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Contents

BANKING SERVICES

2021 EU-wide stress test

EBA has published the results of the 2021 EU-wide stress test, which involved 50 banks from 15 EU and EEA countries. We imagine a prolonged Covid-19 scenario in a context of “lower-for-longer” interest rates. the EU banking system as a whole would see its CET1 reduced by 485 bps after three years, although remaining above 10%.

EBA updates the mapping between the ITS on Pillar 3 disclosures and the ITS on supervisory reporting (v3.0)

EBA has published an update of the Excel sheet that reconciles the information required by Pillar III with that included in the Supervisory Reporting in order to ensure its consistency.

Commission Implementing Decision (EU) on the equivalence of the supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council

The proposed modification of the list of equivalent third countries for the purposes of Banking Supervision provides for the inclusion of Bosnia and North Macedonia.

Commission Delegated Regulations (EU) 2021/1348 of 6 May 2021 supplementing Regulation (EU) 2016/1011

5 new EU Regulations have been issued that amend EU Regulation 2016/1011 which establishes common European Union rules to prevent the manipulation of benchmarks that could affect the price of financial instruments or financial contracts such as loans or mortgages. The aforementioned Regulations apply from 1 January 2022.

The EBA updates data used for the identification of global systemically important institutions (G-SIIs)

EBA has published the Guidelines on the 12 indicators and updated the underlying data of the 31 major EU institutions. On the basis of these, the subset of banks defined as global systemically important institutions (G-SII) will be defined.

 

ANTI-MONEY LAUNDERING

Consultation document on the draft Guidelines on the role, duties and responsibilities of the AML / CFT manager

These EU guidelines establish clear expectations on the role, duties and responsibilities of the AML / CFT compliance manager and the management body and on how they interact, including at group level.

 

ICT AND CYBERSECURITY

Establishment of the National Cybersecurity Agency

Conversion into law of the decree-law June 14, 2021, n. 82, containing urgent provisions on cybersecurity, definition of the national cybersecurity architecture and establishment of the National Cybersecurity Agency.

Opinion of the European Central Bank on a proposal for a regulation of the European Parliament and of the Council on digital operational resilience for the financial sector

The ECB's opinion on the proposal for a regulation of the European Parliament and of the Council on digital operational resilience for the financial sector highlights:

  • that it is necessary to pay attention to the interaction between the proposed regulation and the NIS directive.
  • that more clarity is needed for the "near misses" management
  • its OK to voluntary sharing of information on cyber threats

that it the inclusion of specific rules on personal data and data retention is suggested.

 

ESG

Call for feedback on the draft report by the Platform on Sustainable Finance on preliminary recommendations for technical screening criteria for the EU taxonomy

The EC report in consultation until September 24 describes the EU taxonomic approach for sustainable finance, the activities considered and the methodological framework followed.

Development of tools and mechanisms for the integration of ESG factors into the EU banking prudential framework and into banks business strategies and investment policies

The study, conducted by the European Commission, analyzed the integration of ESG factors in the risk management processes of banks, in corporate strategies and investment policies, as well as in prudential supervision. It provides a complete overview of current practices and identifies a range of best practices for the integration of ESG risks within the risk management and prudential supervision processes of banks.

 

INVESTMENT SERVICES

Consultation for the EONIA replacement rate index

Consultation on the replacement of the EONIA (Euro OverNight Index Average) with the Euro short-term rate (€ STR), published by the European Central Bank.

Consultation for the CHF LIBOR replacement rate index

Consultation for the introduction of the so-called “Risk Free Rates” (RFR). In particular, the document provides for the replacement of the London Interbank Offered Rate CHF (LIBOR CHF), the LIBOR interest rate for the Swiss franc, with the compound SARON.

Directive on undertakings for collective investment in transferable securities

"The proposed Directive will amend Directive 2009/65 / EC regarding the use of documents containing key information by the management companies of undertakings for collective investment in transferable securities (UCITS).

In particular, the proposal aims to avoid that two different pre-contractual information documents are made available to retail investors for the same UCITS. The key information document will also allow retail investors to compare the essential economic and legal characteristics of UCITS with those of other packaged investment and insurance products intended for retail investors (PRIIPs). "

Use of FinTech by central securities depositories (CSDs)

ESMA has gathered feedback from NCAs and relevant market participants on their experience and future use of FinTech and Distributed-ledger Technology (DLT), as well as on whether the current regulatory framework is an obstacle in the implementation of projects involving the DLT.

Implementation of the ESMA guidelines on stress test scenarios under the regulation on money market funds

Bank of Italy has implemented the new ESMA guidelines that apply from 29 August 2021 to money market funds as well as to MMF managers as defined in the FCM regulation, on stress test scenarios

 

INSURANCE SERVICES

Risk Dashboard 2021-1Q

EIOPA has released its Risk Dashboard based on Solvency II data regarding the first quarter of 2021. The results show that insurers' exposures to macro risks remain at a high level while all other risk categories remain at a medium level.

Calculation of technical reserves and own funds

Regulation containing technical information for insurance and reinsurance companies for the calculation of technical reserves and basic own funds for reports with reference dates starting from 30 June 2021 until 29 September 2021.

 

OTHER

High Earners Report – data as of end 2019

EBA has published a report on high remuneration in Banks with regard to year 2019. It reveals 4963 people who work for EU banks received a remuneration exceeding 1 million euros.

Requirements for assets received from money market funds in the context of resale purchase transactions

The regulation that defines the additional qualitative and quantitative requirements envisaged for the assets received by money market funds in the context of purchase transactions with resale agreement has been published.

The Regulation, which applies to banks and investment firms, provides that they are required to include, in the financial contracts they conclude and which are governed by the law of a third country, clauses that recognize the powers of suspension of the resolution authorities.

Regulation (EU) 2021/1421 for the adoption of new accounting standards IFRS 16 Leasing

The EU Regulation for the adoption of the new IFRS 16 Leasing accounting standards has been issued. It will be effective starting from 1 April 2021. Amendments to the concessions on the fees connected to COVID-19 after 30 June 2021 are attached,

Regulation concerning the register of non-possessing securities pledges

The regulation governs the establishment at the Revenue Agency of the computer register for the registration of non-possessing personal pledges.

The computer system will be implemented by the Revenue Agency within eight months from the date of entry into force of the Regulation in question.