AMIC secretariat published its third COVID-19 market update podcast in which Robert Parker, Chairman of AMIC, reviews the market events of the last week, with specific focus on recent economic indicators, implementation of monetary and fiscal stimulus across the globe and the perception by investors of the latest COVID-19 news.
AMIC Sustainable Finance Working Group met by conference call on 7 April to discuss reponses to consultations on the EU Ecolabel for financial products and the Non-Financial Reporting directive review.
AMIC Risk Management Working Group met by conference call on 9 April to discuss the potential impacts of COVID-19 on members and ESMA's latest consultation on leverage.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
Investment fund report (COVID-19)
6 April 2020 FCA allows delays for investment fund reports (Covid-19)
The FCA have set out their expectations of firms in the light of the coronavirus (Covid-19) crisis. Among others the FCA will allow (for NURS and UCITS) a 2 months delay for the publication of annual reports and extra month for half-yearly reports.
9 April 2020 ESMA sets out supervisory expectations on publication of investment funds periodic reports
ESMA has issued a public statement directed at Fund Managers concerning their obligations to publish yearly and half-yearly reports.ESMA is recommendanding no supervisory actions from NCAs for a period of:
- 2 months for annual reports due on 1 April
- 1 month for annual reports due on 1 May
- 1 month for half-yearly report due on 1 April
Issuers report (COVID-19)
3 April 2020 IOSCO Statement on Application of Accounting Standards during the COVID-19 Outbreak
The International Organization of Securities Commissions (IOSCO) issued statement on the application of accounting standards during the COVID-19 outbreak: "High quality financial reporting requires the application of professional judgment to an issuer’s particular circumstances. (...) In particular, IFRS 9 does not set bright lines and should not be applied in a mechanistic manner. (...) These considerations are relevant for a wide range of issuers that extend credit and are subject to IFRS 9 impairment requirements, encompassing banks, non-bank financial institutions and other entities that have provided loans and/or credit. "
8 April 2020 FCA announces additional primary market measures to aid listed companies
The FCA has announced a series of measures to help these companies to raise new funding while retaining an appropriate degree of investor protection.
Supervisors working priorities (COVID-19)
7 April 2020 FCA sets out priorities for 2020/21
The FCA has set out its business priorities for the year ahead – with specific focus on the challenges presented by the coronavirus (Covid-19) pandemic.
In responding to the challenge of coronavirus the FCA will focus on ensuring that financial services businesses give people the support they need, that people avoid scams, and that financial services businesses and markets know what we expect of them.
8 April 2020 IOSCO reprioritizes its work program to address impact of COVID-19
The Board of the International Organization of Securities Commissions (IOSCO) has agreed to pause or delay some of its work in 2020 in order to redirect its resources to focus on the multiple challenges securities markets regulators are addressing as a result of the COVID-19 crisis.
Fiscal and monetary stimulus (COVID-19)
3 April 2020 Basel Committee sets out additional measures to alleviate the impact of COVID-19
The Basel Committee on Banking Supervision has set out additional measures to alleviate the impact of COVID-19 on the global banking system, including postponement of the revised G-SIB framework implementation by one year, from 2021 to 2022.
6 April 2020 Commission and European Investment Fund (part of EIB Group) unlock €8 billion in finance for 100,000 small and medium-sized businesses for COVID-19
The European Commission has unlocked €1 billion from the European Fund for Strategic Investments (EFSI) that will serve as a guarantee to the European Investment Fund (EIF), part of the European Investment Bank Group. This will allow the EIF to issue special guarantees to incentivise banks and other lenders to provide liquidity to at least 100,000 European SMEs and small mid-cap companies hit by the economic impact of the coronavirus pandemic, for an estimated available financing of €8 billion. This announcement has fulfiled the commitment in the Commission Communication of 13 March to bring immediate relief to hard-hit SMEs, with money able to flow already in April. It is part of the package of measures announced by the EIB Group on 16 March designed to rapidly mobilise support for Europe's SMEs and mid-caps.
7 April 2020 ECB announces package of temporary collateral easing measures
The Governing Council of the European Central Bank (ECB) has adopted a package of temporary collateral easing measures to facilitate the availability of eligible collateral for Eurosystem counterparties to participate in liquidity providing operations, such as the targeted longer-term refinancing operations (TLTRO-III). The package is complementary to other measures recently announced by the ECB, including additional longer-term refinancing operations (LTROs) and the Pandemic Emergency Purchase Programme (PEPP) as a response to the coronavirus emergency.
8 April 2020 PRA statement on decision by insurance companies to pause dividends
As set out in the Bank of England's letter of 31 March, when insurers are considering whether or not to proceed with any dividend payments, their boards should pay close attention to the need to protect policyholders and maintain safety and soundness. Decisions regarding capital or significant risk management issues need to be informed by a range of scenarios, including very severe ones.
Initial margins (COVID-19)
3 April 2020 Basel Committee and IOSCO announce deferral of final implementation phases of the margin requirements for non-centrally cleared derivatives
BCBS and IOSCO have agreed to extend the deadline for completing the final two implementation phases of the margin requirements for non-centrally cleared derivatives, by one year. This extension will provide additional operational capacity for firms to respond to the immediate impact of Covid-19 and at the same time, facilitate covered entities to act diligently to comply with the requirements by the revised deadline.
Primary market (COVID-19)
8 April 2020 FCA's statement of Policy about listed companies and recapitalisation issuances during the coronavirus crisis
The FCA has announced a series of measures aimed at assisting companies to raise new share capital in response to the coronavirus crisis while retaining an appropriate degree of investor protection.
New EC consultations
2 April 2020 Consultation on a new digital finance strategy for Europe / FinTech action plan
In this consultation, the Commission has been interested in hearing the views of a wide range of stakeholders, in particular, from Member States, national competent authorities, the European Supervisory Authorities, the European Central Bank, EU financial industry (incumbent financial institutions; start-ups; technology companies…), FinTech organisations, organisations representing the interests of consumers and investors, technology experts, academics and EU citizens.
8 April 2020 Consultation on the renewed sustainable finance strategy
Building on the 2018 Action Plan on financing sustainable growth, the renewed sustainable finance strategy will provide a roadmap with new actions to increase private investment in sustainable projects and activities to support the different actions set out in the European Green Deal and to manage and integrate climate and environmental risks into our financial system. The initiative will also provide additional enabling frameworks for the European Green Deal Investment Plan.
The aim of this public consultation is to collect the views and opinions of interested parties in order to inform the Commissions renewed strategy on sustainable.
Impact of costs on performance
6 April 2020 ESMA report stresses impact of costs on retail investor benefits
The European Securities and Markets Authority (ESMA) has published its second annual statistical report on the cost and performance of retail investment products in the European Union (EU.)