ESMA launched a consultation on the future technical advice on the rules to impose penalties and fines on third-country central counterparties, trade repositories, and credit rating agencies (CRAs). The proposal builds on the existing enforcement framework regarding trade repositories and CRAs as well as on the supervisory experience of ESMA gained in recent years. The consultation will run until January 18, 2020. ESMA will consider the feedback received in the finalization of the technical advice by the end of the first quarter of 2020.
The consultation paper comprises 13 sections and two annexes. The key topics covered in the consultation include scope of the proposed rules, procedure for the imposition of fines and supervisory measures, and the rights of the person subject to investigation, proposed procedure for the imposition of periodic penalty payments, and methods for the collection of fines and periodic penalty payments. Annex I to the paper provides a summary of the consultation questions.
In September 2019, ESMA received a provisional request from EC to provide technical advice to assist EC in formulating procedural rules for penalties imposed on third-country central counterparties and trade repositories (Annex II). To deliver its advice to EC, ESMA took into account the existing Union regulatory framework in areas where European institutions or agencies have the power to impose fines on market participants. In particular, ESMA has considered the CRA Regulation (1060/2009) and the Commission Delegated Regulation (EU) No 946/2012 with regard to the rules of procedure on fines imposed to CRAs. ESMA has also considered the relevant experience that it has acquired when operating under the mentioned rules of procedure applicable to trade repositories and CRAs. This consultation paper sets out the preferred options of ESMA for the procedural rules on the imposition of penalties to third-country central counterparties. It also analyzes whether the procedural rules applicable to the imposition of penalties to trade repositories and CRAs should be amended. The consultation welcomes comments to assist in the production of the advice.
Comment Due Date: January 18, 2020
Keywords: Europe, EU, Securities, CRA, CCPs, Technical Advice, CRA Regulation, Trade Repositories, ESMA
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.