DOMESTIC:

Central Bank publishes Transparency Rules in respect of transparency requirements for issuers of securities admitted to trading on certain markets

The rules are effective from 4 November 2016 and provide guidance on the steps that may be taken to comply with Transparency (regulated markets) law in respect of disclosure, publication and filing requirements.

Director of Enforcement of the Central Bank of Ireland delivers speech on the Bank's approach to enforcement

Derville Rowland, Director of Enforcement of the Central Bank delivered a speech to the Law Reform Commission Conference on 3 November 2016 addressing the role of enforcement in the Central Bank, the key enforcement powers of the Central Bank and how to ensure the continued enhancement of the Irish regulatory and enforcement framework.

European Union (Anti-Money Laundering: Beneficial Ownership of Corporate Entities) Regulations 2016 enter into force

The Regulations, which came into operation on 15 November 2016, give effect to the first subparagraph of Article 30(1) of Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. The Regulations specify that certain relevant entities must obtain and hold adequate, accurate and current information in respect of its beneficial owners.

Central Bank publishes Moneylender News - Issue 3

The Newsletter, published on 11 November 2016, contains topical updates and compliance information on the Central Credit Register, advertising on social media, unsolicited contact, the Companies Act 2014 and consumer perceptions of complaints handling.

Central Bank of Ireland publishes Consultation Paper on its review of the Minimum Competency Code 2011

On 21 November, the Central Bank issued a Consultation Paper (CP106) seeking input from stakeholders on its proposals for amendments to the Minimum Competency Code 2011 (the MCC). The MCC is being reviewed in light of recent EU developments such as the introduction of the Mortgage Credit Directive, MiFID II and the Insurance Distribution Directive. The Central Bank's proposals are set out in the Consultation Paper and responses are being accepted until 15 February 2017.

Central Bank of Ireland issues information for the public and media for public hearings in Administrative Sanctions Procedure Inquiries

The Central Bank has published an information notice addressed to members of the public and the media attending public hearings in Administrative Sanctions Procedure (ASP) Inquiries. The notice sets out certain information in relation to ASP Inquiries such as the procedure and the rules around attending a hearing.

EUROPEAN:

Deputy Governor (Financial Regulation) of the Central Bank of Ireland speaks about the future of macro-prudential policy at a public hearing at the European Commission on the review of the macro-prudential framework

Deputy Governor Cyril Roux of Financial Regulation of the Central Bank delivered a speech at a public hearing at the European Commission focusing on how international coordination helps the development of macro-prudential policy but stated that national authorities are best placed to calibrate mortgage-based measures.

The Board of the International Organization of Securities Commissions (IOSCO) published the Other CRA Products Consultation Report

The purpose of the report is to improve the IOSCO Committee 6 understanding of non-traditional products offered by credit rating agencies.

Chair of ESMA discusses extending the macro-prudential framework to non-banking sector

In a speech at the European Commission’s Public Hearing on the Review of the EU Macro-prudential framework, Steven Maijoor, the Chair of ESMA focused on the importance of extending the macro-prudential framework in respect of the EU’s Capital Markets Union project, the existing foundations on which that extension can be based and institutional design and cooperation in building the framework.

Joint Committee of the three ESAs (EBA, EIOPA and ESMA) published its final Guidelines on the characteristics of a risk-based approach to anti-money laundering and terrorist financing supervision and the steps to be taken when conducting supervision on a risk-sensitive basis

The Guidelines are addressed to National Competent Authorities and require such authorities to identify and assess the anti-money laundering and countering the financing of terrorism risk to which their sector is exposed, and adjust the focus, intensity and frequency of supervisory actions in line with the risk-based approach.

ESMA finalises Guidelines on the validation and review of Credit Rating Agencies’ (CRAs) methodologies

The Guidelines clarify how CRAs should validate and review their methodologies and will increase the quality of the quantitative measures used.

European Banking Authority publishes Consultation on revised Implementing Technical Standards on supervisory reporting under the Capital Requirements Regulation

The proposed draft ITS concern new requirements for the reporting of information on sovereign exposures. They also propose improvements to the reported information on operational risk. These changes will allow supervisors to monitor the losses due to this risk and to analyse the drivers behind the events triggering such material losses.

European Banking Authority launches a Consultation on its draft Guidelines on probability of default estimations and the treatment of defaulted exposures

The draft Guidelines, are focused on the definitions and modelling techniques used in the estimation of risk parameters for both non-defaulted and defaulted exposures. The consultation was published on 14 November 2016.

ESMA publishes a Summary of Conclusions from the Securities and Markets Stakeholder Group meeting

The summary, covered recent market developments, supervisory convergence issues, consultation on benchmarks, SMSG end of term report and the SMSG work programme. The SMSG is set up according to the ESMA Regulation as an important element of ESMA’s governance and for advice purposes.

ESMA publishes speech titled "Regulation and DLT: Working to Strike the Right Balance"

On 22 November, ESMA published a speech by Patrick Armstrong, Senior Risk Analysis Office, ESMA Innovation and Products Team, on blockchain technology and the future of financial services infrastructure. The speech discusses the challenges and opportunities presented by Distributed Ledger Technology to the financial services industry.

European Commission publishes proposal for a Directive Insolvency, Restructuring and Second Chance

On 22 November, the European Commission published a proposal for a Directive on preventive restructuring frameworks, second chance and measures to increase the efficiency of restructuring, insolvency and discharge procedures and amending Directive 2012/30/EU. The proposal seeks to implement a more uniform approach to insolvency across the Member States. The proposal recognises the importance of insolvency rules to the functioning of the interconnected European market and states that "increased convergence of insolvency and restructuring procedures would facilitate greater legal certainty for cross-border investors and encourage the timely restructuring of viable companies in financial distress".

European Systemic Risk Board publishes report on macroprudential policy issues arising in the EU financial system from low interest rates and structural changes

On 28 November, the ESRB jointly published a report on the macroprudential issues arising from low interest rates and structural changes in the financial system of the EU (the Report). The Financial Stability Committee of the ECB contributed to the preparation of the Report which identifies three main areas of risk related to financial stability, "(1) the sustainability of certain financial institutions’ business models; (2) broad-based risk taking; and (3) the move towards a market-based financial system."

European Commission publishes proposal for a Regulation amending the Capital Requirements Regulation

On 23 November, the European Commission published a proposal for a Regulation amending the CRR (Regulation (EU) 575/2013) as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures, reporting and disclosure requirements and amending EMIR (Regulation (EU) No 648/2012).

European Commission publishes proposal for a Directive amending the Capital Requirements Directive

The European Commission has published a proposal for a Directive amending CRD IV (Directive 2013/36/EU) as regards exempted entities, financial holding companies, mixed financial holding companies, remuneration, supervisory measures and powers and powers and capital conservation measures.

European Commission publishes proposal for a Regulation amending the Single Resolution Mechanism Regulation

The European Commission has published a proposal for a Regulation amending the Single Resolution Mechanism Regulation (Regulation (EU) 806/2014) as regards loss-absorbing and Recapitalisation Capacity for credit institutions and investment firms.

European Commission publishes two proposals for Directives amending the Banking Recovery and Resolution Directive

On 23 November, the European Commission published a proposal for a Directive amending the BRRD (Directive 2014/59/EU) on loss-absorbing and recapitalisation capacity of credit institutions and investment firms and amending Directive 98/26/EC, Directive 2002/47/EC, Directive 2012/30/EU, Directive 2011/35/EU, Directive 2005/56/EC, Directive 2004/25/EC and Directive 2007/36/EC.

The Commission also published a proposal for a Directive amending the BRRD as regards the ranking of unsecured debt instruments in insolvency hierarchy.

European Commission publishes Press Release and FAQ on the Capital Requirements and Resolution Framework amendments

The European Commission has published a Press Release and an FAQ document accompanying its proposals for Regulations and Directives amending both the capital requirements framework (CRR/CRD IV) and the resolution framework (BRRD/SRM), as outlined above. The Press Release provides that the proposed package of reforms is intended to strengthen the resilience of EU banks.

European Commission publishes Call for Evidence on EU Financial Services and results of the 2015 Call for Evidence

On 23 November, the European Commission published the results of its 2015 Call for Evidence on EU financial services. The Call for Evidence is a consultation seeking input from stakeholders to ascertain the effect of new financial sector rules. The Commission communication was accompanied by a report on EMIR (Regulation (EU) 648/2012) assessing how the rules for OTC derivatives, CCPs and trade repositories should be improved.

The Commission also published its 2016 Call for Evidence on EU financial services, the results of which will be collated and presented in 2017.

PRIIPs Regulation

The European Parliament's Committee on Economic and Monetary Affairs (ECON) published a draft report on the proposed Regulation which will amend the date of application of the Regulation on key information documents (KIDs) for packaged retail and insurance-based investment products (PRIIPs) (PRIIPs Regulation). Assuming the Commission proposal is passed, the PRIIPs Regulation will then apply from 1 January 2018.