Featured Product

    VP of EC Speaks at EU-Asia Pacific Forum on Financial Regulation

    December 01, 2017

    The EC Vice President Valdis Dombrovskis spoke at the second annual EU-Asia Pacific Forum on Financial Regulation. In context of the increasing interconnections between the financial sectors in EU and Asia Pacific, he highlighted the benefits and importance of bilateral dialog on financial regulation, along with the necessity of cooperation between financial regulators in the two regions. The EC Vice President also discussed the regulatory proportionality, regulatory equivalence, and fintech developments.

    He described the achievements of European regulators in the area of financial governance, also highlighting the ongoing work toward making the rules more growth friendly and proportionate. In this context, he cited the example of the Call for Evidence in the EC's assessment of the combined impact of financial services regulation, which is "leading to targeted improvements. It is allowing us to follow a more proportionate approach without weakening our prudential framework. It was the first example globally of such a holistic exercise and others are now following suit, including the US." With regard to fintech, he highlighted that "Asia is already advanced." Regulatory sandboxes are up and running in several countries in the Asia Pacific, including Singapore, Australia, Hong Kong, and Japan. In Europe, he highlighted that services such as mobile payments, peer-to-peer lending, and online investments are already benefiting millions. "We must start preparing for the increasing use of new technologies such as cloud computing, artificial intelligence, and distributed ledgers. Europe has what it takes to develop a globally competitive fintech sector."  EC is working on preparing a Fintech Action Plan for early next year, which will include a proposal to enable EU-wide crowdfunding and peer-to-peer lending.

    Additionally, Mr. Dombrovskis highlighted that the EU has been very open to recognize that its international partners' rules are equivalent and achieve the same regulatory objective. The EU process is based on applying the equivalence criteria in a way that is proportionate to the risks identified and work is ongoing to improve the visibility and understanding of this process, with better online information and ad-hoc guidance. He also emphasized that EC closely monitors third countries’ ongoing compliance with equivalence and is open to further develop equivalence, where needed. In this context, he gave an example the revised Markets in Financial Instruments Directive and Regulation (MIFID II/MiFIR), which will put in place key international commitments on improving transparency and introducing more orderly trading in derivatives. As part of this, certain Asian shares will be subject to a trading obligation, in case EU trading in those shares exceeds a certain threshold. For EU firms to continue trading in those shares on an Asian exchange, an equivalence decision will have to be issued. He said: "Decisions for several jurisdictions are currently in preparation, including for the ones in the Asia Pacific region. For countries not covered, you can safely assume that there is no trading obligation for shares. For these countries, trading continues as before. ... We will engage on equivalence with all jurisdictions that have likewise implemented their G20 commitments on a trading mandate for derivatives. "

    In conclusion, he said: "For the next few decades, Asia's economic growth is expected to lead the world. As your countries leap forward in economic and technological progress faster than anyone has before, your financial systems will evolve in tandem. At the same time, financial integration within the Asia Pacific region will keep advancing, just like it has done in the EU's single market. With this forum, we want to work with you towards mutual recognition of rules and a shared vision for growth and financial integration."

     

    Related Link: Speech

    Keywords: Europe, EU, Banking, Securities, MiFID II, Fintech, Asia Pacific, Proportionality, Equivalence, EC

    Related Articles
    News

    MAS Amends Notice 610 on Reporting Templates for Banks in Singapore

    MAS published amendments to Notices 610 and 1003 related to submission of statistics and returns, along with the reporting templates and frequently asked questions (FAQs) associated with these Notices.

    January 24, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module on Supervisory Review Process

    HKMA is issuing, by notice in the Gazette, revised versions of two Supervisory Policy Manual modules as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CA-G-5 on “Supervisory Review Process” and SB-2 on “Leveraged Foreign Exchange Trading.”

    January 24, 2020 WebPage Regulatory News
    News

    PRA Amends Pillar 2 Capital Framework for Banks

    PRA published the policy statement PS2/20 that contains the final amendments to the Pillar 2 framework and provides feedback to responses to the consultation paper CP5/19 on updates related to Pillar 2 capital framework.

    January 23, 2020 WebPage Regulatory News
    News

    BIS Survey Examines Progress of Central Banks Toward Digital Currency

    BIS published a paper that presents the results of a survey that asked central banks how their plans are developing in the area of central bank digital currency (CBDC).

    January 23, 2020 WebPage Regulatory News
    News

    FED Proposes to Revise Information Collection Under Market Risk Rule

    FED proposed to revise and extend, for three years, FR 4201, which is the information collection under the market risk capital rule.

    January 22, 2020 WebPage Regulatory News
    News

    HKMA Consults on Stay Rules on Financial Contracts Under FIRO

    HKMA published proposals for making rules related to contractual stays on termination rights in financial contracts for authorized institutions under FIRO or the Financial Institutions (Resolution) Ordinance (Cap. 628).

    January 22, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on Minimum Liquid Asset Requirements for Banks

    MAS published amendments to Notices 1015, 613, and 649 related to the minimum liquid assets (MLA) requirements.

    January 21, 2020 WebPage Regulatory News
    News

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    OSFI to Implement Operational Risk Capital Rules for Banks in Q1 2022

    OSFI decided to move domestic implementation of the revised Basel III operational risk capital requirements from the first quarter of 2021 to the first quarter of 2022.

    January 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4541