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The European Commission has published long-awaited legislative proposals on creating a pan-European Personal Pension’s Product (PEPP). The PEPP regime will provide the building blocks for the creation of a voluntary single personal pension product that can be marketed by providers on a pan-European scale. The new regime is intended to sit alongside existing national products rather than replace them, but the Commission hopes the new product will also play a role in building up those…
On 26 April, Member State representatives met for a full day’s discussion of the Risk Reduction Measures legislation. The meeting focused on the European Commission’s (Commission) November 2016 proposal for amendments to the Capital Requirements Regulation (CRR) and Capital Requirements Directive (CRD). Discussions are still centered on the aspects of the proposal which are likely to be ‘fast-tracked’ with discussion of many of the more controversial aspects not likely to begin until Estonia takes over…
As part of the public consultation on the review of the European Supervisory Authorities (ESAs) the European Commission has proposed merging the European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA). This change is designed to replicate the ‘twin peaks’ structure common at a national level, with one market authority and one prudential regulator. The EU’s current sectoral approach has been in place since the ESAs were created in 2010 and…
On 14 March, the European Parliament voted to adopt the final text of amendments to the Shareholder’s Rights Directive. The text, based on the political agreement reached in December, will now need to be formally adopted by the Council of the EU before publication in the Official Journal of the EU. The new Directive will introduce several measures to increase the oversight powers of shareholders’ in listed companies in particular regarding executive pay. This includes…
The Council of the EU (the Council) has published an “I/A” item note from its General Secretariat to the Permanent Representatives Committee (COREPER) relating to the proposed Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (the Regulation). COREPER is asked to confirm its agreement to the draft Regulation and to suggest that the Council approve the European Parliament’s position at a forthcoming meeting.…
On 2 May 2016, political agreement on the MiFID II “Quick Fix” was reached between the European Parliament’s negotiation team on MiFID II and Member States’ representatives. The compromise reached included a one-year delay to the date of application and the date of transposition as well as to certain aspects of the Market Abuse Regulation. In addition, a dedicated regime for the treatment of package transactions with regards to pre-trade transparency obligations was created and…
The European Securities and Markets Authority (ESMA) has published a Discussion Paper seeking views on its policy orientations and initial proposals for the potential Level 2 measures under the Regulation on indices used as benchmarks in financial instruments and financial contracts (the Benchmarks Regulation). The Discussion Paper seeks views in the following areas: definition of benchmarks (Article 3 Benchmarks Regulation); requirements for the benchmark oversight function (Article 5a Benchmarks Regulation); requirements for the benchmark input data…
The European Commission has published a mandate it has sent to the European Securities and Markets Authority (ESMA) requesting technical advice on possible delegated acts concerning the Regulation on indices used as benchmarks in financial instruments and financial contracts (the Benchmarks Regulation). In particular, the mandate notes that ESMA is invited to provide technical advice on: how to specify what constitutes: (i) making available to the public for the purpose of the definition of an…
Over two years since the European Union (EU) adopted new rules on remuneration via CRD IV, credit institutions and investment firms are now preparing for their application. However, while the legislative intent seems to have been some level of proportionality to the new rules, questions still remain about whether this can actually be achieved. Can certain provisions be disapplied to low risk institutions, or must they comply with all of the Directive? This issue has…