Dear All,


ICMA/AMIC activities

The next AMIC conference will take place on 27 November in London and will be hosted by BlackRock. The conference will feature Mario Nava, DG FISMA, as a keynote speaker on the topic of CMU, followed by panel discussions led by industry practitioners on the development of the STS Securitisation market, the pension gap, PEPP and the effect of negative interest rates and a discussion on the possibility of an EU Ecolabel for funds.
All market participants are welcome to attend for free however registration in advance is essential, please use the link above to register. 

Upcoming ICMA Courses

  9-11 October: Introduction to Fixed Income Qualification (IFIQ) 
14-15 October: ICMA Training Course: Introduction to Green Bonds
14-15 October: Securitisation: An Introduction 



Institutional investors

  • (24.9.2019) FCA publishes findings of review of unit-linked funds governance

The Financial Conduct Authority (FCA) has published the findings of their review of the governance of unit-linked funds (PS18/8). The FCA found limited consideration of unit holders’ interests in decision-making around levels of fees and charges.

The FCA will assess the findings from this review alongside those from their work on non-workplace pensions, the governance of unit-linked mirror funds and the effectiveness and scope of IGC and will then decide whether further remedies are needed.
  • (24.9.2019) PRA issues Supervisory statement on Liquidity risk management for insurers 

The Prudential Regulation Authority (PRA) has issued a Supervisory Statement (SS 5/19) which sets out their expectations concerning the liquidity risk management framework an insurer must have in place according to the PRA Rulebook for Solvency II firms.

The areas addressed in this SS include:
-the development and maintenance of proper policies, systems, controls and processes (Chapter 2);
-the identification of material liquidity risk drivers (Chapter 3);
-the design and undertaking of forward-looking scenario analysis and stress testing programmes (Chapter 4);
-considerations for the inclusion of highly liquid assets in the liquidity buffer (Chapter 5);
-the use of quantitative metrics and tools for measuring and monitoring liquidity risk drivers (Chapter 6); and
-effective contingency planning (Chapter 7).

  • (26.9.2019) SEC adopts new rules on ETFs in order to facilitate greater competition and innovation 

The Securities and Exchange Commission (SEC) has adopted Rule 6c-11 which aims to establish a clear and consistent framework for the vast majority of ETFs. 

According to the SEC, the adoption will facilitate greater competition and innovation in the ETF marketplace, leading to more choice for investors. It also will allow ETFs to come to market more quickly without the time or expense of applying for individual exemptive relief. 

Risk-free rates
  • (25.9.2019) Speech by Steven Maijoor (ESMA) on ESMAs priorities around near-risk free rates

Speech by Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), on ESMA's priorities in its work under the Benchmark Regulation (BMR) in particular the adoption by EU supervised entities of fallbacks in new and existing contracts to ensure that the relevant provision of the BMR are complied with. 

He also highlighted the role the working group can play in the adoption of the ​Euro short-term rate ​(€STR).

Financial Stability 
  • (23.9.2019) ESRB issues warnings and recommendations on medium-term residential real estate sector vulnerabilities

The European Systemic Risk Board (ESRB) has published a set of country-specific warnings and recommendations on medium-term vulnerabilities in the residential real estate sector.

The key vulnerabilities highlighted by the ESRB assessment are of a medium-term nature and relate to high or rising household indebtedness and the ability of households to repay their mortgage debt, the growth of mortgage lending and the loosening of lending standards, and the valuation or price dynamics of residential real estate. 

Investment funds
  • (24.9.2019) ESMA publishes study on the exposure of the EU fund industry to CLOs

The European Securities and Markets Authority (ESMA) has published a study, included in the latest Trends, Risks and Vulnerabilities (TRV) report, which looks at the exposure of investment funds to leveraged loans and collateralised loan obligations (CLOs) and finds that the EU fund industry’s exposure remains limited at this stage at EUR 130bn (less than 1% of EU fund industry net assets). 

This study is the first carried out using actual data from the relevant sector, combining regulatory data with commercial databases to ensure a more complete view of the market. ESMA is planning to review the quality of the rating process methodologies for CLOs, with a view to ensuring these are robust.

STS Securitisation
  • (25.9.2019) EBA consults on its proposals to create a STS framework for synthetic securitisation

The European Banking Authority (EBA) has launched a public consultation on its proposals for a simple, transparent and standardised (STS) framework for synthetic securitisation. This work on synthetic securitisation unveils new data and insights into post-crisis market developments and trends, including data on historical default and loss performance. It also proposes a list of criteria to be considered when labelling the synthetic securitisation as ‘STS'. 

While the Discussion Paper does not provide any recommendations on any potential differentiated regulatory treatment, it does seek stakeholders' input about the possibility, its potential impact and other considerations. 

The paper also examines the rationale of the STS synthetic product and assesses positive and negative implications of its possible creation and label as "STS".

The consultation ends on 25 November 2019.

  • (25.9.2019) ECB publishes working paper on the connection between the bail-in framework and yield spreads 

The European Central Bank (ECB) has published a working paper which investigates the impact of the introduction and implementation of the new EU bail-in framework on the banks subordinated bond yield spreads over senior unsecured bonds, and links the bond yields developments with the characteristics of the issuing entities and the economic and financial environment. 

The analysis does not show evidence of a significant and generalized increase in the spreads as a result of a higher risk perception in the sample under review. 

Sustainable finance
  • (23.9.2019) UN Climate Action Summit 2019 announces new practical actions to tackle climate change

The UN Climate Action Summit 2019 has announced the delivery of new pathways and practical actions to shift global response to tackle climate change into higher gear. The Summit is designed to showcase government, business, and civil society efforts to increase their commitments under the Paris Agreement and many countries used the Summit to demonstrate next steps on how by 2020 they will update their nationally determined contributions with the aim to collectively reduce emissions by at least 45 percent by 2030 and prepare national strategies to achieve carbon neutrality by mid-century.  
  • (23.9.2019) UN Asset Owner Alliance to drive portfolio companies to carbon neutrality by 2050

The Asset Owner Alliance, a group of the world’s largest pension funds and insurers, has announced it will immediately start to engage with companies in which they are investing to ensure they decarbonise their business models and achieve carbon neutrality by 2050. 
  • (25.9.2019) AMF announces the composition of its Climate and Sustainable Finance Commission

The Autorite des Marches Financiers (AMF) has announced the composition of its Climate and Sustainable Finance Commission

The 24 members of the Commission were selected for their high level of expertise in climate risk and sustainable finance. This selection also maintains a balance between the various profiles (issuers, asset managers, investors, extra-financial analysis, civil society, researchers, auditor, etc.). Each member is appointed intuitu personae for a renewable three-year term.

The Commission is chaired by Thierry Philipponnat (a member of the AMF Board), and will hold its first meeting next month.

Kind regards,


The AMIC Secretariat



Tel: +44 20 7213 0348



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