Featured Product

    IOSCO Updates Peer Reviews on Regulation of Securitizations and MMFs

    October 02, 2019

    IOSCO published two updated reports on peer reviews of the implementation of incentive alignment recommendations for securitization and on the regulation of money market funds or MMFs. The reports describe progress by IOSCO members in FSB jurisdictions in adopting legislation, regulation, and other policies covering securitization and money market funds, both of which are the G20 priority reform areas. The securitization report covers two topics—incentive alignment arrangements and disclosure requirements; the report finds that, overall, progress remains mixed across participating jurisdictions in implementing the recommendations for incentive alignment for securitization.

    The securitization report sets out the findings of the 2018 Update Review, where IOSCO members from 24 participating FSB member jurisdictions were asked to provide information on regulatory developments in these areas as of August 30, 2018. Out of the 24 participating jurisdictions, 12 jurisdictions had final adoption measures in force for implementation of incentive alignment regimes (unchanged since 2017) while 10 jurisdictions had final adoption measures in force for disclosure requirements for issuers (unchanged since 2017). However, 5 EU jurisdictions had final adoption measures published but not taken or in force, showing an improvement from 2017. It was found that changes in implementation status were warranted for EU member jurisdictions (France, Italy, the Netherlands, Spain, and the United Kingdom) in both areas. The review also found that reforms were underway in Argentina, Australia, Brazil, China, Indonesia, Russia, and Saudi Arabia; however, these did not warrant a change in implementation status. 

    The money market funds report sets out the findings of the 2018/2019 Update Review, where IOSCO members from 24 participating FSB member jurisdictions were asked to provide information on the relevant regulatory reforms as of March 31, 2019. The report covers three topics: valuation, liquidity management, and money market funds that offer a stable Net Asset Value. The review finds that most jurisdictions have implemented the fair value approach for the valuation of money market fund portfolios, but progress in liquidity management is less advanced and less even. On money market funds that offer a stable Net Asset Value, further work was needed. In 2019, the implementation status changed for two jurisdictions: Hong Kong and Republic of Korea. In Hong Kong, the final implementation measures came into force in the two remaining reform areas: liquidity management and money market funds that offer a stable Net Asset Value. For the Republic of Korea, draft implementation measures were published in the two remaining reform areas: valuation and liquidity management. Overall, implementation of the reported reform areas is most advanced in 12 participating jurisdictions (approximately 78% of the global market), including three of the largest markets (U.S., China, and Japan).

    These reports summarize the ongoing efforts of IOSCO to monitor implementation of reforms for money market funds and securitization, since IOSCO published the first two peer reviews in September 2015. The reports contain updated tables summarizing the implementation status of each participating jurisdiction in areas covered by the Update Reviews. The reports also take note of the new regulations yet to come into force or to be applied in various jurisdictions. The reports set out the background, methodology, and findings that were reported to the G20 leaders in 2018 and 2019 and were included in the Annual Reports on implementation and effects of the G20 financial regulatory reforms.

     

    Related Links

    Keywords: International, Banking, Securities, Insurance, Peer Review, Securitization, G20, Money Market Funds, Regulatory Reform, FSB, IOSCO

    Related Articles
    News

    US Agencies Requests Comments on Use and Impact of CAMELS Ratings

    US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS).

    October 18, 2019 WebPage Regulatory News
    News

    BoE Announces Date for Publication of Stress Test Results for Banks

    BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019.

    October 18, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    ECB Publishes Recommendations on Euro Risk-Free Rates Transition

    ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years

    US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102).

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Consults on Revised Technical Standards on Supervisory Reporting

    EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting.

    October 16, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3997