Featured Product

    ESMA Issues Opinion on ESG Disclosures for Benchmark Administrators

    April 29, 2020

    ESMA issued a no-action letter to promote coordinated action by national competent authorities regarding the new environmental, social and governance (ESG) disclosure requirements for benchmark administrators, under the Benchmarks Regulation. According to the letter, national competent authorities should not prioritize supervisory or enforcement action against administrators regarding these new requirements until the delegated acts apply. ESMA also issued an opinion to EC on the need for prompt adoption of the relevant delegated acts. The new requirements are due to apply on April 30, 2020 and require benchmark administrators to include details of how ESG factors are reflected in their methodology documents and benchmark statements.

    The new ESG-related disclosure requirements oblige benchmark administrators, by April 30, to include:

    • in their methodology document, an explanation of how the key elements of the methodology reflect ESG factors for each benchmark or family of benchmarks
    • in their benchmark statement, an explanation of how ESG factors are reflected in each benchmark or family of benchmarks provided and published.

    These disclosure requirements that have been set out in the EU Regulation 2016/1011 aim to increase the comparability of benchmarks with regard to ESG factors and are key for users of benchmarks to make well-informed choices. The associated delegated acts are expected to ensure that these objectives may be achieved by setting out the minimum content of the ESG factors to be disclosed as well as the standard formats for the presentation of that information.  

    EC, on April 08, 2020, had published the draft delegated acts, the consultation period for which ends on May 06, 2020. Following their adoption, the delegated acts will be subject to a scrutiny period by the European Parliament and by the Council before they enter into force. In its opinion to EC, ESMA states that it considers it necessary for national competent authorities to address the absence of the delegated acts through consistent risk-based supervisory and enforcement practices. ESMA explained that if the date of application of the new disclosure requirements had been aligned with the date of application of the delegated acts, significant issues would not have arisen. ESMA asserted that the delegated acts should be adopted by EC without delay, to ensure the objectives of these requirements are achieved, to provide administrators with clarity on how to apply these requirements, and to provide competent authorities with clarity on how to supervise compliance with these requirements. 

     

    Related Links

    Keywords: Europe, EU, Banking, Securities, ESG, Benchmarks Regulation, Opinion, National Competent Authorities, Delegated Act, Disclosures, Benchmark Administrator, Climate Change Risk, ESMA

    Related Articles
    News

    FDIC Proposes Amendments to Real Estate Lending Standards

    FDIC is seeking comments on a rule to amend the interagency guidelines for real estate lending policies—also known as the Real Estate Lending Standards.

    June 15, 2021 WebPage Regulatory News
    News

    MAS Amends Notices on Risk-Based Capital Adequacy Requirements

    MAS revised Notices 637 and 1111 on the risk-based capital adequacy requirements, along with Notice 656 on the exposures to single counterparty groups for banks incorporated in Singapore.

    June 14, 2021 WebPage Regulatory News
    News

    ISDA Consults on Implementation of Fallbacks for Certain Swap Rates

    ISDA is consulting on the implementation of fallbacks for the sterling LIBOR ICE Swap Rate and for the USD LIBOR ICE Swap Rate.

    June 11, 2021 WebPage Regulatory News
    News

    US Agencies Set Out Unified Agenda for Planned Regulatory Actions

    SEC announced that the Office of Information and Regulatory Affairs released the Spring 2021 Unified Agenda of Regulatory and Deregulatory Actions.

    June 11, 2021 WebPage Regulatory News
    News

    BIS and BoE Launch Innovation Hub in London

    BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.

    June 11, 2021 WebPage Regulatory News
    News

    ESRB Recommends Reciprocation of Certain Macroprudential Measures

    ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.

    June 11, 2021 WebPage Regulatory News
    News

    MAS Amends Regulatory Notices Applicable to Banks in Singapore

    MAS revised multiple notices that are applicable to banks and merchant banks in Singapore and have been issued pursuant to the Banking Act (Cap 19).

    June 11, 2021 WebPage Regulatory News
    News

    EC Publishes Regulation on Key Aspects of Implementation of SA-CCR

    EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.

    June 10, 2021 WebPage Regulatory News
    News

    BCBS Consults on Prudential Treatment of Cryptoasset Exposures

    BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.

    June 10, 2021 WebPage Regulatory News
    News

    EBA Revises List of Validation Rules for Reporting

    EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.

    June 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7097