(This e-mail provides the headers of a selection of the articles published this week. If you would like to upgrade to our Gold service and access all articles - with live links to the underlying news - please click on the button)
Articles from 18-24 March 2022
Banking Union
Anti-money laundering and countering the financing of terrorism supervision is improving but not always effective yet, finds the EBA : The EBA published today the findings from its assessment of competent authorities’ approaches to the anti-money laundering and countering the financing of terrorism (AML/CFT) supervision of banks.
MEPs launched work on Anti-Money Laundering package with expert discussion : They discussed the possibilities for improved information-sharing and transparency, for example inter-connected registries, and the potential of the proposed Anti-Money Laundering Authority (AMLA).
Capital Markets Union
EBF feedback to the EC consultation on the review of the central clearing framework in the EU : The risks of serious market disruptions and complex practical, operational and legal challenges in case of a forced relocation, especially if extended to legacy positions, have been pointed out in several occasions.
ALFI responds to the EU Commission on the consultation on the review of the central clearing framework : If an EU CCP is not able to provide a sufficiently competitive offer, there is a strong likelihood that clearing would be relocated to other third-country jurisdictions, like the US.
EFAMA's response to the EU Commission's targeted consultation on options to enhance the suitability and appropriateness assessments : EFAMA appreciates the opportunity to share our views on the European Commission’s consultation on enhancements to the suitability and appropriateness assessments forming part of the wider, upcoming Retail Investment Strategy.
BETTER FINANCE response to the European Commission Consultation on the review of suitability and appropriateness assessments : BETTER FINANCE welcomes the initiative of the European Commission to harmonise and improve the consumer journey towards investing.
InsuranceEurope: Insurers welcome ELTIF review, but warn asset class remains unattractive for long-term institutional investors : As insurers — which are Europe’s largest institutional investors — require access to a wide range of assets that provide attractive returns and portfolio diversification, improvements to the ELTIF framework to make it more appealing to institutional investors are welcome.
EIOPA issues recommendations from EIOPA’s 2021 Insurance Stress Test : Having analysed the results of the stress test, EIOPA has now defined a series of actions that, once implemented, will result in a more resilient insurance sector in Europe. The recommendations fall into three categories.
Euopean Commission: Personal pensions: The pan-European personal pension product (“PEPP”) applies as of today : This will pave the way for a new voluntary EU-wide scheme for people to save for their retirement, and a broad range of financial institutions across the EU will be able to offer it.
Environmental, Social, Governance (ESG)
Taxonomy: MEPs to scrutinise the Commission’s classification of gas and nuclear : Parliament’s Committees on Economic and Monetary Affairs and on Environment, Public Health and Food Safety will debate the classification of gas and nuclear with Commissioner McGuinness.
ECON: Exchange of views with Commissioner Mairead McGuinness : The joint ECON and ENVI Committee scrutinised the complementary Taxonomy Delegated Act in the presence of Commissioner McGuinness.
IPE: ‘Milestone’ reached as SEC proposes climate-related disclosure rule : The US securities markets regulator has released keenly anticipated draft rules requiring companies to make certain climate change-related disclosures, including greenhouse gas emissions and transition planning information.
Protecting Customers
ECGI: What does stakeholder capitalism mean for investors? : Investor action on stakeholder issues must be grounded in fiduciary duty and client mandates.
Fin Tech Regulation
Finextra: Big Tech and fintechs extend grip on financial services - FSB : The Financial Stability Board says that the Covid pandemic has enabled Big Tech firms like Google, Amazon and Apple and fintechs to widen their footprint in financial services, with significant implications for incumbents and consumers.
FSB report finds that COVID-19 has accelerated the trend towards digitalisation of retail financial services : While comprehensive data on the market shares of FinTechs, BigTechs and incumbent financial institutions in retail digital financial services are scarce, proxies suggest that BigTechs and larger FinTechs have further expanded their footprint in financial services.
ESMA: EU financial regulators warn consumers on the risks of crypto-assets : This warning comes in the context of growing consumer activity and interest in crypto-assets and the aggressive promotion of those assets and related products to the public, including through social media.
Oliver Wyman's Elliott: Key Questions for Digital Asset Regulation : Regulation and public policy for digital assets are in flux in the United States and globally. Bitcoin and other digital assets are newer than the core laws and regulatory principles that govern the financial system, so these assets do not fit easily within existing frameworks.
Finextra: EPI abandons plan for Visa and Mastercard rival as member banks quit : The European Payments Initiative has given up on its effort to build a rival to Mastercard and Visa in Europe after more than half its members left.
Brexit and the City
City of London: Providing financial services to the world : Financial services remain an important pillar of the UK’s economy. The latest 2020 data from the ONS shows that trade and foreign direct investment in UK financial services demonstrated resilience against the backdrop of a challenging year.
City AM: London boots out European rivals to claim Continent’s top finance hub crown : The City beat the likes of Paris, Frankfurt and Amsterdam to Europe’s crown, according to Z/Yen Group’s thirty first global financial centres index (GFCI)
UK in a Changing Europe: Solvency II - Brexit dividends come with risks in financial services : Regulatory reform has the potential to release capital from insurers that could be invested in large green and infrastructure projects ... However, there are also risks that such reforms may drive up fees, with costs being passed on to policy holders and pension savers.
Bloomberg: Europe Eyes Bigger Share of Settling Securities Business : EU depositories settled a quadrillion of transactions in 2019; Plan to simplify passporting to boost cross-border volumes
Reuters: Britain aligns with EU on delaying Basel bank capital rules : The Bank of England said it planned to delay implementing a final set of post-financial crisis capital requirements for banks until January 2025, bringing Britain in line with the European Union in a move that banks welcomed.