On October 30, the European Commission (the Commission) published a letter from John Berrigan (the Commission’s Director General for Financial Stability, Financial Services and Capital Markets Union) to the European Securities and Markets Authority, European Insurance and Occupational Pensions Authority, and the European Banking Authority (jointly the European Supervisory Authorities (ESAs)) regarding a delay to the implementation of detailed subordinate rules under the Sustainable Finance Disclosure Regulation (SFDR or Disclosure Regulation) caused by the COVID-19 pandemic (the Letter).
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European Banking Authorities
ESG: ESMA Publishes Strategy on Sustainable Finance
Posted in EU Developments, Financial Markets
On February 6, the European Securities and Markets Authority (ESMA) published its Strategy on Sustainable Finance (the Strategy). This continues work initiated by the European Commission (the Commission) concerning sustainable finance and the incorporation of environmental, social and governance (ESG) factors into European financial services (for more information, please see the January 10 edition of Corporate & Financial Weekly Digest).
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ESMA and EBA Publish Advice on Cryptoassets
On January 9, the European Securities and Markets Authority (ESMA) published advice addressed to the European Commission, the European Parliament and the Council of the EU on initial coin offerings (ICOs) and cryptoassets. On the same day, the European Banking Authority (EBA) also published advice on cryptoassets addressed to the European Commission.
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EBA Publishes Opinion on Firms’ “Inadequate” Brexit Preparations
On June 25, the European Banking Authority (EBA) published an opinion on preparations for the withdrawal of the United Kingdom from the European Union (Brexit). Its opinion cites two aims with respect to national competent authorities:
- ensuring that financial institutions are adequately considering the risks of a possible Brexit without a ratified withdrawal agreement, and that they are putting in place appropriate plans to mitigate risks in an appropriate timeframe; and
- drawing attention to the customer protection obligations of financial institutions in these circumstances.
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EBA Consults on Guidelines for Outsourcing Business Activities
Posted in EU Developments, Financial Markets
On June 22, the European Banking Authority (EBA) published a consultation paper with draft guidelines on arrangements for outsourcing business activities.
The EBA’s draft guidelines differentiate between the nature of the functions outsourced so that functions that are more critical are subject to stricter and stronger requirements.
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EBA Publishes Report Regarding ITS on Reporting for Resolution Plans Under the EU BRRD
Posted in EU Developments, Financial Markets
On April 17, the European Banking Authority (EBA) published its draft implementing technical standards (ITS) on reporting for resolution plans under the EU Bank Recovery and Resolution Directive (BRRD).
Under the BRRD, EU Member States must ensure that resolution authorities have the power to require investment firms and credit institutions to cooperate as much as necessary in preparing resolution plans and to provide resolution authorities with all information necessary to implement, not just prepare, resolution plans.
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European Commission Adopts MiFIR Delegated Act
By Nathaniel Lalone & Carolyn H. Jackson on
Posted in Derivatives, EU Developments
On May 18, the European Commission (EC) adopted a delegated act to supplement the Markets in Financial Instruments Regulation (MiFIR). The delegated act is in the form of a regulation (Delegated Regulation) and covers definitions, transparency, portfolio compression and supervisory requirements on product intervention and position management under MiFIR.
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Draft RTS on Risk-Mitigation Procedures for OTC Derivatives Not Cleared by CCPs Published by EU Supervisory Authorities
By Carolyn H. Jackson & David A. Brennand on
Posted in Derivatives, UK Developments
On March 8, the European Supervisory Authorities (which includes the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority) published final draft regulatory technical standards (RTS) in relation to the European Market Infrastructure Regulation (EMIR).
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