European Central Bank
Statement following post-program surveillance mission to Ireland. The ECB published a statement by its staff and the EC following the conclusion of the eighth post-program surveillance mission to Ireland. (12/1/2017)
Economic growth is supporting financial stability but markets are vulnerable to a sudden increase in volatility. The ECB announced that systemic stress indicators for the euro area have remained low over the past six months, according to the latest Financial Stability Review of the ECB. According to a biannual report, better growth prospects and lower fiscal and external imbalances contributed to reduced systemic stress indicators for the euro area. (11/29/2017)
Statement of Commitment to Foreign Exchange Global Code of Conduct. 15 of the ESCB central banks, including the ECB, simultaneously issued Statements of Commitment to the Code. (11/29/2017)
Call for expressions of interest to participate in the Working Group on Euro Risk-Free Rates. The ECB announced that it is launching a call for expressions of interest to participate in the Working Group on Euro Risk-Free Rates for the euro area. This call is also being issued on behalf of the Belgian Financial Services and Markets Authority, ESMA, and the European Commission. (11/29/2017)
Report on the results of the Survey on the Access to Finance of Enterprises in the euro area - April to September 2017. The ECB announced the release of its report, the “Survey on the Access to Finance of Enterprises,” which was developed to provide evidence on changes in the financial situation of enterprises and to document trends in the needs for and the availability of external financing. (11/29/2017)
ECB consults on a new euro unsecured overnight interest rate. The ECB announced that it is calling on market participants and all other interested parties to provide comments on the high level features of a new unsecured overnight interest rate. (11/28/2017)
ECB publishes Consolidated Banking Data for end-June 2017. The ECB announced that it has published the Consolidated Banking Data with reference to end-June 2017, a data set of the EU banking system compiled on a group consolidated basis. (11/15/2017)
European Securities and Markets Authority
ESMA latest Risk Dashboard sees no change in overall risk levels. ESMA announced that it has issued the Risk Dashboard No.4 2017, covering risks in the EU’s securities markets for Q3 2017. ESMA’s overall risk assessment remains unchanged from Q2 at high levels. (12/5/2017)
ESMA publishes MiFID compliance function peer review results. ESMA announced that it has published the results of its Peer Review on the Guidelines on certain aspects of the compliance function under MiFID, which cover national competent authorities supervision of investment firms’ compliance functions, particularly how those functions carry out risk assessments, monitor compliance obligations, report to senior management and fulfil their advisory role. (11/29/2017)
ESMA registers NEX Abide Trade Repository AB as a trade repository. ESMA announced that it has registered NEX Abide Trade Repository AB as a trade repository under the European Market Infrastructure Regulation, effective November 24, 2017. (11/24/2017)
ESMA updates Q&A on MAR. ESMA announced that it has updated its Q&Adocument regarding the implementation of the Market Abuse Regulation (MAR). (11/21/2017)
ESMA issues clarification on the rotation periods of CRA’s analysts. ESMA announced that it has published an update to its Q&A on the application of the CRA Regulation, adding a new section on Organizational Requirements. (11/20/2017)
ESMA clarifies endorsement regime for third-country credit ratings. ESMA announced that it has published its Final Report updating its Guidelines on the application of the endorsement regime under the CRA (Credit Rating Agencies) Regulation. (11/17/2017)
ESMA consults on calculation of derivative positions. ESMA announced that it has published for public consultation future guidelines on the calculation of derivative positions by trade repositories authorized in the EU under the European Market Infrastructure Regulation. (11/17/2017)
ESMA publishes final report on Money Market Funds rules. ESMA announcedthat it has published a final report on the Money Market Funds Regulation (MMFR). The final report contains final versions of the technical advice, draft implementing technical standards, and guidelines on stress test scenarios carried out by MMF managers under the MMFR. (11/17/2017)
New Q&As on transparency issues under MiFID II. ESMA published new Questions and Answers on transparency and market structure issues under MiFID II and the Market in Financial Instruments Regulation that address pre- and post-trade transparency for equity and non-equity instruments; systematic Internalizers; data reporting service providers; and third-country issues. (11/15/2017) ESMA press release.
New market structure Q&As. ESMA issued new Q&As regarding the practical application of market structure issues under MiFID II and MiFIR. (11/15/2017) ESMA press release.
ESMA offers guidance on MiFID II’s commodity derivatives regime. ESMA published new Q&As regarding commodity derivatives under MiFID II and MiFIR that to clarify the data reporting requirements with respect to position limits, ancillary activities, and position reporting. (11/14/2017) ESMA press release.
ESMA updates Q&A on data reporting under MiFID II and MiFIR. ESMA revised its Q&A on regulatory data reporting requirements under MiFID II and MiFIR to include new guidance regarding transaction reporting for primary issuances, corporate events, portfolio management, and swaps related to indices. (11/14/2017) ESMA press release.
ESMA clarifies trading obligation for shares under MiFID II. ESMA clarified that all EU investment firms that are part of a chain of transmission should ensure that the ultimate execution of the order complies with the trading obligation requirements under MiFIR. (11/13/2017) ESMA press release.
ESMA adds new Q&As to MiFID II investor protection topics. ESMA updated its Q&As on the implementation of investor protection topics under MiFID II and MiFIR to include additional information on post-sale reporting, record keeping, and inducements. (11/10/2017) ESMA press release.
ESMA seeks comments on changes to quote rules for systematic internalizers.ESMA published a consultation paper that proposes to amend the Regulatory Technical Standard, which details MiFID II requirements on transparency for trading venues and investment firms and the obligation for investment firms to execute transactions in certain shares on a trading venue or a systematic internalizer, to clarify that SI quotes should reflect the price increments applicable to EU trading venues. Comments are due on or before January 25, 2018. (11/9/2017) ESMA press release.
European Banking Authority
EBA formally repeals its Guidelines on retail deposits subject to different outflows for the purpose of liquidity reporting. The EBA announced that it has decided to formally repeal its Guidelines setting out the criteria for identifying retail deposits subject to different outflows for the purpose of liquidity reporting, issued in December 2013, as they have been superseded by the LCR Delegated Regulation and are no longer applicable for liquidity reporting purposes. (11/27/2017)
EBA sees a more resilient EU banking sector but challenges in NPLs, IT security and long-term profitability remain. The EBA announced that it has published its tenth report on risks and vulnerabilities in the EU banking sector. The report is accompanied by the 2017 EU-wide transparency exercise, which provides key data in a comparable and accessible format for 132 banks across the EU. (11/24/2017)
EBA welcomes Council decision on its relocation. The EBA announced that it is welcoming the Council’s decision on its relocation to Paris, in light of the UK’s intention to withdraw from the EU. (11/20/2017)
EBA publishes final Guidelines on the estimation of risk parameters under the IRB Approach. The EBA announced that it has published its final Guidelines on the estimation of risk parameters for non-defaulted exposures, and on the treatment of defaulted exposures under the advanced IRB Approach. (11/20/2017)
EBA updates list of CET1 instruments. The EBA announced that it has published its sixth updated list of capital instruments that Competent Authorities across the EU have classified as Common Equity Tier 1. (11/17/2017)
EBA acknowledges the EC adoption of amended supervisory reporting standards. The EBA announced that it has acknowledged the adoption by the EC of the Implementing Technical Standards on Supervisory Reporting with regard to amendments to COREP and Additional Monitoring Metrics for liquidity as well as other amendments. (11/15/2017)
EBA republishes DPM and XBRL taxonomy 2.7 for remittance of supervisory reporting. The EBA announced that it has published a corrective update to the XBRL taxonomy that Competent Authorities will use for the remittance of data under the EBA Implementing Technical Standards on supervisory reporting. (11/15/2017)
EBA observes good level of compliance with its guidelines on O-SIIs. The EBA announced that it has published a Report on the peer review carried out to evaluate the implementation of its Guidelines on the criteria for the assessment and identification of other systemically important institutions (O-SIIs) across the EU. Overall, the peer review concluded that the majority of the authorities are compliant with the EBA Guidelines, although some of its requirements have not been fully applied in all jurisdictions. (11/15/2017)
EBA releases its annual assessment of the consistency of internal model outcomes. The EBA announced that it has published two reports on the consistency of risk weighted assets across all EU institutions authorized to use internal approaches for the calculation of capital requirements. The reports cover credit risk for large corporate, institutions, and sovereign portfolios, as well as market risk. (11/14/2017)
ESAs publish third set of Q&As on Key Information Document for PRIIPs. The ESAs announced that they have published further guidance on the Key Information Document (KID) requirements for Packaged Retail and Insurance-based Investment Products (PRIIPs). The guidance promotes common supervisory approaches and practices in the implementation of the KID and consists of Additional Q&As to supplement those already published on July 4 and August 18, 2017. (11/20/2017)
FCA announces newest regulatory sandbox participants. The UK Financial Conduct Authority announced the firms it has selected to participate in the third phase of its regulatory sandbox, which allows firms to test innovative products, services or business models in a live market environment. (12/5/2017) FCA press release.
FCA publishes quarterly consultation paper. The FCA requested comments on a quarterly consultation paper that proposes miscellaneous and minor changes to its Handbook. Comments on the proposed changes related to the Decision Procedure and Penalties Manual, the Insurance Distribution Directive, and Financial Crime reporting are due on or before January 1, 2018. Comments on the remaining proposals are due on or before February 1, 2018. (12/1/2017) FCA press release.
FCA reissues warning about pension transfers and risky investments. The FCA reminded consumers about the risks of transferring pension pots to unregulated investment schemes and the importance of seeking independent advice about potential investments from a financial adviser. (12/1/2017) FCA press release.
FCA and BOE announce next stage of Libor transition work. The FCA and the Bank of England announced the next phase of work by the market-led Working Group on Sterling Risk-Free Rates to help market participants transition from Libor to the SONIA interest rate benchmark. The Working Group will broaden its membership to include participants across all relevant sectors, develop recommendations relating to the potential development of term SONIA reference rates, and form two new sub-groups focused on benchmark transition issues in loan and bond markets. (11/29/2017) FCA press release.
FCA releases report on illegal money lending. The FCA published the findings of its research regarding the experiences of consumers who had borrowed money from unauthorized lenders in the UK. (11/29/2017) FCA press release.
November 2017 Financial Stability Report. The BOE published the Financial Stability Report, which sets out its Financial Policy Committee’s assessment of the resilience of the UK financial system and the current main risks to financial stability. The report concluded that domestic risks, aside from those related to Brexit, are at a standard level, and that risks from global debt levels, asset valuations and misconduct costs remain material. (11/28/2017) BOE press release.
2017 UK banking system stress test. The BOE released the results of its 2017 stress test of the UK banking system, which showed that the UK banking system is resilient to severe simultaneous recessions in the UK and global economies, large falls in asset prices, and a separate stress of misconduct costs. (11/28/2017) BOE press release.
FCA confirms support for LIBOR by panel banks. The FCA issued a statement announcing that all 20 of the panel banks have agreed to support the LIBOR benchmark until 2021, when a transition can be made to alternative rates. (11/24/2017) FCA press release.
FCA reviews the compliance function in wholesale banks. The FCA published the findings of its review of the compliance function in wholesale banks. The review examined the compliance function in relation to several topics, including role and structure; strategy and planning; compliance monitoring; technology; support and challenge; and personnel. (11/23/2017) FCA press release.
BOE report on 2017 gender pay gap. The BOE released its gender pay gap reportfor 2017, which sets out the difference between the mean or median hourly rate pay that male and female BOE employees receive, as well as the measures the BOE is taking to address the pay gap. (11/23/2017) BOE press release.
PRA explains how to submit written statements on ring-fencing transfer schemes. The Prudential Regulation Authority offered guidance to individuals on how to file written statements with the PRA if they believe that they would be adversely affected by the carrying out of a firm’s ring-fencing transfer scheme. (11/17/2017) PRA structural reform webpage.
FCA announces 2018 Live & Local events for mortgage and general insurance firms. The FCA announced the details of the first set of Live & Local regional program events in 2018, which will focus on regulated mortgage and general insurance firms. (11/16/2017) FCA press release.
Regulation round-up. The FCA published the November 2017 edition of its Regulation round-up. (11/16/2017)
FCA urges caution when investing in cryptocurrency CFDs. The FCA warned consumers about the risks of investing in contracts for differences, including financial spread bets, with cryptocurrencies as the underlying investment, noting that they are extremely high-risk, speculative investments. (11/14/2017) FCA press release.
FCA issues warning about binary options risks. The FCA published a consumer warning that informs investors about the risks of investing in binary options and the potential for firms to conduct fraudulent schemes through the sale of binary options. (11/14/2017) FCA press release.
FCA consults on policy proposals for it regulatory fees and levies. The FCA requested comments on a consultation paper that proposes policy changes related to the way that FCA fees will be raised from 2018/19. Comments are due on or before January 15, 2018. (11/13/2017) FCA press release.
BOE seeks comments on procedure for new Enforcement Decision Making Committee. The BOE published a consultation paper that proposes how a new Enforcement Decision Making Committee will operate. Comments are due on or before February 2, 2018. (11/10/17) BOE press release.