Tracker, Financial Services Regulation & Compliance - Banking

DOMESTIC:

Central Bank of Ireland confirms compliance with the EBA guidelines on sound remuneration policies

The CBI has confirmed its compliance with the EBA's guidelines on sound remuneration policies (the Guidelines), in line with European and Irish law. The Guidelines were issued in June pursuant to Article 16 of Regulation (EU) No 1093/2010 and, in accordance with this Article, competent authorities and institutions around the EU must make every effort to comply with the Guidelines. The Guidelines set out requirement in relation to remuneration policies applicable to all staff of institutions and specific requirements that institutions have to apply to the remuneration policies and variable elements of remuneration of identified staff.

Central Bank of Ireland's Macroprudential Measures Committee has first meeting

The CBI's new Macroprudential Measures Committee (the MMC) held its first meeting on 5 September 2016. The MMC was established to advise on bank-related national macroprudential measures and to make recommendation on these rules. The CBI has published the terms of reference of the MMC on its website along with an agenda of the first meeting. The record of the first meeting will be available on 17 October.

Consumer Protection Act 2007 (Competition and Consumer Protection Commission) Levy Regulations 2016 enter into force

On 15 September 2016, Consumer Protection Act 2007 (Competition and Consumer Protection Commission) Levy Regulations 2016 (the Regulations) entered into force. The Regulations, implemented by the CCPC under its powers conferred by the Consumer Protection 2007, set out the levies to be paid by credit institutions, insurance undertakings, investment firms, members of the ISE, credit unions, moneylenders and retail credit firms for the period from 1 January 2016 to 31 December 2016.

Central Bank of Ireland publishes Cross Industry Guidance in respect of Information Technology and Cybersecurity Risks

The CBI has published guidance in relation IT and cybersecurity governance and risk management by regulated firms in Ireland. The purpose of the paper is to help to the boards and senior management of regulated firms to recognize their responsibilities in relation to these risks. The guidance also outlines the CBI's position as to what constitutes good practices that firms should use to develop their IT and cybersecurity procedures.  

Deputy Governor of the Central Bank of Ireland delivers speech to Dublin Economic Workshop Annual Economic Policy Conference on uncertainty in macroprudential policymaking

Deputy Governor (Central Banking) of the CBI, Sharon Donnery, addressed the Dublin Economic Workshop Annual Economic Policy Conference on uncertainty in macroprudential policymaking on 21 September 2016. Ms. Donnery discussed the CBI's framework for policymaking and divided it into four key steps in the policy cycle: the assessment and identification of systemic risk, the selection and calibration of instruments, policy implementation, and policy evaluation. Ms. Donnery also discussed the uncertainty in policymaking that has arisen following 'Brexit'.

EUROPEAN:

Joint Committee of the European Supervisory Authorities issue report on "Risks and Vulnerabilities in the EU Financial System"

On 7 September 2016, the Joint Committee of the ESAs (the EBA, EIOPA and ESMA) published a report titled "Risks and Vulnerabilities in the EU Financial System". The report highlights the long-term risks being faced by the EU financial system and notes that, while these risks have recently been overshadowed by 'Brexit', they still exist and may in fact be exacerbated by the UK's decision to leave the EU. The main risks and vulnerabilities identified are the low growth and low yield environment, the profitability of financial institutions and the interconnectedness within the financial system.

European Supervisory Authorities reject European Commission's proposed amendments to Regulatory Technical Standards on non-centrally cleared OTC derivatives

On 8 September, the three ESAs (the EBA, EIOPA and ESMA) published an opinion disagreeing with the Commission's proposed amendments to the final draft RTS under Article 11(15) of Regulation (EU) No 648/2012 (EMIR) on risk mitigation techniques for OTC derivatives not cleared by a central counterparty. On 8 March, the ESAs submitted final draft RTS to the Commission. On 28 July, the Commission informed the ESA of its intention to endorse the draft RTS with amendments. The ESAs have now rejected these amendments as they believe that the introduction of a number of wording changes may lead to a different application of the provisions compared to their original text of the RTS. The ESAs have invited the Commission to amend the wording accordingly.

European Banking Authority publishes updated list of capital instruments classified as Common Equity Tier 1 (CET1) the Capital Requirements Regulation

On 8 September 2016, the EBA published its third updated list of capital instruments that Competent Supervisory Authorities (CAs) across the EU have classified as CET1 under Article 26(3) of Regulation (EU) No 575/2013 (the CRR). The EBA continuously monitor capital instruments for compliance with the CRR and updated the CET1 list. In this update, one new instrument has been added, two new state aid instruments issued under the CRR have been included and two instruments have been deleted.

European Commission issues publication showing the current state of play in respect of the implementation of the Capital Requirements Regulation and the Capital Requirements Directive

On 14 September the EU Commission published a table showing the current state of play in respect of the implementation of Regulation (EU) 575/2013 and Directive 2013/36/EU. The table shows that there are only six Implementing Technical Standards (ITS) yet to be adopted by the Commission. Of the six outstanding ITS, five are works in progress with only the ITS in relation to "Principles for business line mapping" yet to be started.  

European Commission issues communication on the Capital Markets Union Action Plan

On 14 September 2016, the EU Commission issued a communication to the Parliament, the Council, the European Central Bank, the European Economic and Social Committee and the Committee of the Regions entitled "Capital Markets Union – Accelerating Reform". The Capital Markets Union (the CMU) is part of the third pillar of the EU Commission's Investment Plan for Europe and looks strengthen the European financial system through the enhancement of risk-sharing and providing alternative sources of financing and increased options for both retail and institutional investors.

The CMU Action Plan for reform was published in September 2015 and set out a number of specific action points needed to put in place the building blocks of a Capital Markets Union by 2019. A year on from this publication, the EU Commission has called for an acceleration of reform, calling on the EU Parliament and Member States to do everything in their power to implement the CMU Action Plan as soon as possible. The communication also provides an update on the status of the specific actions contained in the CMU Action Plan.

The EU Commission has also published a Q&A document on the CMU Action Plan.

PRIIPs

The General Secretariat of the Council of the EU published an "I/A" item note addressed to COREPER referring to the rejection by the European Parliament of the European Commission's proposed Delegated Regulation supplementing the PRIIPs KID Regulation in respect of regulatory technical standards on the presentation, content, review and revision of KIDs. The note states that, following the Parliament's objection, the proposed Delegated Regulation can no longer enter into force and there is no need at this stage for the Council to express its position on the matter. Various member states have called for a delay of 12 months to the application of the PRIIPs Regulation.

European Securities and Markets Authority publishes updated list of Central Counterparties authorised to offer services and activities in the EU

On 19 September 2016, ESMA published an updated list of Central Counterparties (CCPs) that have been authorised to offer services and activities in the Union in accordance with Regulation (EU) No 648/2012 (EMIR)

For further information please contact a member of the Financial Regulation team.

Date published: 04 Oct 2016