ESMA opens registration for MiFID hearings. The European Securities and Markets Authority opened registration for the three open hearings on MiFID II/MiFIR. The hearings will take place on July 7 and 8, 2014, and are open to the public. (6/3/2014) ESMA notice.
ECB to lead forex reform. Reuters reported that the European Central Bank will play a lead role in crafting new global rules for foreign exchange trading. (6/2/2014) Forex.
ESMA guidance on CRAs. The European Securities and Markets Authority published a second set of questions and answers on the Credit Rating Agency Regulation. The updated Q&A provides clarifications regarding the publication of sovereign ratings and conflicts of interest concerning investments in CRAs. (6/2/2014) ESMA notice.
Bank of England issues discussion papers. The Bank of England published two Discussion Papers, one in conjunction with the European Central Bank on the securitization market, and the second on improving the availability of credit data. (5/30/2014) Bank of England press release.
UK PRA consultations for insurers. The UK Prudential Regulation Authority opened two consultations relevant to insurers. The first is a draft supervisory statement which sets out the PRA’s expectations of firms in relation to existing rules on the valuation of financial assets. The second consultation seeks views on a draft supervisory statement which sets out the PRA’s expectations of PRA-authorized insurers in relation to the use of subordinated guarantees. Comments on either consultation should be submitted by July 11, 2014. (5/30/2014)
ECB draft regulation on supervisory fees. The European Central Bank published a draft ECB Regulation on supervisory fees. The draft regulation establishes the methodology for determining the total amount of the annual supervisory fee; calculating the amount to be paid by each supervised bank or banking group; and collecting the annual supervisory fee. Comments should be submitted by July 11, 2014. (5/27/2014) ECB press release.
UK FCA review of insurance intermediaries. The UK Financial Conduct Authority reported the findings of its thematic review regarding whether insurance intermediaries serving small to medium-sized enterprises are able to effectively identify and mitigate conflicts of interest arising from their remuneration structures. (5/27/2014) FCA press release.
UK PRA policy statement. The UK Prudential Regulation Authority published a policy statement containing final miscellaneous and minor policy amendments to the PRA’s rules, guidance and a supervisory statement. Topics addressed include financial conglomerates capital adequacy, eligible liquid assets for Shari’ah compliant firms and risk management of asset encumbrance. (5/27/2014) PRA notice.
ESMA reports on IFRS enforcement. The European Securities and Markets Authority published a report on the activities of IFRS enforcers in Europe in 2013. The report provides a description of the existing enforcement system in Europe, the main activities that were coordinated at European level during 2013, information on enforcement activities and ESMA’s contribution to the standard setting process. (5/23/2014) ESMA notice.
ESMA updates list of authorized CCPs. The European Securities and Markets Authority updated its list of Central Counterparties that have been authorized to offer services and activities in the EU in accordance with the European Markets Infrastructure Regulation. (5/23/2014) ESMA notice.
ESMA consults on MiFID reforms. The European Securities and Markets Authority launched a consultation on the implementation of the revised Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). MiFID II/MiFIR introduces changes which include transparency requirements for a broader range of asset classes; the obligation to trade derivatives on-exchange; requirements on algorithmic and high-frequency-trading; and new supervisory tools for commodity derivatives. It also addresses consumer protection issues concerning commissions; conditions for the provision of independent investment advice; stricter organizational requirements for product design and distribution; product intervention powers; and the disclosure of costs and charges. Comments should be submitted by August 1, 2014. (5/22/2014) ESMA notice.
Bank of England Governor discusses the insurance industry. Mark Carney, Governor of the Bank of England, published an article in The Times concerning the regulation of the insurance industry. Carney emphasized that the Bank of England will not “protect insurance companies from the consequences of their own decisions…. So alongside reforms that Parliament has asked us to make to hold senior bankers to account, we will create a similar regime for senior managers in the insurance industry.” (5/22/2014) Carney article.
ESMA updates EMIR guidance. The European Securities and Markets Authority issued its eighth updated question and answers concerning common supervisory approaches and practices in the application of the European Market Infrastructure Regulation. The Q&A provides responses to questions posed by the general public, market participants and competent authorities. (5/21/2014) ESMA notice.
ESMA publishes first registered Social Enterprise Funds manager. The European Securities and Markets Authority published the first registered Social Entrepreneurship Funds manager, the BonVenture Management GmbH, based in Munich, which was registered by Germany’s BaFin. The Social Entrepreneurship Funds Regulation (EuSEF) requires ESMA to publish all EU-registered EuSEF managers, the funds it manages, and the EU Member States where these funds are marketed. The EuSEF Regulation, together with the European Venture Capital regulation, is intended to provide a legal framework for cross-border capital raising for investment in small and medium-sized enterprises as well as social enterprises across EU Member States. (5/21/2014) ESMA notice.
EBA annual report. The European Banking Authority has published its 2013 annual report. (5/20/2014) EBA press release.
EBA publishes list of incorrect ITS validation rules. The European Banking Authority issued a revised list of incorrect validation rules found in its Implementing Technical Standards on supervisory reporting. The Authority informed that data submitted in accordance with these ITS should not be validated against the previously published set of incorrect rules. (5/19/2014) EBA press release.
UK FCA policy statement on the listing regime. The UK Financial Conduct Authority issued a policy statement on its new listing regime. The policy statement reviews the final rules and the comments it received during the comment period concerning those rules. (5/16/2014) FCA press release.
Bank of England publishes paper on initial margin requirements. The Bank of England published a financial stability paper on the procyclicality of risk-based initial margin requirements for derivatives. The paper proposes two types of quantitative measure of procyclicality: one that examines margin variation across the cycle and one that focuses on short-term margin increases. (5/16/2014) Bank of England notice.
ESMA publishes risk dashboard. The European Securities and Markets Authority published its risk dashboard for the first quarter of 2014. (5/16/2014) ESMA notice.
ESMA announces new working group. The European Securities and Markets Authority announced the creation of the Consultative Working group of the Market Data Reporting Working Group, which will focus on issues relating to reporting of transactions, positions, record-keeping of orders and instrument reference data. The objectives of this group are to enhance the quality of the market data reported to EU National Authorities and Trade Repositories and to foster supervisory convergence among the national authorities in its area of competence. (5/16/2014) ESMA notice.
EBA publishes updated credit valuation template. The European Banking Authority released an updated version of the template that banks participating in the Credit Valuation Adjustment data collection will be requested to complete. (5/16/2014) EBA press release.
EC publishes financial regulation agenda. The European Commission published its first comprehensive review of the financial regulation agenda as a whole. The review explains how financial reforms reshape the financial sector and the resulting benefits. The Communication recalls the objectives that guided the Commission, presents an overview of the reforms it proposed, and takes stock of the key effects that can already be observed. (5/15/2014) EC press release.