European Banking Authority
EBA consults on criteria to assess other systemically important institutions.The EBA launched a consultation on draft guidelines that would establish criteria to identify institutions that are systemically important either at Member State or Union level. The guidelines aim at achieving an appropriate degree of convergence in the identification process as well as at ensuring a comparable, clear and transparent assessment of these other systemically important institutions. Comments should be submitted by October 18, 2014. (7/18/2014) EBA press release.
EBA publishes final draft technical standards and guidelines on recovery plans.The EBA published two final draft Regulatory Technical Standards (RTS) specifying (i) the information to be included in a recovery plan, and (ii) the criteria that competent authorities should apply when assessing the recovery plan of an institution or a group. The final draft RTS are complemented by guidelines providing the range of scenarios to be used when testing recovery plans. (7/18/2014) EBA press release.
EBA updates guidance on high earners and remuneration. The EBA published revised guidelines on the data collection exercise regarding high earners and on the remuneration benchmarking exercise. The updated guidelines repeal those published on July 27, 2012. (7/16/2014) EBA press release.
EBA consults on technical standards on independent valuers. The EBA launched a consultation on draft Regulatory Technical Standards setting out the general criteria against which a valuer should be assessed to determine whether (s)he complies with the legal requirement of independence when performing valuation tasks with respect to a bank under resolution. Comments should be submitted by October 11, 2014. (7/11/2014) EBA press release.
EBA publishes additional information on Credit Valuation Adjustment exercise.The EBA published a list of questions and answers on the Credit Valuation Adjustment data collection exercise. To address industry concerns and to ensure consistency in the conduct of the exercise, the EBA also published a second template, which participating banks are asked to complete and submit together with the main template to their respective National Supervisory Authorities by July 31, 2014. (7/10/2014) EBA press release.
EBA consults on tests for determining when extraordinary support might be required. The EBA launched a consultation on proposed guidelines that would specify the types of tests, reviews and exercises and provide details of the main features of the measures that would be used to determine whether a financial institution requires extraordinary public support. Comments should be submitted by August 9, 2014. (7/9/2014) EBA press release.
EBA consults on resolution planning. The EBA launched consultations on draft Regulatory Technical Standards on resolution planning and on draft guidelines on measures to reduce or remove impediments to resolvability. Comments on either proposal should be submitted by October 9, 2014. (7/9/2014) EBA press release.
EC consults on potential consequences of country-by-country reporting under the Capital Requirements Directive. The European Commission launched a consultation on the potential economic consequences of country-by-country reporting under the Capital Requirements Directive IV. The consultation seeks comment on the potential economic consequences of public disclosure by banks and investment firms, on a country-by-country basis, of their profit and loss before tax, tax on profit or loss and public subsidies received. Comments should be submitted by September 12, 2014. (7/11/2014) EC notice.
European Securities and Markets Authority
Updated AIFMD guidance. ESMA updated its Questions & Answers document on the application of the Alternative Investment Managers Directive. (7/21/2014) ESMA notice.
ESMA advises EC on creditworthiness assessment of sovereign debt. ESMA published its advice to the European Commission on the appropriateness of the development of a European creditworthiness assessment for sovereign debt. In this Technical Advice, ESMA identifies several key points concerning the appropriateness of the development of a European creditworthiness assessment of sovereign debt, namely, the independence of the rating process, the review function of rating methodologies, the confidentiality of all rating sensitive information as well as the need to have sufficient resources to ensure the continuity and the quality of the rating process. (7/18/2014) ESMA notice.
ESMA consults on credit rating agency disclosure. ESMA launched a consultation on new supervisory guidelines regarding the information that is periodically submitted to ESMA by credit rating agencies. An open hearing on these issues will be held on October 15, 2014. Comments should be submitted by October 31, 2014. (7/16/2014) ESMA notice.
ESMA proposes market abuse regulations. ESMA launched a consultation on the new Market Abuse Regulation (MAR) which entered into force on July 2, 2014. ESMA is issuing two consultation papers seeking stakeholders’ views on the draft regulatory and implementing technical standards (RTS/ITS) and Technical Advice (TA), ESMA has to develop for the implementation of the new MAR framework, which will become applicable in July 2016. The draft RTS/ITS and TA specify the application of MAR to new products, venues and trading techniques, and address transparency and governance issues. Comments should be submitted by October 15, 2014. (7/15/2014) ESMA notice.
IFRS and ESMA sign joint statement. The IFRS Foundation and ESMA announced the signing of a joint Statement of Protocols to serve as the basis for future cooperation in areas of mutual interest. (7/15/2014) ESMA notice.
ESMA consults on central clearing of swaps. ESMA launched a first round of consultations to prepare for central clearing of OTC derivatives within the European Union. The two consultation papers seek stakeholders’ views on draft regulatory technical standards for the clearing of Interest Rate Swaps and Credit Default Swaps. Comments should be submitted by August 18, 2014. (7/11/2014) ESMA notice.
Updated EMIR guidance. ESMA published an update of its Questions & Answers document regarding the implementation of the European Markets Infrastructure Regulation. (7/10/2014) ESMA notice.
ESMA accounting enforcement guidelines. ESMA published its final Guidelines on the enforcement of financial information published by listed entities in the European Union. The Guidelines set out the principles to be followed by accounting enforcers throughout the enforcement process by defining the objectives, the characteristics of the enforcers, and some common elements in the enforcement process. (7/10/2014) ESMA notice.
MiFID hearings. ESMA published the audio recordings of two of the MiFID II open hearings which took place in Paris on July 7-8, 2014. (7/9/2014) ESMA notice.
UK Competition and Markets Authority
UK banking industry lacks competition. The UK Competition and Markets Authority completed two market studies into the provision of personal current accounts (PCAs), and the provision of banking services for small and medium-sized enterprises (SMEs). The CMA’s work on SME banking was conducted jointly with the Financial Conduct Authority. The findings of the PCA update and the SME report have led the CMA to believe that essential parts of the UK retail banking sector lack effective competition and do not meet the needs of personal consumers or SMEs. The CMA is now inviting views on its provisional decision to make a market investigation. Comments on the proposal should be submitted by September 17, 2014. (7/18/2014) CMA press release.
UK Financial Conduct Authority
FCA publishes thematic reviews of enhanced transfer values and self invested personal pensions. A review commissioned by the FCA into financial advice to people who were offered enhancements to incentivize them to leave their employers’ defined benefit pension schemes has identified a risk of customers losing out on retirement income due to poor advice. The FCA also published the results of a thematic review into self-invested personal pension operators. The FCA thematic review found that, despite previous warnings, some firms are still failing to fulfil their regulatory obligations. Many firms were found not to have the necessary expertise to assess high risk and non-standard investments and often failed to understand and identify the correct prudential rules that apply to their business. (7/21/2014) FCA press release.
FCA consults on standards for retirement guidance service. The FCA proposed a suite of principles-based standards regarding the implementation of the Guidance Service that will help people make retirement income decisions. Comments should be submitted by September 22, 2014. (7/21/2014) FCA press release.
Retail investment guidance proposed. The FCA published proposed guidance to help clarify the different types of retail investment sales models, the boundaries between them and the associated regulatory requirements. The proposed guidance relates to FCA Handbook Rules: COBS 9 and COBS 10, COBS 6.1A, COBS 6.2A.4G, COBS 2.1.1R and PERG 8.26 and 13.3. Comments should be submitted by October 10, 2014. (7/11/2014) FCA press release.
Discussion paper on dealing commission. The FCA published a discussion paper on its recent supervisory findings regarding the use of dealing commission. (7/10/2014) FCA press release.
Wholesale sector competition review. The FCA launched a review of competition in the wholesale sector to identify any areas that might merit further investigation through an in-depth market study. The review will focus primarily on competition in wholesale securities and investment markets, and related activities such as corporate banking. Comments should be submitted by October 9, 2014. (7/8/2014) FCA press release.