Source/Date Brief description

International Organization of Securities Commissions (IOSCO)

April 28, 2022

IOSCO releases report on issues and considerations of market data in secondary equity markets

IOSCO has published a report that sets out some issues and considerations for regulators when reviewing the regulation of market data. The report highlights that market data is an essential element of efficient price discovery and for maintaining fair and efficient markets. In the report IOSCO provides a summary of the comments received and based on these, suggests considerations for regulators when reviewing the regulation of market data provided by trading venues or OTC markets.

More information is available here.

European Banking Authority (EBA)

April 27, 2022

EBA calls on financial institutions and supervisors to provide Ukrainian refugees access to EU financial system

The EBA has published a statement addressed to both financial institutions and supervisors to ensure that they make every effort to provide access for Ukrainian refugees to at least basic financial products and services. The statement outlines how the anti-money laundering and counter-terrorist financing (AML/CFT) Guidelines should be applied in the current context and how financial institutions should adapt their measures to provide a pragmatic and proportionate response to these challenges. Financial institutions are also encouraged to comply with the EU’s restrictive measure regimes.

More information is available here.

Financial Stability Board (FSB)

April 26, 2022

FSB analyzes external vulnerabilities in emerging market economies associated with US dollar funding

The FSB published a report on the interaction between US dollar funding and external vulnerabilities in emerging market economies (EMEs). The report proposes policy measures to address EME vulnerabilities arising from foreign currency borrowing.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 25, 2022

EIOPA consults on IORPs reporting rules

EIOPA has launched a public consultation regarding EIOPA’s regular information requests to national competent authorities (NCAs) for occupational pension information. With the consultation EIOPA intends to improve IORPs reporting, focusing on emerging risks and new challenges and issues by NCAs and the pensions industry since its first implementation in 2018. The consultation is open until July 18, 2022.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 21, 2022

EIOPA finalizes revision of its Guidelines on Contract Boundaries and Guidelines on the Valuation of Technical Provisions

EIOPA has published two final reports on the revision of the EIOPA Guidelines on Contract Boundaries and Guidelines on the Valuation of Technical Provisions. In the reports EIOPA has identified several divergent practices regarding the valuation of technical provisions since 2019 and indicated the corresponding need to analyze and further improve consistency in their calculation.

More information is available here.

European Supervisory Authorities (ESAs)

April 19, 2022

ESAs publish joint Annual Report for 2021

EBA, EIOPA and ESMA (ESAs) published their 2021 Annual Report, providing a detailed account of its joint work completed over the past year. The main areas of cross-sectoral focus continued to be joint risk assessment, enhancement of consumer protection, development of the regulatory and supervisory frameworks for sustainable finance and securitization. In addition, monitoring and contributing to the digital finance developments, supporting FinTech scale up through innovation hubs and sandboxes as well as cybersecurity completed the work program.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 13, 2022

EIOPA consults on draft Guidelines on integrating customer sustainability preferences into the suitability assessment under the IDD

The Guidelines stem from Commission Delegated Regulation (EU) 2021/1257 and aim at promoting a coherent application of the Delegated Regulation, restricting the potential for the misselling of insurance products and promoting a more convergent approach by NCAs in the supervision of insurance undertakings and insurance intermediaries. The consultation is open until May 13, 2022

More information is available here.

European Supervisory Authorities (ESAs)

April 13, 2022

ESAs see recovery stalling amid existing and new risks

EBA, EIOPA and ESMA (ESAs) issued their first joint risk assessment report for 2022. The report highlights the increasing vulnerabilities across the financial sector as well as the rise of environmental and cyber risks. While during 2021 the financial sector recovered from the COVID-19 pandemic, financial markets remain vulnerable to changes in market sentiments, particularly regarding inflation pressures. Considering the risks and uncertainties, the ESAs advise national competent authorities, financial institutions, and market participants to take certain policy actions.

More information is available here.

European Banking Authority (EBA)

April 12, 2022

EBA publishes final draft technical standards on risk-retention requirements for securitizations

These final draft Regulatory Technical Standards (RTS) specify the requirements for originators, sponsors and original lenders related to risk retention as laid down in the Securitization Regulation and as amended by the Capital Markets Recovery Package (CMRP).With the RTS, the EBA intends to provide clarity on the risk retention requirements, ensuring a better alignment of interests and reducing the risk of moral hazard, thus contributing further to the development of a sound, safe and robust securitization market in the EU.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 12, 2022

EIOPA calls for change to stress-test disclosure regime

EIOPA has published an Opinion on the disclosure of individual results in the context of insurance stress tests. EIOPA believes that a consistent and disciplined communication of individual stress test results would enhance market discipline, increase participants commitment and contribute to a level playing field among insurers and across the financial sector, resulting in a healthier insurance industry as a whole.

More information is available here.

European Securities and Markets Authority (ESMA)

April 8, 2022

ESMA publishes complementary annual transparency calculations

ESMA published the results of the annual transparency calculations for equity and equity-like instruments. The transparency requirements will apply from no later than April 14, 2022 until March 31, 2023.

More information is available here.

European Banking Authority (EBA)

April 8, 2022

EBA issues opinion on European Commission’s proposed amendments to final draft Regulatory Technical Standards (RTS) for own funds and eligible liabilities

In the opinion, the EBA expresses its disagreement with two substantive changes proposed by the European Commission (EC). Compared with the final draft of the RTS submitted by EBA in May 2021, the EC’s version contains two substantive changes related to: i) the provisions on the notions of direct and indirect funding and ii) the prior permission process for certain types of liquidation entities. With respect to the notions of direct and indirect funding, the EBA considers that, from a supervisory perspective, the RTS already contain the necessary principles or tools to cover all cases of direct or indirect funding without any additional description. In addition, the EBA considers that its final draft RTS provides for a prior permission regime that is proportionate to the objectives of the Regulation and believes that no amendment is necessary.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 7, 2022

EIOPA issued supervisory statement on supervision of run-off undertakings

EIOPA has published its supervisory statement on supervision of run-offs undertakings. With the statement, EIOPA intends to ensure that a high-quality and convergent supervision is applied to run-off undertakings and portfolios while also taking into account their specific nature and risks, the principle of proportionality and the prudent person principle.

More information is available here.

European Banking Authority (EBA)

April 5, 2022

EBA publishes final report on amendment of its technical standards on the exemption to strong customer authentication for account access

EBA has published its final report on the amendment of its Regulatory Technical Standards (RTS) on strong customer authentication and secure communication (SCA&CSC) under the Payment Services Directive (PSD2). The changes introduce a new mandatory exemption to SCA that will require account providers not to apply SCA when customers use an account information service provider (AISP) to access their payment account information, provided certain conditions are met.

More information is available here.

European Securities and Markets Authority (ESMA)

April 5, 2022

ESMA responds to European Commission consultation on EMIR review

ESMA responded to the European Commission’s (EC) targeted review of EMIR with respect to the EU central clearing framework. ESMA recommends measures to support the EU objective of increasing the attractiveness of EU markets and reducing exposure to CCPs located outside the EU. The EC is expected to develop a legislative proposal amending the EU central clearing framework.

More information is available here.

European Securities and Markets Authority (ESMA)

April 5, 2022

ESG funds provided better returns for investors in 2020

ESMA published its statistical report on the cost and performance of EU retail investment products. The report shows that UCITS with an environmental, social and governance (ESG) strategy (including equity, bond and mixed funds) outperformed non-ESG peers and are overall cheaper. It also demonstrates the relevance of disclosure of costs to investors, as required by MiFID II, UCITS and PRIIPs rules. Asset managers and investment firms are reminded to always act in the best interest of investors pursuant to these provisions.

More information is available here.

European Commission (EC)

April 5, 2022

European Commission supports Europe’s sustainable transition with second green bond syndication

The European Commission (EC) has raised €6 billion in NextGenerationEU funds with its second NextGenerationEU green bond syndication. NextGenerationEU is a temporary instrument that supports Europe’s recovery from the COVID-19 pandemic and aims to build a greener and more digital Europe. The bond is the largest green bond to date and confirms investors’ confidence in the EU’s green bond program. Proceeds raised from the deal are expected to enhance Europe’s green transformation by financing sustainable investments in EU Member States. In addition, NextGenerationEU green bonds are expected to strengthen the role of the euro in the market for sustainable investments and confirm the EC’s commitment to sustainable finance.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 5, 2022

EIOPA publishes monthly technical information for Solvency II Relevant Risk-free Interest Rate Term Structures—end March 2022

EIOPA has published technical information on the relevant risk free interest rate term structures (RFR) with reference to the end of March 2022. EIOPA has decided to calculate and publish this specific RFR curve using current underlying interest rates as at March 31, 2022. EIOPA will continue monitoring the situation and the reliability of interest rates and trading of government bonds in Russian rubles. RFR technical information has been calculated on the basis of the updated representative portfolios published on November 3, 2021 and on the content of the technical documentation under background material and based on RFR coding released on October 8, 2019.

More information is available here.

European Insurance and Occupational Pensions Authority (EIOPA)

April 4, 2022

EIOPA launched climate stress test for the European occupational pension sector

EIOPA has launched its first climate stress test to gain insight into the impacts of environmental risks on the European occupational pension sector. Sustainability and the management of environmental risks have become key considerations for long-term investors and especially for European institutions for occupational retirement provision (IORPs).

More information is available here.

European Securities and Markets Authority (ESMA)

April 4, 2022

ESMA publishes latest edition of its newsletter

The March newsletter focused on the European Supervisory Authorities’ (ESAs) campaign on crypto-assets, the ESMA Carbon Market Report and a coordinated response to the war in Ukraine. ESMA and ESA issued a joint warning, which sets out key steps for consumers to make informed decisions. The report on the EU carbon market did not find any major deficiencies in the functioning of the EU carbon market. Further, ESMA issued a statement on the impact of the Ukraine crisis on financial markets and the relevant measures to ensure the orderly functioning of markets, financial stability and investor protection.

More information is available here.

European Commission (EC)

April 4, 2022

European Commission adopts additional equivalence decisions for US exchanges

The European Commission (EC) has declared that a number of United States exchanges supervised by the US Securities Exchange Commission (SEC) are equivalent to EU regulated markets. As a result, derivatives traded on these US exchanges are now treated as exchange-traded derivatives under EU law. This complements a 2021 decision by the EC declaring US central counterparties (CCPs) as equivalent under EMIR. This has resulted in non-EU CCPs being able to offer central clearing services in the EU. Both decisions help to better integrate the EU capital market with other international markets.

More information is available here.

European Securities and Markets Authority (ESMA)

April 4, 2022

ESMA publishes final report on its review of the Short Selling Regulation (SSR)

In the report, ESMA reviewed the experience gathered in the aftermath of the COVID-19 pandemic. This relates to the emergency measures adopted by relevant competent authorities (RCAs) and ESMA’s temporary lowering of the notification thresholds for NSPs to promote an EU-wide monitoring of short-selling activity.

More information is available here.

European Securities and Markets Authority (ESMA)

April 1, 2022

ESMA postpones RTS 2 annual review

ESMA is postponing the annual review of regulatory technical standards (RTS 2) on non-equity transparency. The decision was taken because the ongoing MiFIR review is likely to have a significant impact on the instruments subject to the RTS 2 report.

More information is available here.

European Securities and Markets Authority (ESMA)

April 1, 2022

ESMA sees EMIR and SFTR data quality improve following coordinated actions

ESMA has published the second edition of its Data Quality Report based on data gathered under the European Markets Infrastructure Regulation (EMIR) and the Securitized Financing Transactions Regulation (SFTR). The report presents an analysis of data quality for regulatory and supervisory use and finds that the coordinated supervisory actions by ESMA and the National Competent Authorities (NCAs) have significantly enhanced data quality in 2021.

More information is available here.

European Banking Authority (EBA)

April 1, 2022

EBA Risk Dashboard indicates limited direct impact on EU banks from Russian invasion of Ukraine

A special feature of the EBA’s Risk Dashboard highlights the potential impact of the Russian invasion of Ukraine on the EU/EEA banking sector. While the initial assessment found that the risks stemming from the Russian invasion do not pose a fundamental threat to the stability of the EU banking system, the long-term effects are expected to be more significant from a financial stability perspective. While EU bank capital and liquidity ratios remain high, and profitability has stabilized compared with the pre-pandemic period, cyber-, information and communication technology (ICT) risks remain high.

More information is available here.