Featured Product

    EC Consults on Legislative Initiatives Related to Sustainable Finance

    June 08, 2020

    EC is consulting on six legislative initiatives related to sustainable finance. The legislative initiatives aim to shift capital flows away from activities that have negative social and environmental consequences and direct finance toward economic activities that have genuine long-term benefits for society. The legislative initiatives comprise amendments to four regulations—namely amendments to the Solvency II (Regulation 2015/35), Regulations 2017/2358 and 2017/2359, Regulation 2017/565, and Regulation 231/2013. The legislative initiatives also involve amendments to two directives—the revised Markets in Financial Instruments Directive (MiFID II or 2017/593) and Undertakings for Collective Investment in Transferable Securities (UCITS or Directive 2010/43/EU). Feedback is requested by July 06, 2020.

    The EU action plan on sustainable finance seeks to clarify the duties of financial institutions to provide their clients with clear advice on the social and environmental risks and opportunities attached to their investments. The draft Regulations and Directives are part of a broader EC initiative on sustainable development. It lays the foundation for an EU framework that puts sustainability considerations at the center of the financial system to support transforming the economy into a greener, more resilient, and circular system in line with the European Green Deal objectives. The legislative initiatives comprise the following draft delegated regulations and directives:

    • Draft Regulation that amends Solvency II Regulation regarding the integration of sustainability risks in the governance of insurance and reinsurance undertakings
    • Draft Regulation that amends Delegated Regulations 2017/2358 and 2017/2359 regarding the integration of sustainability factors and preferences into the product oversight and governance requirements for insurance undertakings and insurance distributors and into the rules on conduct of business and investment advice for insurance-based investment products
    • Draft Regulation that amends Regulation 2017/565 regarding the integration of sustainability factors, risks, and preferences into certain organizational requirements and operating conditions for investment firms
    • Draft Regulation that amends Regulation 231/2013 regarding sustainability risks and sustainability factors to be taken into account by Alternative Investment Fund Managers
    • Draft Directive that amends MiFID II regarding the integration of sustainability factors and preferences into the product governance obligations
    • Draft Directive that amends UCITS Directive regarding the sustainability risks and sustainability factors to be taken into account for UCITS

     

    Related Links

    Comment Due Date: July 06, 2020

    Keywords: Europe, EU, Banking, Insurance, Securities, Sustainable Finance, Solvency II, Governance, Reinsurance, MIFID II, ESG, Climate Change Risk, UCITS Directive, EC

    Featured Experts
    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552