On October 1, The European Securities and Markets Authority (ESMA) issued a statement relative to its approach to the application of the Markets in Financial Instruments Directive (MiFID) and Markets in Financial Instruments Regulation (MiFIR) following the end of the Transition Period on December 31 provided for in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union (EU) and the European Atomic Energy Community (Withdrawal Agreement).
Continue Reading MiFID II: FCA Publishes Regulatory Forbearance on the 10 Percent Depreciation Rule

On May 14, the Council of the European Union (Council of the EU) published a press release announcing that it had adopted the proposed revisions to the Capital Requirements Regulation (CRR II) and to the Capital Requirements Directive (CRD) IV, or CRD V, at first reading. This follows the preliminary political agreement reached by the Council of the EU and the European Parliament in December 2018 on proposed revisions to CRD IV and CRR (as reported in the December 7, 2018 edition of the Corporate & Financial Weekly Digest).
Continue Reading Council of the EU has Adopted CRR II Regulation and CRD V Directive at First Reading

On December 4, the European Parliament published a press release announcing that it reached provisional political agreement with the Council of the European Union on the proposed revisions to the Capital Requirements Regulation (CRR), or CRR II, and to the Capital Requirements Directive (CRD) IV, or CRD V. The European Parliament also published a separate press release setting out the details of the agreement.
Continue Reading Provisional Political Agreement Reached on CRR II Regulation and CRD V Directive

On August 28, the European Banking Authority (EBA) published a consultation paper on amendments to the Commission Implementing Regulation (Implementing Regulation) containing implementing technical standards on supervisory reporting (ITS), relating to the new securitizations framework, which came into force in January.
Continue Reading EBA Publishes Consultation Paper on Amendments to the CRR Supervisory Reporting ITS Relating to Securitizations

On April 30,the UK Prudential Regulation Authority (PRA) published a policy statement regarding updates to the Pillar 2 reporting requirements of the EU Capital Requirements Regulation. The policy statement is relevant to banks, building societies and PRA-designated investment firms.
Continue Reading PRA Publishes Pillar 2 Reporting Requirements Policy Statement

On December 6, the Breach of Union Law Panel of the European Banking Authority (EBA) published a press release relating to a breach of European Union (EU) law (BUL) investigation against the Dutch central bank, De Nederlandsche Bank (DNB), relating to the latter’s prudential framework for proprietary traders.

Since January 2014, the DNB had designated investment firms licensed to perform the investment activity of proprietary trading (that is, dealing on own account) with the status of “local firms”, according to the DNB’s interpretation of Article 4(1)(4) of the Capital Requirements Regulation (CRR). This therefore exempted such firms from the scope of the EU’s framework of capital requirements under the CRR (including, significantly, the bonus cap rules (restricting bonuses to no more than 2 x the individual’s salary), which apply to banks and investment firms subject to the CRR). Instead, the DNB had historically imposed a national framework of capital requirements that reflected the risk exposure of the relevant firms—and exempted Dutch “local firms” from the bonus cap.
Continue Reading EBA Closes Breach of EU Law Investigation Relating to Dutch Prudential Regime for Proprietary Traders

On December 10, an implementing regulation (Regulation) on the extension of transitional periods set out in the Capital Requirements Regulation (CRR) and the European Market Infrastructure Regulation (EMIR) was published in the Official Journal of the European Union.
Continue Reading EU Regulation Extends Transitional Period for Own Fund Requirements for CCP Exposures to June 2017