Featured Product

    ESMA Publishes Supervisory Work Program for 2020

    March 09, 2020

    ESMA published the work program for supervision in 2020. The work program details the areas of focus for the supervision of credit rating agencies (CRAs), trade repositories, and the monitoring of third-country central clearing counterparties and central securities depositories. ESMA is also preparing for its new supervisory responsibilities under the Securities Financing Transactions Regulation, the Securitization Regulation, the Benchmarks Regulation, and the Markets in Financial Instruments Regulation (MiFIR).

    With respect to CRAs, the supervisory focus for 2020 will cover the following activities:

    • Proactively identify risks in outstanding credit ratings and take appropriate actions where necessary
    • Ensure that CRAs employ robust and well-structured rating processes and understand impact of new technologies on those rating processes
    • Monitor the development and review of methodologies to ensure that CRAs use methodologies that are robust, systematic, continuous, and subject to validation, including back-testing
    • Address identified concerns on IT and information security in CRAs, including cyber-security and cloud outsourcing
    • Ensure credit ratings are accessible and usable for investors
    • Engage with CRAs to address identified concerns on the organisational aspects of their control environment that undermine the independence of control functions and enhance compliance’s monitoring activities.

    ESMA is preparing its supervisory strategy to take up the supervision of the securitization repositories. The main steps being undertaken are the identification of the key regulatory requirements, the building of knowledge regarding the supervisory mandate, the setup of a data quality framework, and the establishment of internal processes and procedures. ESMA is conferred with additional direct supervisory tasks following the outcome of the review of the European System of Financial Supervision (the ESAs review). From January 01, 2022, ESMA will be the direct supervisor of European critical benchmarks (currently LIBOR, EURIBOR, and EONIA) as well as of the third-country administrators subject to the recognition regime under the Benchmarks Regulation. In addition, ESMA will continue to engage with  supervised entities about their preparation for the end of the Brexit implementation period and ensure minimal disruption.


    Related Links

    Keywords: Europe, EU, Banking, Securities, Credit Rating Agencies, Cyber Risk, Cloud Computing, Securitization Regulation, Benchmark Regulation, Brexit, ESMA

    Related Articles

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700