The EC Vice President spoke, at the Eurofi Financial Forum 2017, about the Capital Markets Union, technological innovation, and global regulatory coordination.
He discussed the need to further strengthen Economic and Monetary Union (EMU) in Europe, toward which the EC will put forward concrete proposals by the end of the year. Building a more resilient EMU will also involve completion of the Banking Union and the Capital Markets Union (by 2019). Good progress has already been made on this. The new rules for prospectuses will take effect in mid-2019. They will help companies enter and raise capital on public markets. A new framework for simple, transparent and standardized securitization has been also agreed upon.
While delivering on the initial action plan, EC is also raising the level of ambition with the Mid-Term Review of the Capital Markets Union. In this action plan, EC called on member states to introduce portable electronic consumer identification across the EU. The recent consultations show that cross-border e-identity schemes are a key fintech enabler.
Additionally, this week, EC published a feedback statement from its public consultation on fintech. For a vibrant fintech sector, regulation must keep up with market developments. As part of the next week's reform of the EU's supervisory framework, EC will give a strong role to the ESAs on fintech. For example, they should coordinate national technological innovation tools such as innovation hubs or regulatory sandboxes. These reforms will contribute to the coherent regulatory approach Europe's fintechs need, to scale up and grow. EC is also working on a Fintech Action Plan, which it intends to present early next year. Fintech development is the most advanced in the payment sector. In October, EC will issue a standard to guide the communication between banks and fintechs that need access to account information.
With regard to the international regulatory cooperation, EC has had an excellent cooperation with the CFTC, as Mr. Giancarlo has just confirmed it. Good progress has been made on the mutual recognition of equivalent margin rules for uncleared OTC derivatives. EC is aiming to adopt its equivalence decision in the coming weeks and equivalence decisions on trading venues are also being worked upon. However, there can be no selective cherry-picking of measures—the set of reforms that was introduced in the wake of the global financial crisis must be seen as a whole.
Related Link: Speech
Keywords: Europe, EU, Banking, Capital Markets Union, Fintech, Global Regulatory Cooperation, EC
Previous ArticleECB Report on Financial Structures in Euro Area Financial Sector
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.