Featured Product

    EU Adopts Rules on Supervisory Framework for Financial Institutions

    December 27, 2019

    EU published Regulations 2019/2175 and 2019/2176 and Directive 2019/2177 in the Official Journal of European Union. The finalized regulations reform tasks, powers, governance, and funding of ESAs and ESRB, to adapt the authorities to the changed context in which they operate. The finalized directive (2019/2177) amends Solvency II Directive (2009/138/EC), Markets in Financial Instruments Directive or MiFID (2014/65/EU), and Anti-Money Laundering Directive (EU 2015/849). The published regulations and the directive shall enter into force on the third day following that of their publication in the Official Journal of the European Union. For Regulation 2019/2175, Articles 1, 2, 3, and 6 shall apply from January 01, 2020 while Articles 4 and 5 shall apply from January 01, 2022.

    The finalized directive introduces certain amendments to the Solvency II Directive, which provides that, in accordance with the risk-oriented approach to the Solvency Capital Requirement, it is possible in specific circumstances for insurance and reinsurance undertakings and groups to use internal models for the calculation of that requirement, instead of using the standard formula. Solvency II Directive also provides for a country component in the volatility adjustment. To ensure that this country component mitigates exaggerations of bond spreads in the relevant country effectively, an appropriate threshold for the risk-corrected country spread should be set for the activation of the country component. Therefore, Solvency II Directive has been amended by Directive (EU) 2019/2177 accordingly. Additionally, Section 2A on notification and collaboration platforms has also been inserted in Title I, Chapter VIII of the Solvency II Directive.

    Additionally, Regulation 2019/2175 amends regulations establishing ESAs (Regulation 1093/2010, 1094/2010, and 1095/2010), Markets in Financial Instruments Regulation or MiFIR (EU No 600/2014), Benchmarks Regulation (EU 2016/1011), and Regulation (EU) 2015/847 on information accompanying transfers of funds. Regulation 2019/2176 amends Regulation (EU) No 1092/2010 on EU macro-prudential oversight of the financial system and establishing a ESRB. 


    Related Links

    Effective Date: December 30, 2019

    Keywords: Europe, EU, Banking, Insurance, Securities, ESFS, Solvency II, SCR, Internal Model, Benchmarks Regulation, ESAs, ESRB, European Council

    Featured Experts
    Related Articles
    News

    APRA Penalizes Heritage Bank for Incorrect Reporting of Capital

    The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.

    November 29, 2021 WebPage Regulatory News
    News

    OSFI Releases Annual Report 2021-2022

    The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Capital Adequacy Standards for Banks

    The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.

    November 29, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Seek Comments on Access to Central Clearing and Portability

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.

    November 29, 2021 WebPage Regulatory News
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in November 2021

    The European Banking Authority (EBA) Single Rulebook Question and Answer (Q&A) tool updates for this month include answers to 10 questions.

    November 26, 2021 WebPage Regulatory News
    News

    EC Finalizes Rules on Internal Approaches Benchmarking Exercise

    The European Commission, or EC, finalized the Implementing Regulation 2021/2017 with respect to the benchmark portfolios, reporting templates, and reporting instructions for the supervisory benchmarking of internal approaches for calculating own funds requirements.

    November 26, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7740