AMIC Regulatory Update

Latest developments

AMIC secretariat published on 29 April its weekly COVID-19 market update podcast in which Robert Parker, Chairman of AMIC, reviewed the market events of the last week, with a specific focus on  potential further actions by the ECB and the Federal Reserve, the EU fiscal stimulus, and the asset management industry.
ICMA published on 29 April a report on the establishment of an EU consolidated tape (CT) for bond markets. This report was produced in response to a request from the European Commission’s DG-FISMA for a bespoke study assessing the feasibility of implementing a consolidated tape for EU post-trade raw bond data.
ICMA published on 30 April an update memorandum on the EU’s sustainability disclosure regime. The publication seeks to provide the market with an initial comprehensive and practical overview of the new and amended EU legislation introducing significant sustainability and ESG related disclosure requirements that will impact all participants in the European capital markets.


ICMA Asset Management and Investors Council (AMIC) Regulatory Update

COVID-19: central banks

30 April 2020 ECB monetary policy decisions

At a meeting on 30 April 2020, the Governing Council of the ECB took the following monetary policy decisions:


(1) The conditions on the targeted longer-term refinancing operations (TLTRO III) have been further eased. Specifically, the Governing Council decided to reduce the interest rate on TLTRO III operations during the period from June 2020 to June 2021 to 50 basis points below the average interest rate on the Eurosystem’s main refinancing operations prevailing over the same period. Moreover, for counterparties whose eligible net lending reaches the lending performance threshold, the interest rate over the period from June 2020 to June 2021 will now be 50 basis points below the average deposit facility rate prevailing over the same period.

(2) A new series of non-targeted pandemic emergency longer-term refinancing operations (PELTROs) will be conducted to support liquidity conditions in the euro area financial system and contribute to preserving the smooth functioning of money markets by providing an effective liquidity backstop. The PELTROs consist of seven additional refinancing operations commencing in May 2020 and maturing in a staggered sequence between July and September 2021 in line with the duration of the collateral easing measures. They will be carried out as fixed rate tender procedures with full allotment, with an interest rate that is 25 basis points below the average rate on the main refinancing operations prevailing over the life of each PELTRO.

COVID 19: insurers

30 April 2020 EIOPA publishes weekly information for Relevant Risk Free Interest Rate Term Structures and Symmetric Adjustment to Equity Risk with reference to 27 April 2020

Due to COVID-19 outbreak, in the coming weeks European Insurance and Occupational Pensions Authority will carry out extraordinary calculations on weekly basis to monitor the evolution of the relevant risk-free interest rate term structures (RFR) and the symmetric adjustment to equity risk (EDA). EIOPA is publishing this information in order to support insurance and reinsurance undertakings in the monitoring of their solvency and financial position.


29 April 2020 
FCA statement on the impact of Coronavirus on the timeline for firms’ LIBOR transition plans

Further to the joint statement made on 25 March it has remained the central assumption that firms cannot rely on LIBOR being published after the end of 2021. The FCA and the Bank of England have worked with members of the Working Group on Sterling Risk-Free Reference Rates (RFRWG) and its sub-groups and task forces to consider how all firms’ LIBOR transition plans may be impacted by Coronavirus.

COVID-19: sustainable finance

27 April 2020 EU Technical Expert Group on Sustainable Finance

The EU Technical Expert Group on Sustainable Finance (TEG), has been believed to advise the European Commission on implementation of the Action Plan on Financing Sustainable Growth, believes the Sustainable Taxonomy, EU Green Bond Standard, and Paris-Aligned and Climate Transition Benchmarks, can guide public and private sector plans for recovery from the Covid-19 pandemic, including the European Council’s recently announced Roadmap to Recovery.

COVID-19: study

27 April 2020 The AMF publishes a study of retail investor behaviour in equity markets during the coronavirus pandemic

In the current exceptional circumstances, triggering high volatility on equity markets, the Autorité des Marchés Financiers (AMF) was keen to study retail investor behaviour. Between 24 February and 3 April, over 150,000 new investors entered the market on securities belonging to the SBF120 index.

COVID-19: banks

27 April 2020 FCA statement on the UK Coronavirus Business Interruption Loan Scheme and the new Bounce Back loan scheme (BBL)

The Treasury has announced amendments to the UK’s CBILS scheme to support small businesses. This statement sets out the FCA’s approach to its regulation of firms in relation to the Government’s CBILS and BBL schemes.

28 April 2020 European Commission adopts banking package

The Commission has adopted a banking package including a proposal for amendments to the Capital Requirements Regulation (CRR) and an Interpretative Communication.

28 April 2020 Euro area bank lending survey

The euro area bank lending survey (BLS) has provided information on bank lending conditions in the euro area. It has supplemented existing statistics with information on the supply of and demand for loans to enterprises and households. The BLS has provided input to the assessment of monetary and economic developments carried out by the ECB Governing Council in the process of making its monetary policy decisions.


28 April 2020 ESMA's Securities and Markets Stakeholder Group respond to   to the Consultation Paper on Draft technical standards on the provision of investment services a by Third-county firms (MiFID II/MiFIR)

The SMSG’s general assessment of the RTS and the two ITS has been positive and has made a number of suggestions below to better align the RTS and ITS to the extent possible with the below mentioned principles: 

  • A level playing field between third country entities and EU entities should be guaranteed within the EU, so that potential incentives for the EU industry to move to a third country be avoided, limiting the risk of an EU industry relocation, and promoting EU industry development; and
  • EU markets must remain open to third country entities to operate and provide liquidity and volume, avoiding unnecessary regulatory restrictions.

30 April 2020 ESMA publishes annual bond transparency calculations, systematic internalisers calculations and new bond liquidity data

ESMA has made available, under the Markets in Financial Instruments Directive (MiFID II) and Regulation (MiFIR):

  • The annual transparency calculations of the large in scale (LIS) and size specific to the instruments (SSTI) thresholds for bonds;
  • Systematic internaliser calculations for equity, equity-like instruments and bonds; and
  • New data for bonds subject to the pre- and post-trade requirements of MiFID II and MiFIR.

Sustainable finance

28 April 2020 
The AMF proposes several targeted measures concerning shareholder activism

France saw unprecedented debate in 2019 on the behaviour of "activist" funds and the need to govern such practices better. As regulator, and following on from the public reports on this subject, the Autorité des Marchés Financiers has proposed a number of targeted measures to enhance transparency for the market and dialogue between issuers and shareholders.

29 April 2020 ESMA issues no action letter on the new ESG disclosure requirements under the benchmarks regulation

ESMA has issued a No Action Letter to promote coordinated action by National Competent Authorities (NCAs) regarding the new environmental, social and governance (ESG) disclosure requirements for benchmark administrators under the Benchmarks Regulation (BMR). It is also issuing an Opinion to the European Commission (EC) on the need for prompt adoption of the relevant Delegated Acts.

Risk management

29 April 2020
 ESRB 2019 Macroprudential Policy Review

The ESRB has published its yearly report providing an overview of the macroprudential measures adopted in the EU in 2019. A summary is provided in this infographic. The high-level conclusions include:

  • Macroprudential policy continued to gain prominence at the European level as well as in the national policy frameworks;
  • Macroprudential policy for the banking sector was actively used, predominantly against cyclical risks; and
  • Non-bank financial intermediaries play an increasingly important role, yet a comprehensive macroprudential toolkit remains unavailable

30 April 2020 Global situation of undertakings for collective investment at the end of March 2020

As at 31 March 2020, total net assets of undertakings for collective investment, including UCIs subject to the 2010 Law, specialised investment funds and SICARs, amounted to EUR 4,149.916 billion compared to EUR 4,668.713 billion as at 29 February 2020, i.e. an 11.11% decrease over one month. Over the last twelve months, the volume of net assets decreased by 4.61%.

The Luxembourg UCI industry thus registered a negative variation amounting to EUR 518.797 billion during the month of March. This decrease represents the balance of the negative net issues of EUR 128.179 billion (-2.74%) and the negative development in financial markets amounting to EUR 390.618 billion (-8.37%).

30 April 2020 The AMF assesses the quality of the information provided to clients within the framework of its SPOT inspections in Discretionary management

The Autorité des Marchés Financiers has published its review of a series of SPOT inspections (“Supervision des Pratiques Opérationnelle et Thématique”) focusing on discretionary management. The purpose of these inspections was to examine practices since the entry into force of the new European regulatory framework for Markets in Financial Instruments (MiFID 2) in January 2018.


30 April 2020
 Joint Bank of England and PRA Statement on the proposed use of temporary transitional powers at the end of the transition period

This joint Bank and PRA statement has related to HM Treasury’s publication of their intention to ‘shift’ the temporary transitional power so it will be available for up to two years after the end of the transition period.


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