Latest ICMA developments
On 3 November, ICMA published a paper on axe distribution (i.e. advertising buy or sell bond interests). Through discussion and investigation into acceptable and less acceptable axe distribution practices, ICMA’s Axe Standard Working Group aims to address this situation and stabilise axe distribution practices.
On 4 November, ICMA published its latest AMIC market update podcast reviewing the market events of the past two weeks, particularly in light of Ant Group’s IPO suspension, the US presidential election and Brexit.
On 4 November, ICMA has held the workshop “The European Commercial Paper Market Reimagined”. Participants discussed the lessons learned from the COVID-19 turmoil and a potential way forward for the European CP market.
ICMA has announced its scholarship programme offering 25 scholarships in 2021 to individuals from countries in Sub-Saharan Africa who are unable to pursue a financial qualification due to their economic circumstances as part of ICMA's mission to raise standards and support inclusion in financial markets.
ICMA Education has launched its new “Green, Social and Sustainability Bonds” online self-study course starting on 1 December.
Coming up next:
AMIC Primary Market Working Group will meet on 20 November.
AMIC Executive Committee will meet on 16 December.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
3 November EBA consultation to incorporate ESG risks into investment firms
The EBA published a consultation on how ESG factors and ESG risks could be included in the regulatory and supervisory framework for credit institutions and investment firms. The consultation runs until 3 February 2021.
3 November Keynote Speech was given by Commissioner McGuinness at Climate Finance Week Ireland
3 November AMF and ACPR first report on the monitoring and evaluation of financial institutions’ coal policies
In July 2019, the ACPR and the AMF announced a framework to monitor and evaluate climate-related commitments made by banks, insurers, and asset management companies. They now have published their first findings on the coal policies of French market participants, ahead of the publication of the full report scheduled for the end of the year.
5 November Consultation paper on draft advice to EC under article 8 of the taxonomy regulation
ESMA is consulting on its draft advice to the EC on Article 8 of the Taxonomy regulation, which require listed asset managers to disclose their level of taxonomy alignment (i.e. turnover, capex, opex).
5 November EC third consultation on the EU Ecolabel for investment funds
The third EC consultation on the EU Ecolabel for investment funds runs until 11 December 2020. This follows a second consultation which AMIC responded to in April 2020.
3 November AFM lists trends and risks for the financial sector
The AFM has published its Trend Monitor, its annual analysis of trends that will affect the financial sector and its supervision in the coming years, today. The continuing low level of interest rates, ever-evolving digitalisation and increasing attention to sustainability are the most influential issues.
4 November FSB Europe group discusses responses to COVID-19 and non-bank financial intermediation
The FSB's Regional Consultative Group Europe held a virtual meeting to discuss the market turmoil in March which highlighted vulnerabilities in the non-bank financial intermediation (NBFI) sector related to liquidity mismatches, leverage and interconnectedness. Members reiterated the importance of understanding risk, risk transmission and policy implications in NBFI, and welcomed the FSB’s holistic review of the March turmoil that will be published later this month.
4 November FCA statement on the share trading obligation
The FCA stated that only mutual equivalence would mean that firms could continue to satisfy STO obligations at trading venues in both the EEA and the UK. The FCA will use the Temporary Transitional Power (TTP) to avoid disruption and allow firms to continue trading all shares on EU trading venues and systematic internalisers (SIs).
UCITs and AIFs
5 November ESMA publishes translations for guidelines on performance fees in UCITs and certain types of AIFs
ESMA has issued the official translations of its guidelines on performance fees in UCITS and certain types of AIFs.
5 November ESMA publishes first Q&As on SFTR reporting
ESMA has published its first set of Questions and Answers relating to reporting under the Securities Financing Transactions Regulation (SFTR).
6 November ESMA publishes new Q&As on product governance
ESMA has published new Q&As on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).
6 November ESMA updates Q&A on benchmarks regulation
ESMA has updated its Questions and Answers on the European Benchmarks Regulation (BMR).
Bank of England
5 November BoE maintain at 0.1% and increase asset purchases by £150bn
The Bank of England voted unanimously to maintain Bank Rate at 0.1%, the stock of sterling non-financial investment-grade corporate bond purchases at £20 billion and to continue with the existing programme of £100 billion of UK government bond purchases. It also decided to increase the target stock of purchased UK government bonds by an additional £150 billion to take the total stock of government bond purchases to £875 billion.