EBA Publishes Final Report on Guidelines on Co-operation Agreements between DGSs under Recast DGSD
The European Banking Authority ("EBA") has published a final report on guidelines on cooperation agreements between deposit guarantee schemes ("DGSs"). The guidelines have been developed to promote a common and consistent approach to co-operation agreements between DGSs throughout the EU, as provided under the recast Deposit Guaran-tee Schemes Directive ("DGSD").
To promote a consistent approach and facilitate entry into co-operation agreements between DGSs across the EU, the guidelines specify the objectives and minimum content of co-operation agreements, and provide further guidance on the sequence and timing of events when the local DGS performs a pay-out of depositors on behalf of the DGS in another member states. The guidelines also include a multilateral framework co-operation agreement to which the DGSs or, where relevant, the designated authorities should adhere, although they allow DGSs or designated authorities to enter into bilateral or multilateral agreements where it is intended that co-operation agreements will go beyond the level of detail required by the guidelines.
European Commission Publishes Secondary Implementing Decision on Third Country Equivalence for Purposes of Treatment of Exposures under CRR
A European Commission Implementing Decision on the lists of third countries considered equivalent for the purposes of the treatment of exposures under the Capital Requirements Regulation ("CRR") has been published in the Official Journal of the EU on February 18.
Under the CRR, certain categories of exposures to entities located in third countries can benefit from more favourable prudential treatment if the Commission has determined that a third country's prudential supervisory and regulatory requirements are at least equivalent to those applied in the EU for the purposes of the treatment of exposures under the CRR. The latest Implementing Decision adds Australia, Hong Kong, Indonesia, Japan and South Korea to the list of third countries.
The Implementing Decision will enter into force on March 9.
European Commission Implementing Regulation Lays Down ITS on Disclosure of Leverage Ratio for Institutions under CRR
A European Commission Implementing Regulation laying down implementing technical standards ("ITS") on disclosure of the leverage ratio for institutions under the CRR has been published in the Official Journal of the EU on February 16.
The Implementing Regulation states that, to ensure the obligation in the CRR to disclose information related to the leverage ratio is carried out by institutions in an effective and harmonised manner across the EU as soon as possible, it is necessary to require institutions to use templates for disclosure at the earliest possible date. The templates and instructions on completing them are set out in the annexes to the Implementing Regulation.
The Implementing Regulation entered into force on February 17.
ECON Publishes Reports Postponing Application of MiFID II, MiFIR, MAR and CSDR
The European Parliament's Committee on Economic and Monetary Affairs ("ECON") has published two draft reports on the proposed directive postponing application of the MiFID II Directive, the proposed regulation amending the Markets in Financial Instruments Regulation ("MiFIR"), the Market Abuse Regulation ("MAR") and the Regulation on improving securities settlement and regulating central securities depositories ("CSDR") as regards certain dates.
Both reports contain an explanatory statement, which expresses disappointment that, due to the failure of ESMA and the Commission to deliver regulatory technical standards and delegated acts by the deadline set out in the legislation, and to launch the necessary procurement procedures in time, MiFID II will not be applicable as initially scheduled on January 3, 2017. The rapporteur acknowledged that the delay of the application by a year to January 2018 was sensible and justified, given the scale of the tasks yet to be completed before implementation.
The reports can be found here and here.
PRA Issues Policy Statement on Approach to Identifying O-SIIs
The UK's Prudential Regulation Authority ("PRA") has issued a policy statement on its approach to identifying other systemically important institutions ("O-SIIs"). The statement is relevant to all credit institutions, investment firms, EEA parent institutions, EEA parent financial holding companies and EEA parent mixed financial holdings companies within the domestic financial sector at their highest level of consolidation in the United Kingdom. The proposals contained in the consultation and the policy statement do not apply to branches operating in the UK.
The statement provides feedback to responses to a PRA consultation paper as to which firms can be identified as O-SIIs; application of discretion afforded within the European Banking Authority's mandatory scoring methodology for O-SII identification; application of a supervisory overlay to capture adequately systemic risk in the UK banking sector; proposals to use the methodology of the PRA's existing potential impact framework to inform this assessment; and the timetable for O-SII identification and publications related to O-SII identification. The PRA has made no material changes to its policy as a result of the consultation. |
