This week in "Brussels"
04 April 2019
Updated EBA Risk Dashboard, ECB Annual Report, triennial central bank survey of foreign exchange and OTC derivatives markets, Goldman Sachs fined £34m for MiFID reporting breaches, ESMA launches third EU-wide CCP stress tests, launch of EIOPA’s 2019 occupational pensions stress test and more.
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Articles from 28 March 2019 - 04 April 2019 |
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Banking Union |
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Updated EBA Risk Dashboard confirms continued improvements in EU banks asset quality but also low profitability levels
The EBA published its Risk Dashboard, which summarises the main risks and vulnerabilities in the EU banking sector based on end 2018 data. In comparison with 2017, the Dashboard confirms improved asset quality, stable capital ratios, but profitability still below long-term sustainable levels. View Article |
ECB: Annual Report 2018
The Annual Report describes the tasks and activities of the European System of Central Banks (ESCB) and reports on the Eurosystem’s monetary policy. The Annual Report includes the Annual Accounts of the ECB. These are also published as a separate document several weeks before the Annual Report. View Article |
IOSCO report on behavioural insights seeks to enhance retail investor protection
The Board of the International Organization of Securities Commissions published a report on behavioural insights that seeks to help its members improve the effectiveness of retail investor protection. View Article |
LSE: Why non-performing loans are still putting the European Banking Union at risk
NPLs ratios in countries like Italy, Portugal and Spain have started to decrease sharply. Authors explain that despite the lack of headlines about NPLs, one should not be too quick to draw the conclusion that they are no longer a critical issue for the EU’s future financial architecture. View Article |
Nicolas Véron: Taking stock of the Single Resolution Board
The Single Resolution Board (SRB) has had a somewhat difficult start but has been able to learn and adapt, and has gained stature following its first bank resolution decisions in 2017-18. It must continue to build up its capabilities, conclude this study for the ECON. View Article |
EBA publishes clarifications to the second set of issues raised by its Working Group on APIs under PSD2
The issues relate to API performance and support, the provision of a list of Third Party Providers (TPPs) that are interested in testing, the testing by TPPs that are not authorised, and the timelines applicable across the EEA if Account Servicing Payment Service Providers (ASPSPs) want to be exempted from the fall-back mechanism. View Article |
Bank of England: Solvency II: Equity release mortgages – Part 2
In this consultation paper, the Prudential Regulation Authority (PRA) proposes amendments to its expectations in respect of firms investing in equity release mortgage (ERM) portfolios. View Article |
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Capital Markets Union |
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BIS: 2019 Triennial central bank survey of foreign exchange and OTC derivatives markets
The Bank for International Settlements (BIS) launched the 12th Triennial central bank survey of foreign exchange and over-the-counter (OTC) derivatives markets. View Article |
IPE: Goldman Sachs fined £34m for MiFID reporting breaches
The UK’s financial services regulator has fined Goldman Sachs £34.3m for transaction reporting failures that lasted almost a decade. View Article |
ESMA launches third EU-wide CCP stress test exercise
ESMA, as mandated under the European Markets Infrastructure Regulation, initiates and coordinates this exercise to assess the resilience and safety of European CCPs to adverse market developments and to identify any potential shortcomings. View Article |
ESMA advises Commission on information document for takeover, merger and divisions
ESMA published its technical advice on the minimum information content of documents describing a takeover, merger or division. View Article |
ESMA provides guidance on the new EMIR Refit regime for the clearing obligation
ESMA published a statement on the Implementation of the new EMIR Refit regime for the clearing obligation for financial and non-financial counterparties. View Article |
ESMA updates its Q&AS on MiFID II and MiFIR investor protection and intermediaries
The purpose of these Q&As is to promote common supervisory approaches and practices in the application of MiFID II and MiFIR. View Article |
ESMA updates its Q&As on MiFID II and MiFIR transparency topics
ESMA updated its Questions and Answers regarding market structures and transparency issues under the Market in Financial Instruments Directive (MiFID II) and Regulation (MiFIR). View Article |
ESMA consults on draft ELTIF technical standards
ESMA is seeking stakeholders’ input on its draft RTS on various subjects that are critical for the functioning of the ELTIF Regulation. View Article |
ESMA clarifies format for disclosure of risk factors in prospectuses
ESMA published its final guidelines on how national competent authorities (NCAs) should review risk factors, as required by the new Prospectus Regulation (PR). View Article |
ESMA issues four positive opinions on national product intervention measures
ESMA’s opinion finds that the proposed measures are justified and proportionate and that it is necessary for NCAs to take product intervention measures that are at least as stringent as ESMA’s measures. View Article |
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Clients Union |
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European Council: EU to modernise law on consumer protection
Member states' ambassadors meeting in the Council's Permanent Representatives Committee approved a deal reached between the Romanian presidency and the European Parliament on a draft directive which amends four existing EU directives protecting consumers' interests. View Article |
IFAC: IESBA proposes revisions to Part 4B of the Code to align with terms and concepts used in ISAE 3000 (Revised)
The IESBA released for public comment its ED on Proposed Revisions to Part 4B of the Code to Reflect Terms and Concepts Used in ISAE 3000 (Revised). View Article |
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Insurance |
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EIOPA publishes discussion paper on systemic risk and macroprudential policy in insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published its discussion paper on "Systemic risk and macroprudential policy in insurance." View Article |
EIOPA analyses licencing approaches to InsurTech
The European Insurance and Occupational Pensions Authority published its Report on "Best Practises on Licencing Requirements, Peer-to-Peer Insurance and the Principle of Proportionality in an InsurTech Context". View Article |
EIOPA elects Sergio Álvarez Camiña as new member of its Management Board
The EIOPA elected, effective immediately, Sergio Álvarez Camiña as a new member of EIOPA's Management Board. Sergio Álvarez Camiña is Director General for Insurance and Pensions Funds at the Directorate General Insurance and Pensions Funds (DGSFP) of the Spanish Ministry of Economy and Business. View Article |
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Asset Management |
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EIOPA: Launch of EIOPA’s 2019 occupational pensions stress test exercise
The European Insurance and Occupational Pensions Authority (EIOPA) launched its biennial stress test of the European occupational pension sector. This exercise is expected to allow important and relevant insights into the resilience and potential vulnerabilities of the European occupational pension sector. View Article |
ICMA AMIC responds to ESMA consultation on liquidity stress testing guidelines
AMIC cautions that some time is necessary for firms to comply with the requirements. It also cautions against the use of the bid-ask spread as a liquidity measure for securities and warns that a lack of data on underlying investors make redemption stress testing difficult for asset managers. View Article |
Steven Maijoor delivers keynote speech at Better Finance 10th Anniversary Conference
The speech focused on the costs and performance of retail investment products, drawing on ESMA's first annual costs and performance report on retail investment products. View Article |
ESMA updates AIFMD Q&As
The purpose of this Q&A document is to promote common supervisory approaches and practices in the application of the AIFMD and its implementing measures. View Article |
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Corporate Governance/Accounting |
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ESMA: EU enforcers focus on new IFRS standards and non-financial information
The ESMA publishes its Annual Report on the enforcement and regulatory activities of accounting enforcers within the EU. View Article |
EFRAG's endorsement advice on Definition of a Business (Amendments to IFRS 3)
EFRAG has submitted its endorsement advice relating to Definition of a Business (Amendments to IFRS 3) for use in the EU and EEA to the EC. View Article |
Accountancy Europe: The Business Insolvency Directive
Accountancy Europe´s factsheet provides an overview of the Directive’s main provisions on the potential involvement of the accountancy profession as restructuring practitioners. Indeed, professional accountants have the expertise and skills to support businesses experiencing financial difficulties. View Article |
Audit&Risk: AI growth adds to audit skills
Technologies such as AI are reshaping the future of IT auditors, but auditors are largely optimistic about the future, according to new research from global tech association ISACA. View Article |
EIOPA consults on corrections and amendments to the implementing technical standards on reporting and disclosure
The European Insurance and Occupational Pensions Authority (EIOPA) published its consultation linked to corrections and amendments of the implementing technical standards (ITS) on reporting and disclosure. View Article |
IASB's Hoogervorst: What sustainability reporting can and cannot achieve
Chair of the IASB Hans Hoogervorst said how reporting that helps investors understand how companies are affected by sustainability issues offers a promising step forward. View Article |
Insurance Europe: Non-binding reporting guidelines for non-financial climate-related information must remain principle-based
Insurance Europe has published its response to a European Commission consultation on the non-binding guidelines (NBGs) of the Non-Financial Reporting Directive (NFRD) regarding the reporting of climate-related information. View Article |
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Market Abuse |
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ESMA updates its MAR Q&A
The purpose of the Q&A document is to promote common supervisory approaches and practices in the application of MAR and its implementing measures. View Article |
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Financial Services Policy |
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European Commission and ESAs launch new platform to improve cooperation on technological innovation in the financial sector
The establishment of EFIF follows up on the 2019 ESA's joint report on regulatory sandboxes and innovation hubs and it is in line with the Commission's FinTech Action Plan's objectives to support the competitiveness of the European financial sector. View Article |
EU financial regulators highlight risks of a no-deal Brexit and asset price volatility
EU banking, insurance, pensions and securities sectors continue to face a range of risks, the latest report on “Risks and Vulnerabilities in the EU Financial System” published by the Joint Committee of the European Supervisory Authorities (ESAs) shows. View Article |
EFAMA welcomes the trilogue agreement on the ESFS review under the Romanian EU Presidency
EFAMA commends the determined efforts deployed by the Romanian Presidency, the European Parliament negotiating team and the European Commission to reach a trilogue agreement on the ESFS review under this mandate. View Article |
Financial Stability Board: Beyond the Fog of Battle
Remarks by FSB Chair Randal K. Quarles about tenets that he believes are essential to preserving the relevance and vitality of the FSB. View Article |
Financial markets: European Commission adopts equivalence decision for derivatives trading venues in Singapore
The European Commission recognised a number of Singaporean trading venues authorised by the Monetary Authorities of Singapore (MAS) as eligible for compliance with the EU trading obligation for derivatives. View Article |
EIOPA calls for principle based regulation of cloud computing
The European Insurance and Occupational Pensions Authority published its Report on "Outsourcing to the Cloud: EIOPA's Contribution to the European Commission Fintech Action Plan". View Article |
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Political |
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Bertelsmann Stiftung: Europeans are divided on the state of their society
The pessimists among Europeans have more sympathy for the national-populist movements, while the optimists support pro-European parties. One thing unites both camps, however: The vast majority wants to take part in the European elections. View Article |
New seat projections for the next European Parliament
Parliament released today the third set of seat projections, based on a cross-section of national polls, on the composition of the next (9th) European Parliament. View Article |
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Financial |
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ECA: Rising budget backlog could impact future EU-funded projects
The backlog of money committed under the EU budget but not yet paid out has reached a new high, which could create significant financial risks for the future, according to a new rapid case review by the ECA. View Article |
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Economic |
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European Commission: Report on EU trade defence – effective protection against unfair trade
The EU shields 320,000 direct jobs across Europe from unfair foreign competition through its trade defence measures, according to a new report. View Article |
ECB: Sabine Lautenschläger: Interview with Der Standard
Interview with Sabine Lautenschläger, Member of the Executive Board of the ECB, regarding ECB leadership under Mario Draghi, low interest rates or cheap credit. View Article |
Project Syndicate: The Eurozone’s real weakness
A new eurozone crisis would most likely have a less uneven effect than in 2008 or 2011, not least because its largest economies are currently weak. But if a recession hits, policymakers will find it hard to mount an effective response, writes Lucrezia Reichlin. View Article |
Volume of retail trade up by 0.4% in both euro area and EU28
In February 2019 compared with January 2019, the seasonally adjusted volume of retail trade increased by 0.4% in both the euro area (EA19) and EU28, according to estimates from Eurostat. View Article |
March 2019: Economic Sentiment slightly down in both the euro area and the EU
In March 2019, the Economic Sentiment Indicator (ESI) decreased slightly in both the euro area (by 0.7 points to 105.5) and the EU (by 0.4 points to 105.0) View Article |
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Graham's tweets |
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© Graham Bishop
Banking Union