BANKING

EBA final guidelines on bail-in under BRRD

The EBA has published final guidelines of three sets of guidelines on bail-in under the Bank Recovery and Resolution Directive (2014/59/EU), specifically concerning:

  • the interrelationship between the BRRD sequence of writedown and conversion and CRR/CRD (EBA/GL/2017/02)
  • the rate of conversion of debt to equity in bail-in (EBA/GL/2017/03)
  • treatment of shareholders in bail-in or the writedown and conversion of capital instruments (EBA/GL/2017/04)

European Banking Authority, 5 April 2017

 

Basel Committee Delays new Accounting Standards on Regulatory Capital for Banks

The Basel Committee on Banking Supervision has announced it is to delay provisioning standards requiring the use of expected credit loss models which require banks that use the International Accounting Standards Board (IASB) methods to incorporate forward-looking assessments when assessing credit losses. As a consequen of the delay, the capital frameworks of Basel II will be retained for an extended interim period of five years for the regulatory treatment of provisions as applied under the standardized approach (SA) and internal-ratings based (IRB) approaches. Basel Committee, March 2017

 

Joint Committee of the ESAs consults on draft guidelines under revised Wire Transfer Regulation

The Joint Committee of the ESAs has published a consultation paper on draft guidelines under Article 25 of the revised Wire Transfer Regulation. The paper sets out draft guidelines which explain what payment service providers (PSPs) should do to detect and prevent the abuse of fund transfers for terrorist financing and money laundering. Consultation closes for comments: 5 June 2017. Joint Committee of the European Supervisory Authorities, 5 April 2017

 

AFME report: challenges of Brexit implementation for wholesale banking

The Association for Financial Markets in Europe has published a report on the practical challenges for wholesale banking in adapting to the UK's departure from the EU. The report covers implementation issues affecting wholesale banks; clients and end users; and supervisory authorities. Association for Financial Markets in Europe, April 2017

 

European Commission asks EBA to perform work on non-performing loans data standardisation

The EBA has published a letter it received from the European Commission which asks it to carry out work on standardisation of data for non-performing loans (NPLs). The Commission explains in the letter that several factors hinder the further development of a functioning secondary market for NPLs in the EU.  EBA, 29 March 2017

 

INSURANCE

European Commission moves to conclude bilateral insurance agreement with US

The European Commission has published a proposal for a Council Decisions on the signing and provisional application of a bilateral agreement between the EU and the US on prudential measures regarding insurance and reinsurance. The proposal covers group supervision, reinsurance and exchange of information between supervisors.

European Commission, 4 April 2017

INVESTMENTS AND FUNDS

ESMA updates MiFID II Q&As on market structures, commodity derivatives and transparency

ESMA published a press release announcing the publication of new Q&As which clarify market structure, commodity derivatives and transparency issues under the MFID II Directive (2014/65/EU) and the Markets in Financial Instruments Regulation (Regulation 600/2014) (MiFIR).The new Q&As are included in updated versions of the following Q&As:

ESMA, 5 April 2017

 

GLEIF calls on market participants within the scope of MiFID II to obtain LEI

The Global Legal Entity Identifier Foundation (GLEIF) has updated its webpage on registration agents, calling on market participants within the scope of MiFID II to obtain a legal entity identifier (LEI) as soon as possible. MiFID II implementing legislation requires a significant number of persons, who are not currently under an obligation of thiskind, to obtain LEIs, the webpage notes. Global Legal Entity Identifier Foundation, 5 April 2017

 

ESMA opinion on proposed Regulation on CCP recovery and resolution

The ESMA has published an opinion on the European Commission's legislative proposal for a Regulation on the recovery and resolution of central counterparties (CCPs) (ESMA70-151-222). The opinion sets out the ESMA's concerns relating to: ESMA resources; resolution colleges; ESMA mediation role in colleges; recovery plans; and EMIR requirements for bridge CCPs. ESMA, 5 April 2017

 

European Parliament adopts Money Market Funds Regulation

The European Parliament has issued a press release announcing it voted in plenary to adopt the proposed Money Market Funds Regulation. The new rules require MMFs to diversify their asset portfolios, invest in higher-quality assets, meet liquidity and concentration requirements and have sound stress testing processes in place. A provisional edition of the adopted text has also been published. European Parliament, 5 April 2017