Financial Services Regulation and Compliance - Investment Firms Nov 2019

DOMESTIC

Investment funds and the financing of a sustainable economy: a regulatory perspective - Gerry Cross, Director of Financial Regulation, Policy and Risk

In a speech delivered by Gerry Cross, Director of Financial Regulation, Policy and Risk, CBI at a session on "Sustainability and the Funds Industry - the Challenge and Opportunity Ahead", which was a part of Climate Finance Week stated the financing of a sustainable economy and climate risk is an important topic that is high on the agenda of the CBI and the funds and asset management sector. Mr. Cross stated the EU sustainable finance action plan was published in March 2018 and the four most urgent actions were taken forward as legislative proposal and amendments to existing financial regulation including:

  • low carbon benchmarks designed to help orient the choice of investors who wish to adopt a climate-positive investment strategy
  • disclosure (and behavioural) requirements on what financial market participants (FMPs) must disclose about how they integrate environmental, social and governance (ESG) factors in their activities so that investors who use the services of those firms are well informed of the environmental and social impact of their decisions

EUROPEAN

ESMA advises EC on the supervisory regime for third-country CCPs

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has published three sets of technical advice to the European Commission (EC) regarding third-country central counterparties (TC-CCPs) under the revised European Market Infrastructure Regulation (EMIR 2.2).

ESMA’s advice details:

  • how to specify the criteria to determine whether a TC-CCP is systemically important for the EU or a Member State’s financial stability (tiering)
  • how to assess comparable compliance
  • the fees to be charged to TC-CCPs

ESMA sees continued high market risk amid deteriorating economic fundamentals

The European Securities and Markets Authority (ESMA) has published its latest risk dashboard for the European Union’s securities markets, covering the third quarter of 2019. The market risks remain very high, against the background of a deteriorating growth outlook, continued uncertainty around Brexit, US-China trade tensions and geopolitical risk. Large intra-day movements confirm that markets remain sensitive to the news flow.

For more information on this topic please contact any member of A&L Goodbody's Financial Regulation team.

Date published: 10 December 2019