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EU Regulatory Research

EU Regulatory Research

EU Regulatory Update



IOSCO Announces 2019 World Investor Week

On 14 August, the International Organization of Securities Commissions (IOSCO) announced that it will launch its third annual World Investor Week (“WIW”) from 30 September to 6 October 2019. WIW is a “week-long, global campaign, which aims to promote investor education and investor protection, highlighting the various initiatives of securities regulators in these two critical areas.” This year, IOSCO will focus on online investing, digital assets, and initial coin offerings.


European Commission Requests Technical Advice from EIOPA Regarding PEPP Regulation

On 5 August, the Council of the EU published a request from the European Commission for technical advice from the European Insurance and Occupational Pensions Authority (“EIOPA”) on possible delegated acts in relation to Regulation (EU) 2019/1238 on a pan-European Personal Pensions Product (“PEPP Regulation”). Specifically, the European Commission notes that “certain elements of the [PEPP Regulation] need to be further specified in delegated acts to be adopted by the Commission,” including: (i) “the specifications of additional information, with a view to ensuring to the appropriate extent convergence of supervisory reporting,” and (ii) “criteria and factors to determine when there is a significant PEPP saver protection concern.” The European Commission has asked EIOPA to provide its technical advice by 14 August 2020.


ESMA Calls for Data Experts to Join Advisory Group

On 6 August, the European Securities and Markets Authority (“ESMA”) issued a call for candidates for its newly-established Data Advisory Group (“DAG”). The DAG’s remit includes: (i) “advis[ing], where necessary [ESMA’s Data Standing Committee (“DSC”)] on specific data matters in its work on the completion of a Single Rulebook”; (ii) “advis[ing] where necessary the DSC on specific data matters in its work related to the development of supervisory convergence tools”; (iii) “inform[ing] the DSC on matters of practical implementation of reporting requirements which require clarifications or adaptations”; and (iv) “potentially advis[ing] other ESMA groups on specific data matters within their remits.”

ESMA Updates Double Volume Cap Data

On 7 August, ESMA updated its public register with the latest double volume cap (“DVC”) data under the Markets in Financial Instruments Directive (2016/65/EU) (“MiFID II”). The update provides DVC data and calculations from 1 July 2018 to 30 June 2019, as well as updates to already published DVC time periods.

ECB Publishes Working Paper Regarding Interbank Rate Uncertainty and Bank Lending

On 23 August, the European Central Bank published a working paper regarding interbank rate uncertainty and bank lending. Among other things, the paper found that “interbank rate uncertainty raises lending rates on loans to firms,” but that “[i]t is significantly more adverse for banks facing higher credit risk, as seen in their CDS spreads, and attenuated for banks with sounder capital positions and greater access to central bank funding.”

FSB Publishes Summary of Industry Workshop on Continuity of Access to FMIs for Firms in Resolution

On 28 August, the Financial Stability Board (“FSB”) published a summary of its industry workshop held on 21 May 2019, which explored the FSB’s guidance on continuity of access to financial market infrastructures (“FMIs”) for firms in resolution. Among other things, the participants “shared [their] views and experiences in implementing the Guidance and … discuss[ed] ways to support and enhance this work,” including through: (i) the “develop[ment] [of] common templates for collection of certain core information from FMIs by FMI types”; (ii) “FMIs disclosing publicly certain information including non-binding ‘presumptive path’ summaries of responses to a member experiencing distress or entering into resolution”; (iii) “[s]haring relevant resolution contact information”; and (iv) “[e]ngagement between FMIs and resolution authorities regarding resolution strategies and approaches, and likely communication and information needs during resolution planning, as well as in the lead up to and during a resolution of a member.”


European Parliament Publishes Update from European Commission Regarding Regulation of Crypto-Assets and Libra

On 28 August, the European Parliament published a statement by European Commission Vice President Valdis Dombrovskis regarding the European Commission’s work on the regulation of crypto-assets and Libra. Dombrovskis stated that the European Commission is currently engaged on two workstreams, the assessments of which would be available by April 2020: (i) “for crypto-assets that are covered by EU rules (e.g. those which qualify as financial instruments) the Commission is screening EU legislation to make sure that it does not inadvertently hinder innovation and can effectively be applied to this type of assets”; (ii) for crypto-assets that are currently not covered by EU legislation[,] the Commission is assessing internally the merits of a possible common regulatory approach at EU level, notably to ensure the protection of consumers.” Dombrovskis also stated that for “Libra in particular, the Commission is monitoring the developments of this project from an EU regulatory perspective and assessing its risks, in particular with regard to financial stability, monetary policy, data privacy, money laundering, consumer protection, competition and cyber security.”


o   6 September: ESMA consultation closes regarding the development of prices for market data.

o   6 September: ESMA call for evidence closes regarding the impact of inducements disclosure requirements and costs and charges disclosure requirements under MiFID II.

o   30 September: EIOPA consultation closes regarding draft opinion on the supervision of remuneration principles in the insurance and reinsurance sector.

o   30 September - 6 October: IOSCO World Investor Week.

o   15 October: ESMA consultation closes regarding the compliance function requirements under MiFID II.

o   18 October: EIOPA consultation closes regarding increased proportionality of supervisory reporting and public disclosure.

o   18 October: EIOPA consultation closes regarding the harmonization of national insurance guarantee schemes.

o   18 October: EIOPA consultation closes regarding methodological principles of insurance stress testing.

o   31 October: ESMA consultation closes regarding performance fee guidelines for retail funds under the Undertakings for Collective Investments in Transferable Securities (“UCITS”) Directive.

Ianthe Zabel
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