Commission speaks on CMU: Jonathan Hill has spoken on the next steps towards capital markets union (CMU). He looked at the themes of the review, including:

  • the role for European Long Term Investment Funds and European Venture Capital Funds in increasing access to finance. He also spoke on the changes in the Markets in Financial Instruments Directive (MiFID 2), European Market Infrastructure Regulation (EMIR) and Alternative Investment Fund Managers Directive initiatives that also help to increase access to non-bank finance;
  • the Commission's plan for a framework for simple, transparent securitisation products;
  • opening up investment possibilities for pension funds; and
  • better transparency for retail investors.

(Source: Commission Speaks on CMU)

Commission adopts first Solvency 2 equivalence package: The Commission has adopted decisions on the equivalence, for Solvency 2 purposes, of seven jurisdictions:

  • Switzerland has full equivalence, indefinitely – that is, on solvency calculation, group supervision and reinsurance; and
  • Australia, Bermuda, Brazil, Canada, Mexico and the US have equivalence on solvency calculation for 10 years.

(Source: Commission Adopts First Solvency 2 Equivalence Package)

Commission extends transitional period for CCP exposures: The Commission has extended the transitional period for capital requirements for exposures to central counterparties (CCPs) under the Capital Requirements Regulation (CRR). The transitional period was due to expire on 15 June and the Commission has extended it to 15 December to allow time for CCPs to complete their authorisations. (Source: Commission Extends Transitional Period for CCPs and Transitional Extension in OJEU)

Commission extends pension fund central clearing exemption: The Commission has extended transitional relief for pension funds from central clearing requirements under EMIR to 16 August 2017. (Source: Commission Extends Pension Fund Central Clearing Exemption)

Commission publishes CMU, securitisation and prospectus responses: The Commission has published the responses it received to three consultation papers on:

  • building a CMU;
  • the Prospectus Directive; and
  • an EU framework for simple, transparent and standardised securitisation.

All three contain UK responses. (Source: EU Public Consultations)