FCA provides information on new resource for businesses in complying with financial sanctions. The UK Financial Conduct Authority provided information about the new Office of Financial Sanctions Implementation within HM Treasury, which the UK government created to assist UK businesses in understanding and complying with financial sanctions. (5/13/2016) FCA press release.
PRA consults on approach to Pillar 2 liquidity. The Prudential Regulation Authority requested comments on a consultation paper that contains its proposed approach to assessing liquidity risk under Pillar 2 related to intraday risk, debt buyback, and non-margined derivatives. The consultation paper also outlines the PRA’s Pillar 2 objectives and scope. Comments are due on or before August 12, 2016. (5/12/2016) PRA press release.
European Regulators object to EC amendments to ITS on the credit quality steps for ECAIs’ credit assessments. The European Securities and Markets Authority, the European Banking Authority, and the European Insurance and Occupational Pensions Authority issued an Opinion in which they disagreed with the European Commission’s proposal to amend the draft Implementing Technical Standards on the mapping of External Credit Assessment Institutions’ credit assessments under the Capital Requirements Regulation and Solvency II directive. The EC proposed to extend the “less conservative” quantitative requirements beyond the phase-in period, an approach the regulators believe would increase the risk to financial stability. (5/12/2016) ESMA press release.
EBA responds to changes to the amended technical standards on benchmarking of internal approaches proposed by the European Commission.The EBA published an Opinion in which it agreed with the European Commission’s proposed amendments to the ITS on benchmarking of internal approaches. The amended ITS will permit the EBA to consider cover credit risk for high-default portfolios and market risk portfolios in its 2016 benchmarking exercise. (5/12/2016) EBA press release.
EBA initiates consultation on LCR disclosure. The EBA requested comments on its draft Guidelines on the Liquidity Coverage Ratio disclosure. The draft Guidelines establish the qualitative and quantitative information that institutions must disclose regarding liquidity risk management and LCR composition. Comments are due on or before August 11, 2016. (5/11/2016) EBA press release.
ESMA’s Risk Dashboard for Q1 2016 registers high levels of market risk. ESMA published its Risk Dashboard for the first quarter of 2016, which found that the overall risks to securities markets during the quarter remain at high levels, with market and credit risks of particular concern. The key risk sources were primarily related to the uncertain EU and global economic outlook, commodities price dynamics and global financial developments. (5/11/2016) ESMA press release.
EBA offers guidance to authorities in computing Financial Soundness Indicators. The EBA published a guidance document designed to help competent authorities in compiling IMF Financial Soundness Indicators for deposit takers using statistical input derived from ITS on supervisory reporting. (5/11/2016) EBA press release.
FCA opens its regulatory sandbox to applications. The FCA is accepting applications from firms to participate in the first cohort of its new regulatory sandbox, which allows businesses to test innovative products, services, business models, and delivery mechanisms in a live environment without incurring the normal regulatory consequences. Firms should submit applications to the FCA on or before July 8, 2016. (5/9/2016) FCA press release.
PRA proposes to consolidate Directors’ letters on Solvency II. The PRA is seeking comments on a consultation paper that proposes to consolidate existing guidance on Solvency II contained in Solvency II Directors’ letters, Executive Director’s letters and feedback statements published between April 1, 2013, and February 15, 2016. Comments are due on or before August 5, 2016. (5/5/2016)PRA press release.
PRA consultation paper on changes to internal models used by UK insurance firms under Solvency II. The PRA published a consultation paper that proposes a draft supervisory statement containing the PRA’s expectations for firms relating to changes to internal models and extensions to the scope of internal models that have been approved under Solvency II. Comments are due on or before August 5, 2016. (5/5/2016) PRA press release.
ESMA proposes correction to draft RTS on transaction reporting under MiFIR.ESMA proposed an amendment to its draft Regulatory Technical Standards on transaction reporting under the Markets in Financial Instruments Regulation. ESMA indicated that the draft RTS omitted transfers of collateral from the list of instances that are not considered to be reportable transactions under MiFIR. (5/4/2016) ESMA press release.
EBA issues corrective updates to XBRL reporting taxonomies. The EBA published corrections to two versions of its XBRL taxonomies for supervisory reporting. The EBA also confirmed that September 30, 2016, is the first applicable reference date for the 2.4 version of the taxonomy. (5/4/2016) EBA press release.
EBA publishes Discussion Paper on the use of consumer data by financial institutions. The EBA requested comments on a Discussion Paper concerning the risks and potential benefits of the innovative uses of consumer data by financial institutions. Comments should be submitted on or before August 4, 2016. (5/4/2016) EBA press release.
ECB will no longer issue €500 banknote in response to money laundering and terrorism financing concerns. The European Central Bank announced that it will stop producing and issuing the €500 banknote around the end of 2018 in an effort to address concerns about the use of the banknote in illicit activities, including money laundering and terrorism financing. (5/4/2016) ECB press release.