United Kingdom

PRA publishes updates to two supervisory statements and amendments to templates and LOG files for Solvency II insurers. The PRA announced that it has published Solvency II: regulatory reporting, internal model outputs - SS25/15 UPDATE and Solvency II: ORSA and the ultimate time horizon - non-life firms - SS26/15 UPDATE. (2/16/2017)

PRA publishes Occasional Consultation Paper - CP2/17. The PRA announced that it has published an Occasional Consultation Paper, which sets out proposed changes to PRA rules and existing supervisory statements. (2/16/2017)

FCA offers new evidence on liquidity in UK corporate bond markets. The UK Financial Conduct Authority published a report that updates its analysis of liquidity conditions in the UK corporate bond markets to include new data about orders and quotes, as well as updated liquidity metrics. The analysis found that corporate bond markets have become less liquid in recent years, but liquidity is still relatively healthy. (2/15/2017) FCA press release. 

FCA seeks comments on improvements to UK primary capital markets. The FCA published a discussion paper that seeks feedback on how the UK primary capital markets can most effectively meet the needs of issuers and investors. The FCA also requested comments on a consultation paper that proposed technical enhancements to the Listing Rules. Comments on both the discussion paper and consultation paper are due on or before May 14, 2017. (2/14/2017) FCA press release.

FCA publishes discussion paper on regulatory approach to open-ended funds investing in illiquid assets. The FCA requested comments on a discussion paper that considers the practice of investing in illiquid assets through open-ended funds and the challenges that can pose to managers and investors in an effort to determine whether changes to its regulatory approach are warranted. Comments are due on or before May 8, 2017. (2/8/2017) FCA press release.

European Union

ESAs warn on money laundering and terrorist financing risks affecting the EU financial sector. The three European Supervisory Authorities announced that they have published a Joint Opinion addressed to the European Commission on the risks of money laundering and terrorist financing affecting the EU’s financial sector. (2/20/2017)

EBA expresses dissent over the EU Commission proposed amendments to technical standards under the IFR. The EBA issued an Opinion to the European Commission, expressing dissent over some of the proposed amendments to its final draft Regulatory Technical Standard on the separation of payment card schemes and processing entities under the Interchange Fee Regulation (IFR). The EBA clarified that there is no clear requirement for a legal and structural separation between card schemes and processing entities. (2/16/2017)

EBA consults on procedures for complaints of alleged infringements of the PSD2. The EBA launched public consultation on its draft Guidelines on the complaints procedures to be taken into consideration by competent authorities to ensure and monitor effective compliance by payment service providers of the revised Payment Services Directive (PSD2). The consultation runs until May 16, 2017. (2/16/2017)

ECB publishes its financial statements for 2016. The European Central Bank announced that its Governing Council has approved the ECB’s audited financial statements for the year ending December 31, 2016. (2/16/2017)

ECB issues Consolidated Banking Data for end-September 2016. The ECB published its quarterly Consolidated Banking Data for the end of September 2016, which found a decrease in the number of credit institutions headquartered in the EU and in the total assets of these credit institutions. (2/14/2017) ECB press release. 

ESMA warns EC about MiFID II systemic internalizers operating broker crossing networks. In a letter to the European Commission, the European Securities and Markets Authority raised concerns regarding the potential establishment of networks of systematic internalizers by investment firms to circumvent certain obligations under the revised Markets in Financial Instruments Directive and suggest that the Commission clarify certain MiFID II definitions. (2/14/2017) ESMA press release. 

European Supervisory Authorities launch consultation on PRIIPS with environmental or social objectives. ESMA, the European Banking Authority, and the European Insurance and Occupational Pensions Authority requested comments on a proposal to set minimum requirements for manufacturers of packaged retail and insurance-based investment products with environmental or social objectives to ensure that credible products are offered to retail investors. Comments are due on or before March 23, 2017. (2/10/2017) ESMA press release. 

European Supervisory Authorities consult on the establishment of central contact points to strengthen fight against financial crime. The European Supervisory Authorities requested comments on draft regulatory technical standards to help Member States determine when payment service providers and electronic money issuers should appoint a Central Contact Point to support the fight against money laundering and terrorist financing. Comments are due on or before May 5, 2017. (2/10/2017) EBA press release. 

EBA revises list of institutions involved in the 2017 supervisory benchmarking exercise. The EBA updated its list of institutions that have a reporting obligation for the purpose of the 2017 EU supervisory benchmarking exercise. Institutions should submit the relevant data to their Competent Authorities on or before April 11, 2017. (2/10/2017) EBA press release. 

ESMA identifies supervisory convergence work priorities for 2017. ESMA released its 2017 Supervisory Convergence Work Program, which identifies the priority areas for ESMA and national competent authorities in the coming year. ESMA indicated that it will focus on the implementation of MiFID II/MiFIR and the Market Abuse Regulation, including the underlying IT projects; improving the quality to data collected by NCAs; investor protection in the context of cross-border provision of services; and convergence in the supervision of European Union central counterparties. (2/9/2017) ESMA press release. 

ESMA launches new Q&A tool. ESMA announced the launch of a new Q&A tool, which will provide ESMA with a way to collect and address publicly questions from stakeholders relating to the application of a legislative act within ESMA’s remit or on any of ESMA’s guidelines or opinions. (2/9/2017) ESMA press release. 

ESMA publishes revised standard on position reporting under MiFID II. ESMA revised its draft Implementing Technical Standards on position reporting under MiFID II to reflect changes to the format of position reports by investment firms and market operators, as well as several other technical amendments. (2/9/2017) ESMA press release. 

EBA publishes final draft RTS on exclusion of non-EU non-financial counterparties from CVA. The EBA issued its final draft RTS that specify the procedures for excluding transactions with non-financial counterparties established in a third country from the capital requirement for credit valuation adjustment risk. (2/9/2017) EBA press release.