Featured Product

    EC Publishes Equivalence Decisions for Several Non-EU Countries

    July 30, 2019

    EC released a communication setting out the comprehensive approach and recent legislative improvements in terms of how EC grants equivalence to non-EU countries. EC also published certain implementing decisions on the equivalence for financial benchmarks and credit rating agencies in various non-EU countries. The implementing decisions shall enter into force on the twentieth day following that of their publication in the Official Journal of the European Union.

    EC has adopted equivalence decisions for financial benchmarks administered in Australia and Singapore. These equivalence decisions recognize that the administrators of certain interest rates and foreign exchange benchmarks in Australia and Singapore are subject to legally binding requirements that are equivalent to the EU requirements set out under Benchmark Regulation (EU 2016/1011). Separately, EC has extended existing equivalence decisions in the field of credit rating agencies for Hong Kong, Japan, Mexico, and the United States. EC has, for the first time, repealed existing decisions for Argentina, Australia, Brazil, Canada, and Singapore, as these jurisdictions could no longer meet the standards set by the EU Credit Rating Agencies Regulation after its amendment in 2013. 

    The EC communication describes how EC and ESAs monitor the situation in those countries after equivalence decisions have been taken, to ensure that these continue to fulfill EU objectives and preserve financial stability, investor protection, market integrity, and a level playing field in EU. This communication also provides an overview of how recent EU legislative changes have strengthened the equivalence framework—both in terms of initial assessments and ex-post monitoring—particularly with the increased role for ESAs. These recent legislative changes, for instance in the amended ESA regulations, strengthen the roles of these EU authorities in monitoring equivalent third countries. The EC communication also sets out how recent updates to EU legislation will ensure even greater effectiveness of the single rulebook, supervision, and monitoring while fostering cross-border business in global markets. EC has, to date, taken over 280 equivalence decisions with regard to over 30 countries.

    EU equivalence has become a significant tool in recent years, fostering integration of global financial markets and cooperation with the third-country authorities. EU assesses the overall policy context and to what extent the regulatory regimes of a given third country achieve the same outcomes as its own rules. A positive equivalence decision, which is a unilateral measure by EC, allows EU authorities to rely on third-country rules and supervision, thus enabling market participants from third countries who are active in EU to comply with only one set of rules.

     

    Related Links

    Effective Date: August 19, 2019 (implementing decisions)

    Keywords: Europe, EU, Asia Pacific, Americas, Hong Kong, Japan, US, Mexico, Australia, Singapore, Brazil, Canada, Argentina, Bank9ing, Securities, CRA, Equivalence Decisions, Third Country, CRA Regulation, ESAs, EC

    Featured Experts
    Related Articles
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    BoE Announces Changes to Validation Rules for Form BTL

    The Bank of England (BoE) published questions and answers (Q&A) on OSCA to BEEDS migration for statistical reporting as well a presentation from the project overview session held with statistical reporters.

    July 20, 2021 WebPage Regulatory News
    News

    BCBS Proposes Changes to Process for Reviewing G-SIB Methodology

    The Basel Committee on Banking Supervision (BCBS) is consulting on a technical amendment to the Basel Framework to reflect a new process reviewing the global systemically important bank (G-SIB) assessment methodology.

    July 20, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7281