On 30 March 2020, the European Securities and Markets Authority (ESMA) published its final report containing draft amendments to the regulatory technical standards (RTS) incorporated in Commission Delegated Regulation (EU) No 876/2013 on colleges for central counterparties (the Delegated Regulation). The Delegated Regulation has been developed by ESMA and adopted by the European Commission in accordance with Article 18(6) of the European Market Infrastructure Regulation (EMIR). The proposed amendments reflect the amendments to EMIR introduced…

On 27 March 2020, the European Central Bank (ECB) updated its recommendation to banks on dividend distributions. The ECB recommends that at least until 1 October 2020 no dividends are paid out and no irrevocable commitment to pay out dividends is undertaken by credit institutions for the financial year 2019 and 2020 and that credit institutions refrain from share buy-backs aimed at remunerating shareholders. The ECB adds that credit institutions that are unable to comply…

On 30 March 2020, the PRA published statements on: value at risk (VAR) back-testing exceptions temporary approach. The PRA is aware that the exceptional levels of market volatility over the past few weeks has led to an elevated level of VAR back-testing breaches across the industry. In order to mitigate the possibility of procyclical market risk capital requirements through the automatic application of a higher VAR multiplier the PRA will allow firms – on…

On 29 March 2020, the FCA issued a statement making it clear to firms how they should prioritise who should need to travel to the office and the responsibilities of senior managers in doing so. The statement applies to all FCA-regulated firms across the UK.…

On 27 March 2020, the Dutch Minister of Finance (the Minister) sent a letter to the Dutch Parliament containing answers to questions raised by members of the Dutch Parliament on potential liquidity issues in the financial sector as a result of the COVID-19 crisis. The questions in the letter among other things relate to the short selling prohibition on certain shares that was introduced by the French regulator, the Autorité des Marches, on 17 March…

The client money regime Over the coming weeks, partners from our financial services team will be sharing with clients and contacts a series of video diaries setting out their views on the latest developments in respect of COVID 19 impacts in the various areas of financial services. In our second video diary, Hannah Meakin provides updates on the latest issues affecting the client money regime in the UK. In this video, Hannah provides a…

On 18 March 2020 and 21 March 2020 the German Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin) published notes in which it referred to and appropriated EIOPA publications on Actions to mitigate the impact of Coronavirus/COVID-19 on the EU insurance sector (dated 17 March 2020) and Recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure (dated 20 March 2020). Now it has added a number of questions and answers…