EC highlights that the Securitization Regulation, which comes into effect on January 01, 2019, creates common rules and sets the criteria for simple, transparent and standardized (STS) securitization in the EU. These are a new class of high-quality securitization. This EU-wide initiative on "high-quality" securitization will ensure high standards of process, legal certainty, and comparability across securitization instruments through a higher degree of standardization of products. This will notably increase the transparency, consistency, and availability of key information for investors, including in the area of small and medium enterprise loans, and increase liquidity.This should facilitate the issuance of securitized products and allow institutional investors to perform a thorough due diligence, which helps to identify those products that match their asset diversification, return, and duration needs.
The following are the other financial rules that will come into effect in 2019:
- On January 13, 2019, a revised Directive on occupational pension funds, known as IORP2 will come into effect.
- The revision of the Shareholders' Rights Directive takes effect on June 10, 2019.
- The new Prospectus Regulation, launched as part of the Capital Markets Union Action Plan to improve access to finance for companies and simplify information for investor, takes effect as of July 21, 2019.
- Rules on strong customer authentication that will make electronic payments in shops and online safer, come into effect on September 14, 2019.
Related Link: Press Release
Keywords: Europe, EU, Banking, Insurance, Capital Markets Union, Securitization Regulation, IORP2, IORP II Directive, EC
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
Financial policymakers and international standard-setters met virtually with private-sector executives to discuss international policy responses to COVID-19 pandemic.
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA published thematic note presenting a preliminary assessment of the impact of COVID-19 outbreak on the banking sector in EU.
HKMA published a circular, addressed to authorized institutions, on the application of the Basel Committee guidance on certain COVID-related measures.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
PRA published final policy (in PS13/20) setting out the approach and expectations for authorization and supervision of insurance special purpose vehicles (ISPVs or insurance SPVs).
BoE published version 2.0.1 of the Capital+ XBRL Utility, along with the related release notes.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.