EC Sets Out Legislative Priorities for Financial Sector for 2021
EC has published the indicative legislative priorities for the financial sector in EU, for 2021. Recently, the EC President Ursula von der Leyen, the European Parliament President David Sassoli, and the Chancellor Angela Merkel, on behalf of the Presidency of the Council, have signed the joint declaration on 2021 legislative priorities for all sectors, including the priorities for the financial sector in EU. The three presidents also signed the very first joint conclusions on strategic goals and priorities for 2020-2024. Based on the declaration of joint legislative priorities for 2021, EU will prioritize certain initiatives related to risks in the area of sustainable finance, prudential regulation of banks and insurers, completion of Banking Union, deepening of Capital Markets Union, and enhancement of digital operational resilience.
The legislative priorities for 2021 are in line with the EC work program for the coming year. The following are a some of the key initiatives that were included in the list of legislative priorities, with the aim of completing as many of them as possible by the end of 2021:
- In the area of sustainable finance, EU will work on establishing the framework for achieving climate neutrality, establishing an EU green bond standard, addressing sustainable corporate governance, and conducting review of the Non-Financial Reporting Directive.
- Key legislative initiatives related to the Capital Markets and Banking Union include review of the Capital Requirements legislation; proposal for a regulation to establish a European Deposit Insurance Scheme; proposal for a Directive on credit servicers, credit purchasers, and the recovery of collateral; revision of rules for insurance and reinsurance companies (Solvency II); and proposal for a regulation on the exemption of certain third country foreign exchange benchmarks and the designation of replacement benchmarks for certain benchmarks in cessation.
- In context of recovery from the COVID-19 pandemic, work will include proposal for adjustments to the securitization framework and proposal for laying down a general framework for securitization and creating a specific framework for simple, transparent, and standardized securitization.
- Key technology-related initiatives that directly and indirectly impact the financial sector include proposal for a regulation on digital operational resilience for the financial sector (DORA), proposal for a regulation on a pilot regime for market infrastructures based on distributed ledger technology, proposal for a regulation on markets in crypto-assets, proposal for a directive establishing the European Cybersecurity Industrial, Technology and Research Competence Centre and the Network of National Coordination Centers, review of the directive on security of network and information systems, and follow-up to the white paper on artificial intelligence, including on safety, liability, fundamental rights, and data.
Related Links
- Press Release (in French)
- Priorities for 2021
Keywords: Europe, EU, Banking, Insurance, Securities, CRR, Solvency II, Securitization Framework, Operational Resilience, Cyber Risk, Credit Risk, Benchmark Regulation, Basel, Work Priorities, EC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Paul McCarney
Insurance product strategist; insurance domain expert; extensive experience developing risk assessment frameworks for insurers
Previous Article
EC Consults on Initiative on European Single Access Point for DataRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.