EC published guidance through its frequently asked questions (FAQ) that clarify how EU investment firms should interact when they seek brokerage and research services from broker-dealers in non-EU countries.The U.S. SEC also announced measures to facilitate cross-border implementation of the second Markets in Financial Instruments Directive (MiFID II) research provisions in the EU. SEC issued three no-action letters to provide a way for market participants to comply with the research requirements of the revised MiFID II in a manner that is consistent with the U.S. federal laws.
EC recognized the need to clarify how firms subject to the Markets in Financial Instruments Directive (MiFID II) can obtain such services from other jurisdictions. The FAQ notes the relevant provisions and explains how EU firms can procure international research and brokerage services in full compliance with their obligations. This guidance will contribute to ensure that research budgets are decoupled from brokerage, in compliance with the requirements laid out in MiFID II. FCA also welcomed this announcement and noted that clarifications provided by both the EC and SEC staff will address key concerns raised with FCA by UK market participants. The clarifications ensure that firms can continue to access U.S. research from January 03, 2018, while also maintaining the investor protection safeguards of the MiFID II regime.
Keywords: Europe, Americas, EU, US, Securities, MiFID II, Brokerage and Research Services, FAQ, FCA, SEC, EC
HKMA is consulting on revisions to the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
PRA provided further information on the application of regulatory capital and IFRS 9 requirements to payment holidays granted or extended to address the challenges arising from COVID-19 outbreak.
HKMA announced the publication of a report on fintech adoption and innovation in the banking industry in Hong Kong.
BIS published a working paper that examines the drivers of cyber risk, especially in context of the cloud services.
ECB launched consultation on a guide specifying how the Banking Supervision expects banks to consider climate-related and environmental risks in their governance and risk management frameworks and when formulating and implementing their business strategy.
ECB published an opinion (CON/2020/16) on amendments to the prudential framework in EU in response to the COVID-19 pandemic.
EBA published a report that examines the interlinkages between recovery and resolution planning under the Bank Recovery and Resolution Directive (BRRD).
SRB published the final Minimum Requirements for Own Funds and Eligible Liabilities (MREL) policy under the Banking Package.
US Agencies (FDIC, FED, and OCC) published a final rule that makes technical changes to the March 31, 2020 interim final rule that provides a five-year transition period for the impact of the current expected credit loss (CECL) methodology on regulatory capital.
ECB published results of the March 2020 survey on credit terms and conditions in euro-denominated securities financing and over-the-counter (OTC) derivatives markets.