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


Data Governance

(25/11/2020) EC - Proposal on Data Governance Act
The European Commission (EC) has published the Proposal on Data Governance Act with the aim of foster the availability of data for use by increasing trust in data intermediaries and by strengthening data-sharing mechanisms across the EU. The aim of this proposal it is not to amend or remove the substantial rights on access and use of data, but to complement the Directive on open data and the re-use of public sector information.


(14/11/2020) Gob. España - Ley 7/2020 para la transformación digital del sistema financiero
The Spanish Government has published Law 7/2020 for the digital transformation of the financial system with the aim of accompanying the digital transformation of the financial system with a set of measures aimed at establishing a regulatory framework for the regulatory sandbox in Spain. These measures are aimed at ensuring that the financial authorities have adequate instruments to continue to comply with their obligations in the digital context and to facilitate the innovative process of access to financing for the various productive sectors.

Stress Test

(13/11/2020) EBA - 2021 EU-wide stress test final methodology
The European Banking Authority (EBA) has published the Final methodology, draft templates and template guidance for the 2021 EU-wide stress test along with the key milestones of the exercise. The methodology and templates include some targeted changes compared to the postponed 2020 exercise, such as the recognition of FX effects for certain P&L items, and the treatment of moratoria and public guarantees in relation to the current COVID-19 crisis.

Financial Information and Disclosure

(13/11/2020) CNMV - Circular 2/2020 sobre publicidad de los productos y servicios de inversión
The Comisión Nacional del Mercado de Valores (CNMV) has published Circular 2/2020 on advertising of investment products and services, which aims to develop the rules, principles and criteria to which the advertising activity of investment services and products should be subject, in accordance with the provisions of Order EHA/1717/2010, on the regulation and control of advertising of investment services and products.


(11/11/2020) FSB/BCBS - 2020 list of G-SIBs
The Financial Stability Board (FSB) has published the 2020 list of G-SIBs, using end-2020 data and the assessment methodology designed by the BCBS. In parallel with these publications, the BCBS has released additional information regarding the assessment methodology used for the purpose of the list of G-SIBs, based on bank data at the end of 2019.


(29/10/2020) EBA - Monitoring report on TLAC-MREL eligible liabilities instruments of European Union Institutions
The European Banking Authority (EBA) has published the first monitoring report on TLAC-MREL eligible liabilities instruments with the objective to inform stakeholders about the implementation review on TLAC / MREL instruments and to present its views and current recommendations on specific features commonly seen in these instruments. This report it is not meant to analyse the final compliance of any given instrument, but to assess the application of the eligibility criteria and to present best practices. In addition, this Report highlights the importance to provide further guidance on the interaction between the clauses used for environmental, social and governance (ESG) capital issuances and the eligibility criteria for eligible liabilities instruments.

ESG risks

(30/10/2020) EBA - Discussion paper on management and supervision of ESG risks
The European Banking Authority (EBA) has published the Discussion Paper on ESG risks management and supervision aiming to collect feedback for the preparation of its final report on the topic. This paper provides a comprehensive proposal on how ESG factors and risks could be included in the regulatory and supervisory framework for credit institutions and investment firms. This Paper also provides details on the risks stemming from environmental factors, especially climate change, and illustrates ongoing initiatives and progress achieved on this topic over the recent years. In addition, this discussion paper also contains a non-exhaustive list of factors, indicators and ESG metrics.

Resolution Policy

(28/10/2020) PRA - Package of proposals relating to resolution policy
During the second quarter of 2020, the year-over-year growth of Spanish GDP decreased by 17.35 p.p., down to -21.51%. Regarding the labor market, the percentage of unemployed people in the labor force increased by 0.92 p.p. compared to the previous quarter, up to 15.33%. On the other hand, year-on-year employment growth stood at -6.05% this quarter, which was 7.13 p.p. lower than in 1Q20. In terms of prices, inflation stood at -0.63%, after a quarterly decline of 1.23 p.p. Regarding the exchange rate, the euro remained constant against the dollar in 2Q20, standing at an average rate of 1.10 $/€.



Other publications of interest

Data reporting services providers

(20/11/2020) ESMA - ESMA consults on supervisory fees for data reporting services providers / ESMA consults on derogation criteria for data reporting services providers
The European Securities and Markets Authority (ESMA) has launched two public consultation. The first one refers to supervisory fees for data reporting services providers (DRSPs) to be supervised by ESMA starting in 2022. The second consultation addresses the criteria to identify Authorised Reporting Mechanisms (ARMs) and Approved Publications Arrangements (APAs) subject to authorisation and supervision by a competent authority of a EU Member States from January 2022. The revised regulation envisages that certain ARMs and APAs may be exempted from direct EU supervision due to their limited relevance for the internal market.


(25/11/2020) ESMA - ESMA sets out its final view on the derivatives trading obligation (DTO)
The ESMA has released a public statement that clarifies the application of EU´s trading obligation for derivatives (DTO) following the end of the UK’s transition from the EU on 31 December 2020. The statement clarifies that the DTO will continue applying without changes after the end of the transition period. ESMA considers that the continued application of the DTO would not create risks to the stability of the financial system.


(24/11/2020) OCC - OCC Proposes Rule Regarding the CRA General Performance Standards
The Office of the Comptroller of the Currency (OCC) has invited comment on a notice of proposed rulemaking regarding the Community Reinvestment Act’s (CRA) general performance standards. The proposal provides the OCC’s proposed approach to determine the CRA evaluation measure benchmarks, retail lending distribution test thresholds, and community development minimums under the general performance standards set forth in the 2020 final rule. Also, it explains how the OCC would assess significant declines in CRA activities levels in connection with performance context following the initial establishment of the benchmarks, minimums, and thresholds.

Risk Assestment

(23/11/2020) EBA - The EBA calls on the European Commission to harmonise the significant risk transfer assessment in securitization
The European Banking Authority (EBA) has published a Report on significant risk transfer (SRT) in securitisation transactions, which includes a set of detailed recommendations to the EC on the harmonisation of practices and processes applicable to the SRT assessment. The EBA proposals aim to enhance the efficiency, consistency and predictability of the supervisory SRT assessment within the current securitisation framework. The SRT Report makes recommendations in three key areas: i) assessment of structural features of securitisation transactions; ii) application of the SRT quantitative tests; iii) supervisory process for assessing SRT in individual transactions.
(11/11/2020) ESMA - ESMA sees potential for sudden reversal in investors’ risk assessment
The European Securities and Markets Authority (ESMA) has published its second risk dashboard for 2020 which sees a continued risk of decoupling between asset valuations and economic fundamentals. The extent to which this an other risks will further materialise will critically depend on three drivers: i) the economic impact of the pandemic; ii) market expectations on monetary and fiscal support measures; and iii) any occurrence of additional external events in an already fragile global environment.
(11/11/2020) EBA - EBA announces timing for publication of 2020 EU-wide transparency exercise and Risk Assessment Report
The EBA has announced that its 2020 Risk Assessment Report and transparency exercise with bank by bank data will be released on 11 December at 18:00 CET.
(09/11/2020) EIOPA - Risk Dashboard: European insurers slightly less exposed to risks compared to the beginning of COVID-19 outbreak but concerns remain
The EIOPA has published its updated Risk Dashboard based on the second quarter of 2020 Solvency II data. The results show that the risk exposures of the European Union insurance sector slightly reduced, compared to July risk assessment. Insurers are particularly exposed to very high levels of macro risk, while market, credit, profitability and solvency risks decreased to medium level. However, it should be noted that the risk assessment does not account for the outbreak of the second wave of the pandemic.

OTC derivatives

(23/11/2020) ESA - ESAs propose to adapt the EMIR implementation timelines for intragroup transactions, equity options and novations to EU counterparties
The European Supervisory Authorities (ESAs) have published a final report with draft regulatory technical standards (RTS) proposing to amend the EC’s Delegated Regulation on the risk mitigation techniques for OTC derivatives not cleared by a central counterparties (CCPs) under the European Market Infrastructure Regulation (EMIR). The amendments included in these draft RTS proposed to extend the temporary exemption for 18 months for intragroup transactions and the temporary exemption for single-stock equity options or index options (equity options) for three years.


(23/11/2020) ECB -  Consultation on EURIBOR fallback trigger events / Consultation on €STR-based EURIBOR fallback rates
The working group on euro risk-free of the rates from the European Central Bank (ECB) has released two public consultations on the topic of fallback rates to Euribor. Fallback rates are rates that can be relied upon in case of an unavailability of the main rate. In one consultation, stakeholders are invited to provide their views on fallback rates based on the euro short-term rate (€STR) and spread adjustment methodologies in order to produce the most suitable EURIBOR fallback measures per asset class. In the other consultation, stakeholders are invited to give their views on potential events that could trigger such fallback measures.


(23/11/2020) IOSCO - IOSCO Annual Meeting addresses the impact of COVID 19 and other critical matters on securities markets
Members of the International Organization of Securities Commissions (IOSCO) gathered for the organization´s 45th Annual Meeting to discuss about: i) the relevance of sustainability-related disclosures; ii) the next steps in the Financial Stability Engagement Group´s (FSEG) work on the impact of the turmoil on market- based financial intermediation (NBFI), specifically on money market funds (MMFs), open-ended investment funds, bond liquidity and margins. The IOSCO agreed to undertake further work on: i) good practices or recommendations for audit committees on goodwill impairment; ii) potential valuation-related issues in financial reporting, auditing and disclosures; and iii) the impact of COVID-19 on secondary trading market microstructure mechanisms, the operations of trading venues and business continuity planning.
(20/11/2020) Fed/FDIC/OCC - Agencies provide temporary relief to community banking organizations
The federal bank regulatory agencies announced an interim final rule that provides temporary relief for certain community banking organizations related to certain regulations and reporting requirements as a result, in large part, of their growth in size from the coronavirus response. With regard to the requirements covered by the interim final rule, community banking organizations that have crossed a relevant threshold generally will have until 2022 to either reduce their size, or to prepare for new regulatory and reporting standards.
(09/11/2020) OCC - OCC Reports Key Risks, Effects of COVID-19 in Federal Banking System
The Office of the Comptroller of the Currency (OCC) has reported the key issues facing the federal banking system and the effects of the COVID-19 pandemic on the federal banking industry in its report Semiannual Risk Perspective for Fall 2020. Banks remain in strong financial condition but profitability is stressed due to low interest rates and increasing levels of provisions for problem loans. The OCC reported credit, strategic, operational, and compliance risks, among the key risk themes in the report.
(30/10/2020) Fed/FDIC/OCC –  Federal Reserve Board adjusts terms of Main Street Lending Program to better target support to smaller businesses that employ millions of workers and are facing continued revenue shortfalls due to the pandemic
The Federal Reserve Board (Fed) has adjusted the terms of the Main Street Lending Program in two important ways to better target support to smaller businesses that are facing continued revenue shortfalls due to the pandemic. In particular, the minimum loan size for three Main Street facilities available to for-profit and non-profit borrowers has been reduced from $250,000 to $100,000 and the fees have been adjusted to encourage the provision of these smaller loans.

Financial Information and Disclosure

(19/11/2020) SEC - Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information
The Securities and Exchange Comission (SEC) has issued a Final Rule on Management’s Discussion and Analysis (MD&A), Selected Financial Data, and Supplementary Financial Information. This Final Rule adopts amendments to modernize, simplify, and enhance certain financial disclosure requirements in Regulation S-K. Specifically, the requirement for Selected Financial Data have been eliminated, streamlining the requirement to disclose Supplementary Financial Information, and amending MD&A of Financial Condition and Results of Operations. These amendments are intended to eliminate duplicative disclosures and modernize and enhance MD&A disclosures for the benefit of investors, while simplifying compliance efforts for registrants.
(13/11/2020) CNMV - Circular 2/2020, de 28 de octubre, de la Comisión Nacional del Mercado de Valores, sobre publicidad de los productos y servicios de inversión
The Comisión Nacional del Mercado de Valores (CNMV) has published the Circular 2/2020 of 28 October on disclosure of investment products and services. This Circular develops both the scope of application and the content and format that advertising messages must respect. It also establishes rules on the procedures and internal controls to be implemented by entities and the obligations to register advertising, and the regime applicable if entities decide to voluntarily adhere to self-regulation systems for advertising activity to ensure that the principles and criteria set out in this Circular on the content and format of advertising messages.


(19/11/2020) EBA - EBA analyses effect of the unwind mechanism of the liquidity coverage ratio
The EBA has published a Report on the effects of the unwind mechanism of the liquidity coverage ratio (LCR) over a three-year period, from the end of 2016 to the first quarter of 2020. The analysis is based on common reporting (COREP) data covering a sample of about 120 credit institutions in each year, representative of the 26 EU Member States and 2 EEA/EFTA states. Overall, the empirical evidence does not support the hypothesis that the unwind mechanism has a detrimental impact on the business and risk profile of credit institutions.

Exempt credit thresholds

(18/11/2020) Fed - Agencies announce dollar thresholds in Regulations Z and M for exempt consumer credit and lease transactions / Agencies announce threshold for smaller loan exemption from appraisal requirements for higher-priced mortgage loans
The Federal Reserve Board (Fed) and Consumer Financial Protection Bureau (CFPB) have announced the dollar thresholds in Regulation Z, of Truth in lending and Regulation M, of Consumer leasing that will apply for determining exempt consumer credit and lease transactions in 2021. Furthermore, they have announced that the threshold for exempting loans from special appraisal requirements for higher-priced mortgage loans during 2021 will remain at $27,200, as it was in 2020. These thresholds are adjusted annually based on the annual percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).

Loan Enforcement

(18/11/2020) EBA - EBA publishes Report on benchmarking of national insolvency frameworks across the EU
The EBA has published its Report on the benchmarking of national loan enforcement frameworks across EU Member States, in response to the EU Commission’s call for advice. The Report introduces for the first time a set of benchmarks for bank loan recovery and identifies areas where the divergence in the national insolvency regimes is wider. In addition, the Report provides an overview of the characteristics of insolvency regimes that help explain the differences across the EU.


(16/11/2020) FSB - Guidance on Financial Resources to Support CCP Resolution and on the Treatment of CCP Equity in Resolution
The FSB has published a report which sets out guidance to support authorities in their assessment of the adequacy of financial resources for central counterparty (CCP) resolution and of the treatment of CCP equity in the context of resolution. Resolution authorities should conduct such assessment in cooperation with the CCP’s oversight and/or supervisory authorities. For CCPs that are systemically important in more than one jurisdiction, such assessment should be reviewed and updated on an annual basis and the results of such review/update be discussed within the firms’ crisis management groups.

Payments Infrastrucure

(16/11/2020) ECB - ECB announces independent review of payments system outage
The European Central Bank (ECB) will launch an independent review of an incident that affected its real-time gross settlement system TARGET2 on 23 October 2020, causing an outage for almost 10 hours. TARGET2 is the leading European platform for processing large-value payment. The independent review will allow the Eurosystem to draw lessons from the incidents and address them. Furthermore, it will look into the robustness of the business continuity model, the adequacy of the regular recovery tests, the efficiency of the change management procedures and the communication protocols. The main findings of the review will be shared with market participants and made public by the second quarter of 2021.


(13/11/2020) BoE- Statement on the application of the temporary transitional power to CRD V and BRRD II derived legislation
The Bank of England (BoE) has published an Statement on the application of the temporary transitional power (TTP) to CRD V and BRRD II derived legislation. This statement confirms that no additional exceptions from the application of the transitional temporary power are expected to be required in relation to onshoring changes to new rules and legislation implementing CRD V and BRRD II. This means that the TTP will apply to the small number of ‘relevant obligations’ which are changed by onshoring amendments made to CRD V and BRRD II derived legislation at the end of the transition period.

Supervisory Measures

(13/11/2020) ESMA - ESMA identifies costs and performance and data quality as new union strategic supervisory priorities
The European Securities and Markets Authority (ESMA), using its new convergence powers, has identified costs and performance for retail investment products and market data quality as the Union Strategic Supervisory Priorities for national competent authorities (NCAs). Under these Priorities, the specific topics on which NCAs will undertake supervisory action in 2021, coordinated by ESMA, are: i) costs and fees charged by fund managers; and ii) improving the quality of transparency data reported under MiFIR.

Financial Regulatory reforms

(13/11/2020) FSB - FSB publishes annual report on implementation and effects of financial regulatory reforms
The FSB has published its 2020 report on the implementation and effects of the G20 financial regulatory reforms. The report, which will be delivered to G20 Leaders ahead of their Summit, finds that the G20 reforms after the 2008 financial crisis have served the financial system well during the COVID-19 pandemic. Greater resilience of major banks at the core of the financial system has allowed the system largely to absorb, rather than amplify, the macroeconomic shock. Decisive actions by authorities sustained the supply of credit to the real economy and helped maintain global financial stability.

Funds Management

(13/11/2020) ESMA - ESMA tells fund managers to improve readiness for future adverse shocks
The ESMA has published a Report on the preparedness of investment funds with significant exposures to corporate debt and real estate assets, for potential future adverse liquidity and valuation shocks. The Report identifies five priority areas for action which would enhance the preparedness of these fund categories and relate to the following topics: i) ongoing supervision of the alignment of the funds’ investment strategy, liquidity profile and redemption policy; ii) ongoing supervision of liquidity risk assessment; iii) fund liquidity profile reporting; iv) increase of the availability and use of liquidity management tools (LMT); and v) supervision of valuation processes in a context of valuation uncertainty.
(09/11/2020) ESMA - ESMA consults on guidance for funds’ marketing communications
The ESMA has launched a consultation on guidelines on marketing communications under the Regulation on facilitating cross-border distribution of collective investment undertakings. The purpose is to specify the requirements for marketing communications sent to investors in order to promote UCITS and AIFs, including EuSEFs, EuVECAs and ELTIFs. These requirements are the following: i) that the marketing material shall be identifiable as marketing material; ii) that the marketing material shall describe the risks and rewards of purchasing units or shares of an AIF or units of a UCITS in an equally prominent manner; and iii) that this material contain fair, clear and not misleading information.


(12/11/2020) EIOPA - EIOPA calls for sound supervisory practices in registering or authorising IORPs to foster a evel-playing field across the EU
The European Insurance and Occupational Pensions Authority (EIOPA) has published its Supervisory Statement on the sound practices within the registration or authorisation process of institutions for occupational retirement provisions (IORP), including as regards suitability for cross-border activity. Competent authorities of home Member States have been reviewing their registration and authorisation procedures with regard to the new requirements of the IORP II Directive. In the context of operating across borders, such divergent approaches could lead to supervisory arbitrage. Achieving supervisory convergence of this practice seeks to avoid this situation and build a level-playing field across the EU conducive to an internal market for IORPs, as well as to ensure adequate protection of the members and beneficiaries.


(09/11/2020) FSB - Regulatory and Supervisory Issues Relating to Outsourcing and Third-Party Relationships: Discussion paper
The Financial Stability Board (FSB) has published a Discussion Paper which considers regulatory and supervisory issues relating to outsourcing and third-party relationships. The discussion paper identifies a number of issues and challenges. For instance, financial institutions have to ensure that their contractual agreements with third parties grant to them, as well as to supervisory and resolution authorities, appropriate rights to access, audit and obtain information from third parties. Also, there is a common concern about the possibility of systemic risk arising from concentration in the provision of some outsourced and third-party services to financial institutions


(06/11/2020) ESMA - ESMA consults on MIFID II/ MIFIR obligations on market data
The ESMA has launched a Consultation Paper seeking input from market participants in relation to its draft guidelines on the MiFID II/MiFIR obligations on market data. The proposed Guidelines build on the assessments and recommendations from a 2019 ESMA Report on Market Data. They provide guidance on the requirement to publish market data on a reasonable commercial basis and the requirement to make market data available free of charge 15 minutes after publication. In addition, this Guidelines will ensure better and uniform application of the MiFID II/MiFIR obligations on market data.
(30/10/2020) ESMA – MIFID II: ESMA publishes data for the systematic internaliser calculations for equity, equity-like instruments, bonds and other non-equity instruments
The ESMA has published data for the systematic internaliser (SI) quarterly calculations for equity, equity-like instruments, bonds and for other non-equity instruments under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). ESMA has published the total number of trades and total volume over the period April-September 2020 for the purpose of the SI calculations under MiFID II for: i) 22,022 equity and equity-like instruments; ii) 120,876 bonds; and iii) 5,907 sub-classes of derivatives (including equity derivatives, interest rate derivatives, commodity derivatives, C10 derivatives, emission allowance and derivatives thereof and contracts for difference (CFDs).

Granting of Loans

(06/11/2020) BdE - Proyecto de circular que modifica las Circulares 1/2013, sobre la Central de Información de Riesgos, y la 5/2012, sobre transparencia de los servicios bancarios y responsabilidad en la concesión de préstamos
The Bank of Spain (BoS) has published the draft circular whose main purpose is to adapt the Bank of Spain's Circular 1/2013, on the Central Risk Information (CIR) Agency and Circular 5/2012, on the transparency of banking services and responsibility in the granting of loans, to the changes introduced in the regulation of the CIR and the official reference rates, respectively, by Order ETD/699/2020 on the regulation of revolving credit (OM of revolving credit). This Order introduces changes to the OM of the CIR that affect various aspects of the CIR's operation aimed at providing more complete information to reporting parties and improving its capabilities in terms of the information available for increasingly accurate solvency analysis.

Sustainable Finance

(05/11/2020) ESMA – ESMA specifies obligations on environmentally sustainable activities
The ESMA has published its CP containing ESMA’s draft advice to the European Commission on Article 8 of the Taxonomy Regulation. This specifies the content, methodology and presentation of the key performance indicators (KPIs) that non-financial undertakings and asset managers are required to disclose. The key draft proposals for consultation address the following aspects: i) on non-financial undertakings, the advice covers the content of the three KPIs, namely the proportion of turnover, and the capital and operating expenditure related to environmentally sustainable activities; and ii) on asset managers, the advice proposes a KPI calculation model based on eligible investments.


(05/11/2020) ESMA  -  ESMA publishes its first reports on CSDR implementation
The European Securities and Markets Authority (ESMA) has published  its first two reports on the implementation of the Central Securities Depositories Regulation (CSDR) covering central securities depositories’ (CSDs)  as well as internalised settlement. The first report  highlights the findings related to the provision of services by CSDs in other Member States, and considers the responses to the ESMA survey addressed to National Competent Authorities (NCAs), CSDR relevant authorities and trade associations, in June and July.  The second one presents the findings related to the settlement activity which does not take place through a securities settlement system operated by a CSD in the European Economic Area (EEA).

Sistemically Important Institutions

(04/11/2020) EBA  -  EBA publishes revised final draft technical standards and Guidelines on methodology and disclosure for global systemically important institutions
The EBA has published revised final draft regulatory technical standards (RTS) to specify how to identify the indicators of global systemic importance and revised Guidelines on their disclosure. The need for this revision was prompted by the revised framework introduced by the Basel Committee on Banking Supervision (BCBS) in July 2018 to identify global systemically important banks (G-SIBs) as well as by the new requirements laid down in the CRD V, which recognise the importance of cross-border activities within the European Banking Union area.


(04/11/2020) EBA  -  EBA sets out how prudential supervisors should take money laundering and terrorist financing risks into account in the Supervisory Review and Evaluation Process
The EBA has published an Opinion setting out how prudential supervisors should consider money laundering and terrorist financing (ML/TF) risks in the context of the Supervisory Review and Evaluation Process (SREP). This Opinion forms part of the EBA’s ongoing work to strengthen the fight against ML/FT in Europe.  The EBA expects prudential supervisors to cooperate effectively and in a timely manner with AML/CFT supervisors to exchange information on ML/TF risks and to assess the implication of those risks for the safety and soundness of the institution they supervise.

Consumers´ Protection

(03/11/2020) EBA  -  EBA encourages financial institutions to put the required focus on consumers’ interests whenapplying Product Oversight and Governance Arrangements
The EBA has published its second report on how the industry has implemented the EBA Guidelines on Product Oversight and Governance Arrangements (POG). It identifies good practices of financial institutions and concludes that many of them do not sufficiently put the required focus on ensuring that consumers’ needs are met in line with the Guidelines. Therefore, the EBA has encouraged financial institutions to ensure that the interests, objectives and characteristics of consumers are taken into account when applying POG arrangements, in order to avoid consumer detriment.

Capital private markets

(02/11/2020) SEC  –  Facilitating Capital Formation and Expanding Investment Opportunities by Improving Access to Capital in Private Markets
The Securities and Exchange Comission (SEC) has published a Final Rule where different amendments have been adopted. The aim of these amendments are to facilitate capital formation and increase opportunities for investors by expanding access to capital for small and medium-sized businesses and entrepreneurs across the United States. Specifically, the amendments simplify, harmonize, and improve certain aspects of the exempt offering framework to promote capital formation while preserving or enhancing important investor protections. The amendments also seek to close gaps and reduce complexities in the exempt offering framework that may impede access to investment opportunities for investors and access to capital for businesses and entrepreneurs.

Reporting Obligations

(02/11/2020) ECB –   The Eurosystem Integrated Reporting Framework: an overview / Cost-benefit assessment questionnaire on the Integrated Reporting Framework for the banking industry
The European Central Bank (ECB) has published an overview the Integrated Reporting Framework (IReF), which aims to reduce the reporting burden for banks arising from statistical reporting. Moreover, the statistical reporting burden should not depend on the euro area country in which a bank is resident. The ECB envisages issuing an IReF Regulation on statistical data requirements for banks which would be directly applicable to banks resident in the euro area and would not have to be incorporated into national collection frameworks. Non-euro area EU countries may decide to adopt the IReF reporting through national legislation in full or in part.

Operational Resilience

(30/10/2020)  Fed/FDIC/OCC – Agencies release paper on operational resilience
The Agencies have released the paper "Sound Practices to Strengthen Operational Resilience" outlining sound practices designed to help large banks increase operational resilience. Examples of risks to operational resilience include cyberattacks, natural disasters, and pandemics. The paper outlines practices to increase operational resilience that are drawn from existing regulations, guidance, statements, and common industry standards.  The practices are for domestic banks with more than $250 billion in total consolidated assets or banks with more than $100 billion in total assets and other risk characteristics.

Remuneration Policies

(29/10/2020) EBA – EBA launches consultation on revised Guidelines on sound remuneration policies
The EBA has launched a public consultation on revised Guidelines on sound remuneration policies. This review takes into account the amendments introduced by the CRD V in relation to institutions’ sound remuneration policies and in particular the requirement that those remuneration policies should be gender neutral. The revised Guidelines specify that institutions should implement a gender-neutral remuneration policy. The EBA will follow up on institutions’ practices with a report to be published within two year after the publication of the final guidelines.


Related links