There have been many developments in national and European financial markets regulation during the past month. Supervisory authorities have published a large number of consultation documents, draft rules and other information since the last edition of In context. We provide an overview of this news, signal important court decisions and also list relevant articles in international legal journals.

European regulation 

European Parliament and Council back Commission proposal for strengthened European rules on UCITS

The European Parliament and the Council backed the European Commission’s proposal to strengthen the rules for Undertakings for Collective Investment in Transferable Securities (UCITS V).

Key elements of the agreement reached by the co-legislators:

  • UCITS V strengthens the rules on eligible entities that can act as a depositary UCITS assets will be protected in the event of insolvency of the depositary
  • The depositary’s liability has been strengthened
  • Remuneration policies for all risk takers involved in managing UCITS funds have been introduced
  • The agreement strengthens the existing regime to ensure effective and harmonised administrative sanctions.

Political agreement on deposit guarantee schemes

The Council has approved a political agreement reached with the European Parliament aimed at further harmonising EU rules on deposit guarantee schemes (DGSs) and enhancing depositor protection. The draft directive recasts legislation currently in place in order to improve the protection provided for savers with “covered” deposits of up to EUR 100,000. The main changes include:

  • further reduction of the time limit for paying out depositors from the current 20 working days to seven working days by 2024
  • better access for depositors to information about the protection of their deposits, and for DGSs about their members (i.e. banks)
  • introduction of ex-ante financing arrangements

The directive is expected to be adopted in April and will enter into force a few weeks later. The member states will have one year after entry into force to transpose it into national law.

European and international supervisors 

ESMA – publications

EBA – publications

EIOPA – Publications

IOSCO – publications

EIOPA – Publications

Loan Market Association

2014 ISDA Credit Derivatives Definitions

The International Swaps and Derivatives Association has published the 2014 ISDA Credit Derivatives Definitions, a revised version of the 2003 ISDA Credit Derivatives Definitions. The 2014 Credit Derivatives Definitions introduce several new terms and contain various amendments to standard credit derivatives trading terms.

The 2014 ISDA Credit Derivatives Definitions do not apply automatically to credit derivatives transactions. ISDA expects market participants to begin confirming transactions using the 2014 Credit Derivatives Definitions as from September 2014. The Definitions will only apply if parties reference them in their trade documentation for new trades, or agree to amend the documentation for existing transactions via the use of a protocol.