Financial Services Regulation and Compliance - General Cross Sectoral Oct 2021
CBI publishes second edition of its Approach to Resolution for Banks and Investment Firms
On 18 October 2021, the CBI published the second edition of its Approach to Resolution for Banks and Investment Firms. This document outlines the CBI's resolution mandates, powers and available discretions, its approach to resolution, and its perspectives on resolvability.
The first edition of the CBI's Approach to Resolution issued in 2019. The second edition reflects legislative changes, namely amendments to the SRMR and the BRRD since 2019 (SRMR2/BRRD2 or the risk reduction measures package). These amendments have refined resolution regimes in the EU and provided for additional powers and discretions for resolution authorities. National transposition of BRRD2 (amending the BRR Regulations) entered into force from 28 December 2020.
Beneficial Ownership Register FAQ (updated 27 October 2021)
On 27 October 2021, the CBI published an updated Beneficial Ownership Register FAQ. The FAQ includes queries in respect of the AML directives, the purpose of the Central Beneficial Ownership Register for certain financial vehicles, accessing the register, the definition of beneficial owner, discrepancies, non-compliance and more.
European Commission adopts 2022 Work Programme: Making Europe stronger together
On 19 October 2021, the European Commission adopted its 2022 Work Programme, setting out the next steps in its agenda towards a post-COVID-19 Europe that is greener, fairer, more digital and more resilient. The Commission Work Programme contains 42 new policy initiatives, within 32 policy objectives, across six headline ambitions, namely:
- a European Green Deal
- a Europe fit for the digital age
- an economy that works for people
- a stronger Europe in the world
- promoting our European way of life
- a new push for European democracy
To minimise the burden linked to the EU policy objectives, the Commission will deploy a ‘one-in, one-out' approach with this work programme. This will ensure that when introducing unavoidable new burdens, the Commission will systematically and proactively reduce burdens linked to existing EU legislation in the same policy area. The Commission will start discussions with the Parliament and Council to establish a list of joint legislative priorities on which co-legislators agree to take action.
Remarks by Commissioner Gentiloni at the Eurogroup press conference
On 4 October 2021, Commissioner Gentiloni spoke at the Eurogroup press conference. Commissioner Gentiloni stated that the euro area is experiencing a robust recovery in the second quarter and that indications are that the third quarter will likely confirm this positive trend.
Commissioner Gentiloni stated that monitoring inflation remains crucial. In September, the euro area had 3.4% inflation, which is an increase from July and August. Additionally, the interplay of rising energy and commodity prices, supply bottlenecks and booming consumer demand are likely to maintain upward pressures on consumer prices in the short-term.
Commissioner Gentiloni stated that several Member States are already taking steps in response to the rise in energy prices. The Commission will shortly present its analysis of the current situation together with a toolbox of policy measures that can be deployed to mitigate its impact. Alongside the toolbox for the short term, the Commission will also launch a reflection on how to better secure energy supply for EU citizens and businesses in the medium term.
Joint Statement on the EU - U.S. Joint Financial Regulatory Forum
On 5 October 2021, a joint statement was released on behalf of EU and US participants in the EU - US Joint Financial Regulatory Forum (the Forum). The Forum met virtually on 29 and 30 September 2021 to exchange views on topics of mutual interest as part of their ongoing financial regulatory dialogue.
The Forum underscored EU and U.S. cooperation and focused on six themes:
- market developments and current assessment of financial stability risks
- sustainable finance
- multilateral and bilateral engagement in banking and insurance
- regulatory and supervisory cooperation in capital markets
- financial innovation
- anti-money laundering and countering the financing of terrorism
Participants acknowledged the importance of the Forum in fostering ongoing financial regulatory dialogue between the US and EU. They agreed that regular communication on regulatory and supervisory issues of mutual concern is necessary to support financial stability, investor protection, market integrity, and a level playing field. Participants will continue to engage on these topics, as well as on other topics of mutual interest, ahead of the next Forum meeting, which is expected to take place in early 2022.
European Parliament Committee on Economic and Monetary Affairs (ECON) annual hearing with ESA chairpersons
On 14 October 2021, ECON members held their annual hearing with the chairpersons of the European Supervisory Authorities (the EBA, the European Insurance and Occupational Pensions Authority (EIOPA) and ESMA – the ESAs) in accordance with Article 3 of the EBA, EIOPA and ESMA Regulations:
- José Manuel Campa, Chairperson of the EBA as well as Chair of the Joint Committee of the ESAs and, in that capacity, second Vice-Chair of the European Systemic Risk Board
- Petra Hielkema, Chairperson of EIOPA
- Anneli Tuominen, Interim Chairperson of ESMA
Discussions focused on the ESAs' experience throughout the previous year, including their role in rulemaking, supervision and coordination, as well as their expectations regarding their future development and key challenges in the context of their respective budgetary and resource needs.
ESAs publish sectoral reports the on supervisory independence of competent authorities
On 18 October 2021, the ESAs published their individual reports on the supervisory independence of competent authorities (CAs) in their sectors. Based on the CAs’ self-assessment, the three reports highlight that the independence of CAs is multi-faceted and dependent on a number of legal, institutional, operational and cultural factors.
The CAs state that they are independent authorities, operating independently on a day-to-day basis, with sufficient financial and personal independence, and an adequate framework for ensuring accountability and transparency. However, the precise approach and framework reported by CAs frequently varies. For instance:
- on operational independence
- on financial independence
- on personal independence
- on transparency and accountability
Since January 2020, the ESAs have been tasked with fostering and monitoring supervisory independence. The three ESAs have, therefore, closely coordinated their work to examine how key aspects of supervisory independence have been incorporated into the governance and activities of CAs.
For more information on these topics please contact any member of A&L Goodbody's Financial Regulation team.
Date published: 11 November 2021