AMIC Regulatory Update

Latest ICMA developments


17 December – ICMA responds to the draft Delegated Act supplementing the EU Taxonomy Regulation


18 December – ICMA responds to the UK Listings Review call for evidence


Coming up next:

11-15-18 January: AMIC Risk Management Working Group meeting to consider response to the ELTIF 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

Exchange-Traded Funds

22 December IOSCO Issues Industry Survey on Exchange-Traded Funds

The International Organization of Securities Commissions (IOSCO) has issued a Questionnaire for industry participants on Exchange-Traded Funds (ETFs). IOSCO, through its Committee 5 on Investment Management, has conducted extensive work related to ETFs since 2018. To date, the project has considered potential investor protection, market integrity and financial stability issues related to ETFs.

6 January ESMA launches a common supervisory action with NCAs on the supervision of costs and fees of UCITS

ESMA has launched a Common Supervisory Action (CSA) with national competent authorities (NCAs) on the supervision of costs and fees of UCITS across the European Union (EU). The CSA will be conducted during 2021.
Financial stability
18 December ESRB risk dashboard and recommendation on bank's dividends and buy-backs
ESRB published its risk dashboard following the meeting of its board. While ESRB 'recognise that the prospect of COVID-19 vaccines becoming available has reduced the probability of more severe scenarios', it recommended that relevant authorities request banks, investment firms, insurance companies and reinsurance companies to refrain from distributing dividends and bonuses and performing buy-backs.
Sustainable Finance

16 December CSSF communication on SFDR implementation and fast track procedure for prospectus update
The CSSF published a communication setting expectations for SFDR implementation (deadline: 10 March 2021) and announced a fast track procedure to support the visa stamping of a fund prospectus/issuing document after update for SFDR.
18 December EC roadmap to create a single access point for ESG data
The EC has confirmed its intention to publish in Q3 2021 a legislative proposal to establish a single access point for non-financial information disclosed by issuers.
23 December TCFD: a study on reporting practices of 10 French institutions 

For the first time, the AMF has assessed the implementation of the TCFD framework on a sample of French financial institutions. This study highlights the main difficulties encountered to achieve TCFD’s objectives and presents good practices and next steps for the institutions who choose to disclose climate risks and opportunities against this voluntary framework.

23 December The ACPR and AMF publish their first annual report on climate commitments of French financial institutions

In July 2019, the two authorities announced the implementation of an annual framework for monitoring and assessing the commitments made by banks, insurers, and asset management companies to address climate challenges. After publishing an excerpt on coal policies at the end of October 2020, they are presenting their conclusions on all climate-related commitments.
23 December IOSCO-FSB: responses to IFRS Consultation on Sustainability Reporting
Both IOSCO and FSB responded to IFRS Consultation on Sustainability Reporting and supported the establishment of a standard under the IFRS Foundation. 

21 December Capital flows during the pandemic: lessons for a more resilient international financial architecture

The Bank of England has explored how the sudden stop in capital flows to emerging market economies associated with the Covid-19 pandemic unfolded, the substantial policy responses that were needed to alleviate it, and the lessons they drew from this episode.

22 December IOSCO report to address retail market conduct risks during stress events such as COVID-19

IOSCO published a report that seeks to assist regulators in responding to the retail market conduct issues caused by stress events such as the current COVID-19 pandemic. In parallel, IOSCO published a report on education of retail investors regarding risks of crypto-assets.
6 January BoE: 'From Lender of Last Resort to Market Maker of Last Resort'  - speech by Andrew Hauser

Andrew Hauser gave a speech looking at the evolving role of the central bank as a provider of market liquidity. He examines what was learnt from the ‘dash for cash’ in March. And he explores what features a new set of central bank tools might have including the possibility of being a 'market maker of last resort'.

22 December FCA publishes final Brexit instruments and Temporary Transitional Power (TTP) directions

The FCA has published the final onshoring instruments, related guidance and Temporary Transitional Power (TTP) directions that will apply at the end of the Brexit transition period.

24 December EC Q&A on the EU-UK Trade and Cooperation Agreement
Following the adoption of the EU-UK Trade and Cooperation Agreement published Q&As including a section on financial services. 
31 December Statement on use of the Temporary Transitional Power to modify the UK’s derivatives trading obligation

The UK has implemented the G20 commitment to improve over-the-counter derivatives markets by onshoring the Markets in Financial Instruments Regulation (MiFIR) derivatives trading obligation (DTO) under the EU Withdrawal Act. The UK DTO applies to the same classes of derivatives as the EU DTO.
4 January Brexit: ESMA withdraws the registrations of six UK-based credit rating agencies and four trade repositories

ESMA, the supervisor of European Union (EU) credit rating agencies (CRAs) and trade repositories (TRs), has withdrawn the registrations of the following United Kingdom (UK) based CRAs.
4 January Publication of MoUs between the FCA ESMA and EU regulators 
On 1 February 2019, the FCA announced the agreement of Memoranda of Understanding (MoUs) with the European Securities and Markets Authority (ESMA) and EU regulators covering cooperation and exchange of information. The MoUs have now come into effect at the end of the transition period and are now publicly available. Article 8 of the MoU with ESMA and the FCA covers delegation and outsourcing.
21 December IOSCO Secretary General Paul Andrews to depart IOSCO in February 2021

The IOSCO has announced that Secretary General Paul Andrews will step down on 25 February 2021. Mr. Andrews, who joined IOSCO as Secretary General in March 2016, will return to Washington, D.C., where his family resides.

18 December ESMA consults on the impact of algorithmic trading

ESMA has launched a consultation seeking input from market participants on the impact of requirements under MiFID II/MiFIR regarding algorithmic trading, including high-frequency algorithmic trading.

22 December ESMA updates Q&A on cost and charges

ESMA has updated its Questions and Answers on the implementation of investor protection topics under the Market in Financial Instruments Directive and Regulation (MiFID II/ MiFIR).

23 December ESMA updates guidance on waivers from pre-trade transparency

ESMA has published an updated opinion providing guidance on pre-trade transparency waivers for equity and non-equity instruments. It covers guidance related to request for quote systems, guidance on how trading venues should apply for a waiver to their national competent authority, and updates on frequently encountered issues when assessing waiver notifications.
21 December ESMA updates EMIR Q&As

ESMA has updated its Questions and Answers on OTC requirements and reporting issues under the European Markets Infrastructure Regulation (EMIR).
Market Abuse

21 December ESMA sees significant increase in EU market abuse sanctions to €88 million in 2019

ESMA has published its annual report on administrative and criminal sanctions, as well as other administrative measures, issued under the Market Abuse Regulation (MAR) in 2019. The Report shows that National Competent Authorities (NCAs) and other authorities imposed a total of €88 million in fines related to 339 administrative and criminal actions under MAR.


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