EC highlights that the Securitization Regulation, which comes into effect on January 01, 2019, creates common rules and sets the criteria for simple, transparent and standardized (STS) securitization in the EU. These are a new class of high-quality securitization. This EU-wide initiative on "high-quality" securitization will ensure high standards of process, legal certainty, and comparability across securitization instruments through a higher degree of standardization of products. This will notably increase the transparency, consistency, and availability of key information for investors, including in the area of small and medium enterprise loans, and increase liquidity.This should facilitate the issuance of securitized products and allow institutional investors to perform a thorough due diligence, which helps to identify those products that match their asset diversification, return, and duration needs.
The following are the other financial rules that will come into effect in 2019:
- On January 13, 2019, a revised Directive on occupational pension funds, known as IORP2 will come into effect.
- The revision of the Shareholders' Rights Directive takes effect on June 10, 2019.
- The new Prospectus Regulation, launched as part of the Capital Markets Union Action Plan to improve access to finance for companies and simplify information for investor, takes effect as of July 21, 2019.
- Rules on strong customer authentication that will make electronic payments in shops and online safer, come into effect on September 14, 2019.
Related Link: Press Release
Keywords: Europe, EU, Banking, Insurance, Capital Markets Union, Securitization Regulation, IORP2, IORP II Directive, EC
BCBS is consulting on two technical amendments to the rules on minimum haircut floors for securities financing transactions, or SFTs.
BIS launched a EUR-denominated, open-ended fund for green bond investments by central banks and official institutions, following the launch of the first BIS green bond fund denominated in USD in September 2019.
EBA announced that it will launch the 2021 EU-wide stress test exercise, with the publication of the macroeconomic scenarios on January 29, 2021.
BoE announced that the reporting entities are no longer required to report Form CX after the fourth quarter of 2020 reference period, with the last collection on January 29, 2021.
ECB published a letter in which the President Christine Lagarde answered questions, from a Member of the European Parliament, on the application of the EU taxonomy on sustainable finance.
PRA published a direction for modification by consent of 5.1 to 5.3 and 5.5 of the Capital Buffers Part of the PRA Rulebook.
BIS Innovation Hub published the work program for 2021, with focus on suptech and regtech, next-generation financial market infrastructure, central bank digital currencies, open finance, green finance, and cyber security.
In an article published by SRB, Mairead McGuinness, the European Commissioner for Financial Services, Financial Stability, and Capital Markets Union, discussed the progress and next steps toward completion of the Banking Union.
EBA finalized the two sets of draft regulatory technical standards on the identification of material risk-takers and on the classes of instruments used for remuneration under the Investment Firms Directive (IFD).
EC published, in the Official Journal of the European Union, a notification that the European Court of Auditors (ECA) has published a special report on resolution planning in the Single Resolution Mechanism.