announcedthat it has produced, for the first time, data on the size of the interest rate, credit, equity, commodity and foreign exchange derivatives markets in the EU, based on the weekly data it receives from trade repositories. (10/19/2017)
ESMA publishes the responses to its Consultation on Guidelines on certain aspects of the MiFID II suitability requirements. ESMA published the responsesto its Consultation on Guidelines on certain aspects of the MiFID II suitability requirements. (10/18/2017)
ESMA launches key MiFID II and MAR financial instrument reference database. ESMA announced that it has launched the second phase of its Financial Instrument Reference Database. The launch involves providing access to the databasecontaining the currently available reference data that will eventually enable market participants to identify instruments subject to MAR and MiFID II/MiFIR reference data reporting requirements. This will allow market participants to prepare their reporting systems ahead of the go-live date on January 3, 2018. (10/16/2017)
ESMA publishes the responses to its Consultation on technical advice under the new Prospectus Regulation. ESMA published the responses to its Consultation on technical advice under the new Prospectus Regulation. (10/13/2017)
European Banking Authority
EBA updates list of public sector entities for the calculation of capital requirements. The EBA announced that it has published an updated list of public sector entities that may be treated as regional governments, local authorities or central governments for the calculation of capital requirements, in accordance with the EU Capital Requirements Regulation. (10/18/2017)
EBA publishes final Guidelines on procedures for complaints of alleged infringements of PSD2. The EBA announced that it has published its final Guidelines on complaints procedures to be followed by competent authorities to ensure and monitor effective compliance by payment service providers with the revised Payment Services Directive. (10/13/2017)
EBA provides guidance to authorities and institutions on Brexit relocations. The EBA announced that it has published an Opinion on Brexit to ensure the consistent application of Union legislation to businesses seeking to establish or enhance their EU27 presence in order to retain access to the EU Single Market. (10/12/2017)
EBA corrects portfolio identifiers for 2018 benchmarking exercise to ensure effective data validation. The EBA announced that it has rectified Annex 1 of its ITS on benchmarking of internal approaches, which had been amended on May 4, 2017, to define the benchmarking portfolios for the 2018 benchmarking exercise. (10/12/2017)
EBA consults on reporting for resolution plans. The EBA announced its launch of a consultation to amend the Implementing Technical Standards on the information that institutions must provide to resolution authorities for the purpose of drawing up and implementing resolution plans. This review aims to update the framework taking into account the latest experience available in the areas of resolution planning and supervisory reporting. The consultation runs until December 11, 2017. (10/11/2017)
FCA releases complaints data for first half of 2017. The UK Financial Conduct Authority published complaints data for the first half of 2017, which showed that the number of complaints recorded by firms increased to 3.32 million in comparison to the 3.04 million complaints reported during the second half of 2016. (10/23/2017) FCA press release.
FCA evaluates success of regulatory sandbox’s first year. The FCA released a report that assesses how well its regulatory sandbox has met its objectives after one year of operation. The report found that the sandbox has reduced the time and costs for firms of bringing innovative ideas to market and has helped firms access funding for their innovative products. (10/20/2017) FCA press release.
FCA launches review of debt management sector. The FCA announced that it will conduct a thematic review of the debt management sector in an effort to understand how firms are meeting the needs of customers, both in the initial advice process and in the service that customers receive. The FCA expects to complete the review in early 2019. (10/19/2017) FCA press release.
Regulation round-up. The FCA published the October 2017 edition of its Regulation round-up. (10/19/2017)
FCA issues notice of Handbook changes. The FCA published a Handbook Notice that sets out the changes made to the FCA Handbook by the FCA Board at its September and October meetings. (10/19/2017) FCA Handbook Notice 48.
PRA finalizes expectations for reporting market risk sensitivities under Solvency II. The Prudential Regulation Authority published a policy statement that sets out the PRA’s expectations for the reporting of sensitivities of solvency positions to key market risks by firms with material exposure to market risk. The PRA also published the final supervisory statement on the data collection requirements for reporting market risk sensitivities, including templates and instructions, alongside the policy statement. (10/18/2017) PRA press release.
PRA seeks comments on insurance data release. The PRA requested comments on a release of insurance data that presents several metrics over 2016 from the quarterly reporting templates of life insurers and general insurers, including metrics related to capital, assets and technical provisions, such as risk margin. Comments on the release are due on or before December 31, 2017. (10/18/2017) PRA insurance data release.
PRA summarizes feedback on SFCR disclosures. The PRA published a summary of the feedback the PRA received from insurers, investors, credit analysts and equity analysts during roundtables on the first round of Solvency and Financial Condition Reports (SFCRs), which form part of insurers’ Pillar 3 disclosure obligations under Solvency II. (10/18/2017) PRA report.
FCA identifies failures by general insurance firms in complying the renewal transparency rules. The FCA summarized the findings of multi-firm review of general insurance renewals, which examined how well firms have implemented new rules on transparency during the renewal process. The FCA found that firms were not prepared to implement the new rules accurately. Many firms failed to provide correct premium information; present the premiums and shopping around message clearly; apply the rule changes for all products and customers; and properly identify a “renewal.” (10/18/2017) FCA press release.
FCA releases results of Financial Lives Survey. The FCA published the findings of its first Financial Lives Survey, which collected information from consumers in six different age groups about their experiences using financial products and services and dealing with the firms that provide them. Among other things, the survey found that half of adults displayed characteristics that make them potentially vulnerable to risk of financial harm, with an increased evidence of vulnerable characteristics among adults aged 75 and older. (10/18/2017) FCA press release.
FCA launches new resource for asset management firms applying for authorization. The FCA has launched the first phase of a new asset management authorization hub, which is designed to help firms when applying for authorization and throughout the authorization process. (10/16/2017) FCA press release.
BOE prepares for implementation of SONIA reforms. The Bank of England announced that reforms to the SONIA interest rate benchmark, which include a new calculation methodology, will become effective on April 23, 2018. The BOE also published the SONIA Key Features and Policies document, which summarizes how SONIA will be calculated and administered, including the governance arrangements, following the implementation of the reforms. (10/16/2017) BOE press release.
2017 Q3 bank liabilities survey. The BOE published the findings of the bank liabilities survey for the third quarter of 2017, which covers developments in the volume and price of bank funding; the loss-absorbing capacity of banks; and the internal price charged to business units within individual banks to fund the flow of new loans. (10/12/2017) BOE press release.
BOE publishes credit conditions survey and review. The BOE released the results of its survey and review of credit conditions for the third quarter of 2017, which look at bank funding, lending trends, and household and corporate credit conditions. (10/12/2017)