Latest ICMA developments
On 9 October, ICMA's Green Bond Principles and Social Bond Principles Executive Committee announced the 2020/2021 Advisory Council composition.
On 12 October, AMIC published its position paper on ESMA's letter regarding AIFMD review.
On 12 October, ICMA published a statement as Buy-side starts reporting under SFTR.
On 16 October, AMIC submitted its response to the ESAs' Survey on templates for Environmental and/or Social financial products under SFDR.
Coming up next:
On 23 October (11.00 - 12.00 CEST), AMIC will host a virtual panel discussion "Sustainable finance: Taking stock of regulatory developments, market trends and investors' needs".
- Raluca Tircoci-Craciun, Head of Growth and Emerging Markets, Implementation Monitoring and Senior Policy Advisor, IOSCO
- Laurence Caron Habib, Head of Public Affairs, BNP Paribas Asset Management
- Carey Evans, Managing Director, Global Public Policy, BlackRock
- Antoine Picot, Asset management regulation policy officer, French Financial Markets Authority (AMF)
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
8 October Speech by Robert Ophèle, AMF Chairman
In light of the March-April episode, Robert Ophèle, AMF Chairman, laid down in speech at the 2020 CMVM Annual Conference, its priorities for a review of the fund regulatory framework. This includes the need (1) for real time information on liquidity position, (2) to amend liquidity ratios of the Money Market Fund Regulation to avoid procyclical effects and (3) to make Liquidity Management Tools available across EU jurisdictions.
12 October Statement by Steven Maijoor, ESMA Chairman
The Chair of ESMA, Steven Maijoor, called to review the Money Market Fund Regulation in its opening remarks at the ESAs' annual hearing of the European Parliament's Economic and Monetary Affairs Committee (ECON).
12 October Council appoints Mairead McGuinness as new commissioner in charge of financial services
The Council has appointed, by common accord with the President of the Commission, Ursula von der Leyen, Mairead McGuinness as new member of the European Commission in charge of Financial services, financial stability and Capital Markets Union.
15 October EC confirms the review of AIFMD
The EC confirmed its intention to publish an imminent consultation of the review of AIFM. The legal proposal should be published in Q3 2021 according the EC timeline.
"(...) this initiative will examine how to strengthen the rules and complete the internal market for such investment funds. This may also lead the Commission to adjust the rules on undertakings for collective investment in transferable securities (UCITS)."
15 October EC announces the review of CSDR
The EC announced its intention intention to publish a consultation of the review of CSDR in Q1 2021. The legal proposal should be published in Q2 2021 according the EC timeline. "This review will assess how the EU rules on central securities depositories (CSDs) are working, especially how CSDs are able to operate in different countries across the EU; how requests to use their services are handled; and whether there are other substantive barriers to competition in this sector that need to be addressed. Depending on its findings, the Commission may propose certain changes to the rules."
8 October EP approves a resolution calling to complete the Capital Markets Union
MEPs have adopted a non-binding resolution on the future of the CMU calling for simplified rules for SMEs, mid-caps and start-ups so that they can receive funding.
14 October FSB updates on work to address market fragmentation
The FSB has published an update on work by the FSB, in collaboration with the international standard setting-bodies, to address market fragmentation. The report was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meeting.
9 October AMF's response to the EC consultation on the new EU-Green Bond Standard
The AMF published its response to the EC consultation on the new EU-Green Bond Standard. AMF calls in the short term for some flexibility regarding the 100% taxonomy alignment requirement. In order to strengthen confidence in the green bond market, the AMF supports the mandatory use of accreditated bodies to verify (i) the alignment of green bonds with EU-GBS and (ii) the allocation of the proceeds of the offering. The AMF does not support the Technical Expert Group's proposal to set up a transitional system of voluntary certification for verifiers until the legislative process is completed. The AMF suggests - for the sake of simplicity, consistency and readability - that the European standard and the accreditation regime for verifiers come into force at the same time.
Financial Technology and Innovation
12 October FSB report considers financial stability implications of BigTech in finance
The FSB has published a report about market developments and financial stability implications from the provision of financial services by BigTech firms in emerging market and developing economies ). The report is being delivered to G20 Finance Ministers and Central Bank Governors for their virtual meeting on 14 October.
13 October FSB publishes high-level recommendations for regulation and supervision of “global stablecoin”
The FSB has published the final version of its high-level recommendations for the regulation, supervision and oversight of “global stablecoin” (GSC) arrangements following an earlier public consultation. The report states that GSC arrangements are expected to adhere to all applicable regulatory standards and to address risks to financial stability before commencing operation, and to adapt to new regulatory requirements as necessary.
14 October 2020 FSB Chair updates G20 on action to harness benefits from financial technology and innovation
The FSB chair has published a letter on action to harness benefits from financial technology and innovation to G20 Finance Ministers and Central Bank Governors ahead of their virtual meeting.