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My highlights of the week: Parliament and Council have still not agreed the fine details of the Resilience and Recovery Fund so it is not surprising that Eurogroup shied away from even thinking about a second package – to match the second Covid wave. However, ECOFIN did push forward `more Europe’ against money laundering – giving the Commission guidance on a single rule book and EU-level supervision. CMU got another push as EFAMA called for a Consolidated Tape and – at the intensely technical level – the Commission tabulated corporate law for each state as part of the implementation of CSDR. ESMA gave the FT a `pat on the back’ – rightly – for it works in exposing the Wirecard fraud.

 The odds have moved towards a no-deal Brexit after 14 days of “intensive negotiations” failed to bridge the remaining `small gaps’ between the EU and UK. After the tortuous twists and turns, it is hardly surprising that the Institute for Government reported that neither government nor business are fully prepared!

 Graham Bishop

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Articles from 29 October - 5 November

General Financial Policy

EURACTIV: Eurogroup excludes additional EU stimulus against second virus wave : Eurozone finance ministers said late on Tuesday (3 November) that Europe “is now better equipped” to address the COVID-19 crisis and ruled out new joint measures to tackle the second wave of the virus.

EURACTIV: Parliament pushes for easing recovery fund conditionality : The European Parliament will fight to loosen the conditionality required from national governments in order to receive money from the EU recovery fund, according to the negotiating position MEPs will adopt in the coming days.

Banking Union

Video conference of economics and finance ministers:Anti-money laundering and terrorism financing : Ministers discussed the Council conclusions on anti-money laundering and terrorism financing..to give the Commission guidance for its 2021 legislative proposals on a single rule book, EU-level supervision and a coordination and support mechanism for member states' financial intelligence units.

EBA sets out how prudential supervisors should take money laundering and terrorist financing risks into account in the Supervisory Revi : EBA 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)... ongoing work to strengthen the fight against money laundering and terrorist financing.

BIS: Implementation of Basel standards - A report to G20 Leaders on implementation of the Basel III regulatory reforms : Overall, further progress has been made since last year in implementing the Basel III standards in a full, timely and consistent manner. In addition, banks have continued to build capital and liquidity buffers while reducing their leverage.

 Capital Markets Union

EURACTIV: Are we one step closer to the Capital Markets Union? : The European Commission continues to show a lack of ambition when it comes to constructing a Capital Markets Union, writes Isabel Benjumea---by Isabel Benjumea (Spanish MEP for the European People’s Party and rapporteur on the Capital Markets Union.)

EFAMA: An appropriately constructed Consolidated Tape could help build deeper and more open capital markets in Europe : EFAMA and EFSA welcome the publication of a Market Structure Partners Study on the Creation of an EU Consolidated Tape which addresses the challenges, demand, benefits and proposed architecture for consolidating European financial market data.

ARTICLE 49(1) of CSDR Key relevant provisions of national corporate or similar law : Article 49 (Freedom to issue in a CSD authorised in the Union) of Regulation (EU) No 909/20141 (CSDR)

Insurance Europe: EIOPA and ESRB approach to Solvency II review would undermine insurers in facilitating EC CMU and Green Deal objectives : Insurance Europe – together with other insurance sector bodies – has written to the European Commission to highlight how the Solvency II review provides the key opportunity to enhance insurers’ ability to support the Commission’s growth and sustainability objectives.

 

Environmental, Social, Governance (ESG)

 

FT: ‘More attention should have been paid to the FT reporting during the first half of 2019,’ watchdog writes in report : ‘More attention should have been paid to the FT reporting during the first half of 2019,’ watchdog writes in report

EURACTIV: Commission readies implementation of sustainable finance : The European Commission will detail in the coming weeks what could be considered a ‘green’ activity, a technical definition that would help to unlock the massive investment needed to achieve the EU’s climate objectives.

Chair of the IOSCO Task Force on Sustainable Finance reconfirms that IOSCO stands ready to support global sustainability reporting standards : Open response to the open letter from COP, Climate Disclosure Standards Board (CDSB), Global Reporting Initiative (GRI), International Integrated Reporting Council (IIRC) and Sustainability Accounting Standards Board (SASB) proposing avenues for Working together to meet the needs of the capital markets

EuropeanIssuers raises concerns vis-à-vis the European Commission regarding its plans on Sustainable Corporate Governance and Due Diligence : EuropeanIssuers Advisory Council met and has alerted EU Commissioner for Justice, Mr Didier Reynders, not to launch any legislative action based only on the conclusions of the recently published study on Directors’ Duties and Sustainable Corporate Governance of EY, mandated by the EU Commission. 

Protecting Customers

ESMA submits two draft technical standards under the revised Market Abuse Regulation to the European Commission : ESMA, the EU’s securities markets regulator, has today published the Final Report on the amendments to the Market Abuse Regulation (MAR) for the promotion of the use of SME Growth Markets (SME GMs). These amendments focused on liquidity contracts and insider lists for SME GMs.

Collective redress for consumers : Council adopts position at first reading : The collective defence of consumers' rights has come a step closer. Following the agreement reached with the European Parliament in June 2020, the Council today adopted its position at first reading on a draft directive on representative actions for the protection of the collective interests of consumers within the EU.

BETTER FINANCE Response to the EU Investor Survey 2020 : BETTER FINANCE responded to a survey on possible problems related to cross-border investments in the EU and on the impact any potential policy options might have.

Fin Tech Regulation

EPC: Putting meaningful transparency at the heart of the Digital Services Act : A coalition of 46 civil society organizations and world-renowned academics join AlgorithmWatch and the European Policy Centre: binding transparency rules for online platforms. The signatories urge the Commission to put meaningful transparency at the heart of its forthcoming Digital Services Act.

ECB's Panetta: The two sides of the (stable)coin : Global stablecoins signal the need for change, but they can pose serious risks, says Executive Board member Fabio Panetta. We should remain open to global competition to foster innovation, but we should first ensure that we are prepared to make the most of it.

Brexit

Bloomberg:EU, U.K. Warn of Big Disagreements After Intensive Brexit Talks : No breakthrough was made after 14 days of negotiations; talks to resume next week as both sides race to reach a deal

Institute for Government: Preparing Brexit: how ready is the UK? : The prime minister’s refusal to extend the Brexit transition period, despite the devastating effects of the coronavirus crisis in the UK and the EU, means that neither the government nor businesses will be fully prepared when the UK leaves the EU on 31 December.

FT: UK fires warning shot at Brussels over post-transition share trading : FCA says it may deviate from EU financial rules if City of London not granted equivalence