ESMA updated guidance. The European Securities and Markets Authority published updated questions and answers on the application of the Alternative Investment Fund Managers Directive. A second document provides updated guidance on the European Venture Capital Funds and the European Social Entrepreneurship Funds Regulations. (11/11/2014) ESMA notice.
ESMA proposes revised reporting standards for trade repositories. The European Securities and Markets Authority published a consultation paper on the revision of the Regulatory Technical Standards and implementing technical standards for the European Market Infrastructure Regulation regarding the obligation of counterparties and central counterparties to report to trade repositories. The proposals would clarify the interpretation of the data fields and how they should be populated. Comments should be submitted by February 13, 2015. (11/10/2014) ESMA notice.
EBA consults on retail banking guidelines. The European Banking Authority published a consultation paper on draft Guidelines on product oversight and governance arrangements for retail banking products. Comments should be submitted by February 10, 2015. (11/10/2014) EBA Press release.
EBA consults on valuation in recovery and resolution. The European Banking Authority launched a consultation on draft Regulatory Technical Standards on valuation in recovery and resolution. Comments should be submitted by February 6, 2015. (11/7/2014) EBA press release.
ESMA seeks comment on AIFMD. The European Securities and Markets Authority has opened a call for evidence on whether the Alternative Investment Fund Managers Directive’s passporting regime should be extended to the management and/or marketing of alternative investment funds by non-EU managers and whether EU managers should be allowed to market non-EU funds. Comments should be submitted by January 8, 2015. (11/7/2014) ESMA notice.
UK remuneration rules. The UK’s Prudential Regulation Authority and Financial Conduct Authority jointly published a policy statement setting out the rules implementing the European Banking Authority’s Guidelines for the collection of data on remuneration. The rules are effective immediately. (11/7/2014) Bank of England press release.
UK market regulator examining retail banking. The UK Competition and Markets Authority announced that it is investigating the effectiveness of competition in the personal current account and small and medium sized retail banking sectors. (11/6/2014) CMA press release.
Certain non-bank systemically important firms to gain access to the Bank of England. The Bank of England announced that it is widening access to its Sterling Monetary Framework (SMF) to accept broker-dealers and central counterparties (CCPs). Broker-dealers deemed critical to the stability of the UK financial system (designated investment firms) and CCPs that operate in UK markets and are either authorized under EMIR or recognized by ESMA, are eligible to apply for participation in the SMF, including the Discount Window Facility. (11/5/2014) Bank of England press release.
EBA consults on contractual recognition of bail-in. The European Banking Authority launched a consultation on draft Regulatory Technical Standards (RTS) under Article 55(3) of the Bank Recovery and Resolution Directive (BRRD). The RTS support the effective application of the write-down and conversion powers in relation to liabilities governed by the law of a third country. The consultation is part of the EBA’s work to promote the effective application of recovery and resolution powers to banks and banking groups with a cross-border presence and to foster convergence of practices between relevant authorities and institutions across the EU. Comments should be submitted by February 5, 2015. (11/5/2014) EBA press release.
European regulators reopen consultation on credit assessments. The Joint Committee of the three European Supervisory Authorities published an addendum to the joint consultation on the mapping of the credit assessments to risk weights of External Credit Assessment Institutions (ECAIs). The addendum provides further details on the application of the rules proposed in the draft Implementing Technical Standards in relation to particular ECAIs and is to be considered as an extension of the consultation process. The consultation period will be reopened until November 30, 2014. (10/30/2014) ESMA notice.
UK FCA proposes fee limits on workplace pensions. The UK Financial Conduct Authority proposed new fee limits for default funds used for automatic enrolment in workplace pension schemes and prohibitions against certain charging practices. Comments should be submitted by December 31, 2014. (10/30/2014) UK FCA press release.
ESMA enforcement priorities. The European Securities and Markets Authority published its Public Statement on European Common Enforcement Priorities for 2014. The Priorities identify the topics upon which ESMA and European national authorities will focus in their examinations of listed companies’ financial statements. The Priorities include the preparation and presentation of consolidated financial statements; financial reporting by entities which have joint arrangements; and recognition and measurement of deferred tax assets. (10/28/2014) ESMA notice.
Responses to ESMA consultations on Undertakings for Collective Investment in Transferable Securities. The European Securities and Markets Authority published the responses it received to its consultations on “Calculation of counterparty risk by UCITS” and on “Delegated acts under UCITS V.” (10/28/2014)ESMA notice.
UK to review fixed income, currency and commodity markets. The UK Fair and Effective Markets Review (FEMR) published a consultation document on reinforcing confidence in the fairness and effectiveness of the Fixed Income, Currency and Commodities (FICC) markets. The consultation uses a six-part framework to assess the most critical sources of vulnerability and identify the potential solutions from both structural and conduct perspectives. Comments should be submitted by January 30, 2015. Final recommendations will be made in June 2015. (10/27/2014) Bank of England press release.
EBA publishes stress test results. The European Banking Authority published the results of the 2014 EU-wide stress test of 123 banks. The EBA published both aggregate results of the EU-wide exercise and granular data for each bank, including detailed information at both the starting and end point of the exercise, under the baseline and the adverse scenarios. (10/26/2014) EBA press release.
Bank of England approach to resolving failed financial firms. The Bank of England published its approach to resolving a failed bank, building society or investment firm. The approach document sets out three key stages of resolution which firms would go through, stabilization, restructuring and exit from resolution. (10/23/2014) Bank of England press release.
ESMA updates prospectus guidance. The European Securities and Markets Authority published updated guidance on the implementation of the Prospectus Directive. (10/22/2014) ESMA notice.
UK FCA announces public education campaign. The UK Financial Conduct Authority announced a national campaign to educate the public about investment fraud and how to recognize a potential scam. (10/15/2014) FCA press release.
Solvency II approval process. The UK Prudential Regulation Authority published a consultation paper seeking views on a draft supervisory statement which would set out the PRA’s expectations of firms, and clarify the application process for certain Solvency II approvals. The consultation also provides details regarding the PRA’s pre-application process for approval to use the matching adjustment. Comments should be submitted by January 9, 2015. (10/15/2014) PRA press release.
EBA publishes remuneration findings. The European Banking Authority published its investigatory findings regarding discretionary remuneration practices across the EU banking sector. Because the report found that some institutions have misclassified allowances that may increase the fixed component of remuneration, leading to violations of the bonus cap, the EBA issued an Opinion to the European Commission and EU competent authorities calling for supervisors to ensure that institutions’ remuneration practices comply with EU legislation. (10/15/2015) EBA press release.