Handbook for FSB peer reviews

The Financial Stability Board (FSB) has updated its Handbook which sets out guidelines for the conduct of FSB peer reviews. Section 1 sets peer reviews in the broader context of the FSB’s implementation monitoring framework, describes the process used to develop the Handbook and provides an overview of the two types of peer reviews (thematic reviews and country reviews) as well as of the different stages in the review process. Section 2 describes the overall objectives of FSB peer reviews and the principles that underlie the process. Sections 3 to 7 detail the different stages of the reviews, distinguishing where appropriate between the two types of reviews.

View Handbook for FSB peer reviews, 7 January 2014

European Parliament to consider ESFS review at 10 to 13 March 2014 plenary session

The European Parliament has updated its procedure file on the review of the European System of Financial Supervision. The procedure file now indicates that the Committee on Economic and Monetary Affairs is scheduled to vote on its draft report on the review on 13 February 2014 and that the Parliament will vote on the final report at its 10 to 13 March 2014 plenary session.

View European system of financial supervision (ESFS) review, 30 January 2014

Commission proposes framework for regulatory co-operation in financial services as part of EU-US trade deal

The European Commission has published a report setting out a proposal for a framework for regulatory co-operation in financial services in the context of negotiations for an EU-US trade deal, known as the Transatlantic Trade and Investment Partnership (TTIP).

The EU is proposing to establish, within the TTIP framework, a transparent, accountable and rule-based process that would commit the two parties to work together towards strengthening financial stability. The regulatory co-operation would be based on the following principles:

  • joint work to ensure timely and consistent implementation of internationally-agreed standards for regulation and supervision;
  • mutual consultations in advance of any new financial measures that may significantly affect the provision of financial services between the EU and the US and to avoid introducing rules unduly affecting the jurisdiction of the other party;
  • joint examination of the existing rules to examine whether they create unnecessary barriers to trade; and
  • a commitment to assessing whether the other jurisdiction's rules are equivalent in outcomes.

These general principles would be backed up by specific arrangements for the governance of EU-US regulatory co-operation, guidelines on equivalence assessments and commitments to exchange necessary and appropriate data between regulators. Essentially though, the EU proposal would encompass the commitment to outcome-based assessments of whether the other party's regulatory and supervisory framework is equivalent. This could potentially lead to mutual reliance on the rules of the other party.

View EU – US transatlantic trade and investment partnership - Cooperation on financial services regulation, 27 January 2014

Commission legislative proposal for reporting and transparency of securities financing transactions

The European Commission has published a legislative proposal for a Regulation on reporting and transparency of securities financing transactions (SFTs). The proposed Regulation sets out proposals for requirements for:

  • financial or non-financial counterparties of SFTs to report the details of SFT transactions to trade repositories;
  • UCITS management companies, UCITS investment companies and alternative investment fund managers to provide information to investors on their use of SFTs and other financing structures; and
  • counterparties seeking to engage in rehypothecation to ensure certain conditions are satisfied before they have the right to rehypothecation.

View Proposal for a Regulation of the European Parliament and of the Council on reporting and transparency of securities financing transactions, 29 January 2014