Guidance for a Risk-Based Approach for Virtual Assets and Virtual Asset Service Providers
The Financial Action Task Force - Financial Action Group (FATF-GAFI), on 28 October 2021, published the "Guidance for a Risk-Based Approach for Virtual Assets and Virtual Asset Service Providers".
This is the updated version of its Guide on the Risk-Based Approach for Virtual Assets (VA) and Virtual Asset Service Providers (VASP).
Annual Report on MAR administrative and criminal sanctions 2021
ESMA has published the “Annual Report on MAR administrative and criminal sanctions 2021”.
The Report describes an increase in the number of penalties and administrative measures in 2020 compared to 2019, reaching 541 from 279 the previous year. However, has also been found that the fines imposed are significantly lower.
Communication of 29 October 2021. Implementation for payment service providers of the updated EBA Guidelines on reporting of serious incidents under the PSD2 Directive (EBA / GL / 2021/03)
Bank of Italy, on 29 October 2021, published a communication with which the updated EBA Guidelines on the reporting of serious incidents pursuant to Directive PSD2 (EBA / GL / 2021/03) are implemented for payment service providers; these guidelines are applicable from the 1st January 2022.
They establish the criteria for the classification of serious operational or security incidents, as well as the content, format and procedures for reporting these incidents to national authorities.
PSD2 and open banking: new business models and emerging risks
Bank of Italy (BdI) has published this analysis which illustrates the first results of an in-depth study conducted in the second half of 2020 with the aim of identifying the distinctive characteristics and risks deriving from the spread of this paradigm in the Italian market, in order to define adequate methodological frameworks applicable by the Bank of Italy in the conduct of supervision of the new operating sector
New Provisions of the Bank of Italy regarding the surveillance of payment systems
The Measure applies not only to wholesale and retail payment systems, but also to technological instrumental infrastructures or networks relevant to the national payment system.
Opinion of the European Central Bank with regard to corporate communication on sustainability
On 29 June 2021 the European Central Bank (ECB) received from the European Parliament a request for an opinion on a proposal for a directive of the European Parliament and of the Council amending Directive 2013/34 / EU, Directive 2004/109 / EC, Directive 2006/43 / EC and Regulation (EU) no. 537/2014 with regard to corporate communication on corporate sustainability.
ESMA publishes technical standards on crowdfunding
The ESMA Report covers 12 areas that cover all aspects of investor protection under the ECSPR:
Principles for the effective management and supervision of climate related financial risks
the Basel Committee on Banking Supervision (BCBS) published, on November 16, 2021, this document which is the basis for a consultation on the Guidelines for effective management and the supervision of climate-related financial risks.
The state of climate and environmental risk management in the banking sector
The European Central Bank (ECB), on 22 November 2021, this document through which it fully assesses the state of management of risks related to climate and environment (C&E) in the banking sector.
According to the Authority, banks have taken the first steps to incorporate climate-related risks, but "none are close to meeting all supervisory expectations". Banks have developed plans to improve their practices but the quality of these plans varies widely and progress is too slow. Only a third of banks have fully adequate plans in place and half will not have completed the implementation of their plans by the end of 2022.
Environmental Liability Directive (Assessment)
The purpose of this Directive is the establishment of an environmental liability framework based on the "polluter pays" principle in order to prevent and repair environmental damage.
Information regarding regulatory technical standards under the Sustainable Finance Disclosure Regulation 2019/2088
Due to the length and technical details of the 13 technical regulatory standards (RTS) of the ESAs, supplementary to Regulation (EU) 2019/2088 relating to the information on sustainability, the timing of submission to the Commission and to facilitate easy implementation, the new date of application is effective from 1 January 2023
Fintech survey in the Italian financial system - 2021
The survey by the Bank of Italy, which takes place every two years, involved the entire banking system, consisting of 59 banking groups and 53 banks not belonging to groups; 51 non-bank intermediaries were also involved, selected on the basis of the volumes of operations.
The first part describes the investments, the methods of interaction between intermediaries and companies in making investments, the holding of crypto-assets.
The second part examines the characteristics of the projects in terms of technologies, purposes, methods of implementation, effects on business models and on the risk profiles of intermediaries. Their implications on open banking, on the customer experience, on the technologies used to combat money laundering and terrorist financing are also assessed.
Guidelines 05/2021 on the Interplay between the application of Article 3 and the provisions on international transfers as per Chapter V of the GDPR
Published the Guidelines on the interaction between the application of art. 3 and the provisions on international transfers referred to in Chapter V of the GDPR.
The main purpose of Chapter V is to ensure that the level of protection guaranteed by the GDPR is not compromised when personal data are transferred "to third countries or international organizations".
Any comments must be sent by January 31, 2022 using the appropriate form.
Methodological framework for stresstesting IORPs
EIOPA has published this document which provides a methodological framework for the stress test of IORPs (Institutions for occupational pension). This presents a set of standard approaches, practical rules and possible methodologies to support the planning and management of the future IORP stress test exercises.
Questions & Answers on the Insurance Distribution Directive
EIOPA has provided answers to a series of Q&As concerning the legal interpretation of the provisions of the Insurance Distribution Directive (Directive (EU) 2016/97) and its implementing measures.
Circular no. 262 "The bank balance sheet: compilation formats and rules" - 7th update
Update of Circular 262 (Banking Financial Statements) to align, as far as possible, the financial reporting to the consolidated supervisory financial reports harmonized at European level (FINREP) in order to avoid the management of "double tracks" between the supervisory information and the balance sheet and contain the reporting costs of intermediaries.
Final Report on draft RTS on Articles 124 (4) and 164 (8) of the CRR
EBA has published its final draft Regulatory Technical Standards (RTS) which specifies the types of factors and conditions to be considered for assessing the adequacy of risk weights and minimum loss in default (LGD) values for both standardized approach (SA) and the one based on internal ratings (IRB).
Final Report on Guidelines on recovery plan indicators
EBA has published the guidelines on the minimum list of qualitative and quantitative indicators of recovery plans
Servicers in securitization transactions. Risk profiles and supervisory lines
The Bank of Italy sent a communication to the banking and financial servicers in which the attention profiles that characterize the sector were recalled and recommendations were made on the safeguards to be adopted in the servicing activity. A collection of information on managed securitization transactions was also initiated.
To this end, two ad hoc templates have been prepared which will be made available on the INFOSTAT platform by the end of this month, with the relative operating instructions.
The first survey must refer to the date of 31.12.2021.
Voluntary disclosure of sovereign exposures
the Basel Committee for Banking Supervision (BCBS) published, on 11 November 2021, the Document "Revisions to market risk disclosure requirements". The final voluntary disclosure standards include three models that cover disclosure of sovereign exposures and risk-weighted assets:
The implementation of these models is mandatory only if requested by the national supervisory authorities. The definitions used in the models are consistent with the Basel Framework which will come into effect from 1 January 2023.
Revisions to market risk disclosure requirements
BCBS has published this document that includes a number of adjustments to reflect the revised market risk framework introduced in the minimum capital requirements for market risk in January 2019.
The revised standard introduced a "traffic light" approach to capital requirements as a result of the outcome of the profit and loss attribution test for banks that use the internal models approach.
Another significant change is the introduction of the simplified standardized approach as an alternative method of calculating capital requirements for market risk.
The new market risk disclosure requirements will come into effect on January 1, 2023.
Public consultation on the draft Guide on the notification of securitization transactions
The European Central Bank (ECB) has published this document that describes the notification practices that significant institutions (IS) acting as originator or sponsor of a securitization transaction are advised to follow in order to provide the ECB with the information necessary for supervision in accordance with Articles 6 "Risk maintenance", 7 "Transparency obligations for assignors, sponsors and SSPE" and 8 "Prohibition of re-securitization" of the Securitization Regulation (SECR).
ECB recommends that SIs follow this Guide for all securitization transactions starting from April 1, 2022.
Circular no. 262 "The bank balance sheet: compilation formats and rules" - 7th update.
Update of Circular 262 (Banking Financial Statements) to align, as far as possible, the financial reporting to the consolidated supervisory financial reports harmonized at European level (FINREP) in order to avoid the management of "double tracks" between the supervisory information and the balance sheet and contain the reporting costs of intermediaries.
Final Report on draft RTS on Articles 124 (4) and 164 (8) of the CRR
EBA has published its final draft Regulatory Technical Standards (RTS) which specifies the types of factors and conditions to be considered for assessing the adequacy of risk weights and minimum loss in default (LGD) values for both standardized approach (SA) and the one based on internal ratings (IRB).
Final Report on Guidelines on recovery plan indicators
EBA has published the guidelines on the minimum list of qualitative and quantitative indicators of recovery plans
Servicers in securitization transactions. Risk profiles and supervisory lines
The Bank of Italy sent a communication to the banking and financial servicers in which the attention profiles that characterize the sector were recalled and recommendations were made on the safeguards to be adopted in the servicing activity. A collection of information on managed securitization transactions was also initiated.
To this end, two ad hoc templates have been prepared which will be made available on the INFOSTAT platform by the end of this month, with the relative operating instructions.
The first survey must refer to the date of 31.12.2021.
Voluntary disclosure of sovereign exposures
the Basel Committee for Banking Supervision (BCBS) published, on 11 November 2021, the Document "Revisions to market risk disclosure requirements".
The final voluntary disclosure standards include three models that cover disclosure of sovereign exposures and risk-weighted assets:
The implementation of these models is mandatory only if requested by the national supervisory authorities. The definitions used in the models are consistent with the Basel Framework which will come into effect from 1 January 2023.
Revisions to market risk disclosure requirements
The Basel Committee on Banking Supervision (BCBS) has published a document about the market risk disclosure requirements that includes a number of adjustments to reflect the revised market risk framework introduced in the minimum capital requirements for market risk in January 2019.
The revised standard introduced a "traffic light" approach to capital requirements as a result of the outcome of the profit and loss attribution test for banks that use the internal models approach.
Another significant change is the introduction of the simplified standardized approach as an alternative method of calculating capital requirements for market risk.
The new market risk disclosure requirements will come into effect on January 1, 2023.
Public consultation on the draft Guide on the notification of securitization transactions
the European Central Bank (ECB), on November 15, 2021, published the "Public consultation on the draft Guide on the notification of securitization transactions".
The document sets out the notification practices that significant institutions (SI), acting as originator or sponsor of a securitization transaction, are advised to follow in order to provide the ECB with the information necessary for supervision in accordance with Articles 6 "Risk maintenance", 7 "Transparency obligations for assignors, sponsors and SSPE" and 8 "Prohibition of re-securitization" of the Securitization Regulation (SECR).
ECB recommends that SIs follow this Guide for all securitization transactions starting from April 1, 2022.
Draft RTS on individual portfolio management of loans offered by crowdfunding service providers
Through this document, EBA specifies the information that crowdfunding service providers, which offer the management of individual loan portfolios, must provide to investors in relation to the credit risk assessment method and on each individual portfolio.
Preliminary Report on emission allowances
The Report presents an overview of the financial regulatory environment for the carbon market under MAR, MiFID II and EMIR and the tools available to securities supervisors to fulfill their responsibilities. The Report, based on commercial data, also provides an analysis of the evolution and volatility of the prices of EUAs (European emission allowances) and derivatives on EUAs.
Draft Guidelines on common procedures and methodologies for the supervisory review and evaluation process (SREP) under IFD
Although the proposed structure of the SREP and the scoring system are similar to those used for credit institutions, the guidelines provided are proportionate to the nature, size and activities of the investment firms and, in addition, the criteria for risk assessment the requirements of the IFR and IFD follow. The consultations will last until February 18, 2022.
Final Report on draft RTS on the clearing and derivative trading obligations in view of the benchmark transition to risk free rates
The RTS draft refers to the transition of the benchmark from the EONIA and LIBOR and to the new risk-free rates (RFR).
The Final report issued presents draft regulatory technical standards (RTS) that modify the RTS on the clearing obligation (CO) and on the derivatives trading obligation (DTO).
Final Report on Guidelines on remuneration policies for investment firms
EBA has published the document entitled "Final Report on Guidelines on remuneration policies for investment firms" which concerns the revision of the Guidelines on sound remuneration policies for class 2 investment firms pursuant to the Directive on investment firms (FDI)
All aspects of the remuneration policy must be gender neutral in accordance with the remuneration requirements of the DFT.
The Guidelines will come into effect on April 30, 2022.
Final Report on Guidelines on internal governance for investment firms
EBA has published this document entitled "Final Report on Guidelines on internal governance for investment firms" which requires investment firms to have solid governance arrangements, including a clear organizational structure with well-defined, transparent lines of responsibility, processes and mechanisms and consistent.
The Guidelines provide further details on how the governance arrangements of the DFI should be applied by Tier 2 investment firms, specifying the tasks, responsibilities and organization of the management body and the organization of investment firms, including the need to create transparent structures that allow supervision of all their activities.
The Guidelines will enter into force on 30.4.2022.
Final draft RTS on the calculation of risk-weighted exposure amounts of collective investment undertakings (CIUs)
This EBA document defines how to calculate the risk-weighted exposure amounts for exposures to collective investment undertakings.
This final draft RTS specifies the methodology to be applied to calculate the risk-weighted exposure amounts, in the context of the mandate-based approach when some inputs are missing.
CONSOB Notice of November 24, 2021 regarding the application of the prospectus regulation and the revocation of consob communications adopted in accordance with the prospectus directive
CONSOB revoked a series of no longer current communications:
Review of the regulatory framework for investment firms and market operators
The European Commission has launched this public consultation. All businesses, large and small, need access to capital markets. This implies that the regulatory regime for financial markets and financial services is suited to the new digital area and ensures that wholesale markets function optimally for the benefit of retail clients.
Corporate disclosure - Improve its quality and implementation
The European Commission (EC) published, on 12 November 2021, a Consultation entitled "Corporate disclosure - improving its quality and implementation".
European common enforcement priorities for 2021 annual financial reports
ESMA has published its annual public declaration on European priorities of common application (declaration). For this year priorities concern the impact of COVID-19 and climate-related issues, and provide guidance on the measurement of expected credit losses and highlight disclosure requirements pursuant to Article 8 of the taxonomy regulation.
List of Italian financial conglomerates subject to supplementary supervision coordinated by the competent national authorities with reference to the data as at 31 December 2020
Bank of Italy, IVASS and CONSOB have updated the list of Italian financial conglomerates, that is, of those corporate groups that carry out activities to a significant extent in both the insurance and banking and / or investment services sectors. There are 2 conglomerates: Generali and Mediolanum.
Press release. Provisions on information and documents to be transmitted for the submission of the authorization request for the acquisition of qualified shareholdings in banks, intermediaries pursuant to art. 106 of the Consolidated Law on Banking, IMEL, IP, SGR, SICAV AND SICAF
The provisions on the information and documents to be transmitted for the submission of the authorization request for the acquisition of qualified shareholdings in banks, intermediaries pursuant to art. 106 of the Consolidated Law on Banking, IMEL, IP, SGR, SICAV AND SICAF "
The Provisions update the information and documents that must be sent to the Bank of Italy by those who intend to acquire a qualified shareholding in one of the intermediaries listed above, at the same time, with a view to simplifying the legislation, the regulations relating to these intermediaries is summarized in a single text. In addition, the Provisions come into force on April 1, 2022 and apply to applications for authorization for the acquisition of qualified shareholdings submitted starting from this date.