Latest ICMA developments
4 December- AMIC published its response to ESMA's public consultation on Article 8 of the Taxonomy regulation.
9 December - ICMA has published a Climate Transition Finance Handbook containing clear guidelines on disclosures that should be made by issuers on their climate change strategy when raising funds in debt capital markets. Q&A- recording of the event- presentation slides.
9 December – ICMA held a follow-up meeting for members to discuss next steps after its cross-industry workshop on the European commercial paper marker held on 4 November. The Group will next meet in January 2021.
9 December – The Risk Management Working Group met to discuss AMIC’s response to the AIFMD consultation paper due on the 29 January. Members are also invited to send their comments to Arthur Carabia or Irene Rey.
11 December - AMIC published its response to the third EC consultation on the EU Ecolabel for financial products.
Coming up next:
16 December: AMIC Executive Committee meeting with Vanessa Casano (AMF) as guest speaker.
16 December: AMIC Risk Management Working Group meeting to consider response to AIFMD Review consultation.
21 January: AMIC virtual panel on the Lessons from COVID-19 from a fund liquidity perspective with Steffen Kern (ESMA) as guest speaker.
ICMA Asset Management and Investors Council (AMIC) Regulatory Update
10 December ECB extends pandemic emergency longer-term refinancing operation
In view of the economic fallout from the resurgence of the pandemic, the ECB announced a recalibration of its monetary policy instruments. This includes among others an increase of the envelope of the pandemic emergency purchase programme (PEPP) by €500 billion to a total of €1,850 billion and extension of its time horizon (at least the end of March 2022); an extension of the TLTRO programme and collateral easing measures by twelve months, to June 2022.
7 December Mairead McGuinness delivers keynote at the launch of the Climate Disclosures Standards Board report
Mairead McGuinness, Commissioner in charge of financial services, has delivered a keynote speech at the launch of the Climate Disclosures Standards Board report, 'The state of EU environmental disclosures in 2020'.
8 December Steven Maijoor delivers keynote about paradoxes of sustainability reporting
Steven Maijoor, Chair of ESMA, has delivered a keynote speech at the webinar “A new standard for a new capitalism: accelerating corporate responsibility through non-financial information” organised by the French Ministry of the Economy, Finance and Recovery.
9 December Emissions Gap Report
The UN Environment Programme published its 2020 Emissions Gap Report reviewing the difference between where greenhouse emissions are predicted to be in 2030 and where they should be to avoid the worst impacts of climate change.
11 December EU Council reaches a deal on fiscal stimulus and 2030 climate target
EU leaders reached a deal to address the concerns expressed on the recovery package and agreed on the 55% emissions reduction goal. They also adopted conclusions on COVID-19, security and external relations, and met for a Euro Summit in inclusive format.
8 December EC consultation on the review of CSDR
The EC consultation seeks feedback on a wide range of specific areas where targeted action may be necessary to ensure the fulfilment of the objectives of CSDR in a more proportionate, efficient and effective manner. Recent developments, in particular the pressure put on markets by the COVID-19 pandemic, should also be taken into account, where relevant, when responding to the consultation. We encourage AMIC members who want to contribute to ICMA's response to contact directly our colleague Andy Hill.
Money Market Funds
4 December ESMA updates reporting under the money market funds regulation
ESMA has updated its validation rules regarding the Money Market Fund Regulation (MMFR). This relates to the requirements of Article 37 of MMFR that require MMF managers to submit data to National Competent Authorities, who will then transmit this to ESMA.
7 December End of the transitional period on 31 December 2020 – CSSF statement
Following the departure of the UK from the EU on 31 January 2020 and the forthcoming end of a time-limited transitional period which will operate until 31 December 2020 the CSSF issued a press release to clarify certain aspects.
7 December ESAs highlight the change in the status of STS securitisation at the end of the transition period
The Joint Committee of the European Supervisory Authorities (ESAs) – ESMA, EBA and EIOPA – have issued a statement highlighting the impact in the change of status of ‘Simple, Transparent and Standardised’ (STS) securitisation transactions after the end of the Transition Period on 31 December 2020.
10 December Commission proposes targeted contingency measures to prepare for possible “no-deal” scenario
While the Commission will continue to do its utmost to reach a mutually beneficial agreement with the UK, there is now significant uncertainty whether a deal will be in place on 1 January 2021.
11 December ESMA to recognise Euroclear UK & Ireland Limited (EUI) after the transition period
ESMA has announced that Euroclear UK & Ireland Limited (EUI), the central securities depository established in the UK, will be recognised as a third-country CSD after the end of the UK’s transition from the EU on 31 December 2020.
8 December CP20/23: Quarterly Consultation Paper No. 30
Once a quarter, the FCA has consulted on proposed miscellaneous amendments to their Handbook. These tend to be minor changes but they still want to get feedback on their proposals. Comments are welcomed by 4 February 2021 for Chapters 3, 4, 5, 7 and 8, and 4 January 2021 for Chapter 6.
10 December FCA confirms speculative mini-bond mass-marketing ban
The FCA has confirmed proposals to permanently ban the mass-marketing of speculative illiquid securities - including speculative mini-bonds - to retail investors.
10 December PRA statement on capital distributions by large UK banks
At the end of March 2020, the Prudential Regulation Authority (PRA) welcomed the decisions of the boards of the large UK banks to suspend dividends and buybacks on ordinary shares until the end of 2020.
8 December Bowing out gracefully: LIBOR’s retirement draws near - speech by Andrew Hauser
LIBOR is an interest rate benchmark used in financial markets, which is being phased out. Andrew Hauser has set out what businesses and lenders need to do to be ready for transition.
7 December ESMA issues latest double volume cap data
ESMA has updated its public register with the latest set of double volume cap (DVC) data under the Markets in Financial Instruments Directive (MiFID II).