EC published guidance through its frequently asked questions (FAQ) that clarify how EU investment firms should interact when they seek brokerage and research services from broker-dealers in non-EU countries.The U.S. SEC also announced measures to facilitate cross-border implementation of the second Markets in Financial Instruments Directive (MiFID II) research provisions in the EU. SEC issued three no-action letters to provide a way for market participants to comply with the research requirements of the revised MiFID II in a manner that is consistent with the U.S. federal laws.
EC recognized the need to clarify how firms subject to the Markets in Financial Instruments Directive (MiFID II) can obtain such services from other jurisdictions. The FAQ notes the relevant provisions and explains how EU firms can procure international research and brokerage services in full compliance with their obligations. This guidance will contribute to ensure that research budgets are decoupled from brokerage, in compliance with the requirements laid out in MiFID II. FCA also welcomed this announcement and noted that clarifications provided by both the EC and SEC staff will address key concerns raised with FCA by UK market participants. The clarifications ensure that firms can continue to access U.S. research from January 03, 2018, while also maintaining the investor protection safeguards of the MiFID II regime.
Keywords: Europe, Americas, EU, US, Securities, MiFID II, Brokerage and Research Services, FAQ, FCA, SEC, EC
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).