Featured Product

    EC Addresses ESAs on Application of Rule on Sustainability Disclosures

    October 29, 2020

    In a letter to ESAs, EC addressed the application of Regulation 2019/2088 on the sustainability-related disclosures in the financial services sector and the related technical standards. The co-legislators had agreed in March 2019 on an ambitious timeframe for the Regulation 2019/2088, requiring the joint development by ESAs of most of the draft regulatory technical standards by December 30, 2020 and the application of the provisions of Regulation 2019/2088from March 10, 2021. However, in view of the ongoing pandemic, EC is extending the deadline for public consultation of the draft regulatory technical standards for the application of this regulation. Nevertheless, the application of the regulation is not conditional on the formal adoption and entry into force or application of the regulatory technical standards, as the regulation lays down, at Level 1, the general principles of the sustainability-related disclosures.

    With regard to the integration of sustainability risks in the investment decision‐making process, financial market participants must, in accordance with the applicable sectoral legislation, already consider sustainability risks in their internal processes. Regulation 2019/2088 requires transparency in this respect, with no further details necessary in the regulatory technical standards. In relation to the transparency of adverse sustainability impact, numerous financial market participants currently comply with the non-financial reporting requirements under Directive 2013/34/EU or adhere to international standards and might consider using that information. Even without the full regulatory technical standards, no impediments exist to compliance by financial market participants and financial advisers with the Level 1 requirements laid down in Regulation 2019/2088.

    Therefore, all application dates are being maintained as laid down by Regulation 2019/2088 with effect from 2021. Thus, financial market participants and financial advisers subject to the regulation will need to comply with its high-level and principle-based requirements from that time. To provide financial market participants and financial advisers adequate time for implementation, the regulatory technical standards will become applicable at a later stage. This will also allow national competent authorities, as designated in accordance with the sectoral legislation referred to in Article 6(3) of Regulation 2019/2088 and in accordance with the Capital Requirements Directive (2013/36/EU), to prepare for the orderly and effective supervision of compliance by financial market participants and financial advisers with the requirements of the framework. EC is ready to coordinate with ESAs and national competent authorities on this approach and a number of trade associations in the financial services sector have indicated that they have initiated targeted actions to assist their membership with implementation.

     

    Related Links

    Keywords: Europe, EU, Banking, Insurance, Securities, ESG, COVID-19, Regulation 2019/2088, Disclosures, Climate Change Risk, Sustainable Finance, CRD, ESAs, EC

    Featured Experts
    Related Articles
    News

    EC Rule on Contractual Recognition of Write Down and Conversion Powers

    The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.

    September 17, 2021 WebPage Regulatory News
    News

    APRA Issues Further Guidance on Application of Securitization Standard

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.

    September 16, 2021 WebPage Regulatory News
    News

    SRB Provides Update on Approach to Prior Permissions Regime

    The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.

    September 16, 2021 WebPage Regulatory News
    News

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics

    The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7481