The Joint Committee of the European Supervisory Authorities (the ESAs) published its 2022 work program. The Joint Committee will continue its work in the areas of retail financial services, retail investment products, prudential analysis of cross-sectoral developments, risks and vulnerabilities for financial stability, cybersecurity, financial conglomerates and prudential consolidation, and accounting and auditing. In the area of the new Green Deal and the Sustainable Finance strategy, the Joint Committee plans to develop a number of draft technical standards under the Sustainable Finance Disclosure Regulation (SFDR). Subject to the result of the revision of the Non-Financial Reporting Directive (NFRD), ESAs will also contribute to the development of disclosure standards for nonfinancial information.
The ESAs will continue their work on artificial intelligence and use of behavioral finance findings for supervisory purposes. The Joint Committee will increase its efforts in the area of the Digital Finance Package of EC, including the legislative proposals on digital operational resilience. A special emphasis will also be on monitoring and analyzing technological innovations, including suptech. Focus will be on the implementation of the expected mandates that will stem from the Digital Finance Package. One example is the EC request to EBA, EIOPA, and ESMA for technical advice on digital finance and related issues, which is to be delivered by January 2022. Through the European Forum for Innovation Facilitators (EFIF), the Joint Committee will further promote coordination and cooperation among national innovation facilitators to foster the scaling up of innovation in the financial sector across European Union, in line with the European Commission's Fintech Action Plan. The Joint Committee will also address other cross-sectoral matters such as the cross-sectoral mandates and questions (Q&As) stemming from SFDR and the Securitization Regulation.
In the context of the COVID-19 pandemic and its economic impact, the Joint Committee will closely monitor and assess emerging key cross-sectoral risks and vulnerabilities for the financial stability. The Joint Committee will publish its bi-annual cross-sectoral risk reports, which will be submitted and presented to the Financial Stability Table of the Economic and Financial Committee in Spring and Autumn 2022. With regard to the impact of the COVID-19 crisis, the Joint Committee will discuss potential additional regulatory and supervisory joint responses to mitigate risks, to support the financial sector’s resilience and to contribute to a sustainable economic recovery. In the area of financial conglomerates, the Joint Committee will publish the annual list of financial conglomerates and work on specific conglomerate’s reporting templates. Furthermore, through the Joint Committee, ESAs will continue to fulfil their mandate on the mapping and monitoring of on external credit assessment institutions (ECAIs) under the Capital Requirements Regulation (CRR) and Solvency II.
In a related development, EIOPA has also set out the multi-annual work program for 2022-2024 as well as the annual work program for 2022. The strategic activity areas of the work program for 2022-2024 include integrating sustainable finance considerations across all areas of work, supporting the market and supervisory community through digital transformation, ensuring good governance, and identifying, assessing, monitoring, and reporting on risks to the financial stability. According to the annual work program, in 2022, EIOPA will follow up to the 2020 opinion on the Solvency II framework, including in relation to the proportionality principle. In 2022, EIOPA will also focus on developing a methodology for assessing cyber-risk exposures and vulnerabilities. EIOPA will enhance its risk assessment framework, furthering the incorporation of environmental, social, and governance (ESG) risks.
- Notification on ESAs Work Program
- ESAs Work Program (PDF)
- Notification on EIOPA Work Program
- EIOPA Work Program (PDF)
Keywords: Europe, EU, Banking, Insurance, Securities, Work Program, European Green Deal, Sustainable Finance, SFDR, NFRD, Fintech, Securitization, CRR, Basel, Solvency II, ESG, Proportionality, ECAI, Cyber Risk, EIOPA, ESAs
Next ArticleEIOPA Welcomes EC Proposals on Review of Solvency II
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
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.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
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.
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.