AMIC Regulatory Update

Latest ICMA developments

ICMA submitted on 15 July its response to the EC consultation on the Renewed Sustainable Finance Strategy.

ICMA published on 10 July its Quarterly Report for the Third Quarter of 2020 focusing on the lessons from COVID-19 for capital markets. 
ICMA  submitted on 10 July its response to ESMA Survey on Topics for the CSDR Review.
AMIC submitted on 6 July its response to the EC consultations on the integration of sustainability risks in UCITS, AIFMD and MiFID. 
ICMA published on 2 July a podcast on the impact of the COVID-19 crisis on covered bonds.



ICMA Asset Management and Investors Council (AMIC) Regulatory Update

17 July Brexit: ESMA-FCA 2019 MoUs valid after the transition period
ESMA confirmed that previously agreed Memoranda of Understandings (MoUs) on cooperation and information exchange concluded with the UK’s Financial Conduct Authority (FCA) remain valid and will come into effect at the end of the transition period.
Risk Management

28 June FSB evaluation finds too-big-to-fail reforms made banks more resilient and resolvable, but gaps need to be addressed

The FSB has published for public consultation an evaluation of too-big-to-fail (TBTF) reforms for systemically important banks. The TBTF reforms were endorsed by the G20 in the aftermath of the 2008 global financial crisis and have been implemented in FSB jurisdictions over the past decade. 

2 July ESRB publishes its quaterly risk dashboard

Market-based indicators of systemic stress in the EU have showed positive signs of recovery from the economic shock caused by the outbreak of the coronavirus according to the ESRB publication.

8 July The role of investment managers in the post Covid-19 recovery- Speech Christopher Woolard (FCA)

While highlighting the overall resilience of the investment management industry during the COVID-19 crisis, the Interim Chief Executive at the FCA, announced that the FCA will consult later in the summer on whether open-ended property funds should "transition to a structure in which liquidity promises to investors are better aligned with the liquidity of fund assets".

10 July Launch of the ESMA supervisory exercise in relation to the ESRB Recommendation on Liquidity Risk in Investment Funds

As part of its actions to address the impact of COVID-19 on the financial system from a macroprudential perspective, the ESRB issued on 6 May 2020 a recommendation to ESMA to undertake together with national competent authorities a focused piece of supervisory engagement with those investment funds having significant exposure to corporate debt and real estate assets.On the basis of the data collection questionnaire prepared by ESMA, the CSSF has now launched this exercise by asking a larger sample of UCITS- and alternative investment fund managers to complete, by 31 July 2020, the questionnaire for selected UCITS as well as alternative investment funds. All concerned investment fund managers have been contacted directly by the CSSF in that context.

15 July FSB sets out action to maintain financial stability during COVID

The FSB has published a letter ahead of their virtual meeting on 18 July 2020. Among others the FSB recommends to monitor consistency with standards including IOSCO's recommendations for investment funds and MMFs.
Sustainable Finance
25 June The Climate Financial Risk Forum publishes its guide to help the financial industry address climate-related financial risks

The Climate Financial Risk Forum (CFRF), co-chaired by the FCA and the Prudential Regulation Authority (PRA), has published a guide written by industry for industry to help firms approach and address climate-related financial risks. The guide, the first of its kind, provides practical recommendations to firms of all sizes on disclosure of climate-related financial risks; effective risk management; scenario analysis, and opportunities for innovation in the interest of consumers.

15 July Statement of the EU Technical Expert Group on Sustainable Finance (TEG)

In the context of current negotiations about resilience and recovery measures the EU Technical Expert Group on Sustainable Finance (TEG)  has proposed five high-level Principles for Recovery & Resilience supported by detailed recommendations for applying the Taxonomy to the EU’s Recovery Package. Recovery planning refers to the Multiannual Financial Framework (MFF) and Next Generation EU (NGEU).

16 July The AMF updates its policy on collective investments incorporating non-financial criteria about Sustainable finance and collective management

Following the publication of Position-Recommendation DOC-2020-03 which sets out information related to the consideration of non-financial criteria that may be disclosed by French collective investments and foreign UCITS authorised for marketing in France, the AMF has created specific forms for the authorisation processes, for preparing KIIDs/KIDs or prospectuses, and for publishing periodic information.
LIBOR transition

1 July FSB statement on the impact of COVID-19 on global benchmark reform

The FSB maintains its view that financial and non-financial sector firms across all jurisdictions should continue their efforts in making wider use of risk-free rates in order to reduce reliance on LIBORs where appropriate and in particular to remove remaining dependencies on LIBOR by the end of 2021.

13 July Entering the endgame about LIBOR - speech by Andrew Bailey (BoE)

Andrew Bailey has said the move away from LIBOR is as important as ever. He looked at the progress being made and what needs to happen by the deadline in 18 months’ time.
Solvency 2

1 July EC consultation on Solvency II

The EC has launched a review of Solvency II Directive. This includes in particular issues related to insurers’ role in the long-term financing of the economy and the supply of products with long-term guarantees to their clients, to their transparency towards the public, to policyholder protection and the European Single Market for insurance, and to emerging risks and opportunities (climate and environment-related risks, digitalization and cyber risks).

7 July ESMA publishes updates to EMIR Q&As (July 2020)

ESMA has updated its Questions and Answers document on practical questions regarding data reporting issues, under the European Markets Infrastructure Regulation (EMIR).


7 July ESMA updates list of trading venues temporarily exempted from open access under MiFIR

ESMA has updated the list of trading venues which have a temporary exemption from the open access provisions under the Markets in Financial Instruments Regulation (MiFIR). The updated list includes an extension of the exemption for five venues until 4 January 2023.

8 July ESMA updates Q&A on MiFIR data reporting (July 2020)

ESMA has updated its Questions and Answers on data reporting under the Market in Financial Instruments Regulation (MiFIR).


9 July ESMA consults on guidelines on calculation of positions under SFTR

ESMA has launched a consultation on draft Guidelines on the calculation of positions by Trade Repositories (TRs) under the Securities Financing Transactions Regulation (SFTR).


9 July ESMA clarifies external support within the meaning of article 35 of the MMF regulation

ESMA has published a public statement  on external support under Article 35 of the Money Market Funds (MMF) Regulation.


9 July ESMA highlights further aspects to consider in the finalisation of the framework for third-country CCPS

ESMA has published a letter that has just been sent to the European Commission (EC) as a contribution to the EC consultation on the delegated acts on tiering, comparable compliance and fees related to third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2).


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