DNB, the central bank of Netherlands, is consulting on the Supervisor Regulation IFR, which clarifies the application of the Investment Firms Regulation (IFR) for entities that have license as managers of investment institutions and as the Undertakings for Collective Investment in Transferable Securities (UCITS). This is in preparation for the entry into force of the Investment Firms Directive (IFD), which ensures that fund managers that also provide investment services must largely comply with the same prudential requirements as investment firms. The consultation period ends on August 30, 2021.
The IFR Supervisor Regulations stipulate that the technical standards and guidelines of the European Banking Authority (EBA) must be applied by managers of investment funds or UCITS with regard to the parts of the IFR and the IFD that have been declared applicable to managers of investment funds and UCITS. The technical standards and guidelines of EBA that relate to the elements not applicable to managers of investment funds and UCITS do not have to be applied. At present, the IFR Supervisor Regulations only contain provisions for the application of the IFR by managers of investment institutions and UCITS. In the future, DNB will further expand the IFR Supervisor Regulations with a further specification of some options and discretions under the IFR and the IFD that relate to investment firms. DNB assumes that the IFD Implementation Act will come into effect before the reporting deadline for the quarterly reports for the third quarter of 2021. DNB, therefore, also expects that the new reporting templates will be used by managers of investment institutions and UCITS (and investment firms) for the reports on the third quarter.
Comment Due Date: August 30, 2021
Keywords: Europe, Netherlands, Securities, Investment Firms, Regulatory Capital, Reporting, IFR, IFD, Supervisor Regulation IFR, Option and Discretions, AIFMD, UCITS, DNB
Previous ArticleHKMA Consults on Policy Module for Climate Risk Management
The use cases of generative AI in the banking sector are evolving fast, with many institutions adopting the technology to enhance customer service and operational efficiency.
As part of the increasing regulatory focus on operational resilience, cyber risk stress testing is also becoming a crucial aspect of ensuring bank resilience in the face of cyber threats.
A few years down the road from the last global financial crisis, regulators are still issuing rules and monitoring banks to ensure that they comply with the regulations.
The European Commission (EC) recently issued an update informing that the European Council and the Parliament have endorsed the Banking Package implementing the final elements of Basel III standards
The Swiss Federal Council recently decided to further develop the Swiss Climate Scores, which it had first launched in June 2022.
The Basel Committee on Banking Supervision (BCBS) launched consultation on a Pillar 3 disclosure framework for climate-related financial risks, with the comment period ending on February 29, 2024.
The U.S. President Joe Biden signed an Executive Order, dated October 30, 2023, to ensure safe, secure, and trustworthy development and use of artificial intelligence (AI).
The Monetary Authority of Singapore (MAS) launched an integrated digital platform, Gprnt, also known as “Greenprint.”
The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.
The Network for Greening the Financial System (NGFS) published its latest set of long-term climate macro-financial scenarios (Phase IV) for assessing forward-looking climate risks.