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Regulatory updates

We have an ongoing regulatory watch system

Management Solutions compiles new regulations published in recent weeks by different regulatory and supervisory authorities (with a focus on the financial industry).


Relevant publications

 

Stress testing

(21/12/2017) BCBS – Consultative Document on stress testing principles / Supervisory and bank stress testing: range of practices
The BCBS has published a Consultative document on stress testing principles, relevant for both banks and authorities, which sets out nine principles to govern stress testing frameworks. Alongside this document, the BCBS has also published Supervisory and bank stress testing: range of practices aiming to describe and compare supervisory and bank stress testing practices and to highlight areas of evolution.

Outsourcing to cloud service providers

(21/12/2017) EBA – Final Recommendations on outsourcing to cloud service providers
The EBA has published Final Recommendations on outsourcing to cloud service providers, addressed to credit institutions, investment firms and competent authorities (CAs), which clarify the EU-wide supervisory expectations if institutions intend to adopt cloud computing.

Reform of basel iii

(20/12/2017) EBA – Ad hoc cumulative impact assessment of the Basel reform package
The EBA has now published its full impact assessment of the Basel reform package which provides a summary of the results of an analysis carried out by the EBA to assess the impact of the December 2017 package of revisions on the EU banking system. In particular, this exercise now reflects all the revisions to the credit and operational risk approaches, as well as to the process for the estimation of the leverage ratio.

CVA

(18/12/2017) ECB – Guide on assessment methodology for the IMM and A-CVA
The ECB has launched a public consultation of its Draft Guide on assessment methodology (EGAM) for the internal model method (IMM) and the advanced method for credit valuation adjustment (A-CVA), which will be applied in the context of any CCR-related internal model investigation and the ongoing monitoring of approved internal models and indicates to supervisors how the ECB intends to investigate compliance with the existing legal framework. Further, it provides optional guidance to significant institutions on the self-assessment of their IMM and A-CVA models.

SSM Supervisory priorities 2018

(18/12/2017) ECB – SSM supervisory priorities for 2018
The ECB has published its 2018 priorities for supervising significant banks in the euro area, which warrants a continuation of the high-level priority areas from 2017, albeit with amendments. They build on an assessment of the key risks faced by supervised banks (e.g. the protracted low interest rate environment, large stocks of non-performing loans, etc.), taking into account the relevant developments in the economic, regulatory and supervisory environment.

Non-performing loans

(15/12/2017) EBA – Final NPL transaction templates
The EBA has published Final Non-Performing Loans (NPL) transaction templates, which provide a common EU data set for the screening, financial due diligence and valuation during NPL transactions. In particular, these templates aim at enhancing standardisation of NPL-related data and at reducing current information asymmetries of NPLs portfolios.

PSD2

(13/12/2017) EBA – Final Guidelines on the security measures for operational and security risks of payment services under PSD2
The EBA has published Final Guidelines (GL) on the security measures for operational and security risks of payment services under Payment Services Directive (PSD2), which set out the requirements that payment services providers (PSPs) should implement in order to mitigate operational an security risks derived from the provision of payment services.

Solvency II in UK

(13/12/2017) PRA – Consultation Paper 27/17 on Solvency II: Internal models update
The Prudential Regulation Authority (PRA) has published the Consultation Paper (CP) 27/17 on Solvency II: Internal models update aiming to introduce updates to the PRA’s guidance to reduce the burden on firms, make better use of supervisory resources and review the effectiveness of certain aspects of the model change process. In particular, this CP includes proposals on the following aspects: i) model change process, ii) model change policies, and iii) the reporting of minor model changes.

Pillar 2 in UK

(13/12/2017) PRA – Statement of Policy on the PRA’s methodologies for setting Pillar 2 capital / Supervisory Statement on the Internal Capital Adequacy Assessment Process (ICAAP) and the Supervisory Review and Evaluation Process (SREP) / Policy Statement on Pillar 2A capital requirements and disclosure (PS30/17)
The PRA has published three documents regarding the UK’s Pillar 2 framework: i) Statement of Policy on the PRA’s methodologies for setting Pillar 2 capital; ii) Supervisory Statement on the ICAAP and the SREP; and iii) Policy Statement on Pillar 2A capital requirements and disclosure. In particular, these documents covers the Pillar 2A methodologies and information on the purpose of the PRA buffers (Pillar 2B); the expectations of firms undertaking an ICAAP, stress testing, scenario analysis and capital planning, reverse stress testing, and SREP; as well as clarifications on the PRA’s Pillar 2A framework, respectively.

MREL in UK

(12/12/2017) PRA – Supervisory Statement on the minimum requirement for own funds and eligible liabilities (MREL) – buffers and threshold conditions (SS16/16)
The PRA has published a Supervisory Statement (SS) on MREL, which updates the previous version of the SS16/16 by setting out the PRA’s expectations on the relationship between MREL and both capital and leverage ratio buffers, as well as the implications that a breach of MREL would have for the PRA’s consideration of whether a firm is failing, or likely to fail, to satisfy the threshold conditions.

PSD2

(12/12/2017) EBA – Final RTS on central contact points under the PSD2
The EBA has published Final RTS on central contact points under the PSD2 which specify the criteria to be applied when determining, in accordance with the principle of proportionality, the circumstances when the appointment of a central contact point is appropriate, and the functions of those contact points under the PSD2. These RTS applies mutatis mutandis to electronic money institutions providing payment services referred to in host Member States by engaging agents under the right of establishment and subject to the conditions laid down in PSD2.

Recovery planning in UK

(12/12/2017) PRA – Supervisory Statement on recovery planning (SS9/17) / Recovery plan information template
The PRA has now published a Supervisory Statement on recovery planning (SS9/17) that supersedes SS19/13 and sets out the PRA’s expectations on the content of recovery plans and group recovery plans. In particular, this SS establishes the key recovery plan components and considerations, as well as PRA’s expectations regarding recovery planning for UK subsidiaries of non-EU parents.

Basilea

(12/12/2017) EBA – Cumulative impact assessment of the Basel reform package
The EBA has published a document on the cumulative impact assessment of the Basel reform package which provides a summary of the results of an analysis carried out by the EBA to assess the impact of the December 2017 package of revisions on the EU banking system. This assessment covers the results regarding: i) change in total minimum required capital (MRC) Tier 1 as percentage of baseline MRC, ii) regulatory capital ratios, leverage ratios and capital shortfalls, and iii) percentage of banks constrained by different metrics of capital requirement in the revised framework.

Money laundering and terrorist financing

(12/12/2017) ESAs – Final RTS on the measures credit institutions and financial institutions shall take to mitigate the risk of money laundering and terrorist financing where a third country’s law does not permit the application of group-wide policies and procedures
The ESAs have published Final RTS on the measures credit institutions and financial institutions shall take to mitigate the risk of money laundering and terrorist financing (ML/TF) where a third country’s law does not permit the application of group-wide policies, aiming to foster a consistent and more harmonised approach to identifying and managing the ML/TF risk to which those credit and financial institutions are exposed.

Stress testing y Pillar 2 requirements in UK

(11/12/2017) PRA – Consultation Paper 26/17 on Model risk management principles for stress testing / Consultation Paper 25/17 on Pillar 2: Update to reporting requirements
The PRA has published a Consultation Paper (CP) 26/17 on model risk management principles for stress testing, including a set of principles and a proposal in order to support firms in developing and implementing policies and procedures through which to identify, manage and control the risks inherent in the use of stress test models and thereby meet the high standards of risk management and internal governance already required of them under CRD IV and PRA Rulebook; as well as a CP 25/17 on Pillar 2: update to reporting requirements, including proposals regarding the introduction of an additional Pillar 2 data item (PRA111), the frequency of reporting, and the consolidation of definitions.

Basel III

(11/12/2017) BCBS – Basel III: finalising post-crisis reforms
The BCBS has published Basel III: finalising post-crisis reform which includes revisions to the current Basel III framework in order to reduce excessive variability of risk-weighted assets (RWAs). In particular, these revisions to the regulatory framework will help restore credibility in the calculation of RWA by: i) enhancing the robustness and risk sensitivity of the standardised approaches for credit risk and operational risk, which will facilitate the comparability of banks' capital ratios; ii) constraining the use of internally modelled approaches; and iii) complementing the risk-weighted capital ratio with a finalised leverage ratio and a revised and robust capital floor.

Financial information standards and formats in Spain

(07/12/2017) BdE – Circular 4/2017 a entidades de crédito, sobre normas de información financiera pública y reservada, y modelos de estados financieros
The Bank of Spain (BdE) has published the Circular 4/2017 on public and confidential financial information standards and formats, that supersedes Circular 4/2004, aimed to adapt the current accounting framework of the Spanish credit institutions to these accounting standards that modify the criteria for recognising financial instruments and revenues, respectively.

MiFID II in Spain

(04/12/2017) Spanish Government – Anteproyecto de Ley del Mercado de Valores y de los Instrumentos Financieros
The Spanish Government has published the Anteproyecto de Ley (APL) del Mercado de Valores y de los Instrumentos Financieros with the aim at adapting the Spanish legal system to MiFID II, in order to ensure high levels of investor protection in financial products, especially retailers, and increase the security and efficiency, proper functioning and stability of the stock markets in Europe. In particular, this APL includes aspects related to commissions, structured deposits, products governance, high-frequency algorithmic trading financing SMEs and organised trading facility, among others.

Resolution planning

(30/11/2017) FSB – Consultative document on principles on bail-in execution / Consultative document on funding strategy elements of an implementable resolution plan
The FSB has published two Consultative documents, addressed to resolution authorities, one on principles on bail-in execution, which establishes a set of principles to make the G-SIB bail-in resolution strategies operational; and other on funding strategy elements of an implementable resolution plan, which sets out proposed guidance on the development of a plan for funding in resolution covering some key elements (e.g. estimating funding needs in resolution).

Stress test 2017 in UK

(29/11/2017) Bank of England (BoE) – Stress testing the UK banking system: 2017 results
The BoE has published the results of the 2017 stress test of the UK banking system, which covered seven major UK banks accounting for around 80% of PRA-regulated banks’ lending to the UK real economy. The 2017 stress test includes for the first time a biennial exploratory scenario (BES) alongside the annual cyclical scenario (ACS).

IFRS9

(28/11/2017) ECB – Revisión temática del SSM sobre IFRS 9. Evaluación de la preparación de las entidades de crédito para la implementación de IFRS 9
The ECB has published the results of the SSM thematic review on IFRS 9 aiming to assess to what extent significant institutions and less significant institutions are prepared for the introduction of IFRS 9, to assess its potential impact on provisioning and to promote consistent application of the new standard. In particular, this report presents the first quantitative and qualitative results of the thematic review on IFRS 9 for these institutions.

PSD2

(28/11/2017) EC – Delegated Regulation supplementing PSD2 with regard to RTS for strong customer authentication and common and secure open standards of communication
The European Commission (EC) has published a Delegated Regulation supplementing PSD2 with regard to RTS for strong customer authentication (SCA) and common and secure open standards of communication aiming at spelling out how the SCA should be applied. In particular, this document covers the following aspects: i) general provisions, ii) security measures for the application of SCA, iii) exemptions from SCA, iv) confidentiality and integrity of the payment service users’ personalised security credentials, and v) common and secure open standards of communication.

Risk assessment report and 2017 transparency exercise

(27/11/2017) EBA – Risk Assessment of the European Banking system / 2017 EU-wide transparency exercise
The EBA has published its tenth Risk Assessment Report (RAR), which includes aggregate results on capital position, return on equity (RoE), non-performing loans (NPL) ratio, and coverage ratio of NPLs. Moreover, the RAR also addresses other aspects such as information and communication technology related (ICT) risks. Moreover, the RAR is complemented with the EBA’s EU-wide 2017 transparency exercise, a disclosure exercise where only bank-by-bank data are published and no shocks are applied to the actual data.

 

 

Other publications of interest 

 

Economic Bulletin

(28/12/2017) ECB – Economic Bulletin, Issue 8 / 2017
The ECB has published the Economic Bulletin 8/2017 which provides a comprehensive analysis of the economic and monetary developments, including an evaluation of macroeconomic projections by Eurosystem experts. In particular, the document covers the following aspects: i) external environment, ii) financial developments, iii) economic activity, iv) prices and costs, v) money and credit, and vi) fiscal developments.

Credit risk

(22/12/2017) EBA – Opinion on the use of the 180 days past due criterion
The EBA has published an opinion regarding the 180 day past due (DPD) exemption for material exposures. In particular, based on an analysis of data submitted by the institutions still using the 180 DPD criterion, the EBA recommends that this exemption be disallowed and all institutions should consequently, through a transitional period, rely on the 90 DPD regime for all exposures.

Supervisory colleges

(21/12/2017) EBA – Progress report on the implementation of principles for effective supervisory colleges
The BCBS has published a Progress report on the implementation of principles for effective supervisory colleges. In particular, this report address aspect related with information-sharing, coordinated risk assessment and crisis preparedness.

NSFR

(21/12/2017) BCBS – Technical Amendment. Basel III: Treatment of extraordinary monetary policy operations in the net stable funding ratio
The BCBS has published a technical amendment which is related to the treatment of extraordinary monetary policy operations in the Net Stable Funding Ratio. In particular, this document proposes to allow for reduced required stable funding factors for central bank claims with maturity equal to or greater than six months.

Resolution

(21/12/2017) FSB – Consultative document on key attributes assessment methodology for the insurance sector
The FSB has published a consultative document (CP) on a methodology for assessing the implementation of the Key Attributes (KA) of effective resolution regimes for financial institutions in the insurance sector. In particular, this CP sets out criteria for assessing the compliance of a jurisdiction’s insurance resolution frameworks with the KA.

MREL

(20/12/2017) EBA – Quantitative analysis on MREL
The EBA has published an updated quantitative analysis on the minimum requirement for own funds and eligible liabilities (MREL). In particular, this update was carried out with data as of end December 2016 and covers MREL ratios, MREL capacity and quality, as well as, the estimated MREL funding needs of the full sample of 112 EU banks.
(20/12/2017) SRB – Policy for 2017 and next steps on the minimum requirement for own funds and eligible liabilities (MREL)
The SRB has published a policiy statement on the MREL, which serves as a basis for setting consolidated MREL targets for banks under the remit of the SRB. In particular, this document covers, among other aspects, the targets and location of MREL; quality, subordination and eligibility criteria; and transition period.

Brexit

(20/12/2017) PRA – CP 30/17. PRA’s approach to branch authorisation and supervision for international insurers
The PRA has published the CP 30/17 which seeks feedback on its proposed approach to authorising and supervising third-country insurers that carry on insurance business in the UK through a branch or by forming a subsidiary.
(20/12/2017) PRA – CP 29/17. PRA’s approach to branch authorisation and supervision for international banks
The PRA has published the CP 29/17 which seeks views on its proposed new approach to authorising and supervising international banks, which includes a focus on those that undertake wholesale banking activities in the UK via branches.

PSD2

(19/12/2017) EBA – Opinion of the European Banking Authority on the transition from PSD1 to PSD2
The EBA has published an opinion on the transition from the existing Payment Services Directive (PSD1) to the revised Directive (PSD2), in which clarifies a number of issues identified by market participants and competent authorities, including with regard to the transitional period foreseen under PSD2.

Recovery and resolution planning

(19/12/2017) EBA – Final draft RTS on simplified obligations under the BRRD / Report on the application of simplified obligations and waivers in recovery and resolution planning
The EBA has published Final RTS on simplified obligations specifying the eligibility criteria to determine whether institutions could be subject to simplified obligations when drafting recovery and resolution planning. Along these Final RTS, the EBA has also published a Report on the application of simplified obligations and waivers in recovery and resolution planning.

EMIR

(19/12/2017) ESAs – Joint Draft RTS on margin requirements for non-centrally cleared OTC derivatives
The ESAs have published RTS amending the framework of the European Market Infrastructure Regulation (EMIR) with regard to physically settled foreign exchange (FX) forwards. In particular, these RTS amend the risk mitigation techniques related to the exchange of collateral to cover exposures arising from non-centrally cleared over-the-counter (OTC) derivatives with respect to physically settled FX forwards.

Market and counterparty credit risk

(18/12/2017) EBA – Discussion Paper on EU implementation of the revised market and counterparty credit risk frameworks
The EBA has published a Discussion Paper on the implementation in the EU of the revised market risk and counterparty credit risk frameworks. This document discusses some of the most important technical and operational challenges to implement the fundamental review of the trading book (FRTB) and standardised approach for counterparty credit risk (SA-CCR) in the EU.

Benchmarking of internal models

(18/12/2017) EBA – Consultation Paper on draft ITS amending Commission Implementing Regulation (EU) 2016/2070 with regard to benchmarking of internal models
The EBA has published a CP on ITS to amend the European Commission Implementing Regulation on benchmarking of internal models to adjust the benchmarking portfolios and reporting requirements in view of the benchmarking exercise the EBA will carry out in 2019 (e.g. reduce uncertainties in the credit risk portfolios).

LCR

(18/12/2017) EBA – Report on liquidity measures under the CRR
The EBA has published its fourth impact assessment Report for the liquidity coverage ratio (LCR), which shows that EU banks have continued to improve their LCR since 2011. At the end of December 2016, EU banks' average LCR was 139% and the aggregate gross shortfall amounted to EUR 115 million.

SREP

(18/12/2017) ECB – SSM SREP Methodology Booklet - 2017 edition
The ECB has published the 2017 Methodology Booklet about SSM SREP which covers the following aspects: i) 2017 outcome, ii) legal basis, iii) overview, iv) methodology of SREP, and v) analysis of the current status.

Solvency II

(18/12/2017) EIOPA – Supervisory Statement on Solvency II: Solvency and Financial Condition Report
The EIOPA has published a Supervisory Statement based on an analysis of solvency and financial condition reports (SFCRs) of (re)insurance undertakings and insurance groups. This document shows that the majority of reports were published on time and in general complied with the Solvency II requirements.

Home mortgage disclosure and consumer leasing

(18/12/2017) Fed – Final Rule to repeal Regulation C on home mortgage disclosure / Proposal to revise Regulation M on consumer leasing
The Fed has published two documents, a Final Rule to repeal Regulation C on home mortgage disclosure, which has been superseded by final rules issued by the Consumer Financial Protection Bureau (CFPB), and a Proposal to revise its Regulation M on consumer leasing to reflect changes in the coverage of this rule under the Dodd-Frank Act.

2018 benchmarking exercise

(14/12/2017) EBA – ITS package for 2018 benchmarking exercise
The EBA has published an update to its ITS on benchmarking of internal approaches, which define the benchmarking portfolios for the 2018 benchmarking exercise. The update includes minor changes, eliminate inconsistencies in wording and facilitate harmonised data submissions in April 2018.

Unsecured bank bonds

(14/12/2017) ECB – Changes to collateral eligibility criteria for unsecured bank bonds
The ECB has decided on changes to the collateral eligibility criteria applicable to unsecured debt instruments, which are known as unsecured bank bonds (UBBs), issued by credit institutions or investment firms or their closely-linked entities. In particular, these new eligibility criteria are expected to come into effect in the 1Q2018, currently eligible senior UBBs that do not fulfil new eligibility criteria will remain eligible until 31 December 2018, and senior (preferred) UBBs will remain eligible as collateral.

PSD2

(13/12/2017) EBA – Final RTS and ITS on EBA Register under PSD2
The EBA has published its Final RTS and ITS on the EBA electronic central register under the Payment Services Directive (PSD2). In particular, the RTS specify the procedures competent authorities (CAs) should follow when providing information to the EBA and those that apply to the EBA when processing and publishing that information; whereas the ITS specify the information that will be made available on the EBA register from a pre-defined list of institutions that is provided by the PSD2 (e.g. payment and electronic money institutions).

Stress test - Insurance

(13/12/2017) EIOPA – 2017 IORP Stress Test Report
The EIOPA has published a report with the results of the second EU-wide stress test exercise of Institutions for Occupational Retirement Provision (IORPs) which was assessed to a "double-hit" scenario, combining a drop in risk-free interest rates with a fall in the price of assets held by IORPs. The exercise also assessed, among other aspects, the potential transfer of shocks from IORPs to the real economy and financial stability through sponsor support and benefit reductions.

Senior manager and certification regime in UK

(13/12/2017) PRA – Consultation Paper 28/17. Strengthening accountability: implementing the extension of the SM&CR to insurers and other amendments
The PRA has published the CP 28/27 which sets out, among others, proposals for implementing the extension of the Senior Managers and Certification Regime (SM&CR) to insurers, and for the rationalisation of the existing SM&CR/SIMR forms to produce a streamlined set of forms.

MiFID II and MiFIR

(06/12/2017) ESMA – MiFID II / MiFIR transitional transparency calculations (TTC) for equity and bond instruments
The ESMA has published the MiFID II/MiFIR transitional transparency calculations (TTC) for equity and bond instruments, making TTC available to market participants, infrastructures and authorities as required under the new regulatory framework. The ESMA, beginning in January 2018, will publish reference data, transparency calculations and information on a regular basis, and will continue operating the transaction reporting exchange mechanism.

Solvency II

(06/12/2017) EIOPA – Monthly technical information for Solvency II relevant Risk Free Interest Rate Term Structures / Monthly update of the symmetric adjustment of the equity capital charge for Solvency II
The EIOPA has published its monthly technical information on the relevant risk free interest rate term structures (RFR) with reference to the end of November 2017, which is used for the calculation of the technical provisions for (re)insurance obligations. Further, the EIOPA has also published its monthly update of the symmetric adjustment of the equity capital charge for Solvency II.

Banking resolution report 2017

(06/12/2017) SRB – Conference Report 2017
The Single Resolution Board (SRB) has published a conference report on progress made in establishing banking resolution planning. This report covers several areas of potential improvement, including, among others: alignment of minimum requirement for own funds and eligible liabilities (MREL) and total loss-absorbing capacity (TLAC), the level of flexibility demanded of the Bank Recovery and Resolution Directive (BRDD) or setting up crisis management groups (CMGs).

Risk Dashboard 3Q17

(05/12/2017) ESMA – Risk Dashboard
The ESMA has published its 3Q17 Risk Dashboard, covering EU’s securities markets. The overall risk assessment remains unchanged from 2Q, showing that EU financial markets remained relatively calm, although reactive to global geopolitical events (e.g. increased market expectations of the near-term volatility following global political tensions, worsening outlook of operational risk due concerns over potential for cyber-attacks, etc.).

List of financial conglomerates 2017

(05/12/2017) EBA – List of Financial Conglomerates 2017
The ESAs have published the 2017 list of identified financial conglomerates, which includes: i) 80 financial conglomerates with the head of group located in the European Union or European Economic Area, ii) one financial conglomerate with the head of group in Switzerland, ii) one in Bermuda, and iv) two in the United States.

Significant institutions

(05/12/2017) ECB – Annual assessment of significance brings number of banks directly supervised by the ECB to 119 / List of supervised entities
The result of the annual review of the significance of credit institutions, as well as changes in group structures and other developments that affected five banking groups in 2017, brings the number of significant institutions to 119. Barclays Bank PLC Frankfurt Branch has been identified as significant and will be directly supervised by the ECB from 1 January 2018.

Community Reinvestment Act compliance

(05/12/2017) FDIC – December 2017 List of banks examined for CRA compliance
The Federal Deposit Insurance Corporation (FDIC) has published its December 2017 list of state nonmember banks recently evaluated for compliance with the Community Reinvestment Act (CRA), covering evaluation ratings that the FDIC assigned to institutions in September 2017.
(05/12/2017) OCC – CRA performance evaluations: November 2017
The Office of the Comptroller of the Currency (OCC) has published a list of CRA performance evaluations for November 2017, containing only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. The 29 evaluations made public this month show that five are rated outstanding, 23 are rated satisfactory and one is rated need to improve.

Deposit Guarantee Fund (FGD)

(04/12/2017) BdE – Proyecto de Circular por la que se modifican la Circular 5/2016 sobre el método de cálculo de las aportaciones al FGD y la Circular 8/2015 sobre información para determinar las bases de cálculo de las aportaciones al FGD / Versión consolidada de la Circular 5/2016
The Bank of Spain (BdE) has published a Circular that amend the Circular 5/2016 and Circular 8/2015. Regarding Circular 5/2016 , amends are introduce concerning the aim; the category of the business and management model; the weighting of risk indicators; the rules of application of the method to calculate the contributions to deposit guarantee funds and the two annexes of the relevant circular. Regarding the Circular 8/2015, a new standard is introduced for credit institutions that are part of an institutional protection system (SIP) that have constituted an ex ante fund and also an annex in relation to the additional information that must be provided by the entities that are part of a SIP.

Extension of credits in USA

(04/12/2017) Fed – Proposed Rulemaking to amend Regulation A
The Fed has published a Proposed Rulemaking to amend Regulation A on Extensions of Credit by Federal Reserve Banks with the aim at revising the provisions regarding the establishment of the primary credit rate in a financial emergency, and at deleting the provisions relating to the use of credit ratings for collateral for extensions of credit under the former Term Asset-Backed Securities Loan Facility (TALF).

Countercyclical Capital Buffer in USA

(01/12/2017) Fed – Countercyclical Capital Buffer (CCyB) at current level of 0 percent
The Fed has announced it has voted to affirm the Countercyclical Capital Buffer (CCyB) at the current level of 0%. In making this determination, the Fed followed the framework detailed in its policy statement for setting the CCyB for private-sector credit exposures located in USA.

MiFID I

(29/11/2017) ESMA – Peer Review on the Guidelines on certain aspects of the compliance function under MiFID I
The ESMA has published the results of its Peer Review on the guidelines on certain aspects of the compliance function under MiFID. In particular, the Review found a high level of compliance by the majority of EEA national competent authorities (NCAs) with the Guidelines, although significant weaknesses were identified in the supervisory approaches of Cyprus, Iceland and the Netherlands. Additionally, the Review identified a number of good practices by a number of NCAs in their supervision.

Credit risk data

(29/11/2017) ECB – Guidelines on the procedures for the collection of granular credit and credit risk data
The ECB has published Guidelines on the procedures for the collection of granular credit and credit risk data, addressed to national central bank (NCBs). In particular, these Guidelines provide details on the NCBs’ obligations to transmit credit data and counterparty reference data collected, including the NCBs’ responsibilities for registering counterparties in the Register of Institutions and Affiliates Database (RIAD), and on the procedures for the transmission of such data.

Financial Stability in UK

(28/11/2017) BoE – Financial Stability Report
The BoE has published a financial stability report which analyses the main risks to UK financial stability (e.g. global debt levels, asset valuations), as well as the resilience of the UK financial system. Moreover, this Report includes the results of the 2017 stress test in UK.

Basic payment accounts in Spain

(24/11/2017) Government of Spain – Real Decreto-ley 19/2017, de cuentas de pago básicas, traslado de cuentas de pago y comparabilidad de comisiones
The Spanish Government has published the Real Decreto-ley 19/2017 that ensures the universal right of access to a basic payment account, with the aim at improving financial inclusion and to reinforce the European market. To this end, the universal right of access to a basic account is ensured, the transparency and comparability of the fees applied is improved, and the transfer of payments accounts is accelerated.

Non-financial and diversity of information in Spain

(24/11/2017) Government of Spain – Real Decreto-ley 18/2017, por el que se modifican el Código de Comercio, el texto refundido de la Ley de Sociedades de Capital aprobado por el Real Decreto Legislativo 1/2010, y la Ley 22/2015, de Auditoría de Cuentas, en materia de información no financiera y diversidad
The Spanish Government has published the Real Decreto-ley 18/2017 with the aim of increasing the non-financial information included in the management report that accompanies the individual and consolidated annual accounts in large companies regarding information on social, environmental and human resources issues, on human rights (i.e. information of the relevant potential and current impacts of the company´s activity) and anti-money laundering and bribery (i.e. information on the procedures and internal control resources to prevent these behaviour).

© GMS Management Solutions, S.L., 2018. All rights reserved. The information contained on this publication is of a general nature and does not constitute a professional opinion or an advisory service. The data used in this publication come from public sources. GMS Management Solutions, SL assumes no liability for the veracity or accuracy of such data.