ESAs are organizing, on July 02, 2020, a public hearing on the proposed environmental, social, and governance (ESG) disclosure standards. The aim of the hearing is to explain and discuss the content of the consultation paper (published on April 23) on the draft regulatory technical standards under the regulation on sustainability‐related disclosures in the financial services sector. The hearing will be of interest to any stakeholder affected by this regulation such as financial market participants, financial advisers (including their representative associations, environmental associations, investor representatives or consumer bodies), consultants, academics, and representatives from EU and national institutions.
The consultation paper, which is to be discussed at the hearing, seeks the views of interested parties on draft regulatory technical standards on sustainability‐related disclosures in the financial services sector (Regulation 2019/2088). The regulatory technical standards contain proposals on entity-level disclosures on the principal adverse impact that investment decisions have on sustainability factors and on the pre-contractual, website, and periodic disclosures for products with environmental or social characteristics or objectives. The technical standards on product disclosures also lay down the information to be provided by products that have designated a sustainable index as a reference benchmark. These draft regulatory technical standards on content, methodology, and presentation of ESG disclosures have been developed under the Sustainable Finance Disclosure Regulation or SFDR.
Keywords: Europe, EU, Banking, Insurance, Securities, ESG, Sustainable Finance, Regulatory Technical Sustainable Finance, Climate Change Risk, ESAs
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.