Tag Archives: Commission

MEPs back proportional rules for investment firms

MEPs from ECON have backed the Commission’s proposal for a proportionate regime for smaller, non-systemic investment firms. The proposals suggest that firms’ whose total average monthly assets over a 12 month period exceed €30 bn should be subject to the current capital requirements for banks, but that smaller firms can either be regulated at that […]

EU updates on withdrawal plans

The European Commission has updated its website with notices on plans for Brexit in several industry sectors including financial services. The latest news reports a request from the Commission and Treasury to the ECB and BoE to convene a technical working group on risk management in the transition period. There are also some terms of […]

FCA updates on motor finance

FCA has updated on its work reviewing the motor finance sector. So far, it has drawn several comforting conclusions, including around general default rates. But the 3% of customers who have the lowest credit ratings have higher arrears and default rates. It also notes that commission arrangements could lead to dealers arranging more expensive than […]

Commission finalises own funds adjustment RTS

The European Commission has finalised the RTS for procedures excluding transactions with NFCs established in third countries for the purposes of the own funds requirement for credit valuation adjustment risk.  The RTS require institutions to verify the status of the counterparty at trade inception and thereafter annually, unless there is any reason to believe the […]

Commission publishes funds distribution responses

The Commission’s consultation on cross border distribution of investment funds closed on 9 October, and the Commission has now published the 62 responses it received.

Commission asks ESAs for retail product evaluation

The Commission has published its formal request to the ESAs to report to it on the cost and past performance of the main categories of retail investment, insurance and pension products. It notes the reporting should be based on what is required under key EU legislation, and appreciates the amount of work is such that […]

Commission starts reporting fitness check

The European Commission has invited feedback on whether supervisory reporting requirements in financial services legislation are fit for purpose. It has published a roadmap on which it asks for views by 14 November.  The roadmap looks at the work the Commission has done to date and comments it has received, but it says does not prejudge […]

EU plans CMU reforms

The Commission has proposed a package of reforms to further develop the CMU. The package comprises: EU-wide supervisory priorities set by the ESAs, which will also take a greater role in supervising the work of national regulators – in particular in checking how they allow market participants to outsource functions to third countries direct capital […]

Commission clarifies Systematic Internaliser rules

The Commission is urgently making an amendment to clarify the scope of the MiFID 2 systematic internaliser category.  It has noted certain technological developments which risk undermining what should be a clear separation between bilateral own account trading when executing client orders and multilateral trading. The Commission stresses that a systematic internaliser is not allowed to engage, […]

Commission publishes PRIIPs KID guidelines

The Commission has published draft guidelines on the PRIIPs KID. The guidelines aim to promote consistency by smoothing out areas of potential divergences in interpretation. Questions the guidelines address (although not in much detail), are on the derogation for the need for a single KIDfor a multi-option product, the scope of the Regulation and territorial […]

Commission seeks views on cross-border payments

The European Commission is seeking views on the impact of extending the cross-border payments Regulation to cover all non-euro currencies in the EU. The period for comments is 4 weeks

FCA consults on consumer credit staff incentives

FCA is consulting on how consumer credit firms should manage the risks inherent in staff remuneration and performance management.  It has previously issued guidance covering firms in different sectors within SYSC 19, but there is no current equivalent for consumer credit firms. FCA has carried out a thematic review of 98 firms and found evidence of […]

Commission reports on ML risks

The Commission has published its report to the EP and Council on its assessment of the AML and TF risks affecting the internal market and relating to cross-border activities. It published the report, and supporting working papers, as it heralded implementation of MLD4.

Commission publishes more MiFID 2 standards

The RTS under MiFID 2 on information to be notified  by investment firms, market operators and credit institutions when applying for a MiFID 2 passport has been published in the OJ. The RTS include the information required for a tied agent passport notification.

ECON publishes draft retail FS plan

The EP has published a draft report on the Action Plan for retail financial services. The report: says the EU retail financial services market is still underdeveloped and fragmented, but recognises that such a market will work only if it delivers real customer value; welcomes the Commission’s action plan working towards a single technology-enabled market; […]

Commission to amend PSD2 RTS

The Commission has written to the EBA explaining why it plans to amend the draft RTS under PSD2 on customer authentication and standards of communication. The key areas of change are: to ensure statutory audit of the risk analysis methodology; a new exemption to the application of strong customer authentication for certain corporate payments which […]

EP rejects AML high risk list again

Unsurprisingly, the European Parliament has again rejected the Commission’s proposed list of high risk third countries under MLD4.

Commission recommends Brexit negotiations

The College of Commissioners has sent a recommendation to the Council to open Article 50 negotiations, following on from the political guidelines adopted a few days ago. The negotiating directives focus on: safeguarding the rights and status of citizens and their families; agreement on the principles of the financial settlement (before anything else); not undermining […]

Council does not object to MLD4 high-risk list

The Council has decided not to object to the Commission’s revised list of high-risk jurisdictions for the purposes of MLD4. This means the Regulation can enter into force unless the European Parliament objects. The list is as originally suggested by the Commission except that Guyana is deleted and Ethiopia takes its place.

EP to debate new MLD4 third-countries list

The EP is to debate the Commission’s revised draft Delegated Regulation under MLD4 that identifies high-risk third countries. The Commission has removed Guyana from its list and added Ethiopia. EP has asked for more time to consider the amended draft (having rejected its predecessor).

Commission consults on CMU action

The European Commission has published a consultation document on the CMU action plan in connection with its planned mid-term review. The consultation provides an opportunity for stakeholders to provide targeted input to update and reframe the programme of actions required. Among actions that the Commission is keen to identify are those that strengthen non-bank sources […]