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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

 

Resolution plan requirements

(28/10/2019)  Fed/FDIC - Final Rule on modifications to resolution plan requirements
The Fed, and the FDIC have issued a Final Rule on modifications to resolution plan requirements in order to address the amendments to the Dodd-Frank Act made by the EGRRCPA. In particular, this document establishes risk-based categories for determining the application of the resolution planning requirement to certain U.S. and foreign banking organizations, and an extension to the default resolution plan filing cycle, allow for more focused resolution plan submissions, and improve certain aspects of the rule.

Prudential standards

(10/10/2019) Fed/OCC/FDIC – Final Rule on Prudential Standards for LBHCs, SLHCs, and FBOs & Final Rule on changes to applicability thresholds for regulatory capital and liquidity requirements
The Fed has issued the Final Rule on Prudential Standards for Large Bank Holding Companies (LBHC), Savings and Loan Holding Companies (SLHC), and Foreign Banking Organizations (FBO), and agencies have also issued the Final Rule on Changes to applicability thresholds for regulatory capital and liquidity requirements, with the aim of better aligning the regulatory requirements for LBHCs based on their risk profile, taking into account their size and complexity, as well as its potential systemic risks.

Stress test

(09/10/2019) OCC – Final Rule Amending Stress Testing Rule for National Banks and Federal Savings Associations
The OCC has published the Final Rule amending Stress test Rule National Banks and Federal Saving Associations, in order to adapt the regulation to the legislative modifications that the stress test regulation has suffer. In particular, the amendments cover, among others, the increase in the threshold for stress tests in financial institutions, from $10 bn to $250 bn of consolidated assets; the requirement to perform stress tests from annual basis to require them “periodically”; and it reduced the number of scenarios to be performed in the stress tests from three to two, eliminating the “adverse” scenario.

Credit institutions and risk map

(07/10/2019) ECB – SSM supervisory priorities for 2020 / SSM Risk Map for 2020
The ECB has published its 2020 priorities for supervising significant banks in the euro area, which warrants a continuation of the high-level priority areas from 2019, albeit with amendments. In particular, the ECB specifies that the three areas that will guide banking supervision are: i) continuing balance sheet repair; ii) strengthening future resilience, and iii) other priorities. Along with the supervisory priorities, the ECB has published its risk map for 2020 which sets out the main risks faced by the supervised institutions, in relation to which the supervisory priorities have been established: i) economic, political and debt sustainability challenges in the euro area, ii) business model sustainability, and iii) cybercrime and IT deficiencies), taking into account the relevant developments in the economic, regulatory and supervisory environment.

Basel III reform

(02/10/2019) BCBS/EBA – Basel III Monitoring Report (BCBS) / Basel III Monitoring Exercise (EBA) / Report on Liquidity Measures (EBA)
The BCBS has published the results of its latest Basel III monitoring report which sets out the impact of the finalisation of the Basel III reforms, and for the first time, it also reflects the finalisation of the market risk framework published in January 2019. In parallel with this report, the EBA has issued a Report on its Basel III monitoring exercise which includes a preliminary assessment of the impact of the Basel reform package on EU banks, assuming its full implementation. Along with this document, the EBA has also published a Report on liquidity measures that monitors and evaluates the liquidity coverage requirements currently in place in the EU.

 

 

 

Other publications of interest

 

Brexit

(30/10/2019) ESMA – ESMA UPDATE ON BREXIT PREPARATIONS
The European Securities and Market Authority (ESMA) has published a press release to inform stakeholders that following the European Council’s decision of extending the period relating to the United Kingdom’s (UK) withdrawal from the European Union (EU), its previous statements relating to its preparations for a no-deal Brexit will no longer apply as of 31 October. The reference date for Brexit in all of ESMA’s previously published measures and actions, including public statements, issued regarding the possibility of a no-deal Brexit scenario, should now be read as 31 January 2020.

MIFID II

(30/10/2019) ESMA – MIFID II NEW PUBLICATION DATE FOR SYSTEMATIC INTERNALISER AND BOND DATA
The ESMA will publish the systematic internaliser (SI) and bond market liquidity data on 8th November, this follows the latest developments around the departure of the United Kingdom (UK) from the European Union (EU). ESMA was supossed to publish the SI regime data for equity, equity-like instruments and bonds and the quarterly liquidity assessment for bonds by 1 November 2019. However, the developments concerning the UK’s departure from the EU have an impact on this publication date and the requirements based on this publication will apply from 16 November 2019.

Capital final rule

(29/10/2019) Fed/FDIC/OCC – Federal bank regulatory agencies issue final rule to simplify capital calculation for community banks
Federal bank regulatory agencies (Fed, FDIC and OCC) have issued a final rule to simplify capital calculation for community banks by allowing them to adopt a simple leverage ratio to measure capital adequacy. The community bank leverage ratio framework removes requirements for calculating and reporting risk-based capital ratios for a qualifying community bank that opts into the framework. To qualify for the framework, a community bank must have less than $10 billion in total consolidated assets, limited amounts of off-balance-sheet exposures and trading assets and liabilities, and a leverage ratio greater than 9 percent, which qualify to 85% of community banks. In addition, the agencies finalized a rule to allow non-advanced approaches banks, including community banks, to elect to adopt simplifying changes to the capital rule beginning on January 1, 2020.

Mortgage market

(28/10/2019) FCA – PS19/27: Changes to mortgage responsible lending rules and guidance - feedback on CP19/14 and final rules
The Financial Conduct Authority (FCA) has published a policy statement on changes issued on the Consultation Paper CP19/14, with the aim of introducing changes to responsible lending rules to allow lenders to use a more proportionate affordability assessment for consumers who are up to date with their existing mortgage and want to switch to a more affordable one without borrowing more. This document also attempts to reduce the time and cost of switching for all consumers. In particular, the policy statement covers a mortgages market study to assess how the new rules affect current Mortgages and Home Finance: Conduct of Business Sourcebook (MCOB rules).

SRB work program 2020

(28/10/2019) SRB – 2020 Work Programme
The Single Resolution Board (SRB) has published its 2020 work program in order to set out its priorities and core tasks for the year 2020 which is the final year of the SRB’s 2018-2020 multiannual work program, and will mark the fifth anniversary of the SRB taking on its full powers within the Single Resolution Mechanism (SRM). In the 2020 work program will focus on: i) strengthening the resolvability of SRB banks and Less Significant Institutions (LSI), ii) fostering a robust resolution framework, iii) preparing and carrying out effective crisis management, iv) operationalising further the SRF and v) establishing a lean and efficient organisation.

Swap margin

(28/10/2019) FDIC/Fed – Agencies propose rule to amend swap margin rules
Board of Governors of the Federal Reserve System (FED), Farm Credit Administration, Federal Deposit Insurance Corporation (FDIC), Federal Housing Finance Agency and Office of the Comptroller of the Currency (the agencies) have published a proposal to amend swap margin rules with the aim of  facilitating the implementation of prudent risk management strategies at certain banks and swap entities. The proposal would give firms additional flexibility to allocate collateral internally, supporting prudent risk management strategies that support safety and soundness. Even though, the proposal would not change the capital standards for swap entities supervised by the agencies.

Risks review

(28/10/2019) FDIC – 2019 Risk Review
The Federal Deposit Insurance Corporation (FDIC) has published the 2019 Risks Review that provides a summary of risks that ultimately may affect FDIC-insured institutions and the FDIC’s Deposit Insurance Fund. The 2019 report summarizes conditions in the U.S. economy, financial markets, and banking industry, and presents key risks to banks in two broad categories: credit risk and market risk. Among the credit risk areas discussed are agriculture, commercial real estate, energy, housing, leveraged lending and corporate debt, and nonbank lending. In addition, market risks discussed in the report include interest rate risk and deposit competition, and liquidity.

Risk dashboard

(25/10/2019) EIOPA – Risk dashboard
The European Insurance and Occupational Pensions Authority (EIOPA) has published its updated risk dashboard based on the second quarter 2019 Solvency II data with the aim of summarizing the main risks and vulnerabilities in the European insurance sector. In particular, the key observations of the risk dashboard are: i) risk exposures for the European insurance sector remain overall stable; ii) macro and market risks continue at a high level; iii) credit risks continue at medium level, with somewhat lower Credit Default Swap (CDS) spreads for most bond segments and broadly stable credit quality of asset portfolios; iv) profitability and solvency risks are also at a medium level; v) interlinkages and imbalances show a decreasing trend due to a lower share of premiums ceded to reinsurers; and vi) market perceptions were marked by an underperformance of insurers’ stocks compared to overall equity markets.

PRIIPs

(24/10/2019) ESAs – Supervisory Statement on the application of scope of the PRIIPs Regulation to bonds
The European Supervisory Authorities (ESAs) have published a Supervisory Statement on the application of scope of the PRIIPs Regulation to bonds, in order to achieve a high, effective and consistent level of regulation and national supervision promoting  a level playing field and the protection of retail investors. In particular, this Supervisory Statement includes main considerations on the extent to which the instrument would fall in the scope of the PRIIPs Regulation for the following types of bond features: i) perpetual; ii) subordinated; iii) fixed rate; iv) variable rate; v) puttable; vi) callable; and vii) convertible.

Securitisations

(23/10/2019) EBA – Opinion on the regulatory treatment of non-performing exposure securitisations
The European Banking Authority (EBA) has published an Opinion on the regulatory treatment of securitisations of non-performing exposures (NPE), with the objective to recommend various amendments to the Capital Requirements Regulation (CRR) as well as to the Securitisation Regulation to remove the identified constraints. This opinion explains that the regulatory framework imposes certain constraints on credit institutions using securitisation technology to dispose of NPE holdings: i) very high capital requirements on investor credit institutions under the CRR; and ii) compliance challenges as regards certain risk retention and due diligence requirements under the Securitisation Regulation 2017/2401. In particular, this Opinion recommends the Commission to remove these constraints whilst maintaining the integrity of the prudential framework.

Financial digitalisation

(23/10/2019) EBA – Opinion on disclosure to consumers of banking services through digital means
The EBA has published an Opinion addressed to the EU Commission with recommendations to ensure that disclosure requirements in EU law take account of the increasing use of digital marketing channels for financial services and the resultant issues potentially affecting consumers. In particular, the recommendations relate primarily to the scope and consistency of disclosure rules, the timing of disclosure, the presentation format and accessibility of information. In addition, they cover advertisements, pre-contractual information, rights of withdrawal, complaints handling and post-sale information. Also, the opinion highlights the necessity for the consumers of high-quality information and the distance marketing role.

Market report

(22/10/2019) CNMV – Boletín de la CNMV 3Q19
The Comisión Nacional del Mercado de Valores (CNMV) has published the quarterly regarding 3Q 2019, which includes a market report and two articles: one on buybacks and trading with own shares and another on the regime of third countries in investment services in the EU. In particular, this report covers, among other aspects that the international economic context is marked by a synchronised slowdown in growth which, in an environment of low inflation, has led to a shift in monetary policy in the US and the euro zone; and the international equity markets have been dampening the pace of rises, with the profitability of advanced economies' assets declining. With respect to the two articles, the first shows how the Spanish companies make rather limited use of share buybacks, and the second puts special emphasis on how Brexit will affect the provision of investment services in the EU.

IFRS

(22/10/2019) ESMA – Public Statement on the European common enforcement priorities for 2019 annual financial reports
The European Securities and Markets Authority (ESMA) has issued its annual Public Statement defining the European common enforcement priorities and highlighting other considerations for 2019 annual financial reports of listed companies, with the objective of reflecting the recent financial reporting standards changes and consider issues identified by national competent (NCAs) through their enforcement activities in 2019. In particular, the Public Statement covers the following aspects: i) priorities related to IFRS financial statements (e.g. application of IFRS 16 or the monitoring of the application of IFRS 9 and IFRS 15); and ii) topics related to other parts of the annual report (i.e. non-financial information and alternative performance measures).

Stress test

(18/10/2019) BoE – Stress test results 2020
The Bank of England (BoE) has announced that the results of its annual stress test will be published on 10 December 2019. On March 5, 2019 the BoE published details of the annual cyclical scenario (ACS) for the seven main banks and building societies. In particular, the BoE has explained that the ACS 2019 evaluates the resilience of the UK banking system.

Disclosure

(16/10/2019) EBA – Consultation on comprehensive Pillar 3 disclosures
The European Banking Authority (EBA) has published a consultation paper on the new comprehensive Implementing Technical Standard (ITS) for financial institutions' public disclosure, designed to promote market discipline. In particular, the key targets of this consultation paper with respect to the strategy and the new ITS are: i) optimization of the Pillar 3 policy framework; ii) promote market discipline further, by increasing the consistency and comparability; iii) facilitate access for users of information to key prudential data of the institutions by introducing the new key metrics templates; iv) foster ease of implementation of Technical Standards for institutions; and v) increase the efficiency of disclosures by institutions and reduce costs via technology.

Fx

(16/10/2019) EBA – Consultation on GL on the application of the structural FX provision
The EBA has published a Consultation draft GL on the application of the structural FX provision with the aim of setting a regulatory framework on structural FX to address the observed diversity in its application across the EU. In particular, these GL identify criteria to assist Competent Authorities (CA) in their assessment of the structural nature of a foreign-exchange position and whether such position has been deliberately taken for hedging the capital ratio.

FSB annual report

(16/10/2019) FSB – Annual report on implementation and effects of financial regulatory reforms
The Financial Stability Board (FSB) has published its 2019 annual report on the implementation and effects of the G20 financial regulatory reforms with the aim of creating a more open and resilient financial system that supports the efficient provision of financing to the real economy. In particular, this Report recommends that: (i) regulatory and supervisory bodies should lead by example in promoting the timely, full and consistent implementation of remaining reforms, (ii) frameworks for cross-border cooperation between authorities should also be enhanced in order to build trust and share information, (iii) authorities should evaluate whether the reforms are achieving their intended outcomes and (iv) financial stability authorities should continue to contribute to the FSB’s monitoring of emerging risks and stand ready to act if such risks materialize.

PRIIPs

(16/10/2019) ESAs – Joint Consultation Paper (CP) concerning amendments to the PRIIPs KID - Draft amendments to Commission Delegated Regulation (EU) 2017/653 on key information documents (KID) for packaged retail and insurance-based investment products (PRIIPs)
The European Supervision Authorities (ESAs) have issued a CP on amendments to existing rules underpinning the KID for PRIIPs. In particular, this CP covers the following main objectives: allow the appropriate application of the PRIIPs KID by Undertakings for Collective Investment in Transferable Securities (UCITS) and relevant non-UCITS funds, subject to the potential end of the temporary exemption of such funds from the requirements of the PRIIPs Regulation; and address the main regulatory issues that have been identified since the implementation of the PRIIPs KID to those products that are currently in scope.

ML

(16/10/2019) BoE/FCA – Machine learning in UK financial services
The Bank of England (BoE) together with the Financial Conduct Authority (FCA) have published a joint survey about Machine Learning (ML) in UK financial services, with the aim to investigate about the nature of deployment of ML, the business areas where it is used and the maturity of applications. In particular, the key findings of the survey are: i) ML is increasingly being used in UK financial services; ii) ML development has passed the initial development phase, and is entering more advanced stages of deployment; iii) ML is being used from front-office to back-office, in a wide range of business areas; iv) firms need additional guidance on how to interpret current regulation; v) ML does not necessarily create new risks, but could be an amplifier of existing ones; among other key findings.

Solvency II

(15/10/2019) EIOPA – CP on technical advice for the 2020 review of Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) has published a CP that sets out technical advice for the 2020 review of Solvency II, which answer questions in three areas: the review of the long term guarantee measures; the potential introduction of new regulatory tools in Solvency II; and revisions to the existing Solvency II framework. In particular, this CP covers the following topics: i) long-term guarantees (LTG) measures and measures on equity risk; ii) technical provisions; iii) own funds; iv) Solvency Capital Requirement standard formula; v) Minimum Capital Requirement; vi) reporting and disclosure; vii) proportionality; viii) group supervision; ix) freedom to provide services and freedom of establishment; x) macroprudential policy; xi) recovery and resolution; xii) insurance guarantee schemes; and other topics.

OTC

(15/10/2019) FSB – OTC Derivatives Market Reforms: 2019 Progress Report on Implementation
The Financial Stability Board (FSB) has published the 2019 Progress Report on implementation of over-the-counter (OTC) Derivates Market Reform. This annual progress report on the implementation of the agreed G20 reforms to OTC derivatives markets concludes that overall there has been limited additional implementation of the reforms. The report highlights the following progress: (i) trade reporting, (ii) higher capital requirements for non-centrally cleared derivatives, (iii) central clearing, (iv) platform trading, (v) margin requirements and (vi) cross-border coordination and issues.

EBA Work Program 2020

(10/10/2019) EBA – Work programme 2020
The European Bank Authority (EBA) has published its Work Programme for 2020 describing the specific activities and tasks for the coming year and highlighting the key strategic areas of work. In particular, the EBA will focus on six strategic areas: support the development of the risk reduction package and the implementation of the global standards in the EU; provide efficient methodologies and tools for supervisory convergence and stress testing; move towards an integrated EU data hub and a streamlined reporting framework;  make AML a real priority for the EU; contribute to the sound development of financial innovation and sustainability; and promote an operational framework for resolution.

Solvency II

(09/10/2019) EIOPA – EIOPA launches field test on revised and new templates under Solvency II reporting and disclosure review 2020
The European Insurance and Occupational Pensions Authority (EIOPA) has published a field test on the revised and newly proposed template. The objective is to implement the new and revised reporting requirements, identifying the main issues and reporting them. In particular, the field test covers the list of underwriting entities, activity by country, life obligations analysis, non-life business, Solvency Capital Requirement, detailed analysis per period for life insurance and reinsurance undertakings, cyber risk and different internal models.

Brexit

(09/10/2019) BoE – Financial Policy Summary and Record - October 2019
The Bank of England (BoE) has published the Financial Policy Summary and Record, with the aim to show that UK’s financial system is resilient and prepared to face a wide range of risks. In particular, this summary address UK’s preparations to handle a no-deal Brexit, showing the strength of major UK banks and insurers to overcome this scenario, even if the trade war between USA and China keeps getting worse. Furthermore, this Final Policy also pointed out the importance of the innovation on the payments industry and the redesigning of investment funds.

ESMA annual report

08/10/2019 – ESMA – Annual report on the application of waivers and deferrals under MIFIR / Annex
The European Securities and Markets Authority (ESMA) has published the annual report on the application of waivers and deferrals under MiFIR with the aim of controlling the postponement of trade-publication. In particular, this Report analyses the application of equity waivers, the application of the deferral regime to equity instruments and the analysis related to the on-venue application of the regime and its over-the-counter (OTC) application.

Reporting

08/10/2019 – ESMA – Final Report Draft Regulatory Technical Standards on cooperation arrangements under Regulation (EU) No 596/2014 on market abuse / Annex
The ESMA has published the Final Report Draft Regulatory Technical Standards on cooperation arrangements under Regulation (EU) No 596/2014 on market abuse, with the aim with the aim of fostering cooperation and strengthening legislation under situations of market abuse. In particular, this Report is related to cooperative agreements and data protection agreements between Member States of the International Organisation of Securities Commissions (IOSCO) and third parties.

Compliance

(08/10/2019) ESMA – Final report on CSDR Guidelines (GL) on standardised procedures and messaging protocols
The ESMA has published a final report on the GL on standardised procedures and messaging protocols used for compliance, with the objective that investment firms take measures to limit the number of settlement fails and to – at least – set up arrangements with their professional clients to ensure prompt communication of the necessary settlement information. In particular, investment firms should agree with their professional clients on the communication procedures and messaging protocols to be used between them, in order to fulfil the necessary settlement information to be timely provided to the investment firm.

No-deal Brexit

(07/10/2019) ESMA – Update on the UK’s withdrawal from the European Union - preparations for a possible no-deal Brexit scenario on 31 October 2019 / Annex
The ESMA has published an update about Brexit, setting up preparations for a possible no-deal Brexit scenario. In particular, some updated measures in the following areas have been published: i) use of UK data in ESMA databases and performance of MiFID II calculations; ii) impact of no-deal Brexit on MiFID II/MiFIR and the Benchmark Regulation (BMR), among others; and iii) Operational plans related to ESMA databases and IT systems updating the communication issued on 19 March 2019.

AML/FT

(04/10/2019) ESAs – Opinion on the risks of money laundering and terrorist financing affecting the EU financial sector
The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have published their second joint Opinion on the risks of money laundering (ML) and terrorist financing (TF) affecting the EU financial sector. In particular, the ESAs have grouped the risks that were identified throughout this process into two broad categories: cross-sectoral risks and sector-specific risks. With respect to cross-sectorial risks these arise from the withdrawal of the UK from the EU; new technologies; virtual currencies; legislative divergence and divergent supervisory practices; weaknesses in internal controls; terrorist financing; and de-risking. And with respect to sector-specific risks, the ESAs examined competent authorities’ responses relating to ML/TF risks prevalent in each sector and their assessment of controls put in place by firms to mitigate these risks.

Risk dashboard

(04/10/2019) EBA – EBA Risk Dashboard – Q2 2019
The EBA has published the Risk Dashboard of the Q2 2019 with the objective to assess and summarize the main risks and vulnerabilities in the banking sector in the EU by evaluating the evolution of Risk Indicators (RI) among a sample of banks across the EU. In particular, this risk dashboard informs about the following: i) EU banks’ capital ratios have remained broadly stable since Q3 2018; ii) the improvement of asset quality has continued, but at slower pace; iii) RoE has contracted; and iv) there have been no major changes to funding and liquidity related risk indicators of EU banks.

Transparency

(4/10/2019) ESMA – Opinion clarifies application of pre-trade transparency and price determination in frequent batch auctions
The ESMA has published an Opinion that clarifies the application of pre-trade transparency and price determination in frequent batch auctions (FBA), with the purpose of ensuring consistent application throughout the EU. In particular, with regard to the application of pre-trade transparency by FBA systems, it is required by the ESMA that FBA systems initiating auction calls based on the first incoming order pending a potential match should inform market participants that an auction has started. And with respect to the price determination process (PDP) of FBA systems, the ESMA’s Opinion sets out several practices which may undermine the price formation process and details three functionalities which would result in non-price forming FBA systems.

EMIR

(04/10/2019) ESMA – Consultation Paper (CP) on alignment on MIFIR with the changes introduced by EMIR Refit.
The ESMA has published a CP on alignment of MIFIR with the changes introduced by EMIR Refit. In particular, this CP describes the amendments made under EMIR Refit that have an impact on the application of the derivatives trading obligation under MiFIR, for financial counterparties and for non-financial counterparties; recalls the short-term solution adopted by ESMA to address the misalignment of the scope of entities subject to the clearing and the trading obligations on a temporary basis; assesses the merits and drawbacks of aligning the scope of counterparties subject to the clearing and the trading obligations; examines other changes to MiFIR that could be proposed in the context of the changes introduced by EMIR Refit, in particular, a possible stand-alone suspension mechanism for the derivatives trading obligation.
(03/10/2019) ESMA – Consultation on draft technical advice on commercial terms for providing clearing services under EMIR (FRANDT)
The ESMA has published a Consultation on draft technical advice on commercial terms for providing clearing services under EMIR (FRANDT). In particular, this consultation covers the following aspects: information on the clearing incentives and identified issues with the access to clearing services; the cost of clearing; the FRANDT principles; and the ESMA’s draft technical advice on how to specify the conditions under which the commercial terms are to be considered fair, reasonable, non-discriminatory and transparent.

Market abuse

(3/10/2019) ESMA – CP on the provisions of the Market Abuse Regulation (MAR)
The ESMA has published a consultation paper on the provisions of the Market Abuse Regulation (MAR) as requested by the European Commission (EC), with the objective of harmonize the rules of all Member States on MAR issues. In particular, this consultation paper addresses a wide range of issues, including: i) the possible inclusion of spot FX contracts within the scope of MAR; ii) the definition and delayed disclosure of insider trading in different cases; iii) the appropriateness of the trading prohibition and insider lists for persons discharging managerial responsibilities; iv) a possible cross-market order book surveillance framework; and v) cross-border enforcement of sanctions.

CRA

(03/10/2019) OCC – CRA performance evaluations: September 2019
The Office of the Comptroller of the Currency (OCC) has published a list of CRA performance evaluations for September 2019, containing only national banks, federal savings associations, and insured federal branches of foreign banks that have received ratings. The 35 evaluations made public this month show that 13 are rated ‘outstanding’, 21 are rated ‘satisfactory’ and one is rated ‘need to improve’.

Prospectus

(01/10/2019) ESMA – Guidelines on risk factors under the Prospectus Regulation
The European Securities and Market Authority (ESMA) has published GL on Risk factors under the Prospectus Regulation aming to encourage appropriate, focused and more streamlined disclosure of risk factors. In particular, these GL assist competent authorities (CAs) when reviewing the specificity, materiality and presentation of risks factors across categories depending on their nature.

2018 annual report

(01/10/2019) BdE – Memoria anual sobre la vigilancia 2018 de las infraestructuras de los mercados financieros
The Bank of Spain (BdE) has published the Annual memory on the surveillance 2018 of financial markets infrastructures in order to report on the supervision activities carried out by the BdE, as well as to describe the most relevant developments and changes in payment systems and instruments and in post-contracting infrastructures in Spain. In particular, this Annual memory informs about the surveillance activities carried by the BdE on the following aspects: i) paying systems; ii) payments instruments and solutions; iii) post-contract infrastructures; and iv) the Brexit impact on financial markets infrastructures.

Illiquid assets and open-ended funds

(30/09/2019) FCA – Policy Statement 19/24: Illiquid assets and open-ended funds and feedback to Consultation Paper CP18/27
The Financial Conduct Authority (FCA) has published a Policy Statement (PS) 19/24 on Illiquid assets and open-ended funds and feedback to Consultation Paper CP18/27. In particular, in this PS presents final rules relating to disclosure, liquidity management and suspension of dealing, as originally proposed in CP18/27, and summarises the feedback received to their consultation on illiquid assets and open-ended funds.

Solvency II

(30/09/2019) EIOPA – Opinion on sustainability within Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) has published an Opinion on Sustainability within Solvency II. In particular, this document addresses the integration of climate-related risks in Solvency II Pillar I requirements, due to the fact that climate-related risks can bring considerable challenges to the valuation of assets and liabilities, underwriting and investment decisions and risk measurement.

Real estate market

(27/09/2019) Fed/FDIC/OCC – New Appraisal Threshold for Residential Real Estate Loans
The Fed, FDIC y OCC have jointly issued an amended a rule that modifies the appraisal threshold for residential real estate loans. In particular, this amended rule increases the threshold for residential real estate transactions requiring an appraisal from $250,000 to $400,000. This Appraisal Rule also incorporates the appraisal exemption for rural residential properties provided by the Economic Growth, Regulatory Relief, and Consumer Protection Act (EGRCCPA) and requires evaluations for these exempt transactions.

 

 

© GMS Management Solutions, S.L., 2019. 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.