A Management Solutions compila novidades regulatórias publicadas durante as últimas semanas por diferentes órgãos reguladores e supervisores (com foco no setor financeiro).
(25/09/2018) EBA – Release of 2018 EU-wide transparency exercise
The EBA has announced the release of its 2018 EU-wide transparency exercise in order to provide the wider with a consistent tool to access data on the EU banking system. In particular, this announcement implies the beginning of the interaction with banks for supervisory reporting data population and verification.
(24/09/2018) ECB – Guide to on-site inspections and internal model investigations
The ECB has published a Guide to on-site inspections and internal model investigations which aims at providing a useful reference document for the supervised entities and other legal entities for which the ECB has decided to launch an on-site inspection, as well as for the work of the on-site inspection teams. In particular, this Guide describes the general framework, the process, and the applicable principles for inspections.
(10/09/2018) ECB - Draft Guide to internal models (risk-type-specific chapters)
The ECB has published a Draft Guide to internal models, which covers the update of the risk-type-specific chapters of the Guide to the TRIM, for consultation. In particular, this consultation covers credit risk, market risk and counterparty credit risk and aims at ensuring a common and consistent approach to the most relevant aspects of the applicable regulations on internal models for banks directly supervised by the ECB.
(03/09/2018) FSB/BCBS/EBA/PRA – Regulatory Update (August 2018)
The regulators and supervisors monitored have published the following documents during August: i) Thematic peer review on implementation of the Legal Entity Identifier, by the FSB; ii) Pillar 3 disclosure requirements (regulatory treatment of accounting provisions), by the BCBS; iii) Reporting framework 2.9; ITS on Supervisory Reporting amendments with regards to COREP LCR; ITS on Supervisory Reporting amendments with regards to FINREP; ITS on Supervisory Reporting amendments with regards to COREP securitization, by the EBA; and iv) Supervisory Statement 19/13 on resolution planning, by the PRA.
(27/09/2018) ECB – Economic Bulletin Issue 6/2018
The ECB has published the Economic Bulletin 6/2018, which provides a comprehensive analysis of the economic and monetary developments, including an evaluation of macroeconomic projections by Eurosystem experts. In particular, this 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 development.
Climate-related financial disclosures
(26/09/2018) FSB – 2018 Status Report. Task Force on Climate-related Financial Disclosures
The FSB has published a Report on the status of the recommendations set by the Task Force on Climate-related Financial Disclosures (TCFD), which provides an overview of the extent to which companies in their 2017 reports included information aligned with the core TCFD recommendations published in June 2017. In particular, this Report found that, among others, the majority of the firms surveyed disclose information aligned with at least one of the TCFD recommended disclosure, or a minority of companies disclose forward-looking climate targets or the resilience of their strategies under different climate-related scenarios.
(26/09/2018) ECB – Report on card fraud analyses developments in fraud
The ECB has published the fifth oversight Report on card fraud which analyses developments in fraud related to card payment schemes (CPSs) in the Single Euro Payments Area (SEPA). In particular, this Report shows that 73% of the value of card fraud resulted from card-not-present payments (which are mainly online fraud), 19% from transactions at points of sale (POS) and 8% from transactions at automated teller machines (ATMs).
(19/09/2018) IOSCO – Final Report on retail OTC leveraged products
The International Organization of Securities Commissions (IOSCO) has issued a Final Report providing measures for securities regulators to consider when addressing the risks arising from the marketing and sale of OTC leveraged products to retail investors. In particular, this Report includes three complementary toolkits containing measures aimed at increasing the protection of retail investors who are offered OTC leveraged products, often on a cross-border basis.
(19/09/2018) EBA – Report on funding plans / Report on asset encumbrance
The EBA has published two reports on EU banks' funding plans and asset encumbrance, which aim to provide important information for EU supervisors to assess the sustainability of banks' main sources of funding. In particular, the report on funding plans aims to analyse EU banks´ funding plans submitted to the EBA and assess their feasibility, whereas the report on asset encumbrance contributes to the ongoing monitoring of the composition of funding sources across the EU. The results of the assessment show that banks plan to match the asset side increase in the forecast years by a growth in client deposits as well as market based funding.
Conflicts of interests
(18/09/2018) IOSCO – Final Report on Conflicts of interest and associated conduct risks during the equity capital raising process
The IOSCO has published a Final Report that sets guidance to address conflicts of interest and associated misconduct risks that may arise and undermine the equity capital raising process. In particular, this Report details the key stages of equity capital raising where the role of intermediaries might give rise to conflicts of interest that compromise the integrity and efficiency of the process (e.g. conflicts of interest during the allocation of securities).
(18/09/2018) ECB – SSM thematic review on profitability and business models
The ECB has published the findings of the thematic review of banks’ profitability and business models conducted from 2016 to the end of the first quarter of 2018, which was launched to assess in more depth the profitability drivers and business models of the significant institutions (SIs). In particular, this document shows that although the economic situation of banks in the euro area has generally improved, profitability and business models remain under pressure.
High volatility commercial real estate exposures (HVCRE)
(18/09/2018) Fed/FDIC/OCC – Proposed rulemaking on Regulatory Capital Treatment for High Volatility Commercial Real Estate (HVCRE) Exposures
The Fed, the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) have published a Proposed Rulemaking to amend the agencies' capital rules for high volatility commercial real estate (HVCRE) exposures, as required by the Economic Growth, Regulatory Relief, and Consumer Protection Act. In particular, this proposal revise the scope of an HVCRE exposure, or establishes the exclusions from an HVCRE exposures, among other aspects.
(12/09/2018) EBA – Revised version of the standardised NPL data templates
The EBA has published a revised version of the standardised NPL data templates that aim at facilitating the NPL sale transactions across the EU. In particular, this set of templates include minor changes following the feedback received from the testing of the original version published in December 2017, such as amendments in data fields, a redesign of the related legal fields, and other editorial changes to improve their effectiveness and usability.
Reporting in UK
(12/09/2018) PRA – Consultation Paper 19/18 on Regulatory reporting: EBA Taxonomy 2.9 / Appendix 1 on PRA101, PRA102, and PRA 102 templates / Appendix 2 on RFB004 template
The Prudential Regulatory Authority (PRA) has published a Consultation Paper (CP) which sets out proposals to update certain PRA reporting requirements to reflect relevant proposals made by the EBA in its open consultations on changes to the Supervisory Reporting ITS. In particular, this CP includes proposals regarding the existing PRA reporting templates for ring-fenced banks (RFBs), statement of profit and loss (P&L), and forecast capital data (currently known as Capital+), among others.
EU financial system
(11/09/2018) ESAs – Joint committee report on risks and vulnerabilities in the EU financial system
The European Supervisory Authorities (ESAs) have published a Report on the risks and vulnerabilities in the EU financial system. In particular, this Report covers the following topics: i) risk related to valuations, repricing of risk premia and increasing interest rates; ii) contagion risks if valuation risks materialize; and iii) risks related to the UK´s decision to withdraw from the EU.
(10/09/2018) EBA – Revised list of validation rules
The EBA has issued a revised list of validation rules in its ITS on supervisory reporting highlighting those, which have been deactivated either for incorrectness or for triggering IT problems.
Quantitative Impact Study (QIS)
(06/09/2018) EBA – QIS 2018 Template Instructions V3.0 / QIS 2018 template V3.0 (Basel III v3-8-1) - reduced / QIS 2018 template V3.0 (Basel III v3-8-1) - full
The EBA has released the two sets of templates, which will be used in the 2018 impact assessment of the finalised Basel III standards. In particular, these two sets of QIS templates, which build on the Basel III regular monitoring templates, will ensure that the data collection burden is proportionate to the institutions' size and complexity.
(05/09/2018) ESAs – Joint Committee Report on the results of the monitoring exercise on ‘automation in financial advice’
The European Supervisory Authorities (ESAs) have published a Report on the results of their monitoring exercise on automation in financial advice. In particular, this document shows that while the phenomenon of automation in financial advice seems to be slowly growing, the overall number of firms and customers involved is still quite limited. Moreover, the risks and benefits of this phenomenon, which had previously been identified by the ESAs have largely been confirmed by national competent authorities (NCAs) and remain valid.
(04/09/2018) Fed – Extension of Comment Period for Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds
The Fed, the Commodity Futures Trading Commission (CFTC), the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Securities and Exchange Commission (SEC) have extended the comment period for a proposed rule to simplify and tailor compliance requirements for the Volcker rule until October 17, 2018.
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