Tracker, Financial Services Regulation & Compliance - Banking


DOMESTIC

Central Bank publishes its Internal Rules as the Resolution Authority under the BRRD

Pursuant to the BRRD the Central Bank, as Ireland's Resolution Authority, has published its internal rules necessary to carry out this role. Several divisions of the Central Bank are involved in the carrying out of the functions of the Central Bank under the BRRD. The rules delineate the respective roles and responsibilities in relation to the BRRD and address professional secrecy and information exchanges between the various Central Bank divisions.

EU & INTERNATIONAL

EBA publishes technical advice on protected arrangements in a resolution situation

The European Banking Authority (EBA) has issued its Opinion under the BRRD on how to define what arrangements should be protected in a partial property transfer in resolution. The Opinion ensures full protection of well-established sources of refinancing such as secured debt, including securities lending and covered bonds, and of means of risk mitigation. The BRRD lists five general categories of arrangements which may be protected (security arrangements, title transfer collateral arrangements, set-off arrangements, netting arrangements, covered bonds and structured finance arrangements). As these categories are quite broad, the Commission is empowered to narrow their scope in its delegated acts which will now be informed by the EBA Opinion.

EBA issues final Guidelines on passport notifications for mortgage credit intermediaries

In support of the transposition of the Mortgage Credit Directive (MCD) the EBA published its final Guidelines to ensure that information about credit intermediaries carrying out business in more than one Member State is exchanged consistently between national authorities. The Guidelines also include template notification forms for exercising the freedom to provide services and freedom of establishment under the MCD. The MCD is to be transposed into national law by March 2016.

Opinion of the European Economic and Social Committee on the role of cooperative and savings banks in territorial cohesion — proposals for an adapted financial regulation framework  is published

The EESC Opinion on the role of cooperative and savings banks in territorial cohesion adopted in February was published in the Official Journal on July 31. Among its recommendations and conclusions the Opinion considers that shareholder-value banks must be efficiently complemented by stakeholder-value banks, supports the Commission's effort to take the particular nature of cooperative and savings banks into account in the new financial regulation and recommends the use of objective parameters such as financial and economic performance to justify a specific regulation for each business model. 

Opinion of the European Economic and Social Committee on the Commission report on the operation of the European Supervisory Authorities (ESAs) and the European System of Financial Supervision (ESFS) and the Commission report on the mission and organisation of the European Systemic Risk Board (ESRB)

EESC Opinion adopted in February on the Commission reports regarding financial regulation and supervision was published in the Official Journal on July 31. Among its recommendations and conclusions the Opinion agrees on the need for corrective action to improve the operation of the European System of Financial Supervision, considers that the ESA's regulatory role should be reviewed and recommends implementation of forms of coordination between the ESRB, the ECB and the Single Supervisory Mechanism.

ESRB publishes a paper on identifying early warning indicators for real estate-related banking crises

As part of its Occasional Paper Series the European Systemic Risk Board (ESRB) published a paper presenting a formal statistical evaluation of potential early warning indicators for real estate-related banking crises. The results of the paper provide an analytical underpinning for decision-making based on guided discretion with regard to the activation of macro-prudential instruments targeted to the real estate sector.

FCA publishes feedback statement on its Consultation Paper, Strengthening accountability in banking: UK branches of foreign banks

Following on from its joint consultation with the PRA on a new regulatory framework for individuals working in UK branches of overseas banks (incoming branches) in March the FCA published a feedback statement providing near-final rules in anticipation of secondary legislation that will extend the statutory elements of the new individual accountability regime for banks to incoming branches. By publishing near-final rules ahead of this legislation, the FCA aim to give firms as much time as possible to prepare for the changes. The final rules should be published later this year.

FCA issues its Policy Statement on the changes to the Consumer Credit Sourcebook as a result of the implementation of the Mortgage Credit Directive (MCD)

Following a public consultation launched in February the FCA published a summary of the feedback it received in relation to its proposed changes to its Consumer Credit Sourcebook in order to implement the MCD. In general, respondents agreed with the proposed amendments and thus final rules are being published, the majority of which will come into effect on 21 March 2016. The FCA will publish the responses to the non-MCD changes consulted on later this year.

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

Date published: 04 September 2015