Prudential Regulation Review

Insights

Prudential Regulation Review

June 2017

June saw the publication of some significant EU proposals on the treatment of central counterparties (CCPs) as part of the review of the European Markets Infrastructure Regulation (EMIR). The regulatory implications of IFRS 9 were also in focus, with both the Bank of England and the European Banking Authority (EBA) publishing materials on the incorporation of the new accounting standard into stress testing, and the European Council agreeing to fast-track legislation to introduce a transitional phase-in of the impact of IFRS 9 on capital requirements.

The European Commission published a set of proposals which would create a pan-European Personal Pension Product, or “PEPP”. The Single Resolution Board (SRB) undertook its first resolution in the Eurozone with the resolution of Spain’s Banco Popular.

This note is produced for information only on a best effort basis, and does not constitute advice of any kind.

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Brexit

  • The European Securities and Markets Authority (ESMA) published an opinion addressed to the EU27 national regulators setting out nine general principles aimed at fostering consistency in authorisation, supervision and enforcement related to the relocation of entities, activities and functions from the United Kingdom. The opinion covered all legislation referred to in the ESMA Regulation, including the AIFMD, the UCITS Directive, MiFID I and MiFID II. 

Capital (including stress testing and macro prudential)

Liquidity

  • The BCBS updated for a second time a set of frequently asked questions (FAQs) on the Liquidity Coverage Ratio (LCR). The additions covered a wide range of aspects of the LCR, including in relation to Level 2B eligible debt securities, the periodic monetisation of Higher Quality Liquid Assets, the treatment of secured funding and lending, and central bank facilities.

Governance and risk management (including remuneration)

Crisis management (including special resolution, systemically important firms, and business continuity)

Rethinking the domestic and international architecture for regulation

  • The European Commission published feedback from its consultation paper regarding the future operations of the ESAs, focusing on the ESAs’ tasks and powers, governance, supervisory architecture and funding. 

Disclosure, valuation and accounting

Central Bank of Ireland

Other

 

EMEA Centre of Regulatory Strategy

If you would like to contact a member of the EMEA Centre for Regulatory Strategy then please click on the below links:

Rod Hardcastle - Director, Centre for Regulatory Strategy UK

John Andrews - Senior Manager, Centre for Regulatory Strategy UK

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