EC launched two public consultations: one seeks views on the suitability of the existing regulatory framework for crypto-assets including “stablecoins” and the other requests feedback on how the existing legislative framework can be improved to ensure that the financial sector can deal with cyber-attacks and other risks arising from increasing digitization. The feedback from the public consultations will feed into the impact assessment of EC on possible upcoming initiatives. The comment period for both consultations ends on March 18, 2020, as mentioned in the EC Press Release.
To promote digital finance in Europe, while adequately regulating its risks, in light of the mission letter of Executive Vice President Dombrovskis, EC services are working toward a new Digital Finance Strategy for EU. Key areas of reflection include deepening the Single Market for digital financial services, promoting a data-driven financial sector in EU while addressing its risks and ensuring a true level playing field, making the EU financial services regulatory framework more innovation-friendly, and enhancing the digital operational resilience of the financial system. EC may consult further on other issues in this area in the coming months. The consultation on the:
- EU Regulatory Framework for Crypto-assets seeks feedback from stakeholders on whether and how to classify crypto-assets. It concerns both crypto-assets that fall under existing EU legislation (those that qualify as "financial instruments" under Markets in Financial Instruments Directive (MiFID) II and those qualifying as "e-money" under e-money directive or EMD2) and those that do not.
- Digital Operational Resilience is aimed to gather stakeholder views on the need for legislative improvements within the financial services acquis with a view to harmonize rules across EU in a proportionate way to make the financial sector more secure and resilient while alleviating compliance and administrative burdens. EC services would welcome stakeholder input in four main areas—requirements on information and communications technology (ICT) and security risk management in the legislative acquis applicable to the financial sector, incident reporting requirements, digital operational resilience testing framework, and oversight of ICT third-party providers to the financial institutions.
- Press Release
- Consultation on EU Framework Crypto-Assets
- Consultation on Digital Operational Resilience
Comment Due Date: March 18, 2020
Keywords: Europe, EU, Banking, Insurance, Securities, Crypto-Assets, Stablecoins, Regulatory Framework, Fintech, Operational Risk, Cyber Risk, EC
Previous ArticleDNB Decides on No Countercyclical Capital Buffer in Netherlands
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).
The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.
The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.
The European Commission (EC) adopted the work program for 2022.