TOP NEWS:
13/06/2014 – EU Official Journal – CRR: Delegated Regulation
Commission Delegated Regulation (EU) No 625/2014 of 13 March 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council by way of regulatory technical standards specifying the requirements for investor, sponsor, original lenders and originator institutions relating to exposures transferred credit risk (regarding Regulation on prudential requirements for credit institutions and investment firms)
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12/06/2014 – EU Official Journal – BRRD, DGS: Publication of two pieces of the Single Rulebook for banks
The Directive on the Recovery and Resolution of Credit Institutions and Investment Firms (BRRD) and the recast Directive on Deposit Guarantee Schemes (DGS) have been published in the EU Official Journal (12/06/2014, OJEU L 173/149 and OJEU 12/06/2014, L 173/190).
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12/06/2014 – EU Official Journal – MiFID/R: New legislative framework for markets in financial instruments published in the Official Journal
The Directive on Markets in Financial Instruments (MiFID II) and the Regulation on Markets in Financial Instruments (MiFIR) have been published in the EU Official Journal (OJEU L 173/84, 12/06/2014). Member States have two years to transpose the new rules which will be applicable starting January 2017
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12/06/2014 – EU Official Journal – MAD/MAR: New Framework on Market Abuse published in the Official Journal
Regulation No 596/2014 on Market Abuse (OJEU - L173/1 of 12/06/2014) and Directive 2014/57/EU on criminal sanctions for market abuse (12/06/2014, OJEU L173/179) have been published in the EU Official Journal. The Market Abuse Regulation shall enter into application in July 2016. Member States have two years to transpose the Directive on criminal sanctions for market abuse into their national law.
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10/06/2014 – Commissioner Barnier – Speech, Financial Regulation: the pace of reform set in motion in 2010 must be maintained (FR)
Commissioner Barnier in an hearing in front of the French Senate, presented the legislations: supervision (EBA, ESMA, EIOPA), CRV IV and capital requirements, EMIR to regulate derivatives markets, and the Banking Union to address fragmentation of financial markets. But a lot need to be completed: to complete the remaining parts of the financial regulation agenda (reform of the banking structures, transparency of securities financing, shadow banking, benchmarks), then it is necessary to properly implement the reforms (delegated acts: Solvency II, CRD 4,). Finally, the impact of the assessment of the reforms should be taken into consideration.
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11/06/2014 – European Commission – State Aid: Investigation of transfer pricing arrangements on corporate taxation of Apple (Ireland), Starbucks (Netherlands) and Fiat Finance and Trade (Luxembourg)
The Commission has opened in-depth investigation to examine whether decision by tax authorities in Luxembourg with regard to the corporate income tax to be paid by Fiat Finance and Trade complies with the EU rules on state aid. The opening of the investigation gives interested parties as well as Luxembourg an opportunity to submit comments.
10/06/2014 – Vice President of the European Commission Olli Rehn, DG ECFIN, Speech – From fire-fighting to structural change
After the recession EU has experienced, there are still some challenges for the recovery. The financial system is still fragmented and businesses have difficulties in finding funding. Adequate, safe and sustainable pensions are needed. This leads to the issue of investment. Even though Banking Union plays an important role, other alternative sources of funding have to be tapped (e. g. pension and insurance funds to finance investment)
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OTHER NEWS:
13/06/2014 – EBA – Publication of a report on benchmarking of remuneration practices in the EU
EBA published a report providing a detailed analysis on remuneration practices across a sample of EU banks. The report, based on data collected on a consolidated basis from 2010 to 2012, sets benchmarks for different aspects of remuneration policies and provides additional insight into the previously published data on 'high earners'. The report shows an increasing trend in the remuneration paid to 'risk takers', as well as a material shift from variable fixed remuneration.
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13/06/2004 – ESMA and EBA – Publication of harmonised guidelines for handling consumer complaints across the EU
ESMA and EBA published their Joint Committee final Report on guidelines for handling consumer complaints in the securities and banking sectors. The document aims to increase market confidence and for the benefit of consumers and firms alike it will ensure a harmonised approach to handling complaints for all 28 EU Member States and across all the financial services sectors.
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12/06/2014 – IOSCO – Intensification of work on Market-based Finance
The Board of IOSCO agrees on the importance of Market-Based Finance. Capital markets are key source of financing and focusing the IOSCO's agenda on fostering markets as a trusted source of capital could help support growth. The Board progressed on a number of areas: methodologies for identifying non-bank global systemically important financial institutions, the role capital markets and securities regulators can play in supporting financing, the IOSCO principles on Benchmarks, the reduction of the reliance on external credit ratings, etc.
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12/06/2014 – EBA – Consultation on technical standards on assessment methodologies for the use of advanced measurement approaches for operational risk
The EBA launched a consultation on draft Regulatory Technical Standards assessing the criteria that competent authorities need to consider before granting institution permission to use advanced measurement approaches for calculating their capital requirements for operational risk. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonization in the banking sector in the EU. The consultation runs until 12 September 2014.
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11/06/2014 – EBA – Publication of a report on comparability of risk weighted assets for residential mortgages
The EBA published a second report on the consistency of RwAs in the residential mortgage portfolio. The report illustrates the findings of an investigation on the extent to which the most commonly used risk drivers influence the variability in risk weights. The analysis confirmed that risk parameters such as loan to value are drivers of RWAs. There are however differences in how the banks reflect such drivers in RwAs. The study only shed light on the sources of variation in risk weights but national competent authorities can solely draw final conclusions.
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11/06/2014 – ECB– Speech Yves Mersch 'Next steps for European Securitisation market'
ABS have become a major focus of discussion. The ECB's view on ABS is that ABS is a means to achieve their primary objective of price stability. ABS might also play a role on financial stability. Finally ECB takes a close interest in ABS because they are an important component of the Eurosystem's own balance sheet. To unblock European ABS markets Y. Mersch presented some proposals like: (a) a more coordinated and holistic approach in regulating ABS markets, (b) more transparency and standardisation requirements for ABS (disclosure), (c) recalibration of treatment by credit rating agencies.
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