Reg Round Up: installment 1
European Banking Authority
25 May 2023 - ESAs propose ESG disclosures for STS securitisations
The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) jointly submitted to the European Commission Draft Regulatory Technical Standards (RTS) on the ESG impact disclosure for Simple, Transparent and Standardised (STS) securitisations under the Securitisation Regulation (SECR). These final draft RTS aim to help market participants make informed decisions about the sustainability impact of their investments.
25 May 2023 - ESAs consult to amend technical standards on the mapping of ECAIs’ credit assessments
The Joint Committee of the three European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) launched a public consultation to amend the Implementing Regulations on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk. The Implementing Regulations are part of the EU Single Rulebook for banking and insurance aimed at creating a safe and sound regulatory framework consistently applicable across the European Union (EU). The consultation runs until 26 June 2023.
24 May 2023 - EBA publishes corrigendum of Guidelines on DGS contributions, amending the Guidelines on available financial means of DGS
The European Banking Authority (EBA) published a corrigendum of the revised Guidelines on methods for calculating contributions to deposit guarantee schemes under the DGSD (EBA/GL/2023/02). The corrigendum applies to paragraph 13 in the section Repeal. This correction states that paragraph 21 of the related Guidelines on the delineation and reporting of available financial means (AFM) of DGS (EBA/GL/2021/17), issued on 17 December 2021, will be deleted.
22 May 2023 - EBA revised templates for reporting of deposits subject to Russian and Belarusian economic sanctions
Following the request from the EU Commission, the European Banking Authority (EBA) has updated templates to be used for the second annual reporting of information on deposits subject to the Russia and the Belarus Economic Sanctions Regulations. The EBA is making the template available for voluntary use by the relevant national competent authorities and by the EU Commission, with the aim to promote a convergent approach and to reduce any associated reporting costs, especially for cross-border banks.
16 May 2023 - EBA publishes Report on holdings of eligible liabilities issued by G-SIIs and O-SIIs
The European Banking Authority (EBA) published a Report on the holdings by EU banks of minimum requirement for own funds and eligible liabilities (MREL) instruments issued by the most systemic European banks. As of 31 December 2021, these holdings appear small and potential direct contagion risks are, therefore, limited.
ESMA
25 May 2023 - ESMA highlights risks arising from investment firms providing unregulated products and services
Retail investors often rely solely on the reputation of an investment firm which makes them susceptible to overlooking potential risks of the unregulated products and/or services offered by investment firms (‘halo effect’). This is especially so where the unregulated products have a purpose similar to financial instruments regulated under MiFID II (investment or hedge). ESMA’s statement therefore aims to remind firms of the behaviours they are expected to adopt in such circumstances (e.g. disclosure, appropriate documentation) to make investors fully aware of the unregulated status of these products and services and of the fact that they may not benefit from the regulatory protections that apply to investments in a regulated product.
24 May 2023 - ESMA publishes Opinion on Market Outages
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has published its final report including an Opinion on market outages, highlighting the importance for trading venues of having an appropriate outage plan to communicate to their members, participants, and the public.
23 May 2023 - ESMA seeks input on rules for long term investment funds
The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, is consulting on draft regulatory technical standards (RTS) under the revised ELTIF Regulation. Interested stakeholders are invited to provide input by 24 August 2023.
European Commission
25 May 2023 - Commission approves the merger between Credit Suisse and UBS
The European Commission has approved unconditionally, under the EU Merger Regulation, the merger between Credit Suisse and UBS. The Commission concluded that the transaction would not raise competition concerns in the European Economic Area (‘EEA').
Bank of England
17 May 2023 - SS1/23 – Model risk management principles for banks
This Prudential Regulation Authority (PRA) supervisory statement (SS) sets out the PRA’s expectations for banks’ management of model risk. The desired outcome of this SS is that banks take a strategic approach to model risk management (MRM) as a risk discipline in its own right.
Federal Reserve
19 May 2023 - Agencies issue host state loan-to-deposit ratios
Federal bank regulatory agencies issued the host state loan-to-deposit ratios that are used to evaluate compliance with section 109 of the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994. These ratios replace those from June 2022.