Featured Product

    EC Announces Recommendations for Completion of Capital Markets Union

    June 10, 2020

    EC notified that the High-Level Forum on Capital Markets Union has published its final report on the plan for completion of the Capital Markets Union. The report sets out 17 interconnected recommendations aimed at removing the biggest barriers in the capital markets in EU. According to the report, completion of the Capital Markets Union is particularly important now, as it can speed up recovery of EU from the COVID-19 pandemic. It will be vital for mobilizing much-needed long-term investments in new technologies and infrastructure, to tackle climate change and to deliver the New Green Deal and Digital Agenda of Europe. EC also launched a call for feedback on the report from stakeholders. The feedback period is open until June 30, 2020.

    Building on ideas put forward in past reports, the High-Level Forum proposes a targeted plan of key measures to move Capital Markets Union decisively toward completion. Compared to other reports, this report is more granular and includes a timetable for all the key deliverables. The recommendations are grouped into four clusters that cover the full spectrum of capital market activities—the financing of business, market infrastructure, individual investors’ engagement, and obstacles to cross-border investment. The report sets out the following key recommendations:

    • The High-Level Forum recommends for EC to duly mandate ESMA to set up the European Single Access Point (ESAP). A single access point would remove one of the main obstacles that discourage investors—especially from other member states or third countries—from accessing smaller national capital markets or from providing funding to small and medium-sized enterprises (SMEs).
    • The Forum recommends that EC should propose some necessary, prudentially sound amendments to encourage significantly higher investment particularly in equity, including in SMEs, by carrying out a targeted review of Solvency II. This can also be done by paying due attention to provisions affecting market making and long-term investment in SME equity by banks and non-banks, when implementing the Basel III standards.
    • The Forum further proposes that EC should put forward a series of targeted, prudentially sound amendments to improve the EU securitization framework.
    • Another recommendation is for EC to review the existing financial legislation to clarify application to crypto or digital assets and, where appropriate, to propose new EU legislation to regulate assets that fall outside the existing regulatory framework.
    • EC has been recommended to develop voluntary contractual standard clauses to enable financial institutions to better assess and manage risks related to their reliance on cloud services providers. EC has also been recommended to develop a harmonized legislative framework to ensure the secure use of these services and improve the digital competitiveness of EU by encouraging the development of EU cloud providers.
    • The Forum recommends for EC to review, as soon as possible, the Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation, analyze in detail all the relevant disclosure rules, and consider ways to promote the development of independent digital comparison tools.
    • The Forum also recommends for EC to introduce a harmonized open finance regulatory framework covering financial and non-financial information relevant to facilitating financial planning or encouraging investment.
    • The Forum recommends that EC should strengthen the ESMA and EIOPA mandate to enhance EU supervisory convergence, including by reforming their governance, strengthening their powers and toolkits, entrusting ESMA and EIOPA with wider powers in crisis management, and ensuring that they are granted adequate resources. To that effect, EC should review the relevant sector-specific legislation as well as the founding regulations of ESMA and EIOPA.

     

    Related Links

    Comment Due Date: June 30, 2020

    Keywords: Europe, EU, Banking, Insurance, Securities, COVID-19, SME, Solvency II, Basel III, Securitization, Climate Change Risk, ESG, Capital Markets Union, EBA, ESMA, EIOPA, EC

    Featured Experts
    Related Articles
    News

    APRA Sets LAC for D-SIBs, Proposes to Enhance Crisis Preparedness

    APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).

    December 02, 2021 WebPage Regulatory News
    News

    EC to Review Macro-Prudential Rules while ESRB Assesses Policy Stance

    The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).

    December 01, 2021 WebPage Regulatory News
    News

    FSB Sets Out Good Practices for Crisis Management Groups

    The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.

    November 30, 2021 WebPage Regulatory News
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Updates Timeline for Implementation of Certain Basel Rules

    Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.

    November 29, 2021 WebPage Regulatory News
    News

    EC Defers Adoption of Regulatory Standards for Disclosures Under SFDR

    EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.

    November 29, 2021 WebPage Regulatory News
    News

    FCA Releases MIFIDPRU Application Forms and Third Set of Rules on IFPR

    The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7751