Featured Product

    EIOPA and ESMA Set Out Findings of Their Studies, EC Amends ESEF Rule

    March 10, 2022

    The European Commission (EC) amended a rule on the European Single Electronic Format (ESEF), the European Insurance and Occupational Pensions Authority (EIOPA) published the results of its annual study on the modeling of market and credit risk in internal models, and the European Securities and Markets Authority (ESMA) issued peer review on the supervision of cross-border activities of investment firms.

    Below are the key details of the aforementioned publications:

    • The European Commission published a Delegated Regulation (2022/352), which amends the Regulation 2019/815 regarding the 2021 update of the taxonomy laid down in the regulatory technical standards on the single electronic reporting format. This amended regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union. It shall apply from January 01, 2022 to the annual financial reports containing financial statements for financial years beginning on or after January 01, 2022.
    • The results of EIOPA study on the modeling of market and credit risk in internal models revealed moderate to significant dispersion in some model outputs. For the combined market and credit risk charge, results show sizable variation between undertakings, a part of which is attributable to different risk management preferences. The study also examined credit risk charges for sovereign bonds, equity risk, property risk, sustainability considerations, dependency structures and inflation modelling in their modeling approach. 
    • The peer review report from ESMA found shortcomings in the supervision of cross-border investment activities. The exercise was focused on the AFM (Netherlands), BaFin (Germany), CNB (Czech Republic), CSSF (Luxembourg), CySEC (Cyprus), and MFSA (Malta). The national competent authorities covered by the peer review did not specifically, adequately, and structurally consider firms’ cross-border activities in their supervision. Out of the six jurisdictions covered in the peer review, Cyprus had the highest level of outgoing cross-border activities and by far the highest number of complaints relating to firms’ cross-border activities and of requests from other competent authorities relating to Cypriot firms’ cross-border activities. Thus, ESMA issued Article 16 recommendations to the Cyprus Securities and Exchange Commission (CySEC); this is the first time ESMA has issued such recommendations to a national competent authority. Following the Article 16 recommendations, CySEC has two months to inform ESMA whether it complies/intends to comply with the recommendations.

     

    Related Links

     

    Keywords: Europe, EU, Insurance, Market Risk, Credit Risk, Solvency II, Internal Models, Solvency Capital Requirement, EIOPA, Banking, Investment Firms, Cross-Border Activities, AFM, BaFin, CNB, CSSF, CySEC, MFSA, ESMA, Taxonomy, Reporting, ESEF Regulation, EC

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206