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

    EC Regulation Sets Out Standards for Reporting and Disclosure of MREL

    EC published the Implementing Regulation 2021/763 that lays down implementing technical standards for supervisory reporting and public disclosure of the minimum requirement for own funds and eligible liabilities (MREL).

    May 12, 2021 WebPage Regulatory News
    News

    EBA Report Notes Loan Origination Should Remain in Supervisory Focus

    EBA published a report that examines the convergence of prudential supervisory practices in 2020 and offers conclusions of the EBA college monitoring activity.

    May 12, 2021 WebPage Regulatory News
    News

    APRA Decides to Standardize Submission Date for Quarterly Reporting

    APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.

    May 11, 2021 WebPage Regulatory News
    News

    ECB Working Group Publishes Recommendations on EURIBOR Fallbacks

    The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).

    May 11, 2021 WebPage Regulatory News
    News

    Bundesbank Publishes Supporting Documentation for Reporting by Banks

    Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.

    May 11, 2021 WebPage Regulatory News
    News

    EBA Publishes Phase 1 of Reporting Framework 3.1

    EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).

    May 10, 2021 WebPage Regulatory News
    News

    IOSCO Sees Support for Mandatory Sustainability Reporting

    The Sustainable Finance Taskforce of IOSCO held two roundtables, with global stakeholders, on the IOSCO priorities to enhance the reliability, comparability, and consistency of sustainability-related disclosures and to collect views on the practical implementation of a global system architecture for these disclosures.

    May 10, 2021 WebPage Regulatory News
    News

    APRA to Finalize Capital Adequacy Standard Revisions by January 2022

    Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA

    May 10, 2021 WebPage Regulatory News
    News

    ESMA Issues Guidelines on Outsourcing to Cloud Service Providers

    ESMA published the final guidelines on outsourcing to cloud service providers.

    May 10, 2021 WebPage Regulatory News
    News

    EBA Publishes Data on Deposit Guarantee Schemes

    EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.

    May 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6967