Various amendments to the Solvency II Delegated Regulation ((EU) 2015/35) and to the Insurance Distribution Directive Delegated Regulations ((EU) 2017/2358 and (EU) 2017/2359) have been published in the Official Journal of the European Union so that sustainability requirements can be introduced into the Solvency II and the insurance distribution regimes in the European Union. The amendments will come into effect 20 days after publication, therefore on 22 August 2021. The Regulation changes will apply from…

Financial services: Regulation tomorrow

EBA consults on new guidelines on the role of AML/CFT compliance officers

By Lisa Lee Lewis (UK) & Simon Lovegrove (UK)

August 3, 2021

On 2 August 2021, the European Banking Authority (EBA) launched a public consultation on new guidelines on the role, tasks and responsibilities of anti-money laundering and countering the financing of terrorism (AML/CFT) compliance officers. When finalised the guidelines apply to financial sector operators as defined in Article 4(1a) of Regulation (EU) No 1093/201019. The draft guidelines address, for the first time at the level of the EU, the whole AML/CFT governance set-up. Without prejudice to…

Financial services: Regulation tomorrow

FCA regulatory sandbox – always open

By Albert Weatherill (UK) & Simon Lovegrove (UK)

August 3, 2021

On 2 August 2021, the FCA announced that the regulatory sandbox had moved from being operated on a cohort basis to being always open, allowing firms to submit their applications throughout the year.…

Financial services: Regulation tomorrow

Delegated legislation integrating sustainability into UCITS Directive, AIFMD, MiFID II

By Daniel Nevzat (UK)

August 3, 2021

On 2 August 2021, the following were published in the Official Journal of the EU: Commission Delegated Regulation (EU) 2021/1255 of 21 April 2021 amending Delegated Regulation (EU) No 231/2013 as regards the sustainability risks and sustainability factors to be taken into account by Alternative Investment Fund Managers Commission Delegated Regulation (EU) 2021/1254 of 21 April 2021 correcting Delegated Regulation (EU) 2017/565 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements …

Financial services: Regulation tomorrow

Call for advice to ESMA regarding certain aspects relating to retail investor protection

By Simon Lovegrove (UK) & Matthew Gregory (UK)

August 3, 2021

On 2 August 2021, the European Securities and Markets Authority (ESMA) published a call for advice that it had received from the European Commission. In the call for advice the Commission asks ESMA to help it with the preparation of legislative proposals implementing certain aspects of the EU retail investment strategy. ESMA is invited by the Commission to provide technical advice in the following areas: Addressing and enhancing investor engagement with disclosures. Drawing out the…

Financial services: Regulation tomorrow

SSM-wide stress test 2021

By Martin Krause (DE)

August 3, 2021

On 30 July 2021, the European Central Bank (ECB) published the results of its 2021 stress test. The stress test shows that the euro area banking system is resilient to adverse economic developments. The Common Equity Tier 1 capital ratio of the 89 ECB supervised banks in the stress test would fall by an average of 5.2 percentage points, to 9.9% from 15.1%, if they were exposed to a three-year stress period marked by challenging…

Financial services: Regulation tomorrow

Call for advice to the Joint Committee of the ESAs regarding the PRIIPs Regulation

By Matthew Gregory (UK) & Simon Lovegrove (UK)

August 3, 2021

On 2 August 2021, the European Securities and Markets Authority published the call for advice that the Joint Committee of the European Supervisory Authorities (ESAs) had received from the European Commission regarding the Packaged Retail and Insurance-based Investment Products Regulation (PRIIPs Regulation). The Commission invites the Joint Committee to provide advice on the following areas concerning the PRIIPs Regulation: A general survey on the use of the PRIIPs key information document across the A general…

Financial services: Regulation tomorrow

Commission consults on Delegated Regulation on supervisory fees, fines and penalties for benchmark administrators

By Simon Lovegrove (UK)

August 3, 2021

On 30 July 2021, the European Commission published for consultation a draft Delegated Regulation supplementing the Benchmarks Regulation (BMR) by covering the fees that benchmark administrators need to pay the European Securities and Markets Authority (ESMA) for supervision and the procedure that ESMA needs to follow to impose fines or penalties on benchmark administrators under its supervision. The draft Delegated Regulation is made pursuant to Articles 48i(10) and 48I(3) of the BMR. Article 48i(10) of…

Financial services: Regulation tomorrow

EBA publishes the results of its 2021 EU-wide stress test

By Simon Lovegrove (UK)

August 3, 2021

On 30 July 2021, the European Banking Authority (EBA) published the results of the 2021 EU-wide stress test, which involved 50 banks from 15 EU and EEA countries, covering 70% of the EU banking sector assets. The stress test is characterised by an adverse scenario that assumes a prolonged COVID-19 scenario in a “lower for longer” interest rate environment. With a cumulative drop in GDP over the three-year horizon by 3.6% in the EU, and…

Financial services: Regulation tomorrow

Commission consults on Delegated Regulation on supervisory fees, fines / penalties and derogation criteria for DRSPs

By Simon Lovegrove (UK)

August 3, 2021

On 30 July 2021, the European Commission issued for consultation a draft Delegated Regulation to be adopted under Articles 2(3), 38k(10) and 38n(3) of MiFIR and deal with the supervision of data reporting service providers (DRSPs) which will be transferred from Member State competent authorities to the European Securities and Markets Authority (ESMA) from January 2022. The initiative establishes the: Derogation criteria for DRSPs that will continue to fall under the supervision of Member State…

Financial services: Regulation tomorrow

Tracks financial services regulatory developments and provides insight and commentary

Blog Authors

Sustainability amendments to Solvency II and the IDD published in the Official Journal of the EU

EBA consults on new guidelines on the role of AML/CFT compliance officers

FCA regulatory sandbox – always open

Delegated legislation integrating sustainability into UCITS Directive, AIFMD, MiFID II

Call for advice to ESMA regarding certain aspects relating to retail investor protection

SSM-wide stress test 2021

Call for advice to the Joint Committee of the ESAs regarding the PRIIPs Regulation

Commission consults on Delegated Regulation on supervisory fees, fines and penalties for benchmark administrators

EBA publishes the results of its 2021 EU-wide stress test

Commission consults on Delegated Regulation on supervisory fees, fines / penalties and derogation criteria for DRSPs

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