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Financial Regulatory

March 2018

The Financial Regulatory News Updates An overview in which our Banking and Finance Practice Group highlights: • Loyens & Loeff publications which may be of interest to you; • Legislative dates for your diary; • Recent financial regulatory developments. Loyens & Loeff publications MiFID II/MiFIR update for Swiss, US and Australian firms being active in the Netherlands Under MiFID, each EU Member State could decide for itself on the access of third country firms to its own national market. Under the Dutch third country regime applicable under MiFID, third country firms that were active in the Netherlands on a cross-border basis or through a branch needed to obtain a license from the Netherlands Authority for the Financial Markets (AFM), unless the so-called “Section 10 Exemption”, as laid down in the Exemption Regulation AFS (Vrijstellingregeling Wft), was available. The Section 10 Exemption was available for third country firms established in Switzerland, the US and Australia, as long as they were subject to supervision in their home country. Under MiFID II/MiFIR a (partly) harmonized third-country regime has been introduced, as a result of which the Dutch third country regime has been amended per 3 January 2018. Click here to read this update


FinTech action plan published by European Commission The European Commission published a FinTech action plan for a more competitive and innovative European financial sector. This action plan envisages enabling the financial sector to make use of the advances in new technologies. Click here to read this update European Regulation on Crowdfunding Service Providers in the making The European Commission has adopted a proposal for a Regulation on European Crowdfunding Service Providers, enabling crowdfunding platforms to offer their services across the EU. Furthermore, the proposal intends to provide legal certainty for investors. Click here to read this update Luxembourg CSSF warns investors on ICOs risks The warning statement published by the CSSF (the Luxembourg financial sector supervisory authority, Commission de Surveillance du Secteur Financier) summarizes the main risks of investing in ICOs for which investors have no protection bearing in mind the nature of ICOs which are unregulated highly speculative investments. Click here to read this update Questions and answers regarding ICOs in Switzerland We offer regulatory, corporate and tax advice specifically on FinTech, cryptocurrencies and ICOs/TGEs. Andrea Huber and Lea Hungerbühler answer 5 important questions from a Swiss point of view. Click here to read this update Data Protection & Privacy For updates on the GDPR, please visit the GDPR webpage of the Loyens & Loeff Data Protection and Privacy Team: GDPR webpage FinTech Team – BankBits The Loyens & Loeff FinTech Team has its own page on LinkedIn. We invite you to take a look at the BankBits, short news items relevant for financial institutions. Here we regularly post news items relevant for the financial institution sector called ‘BankBits’.

Legislative dates for your diary -- EC consultation: Public consultation on fitness check on supervisory reporting, deadline extended to 14.03.2018, Click here -- ESMA consultation: ESMA’s consultation papers on draft regulatory standards under the securitisation regulation, deadline 19.03.2018, Click here -- ESMA consultation: Consultation on draft RTS on the application for registration as a securitisation repository, deadline: 23.05.2018, Click here -- ESMA consultation: Consultation on technical advice on fees for securitisation repositories, deadline 23.05.2018, Click here

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-- EBA consultation: The EBA launches consultation on how to manage non-performing exposures, deadline 08.06.2018 Click here -- Dutch legislative consultation: Voorontwerp ter implementatie van de richtlijn langetermijnbetrokkenheid aandeelhouders, deadline 27.03.2018, Click here -- AFM consultation: De Autoriteit Financiële Markten (AFM) consulteert de aanpassing van de beleidsregel informatieverstrekking, deadline 20.04.2018, Click here

An overview of recent financial regulatory developments General Interest 08.03.2018

EC new item: FinTech action plan published for a more competitive and innovative European financial sector, Click here

See also: EC publication of speech: Opening remarks by Vice-President Dombrovskis on the Action Plans

08.03.2018

ESMA news item: ESMA publishes the responses to its Consultation on Draft Guidelines on Anti-

on Sustainable Finance, FinTech and a proposal for a Regulation on Crowdfunding, Click here Procyclicality Margin Measures for CCPs, Click here 12.03.2018

EBA news item: EBA issues revised list of ITS validation rules, Click here

12.03.2018

EBA publication on final Q&A’s including amongst others: -- Supervisory reporting: Traitement des dettes subordonnées dans l’état C 68.00 et C 67.00 (Treatment of subordinated debt in templates C 68.00 and C 67.00), Click here -- Supervisory reporting: Eligible asset classification for counterbalancing capacity C 71.00 – Concentration of Counterbalancing capacity by issuer / counterparty, Click here -- Recovery and Resolution: MREL calculation on a consolidated basis, Click here -- Recovery and Resolution: Conditions for Early intervention, Click here

12.03.2018

Publication EU Parliamentary documents: Commission staff working document impact assessment Accompanying the document Proposal for a Directive of the European Parliament and the Council on the issue of covered bonds and covered bond public supervision and amending Directive 2009/65/EC and Directive 2014/59/EU And Proposal for a Regulation of the European Parliament and the Council on amending Regulation(EU) No 575/2013 as regards exposures in the form of covered bonds, Click here

14.03.2018

ECB publication of speech: Benoît Cœuré: Financial regulation and innovation: a two-way street, Click here

15.03.2018

ESMA news item: ESAs weigh benefits and risks of Big Data, Click here

15.03.2018

AFM news item: AFM verwacht van sector doorontwikkeling geautomatiseerde adviesdiensten. Click here

27.03.2018

AFM news item: Europees verbod op binaire opties en restricties voor CFD’s, Click here

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Banks 01.03.2018

EBA press release: EBA takes stock of lessons learned on financial education across the EU, Click here

1.03.2018

Publication in EU Journal: Commission Implementing Regulation (EU) 2018/308 of 1 March 2018 laying down implementing technical standards for Directive 2014/59/EU of the European Parliament and of the Council with regard to formats, templates and definitions for the identification and transmission of information by resolution authorities for the purposes of informing the European Banking Authority of the minimum requirement for own funds and eligible liabilities, Click here

01.03.2018

EBA news item: EBA launches new DPM data dictionary tools, Click here

02.03.2018

EBA publication of final Q&A’s including, amongst others:

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-- Market risk - Consideration of surplus collateral received in providing further credit risk mitigation, Click here -- Liquidity risk - Treatment of cash provided as a collateral under issued guarantees and letters of credit, Click here -- Supervisory reporting - Reported currency by issuer/counterparty on a total level (in the Total sheet), Click here -- Supervisory reporting - Concentration of funding by counterparty (C 67.00) ranking, Click here -- Supervisory reporting - Calculation of original and residual maturities in the context of ALMM (C 66.01) for puttable bonds, Click here -- Market risk - CIU Correlation Test, Click here -- Own funds - Deduction requirements in accordance with Article 36(1) (f), (h) and (i) CRR: Netting of long and short positions in intermediate entities in the context of Article 15e (7) of Delegated Regulation (EU) No 241/2014 (“RTS Own Funds”), Click here -- Recovery and Resolution - Enforce a third country resolution proceeding, Click here -- Supervisory reporting - Can the same issuer / counterparty appear more than once in the top 10 of template C 71.00 based on currency? Click here -- Recovery and Resolution - Reference to Chapter III in Article 96(3)(b), Click here -- Recovery and Resolution - Intervention of the resolution fund to cover for losses due to creditors / liabilities excluded from bail-in, Click here -- Recovery and Resolution - Other groups or colleges in Articles 88(6) and 89(4), Click here -- Supervisory reporting - Treatment of Credit Unions in C 68.00 ALMM Reporting, Click here -- Recovery and Resolution - Clarification on the authority responsible for the DGS, Click here -- Recovery and Resolution - Valuation in Article 36, Click here 08.03.2018

EBA news item: Getting familiar with the EBA templates on NPLs, Click here

09.03.2018

Publication in EU Journal: Commission Delegated Regulation (EU) 2018/344 of 14 November 2017 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the criteria relating to the methodologies for valuation of difference in treatment in resolution, Click here

09.03.2018

Publication in EU Journal: Commission Delegated Regulation (EU) 2018/345 of 14 November 2017 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the criteria relating to the methodology for assessing the value of assets and liabilities of institutions or entities, Click here

14.03.2018

EBA news item: EBA issues Opinion on measures to address macroprudential risk, Click here

14.03.2018

EBA press release: EBA advises European Commission on the use of prudential backstops to prevent the

14.03.2018

EC factsheet: Frequently asked questions: Action Plan on the Reduction of Non-Performing Loans in

building up of new NPLs, Click here Europe, Click here 15.03.2018

EBA press release: EBA publishes its Roadmap on FinTech, Click here

16.03.2018

EBA press release: EBA highlights progress in the work of supervisory colleges in 2017, Click here

16.03.2018

EBA publication of final Q&A’s including amongst others: Topic - Supervisory reporting -- Market risk benchmarking – specification of portfolio 20, Click here -- The EAD to be reported if no IRB exposure exists, Click here -- Market risk benchmarking – specification of portfolio 10, Click here -- Market risk benchmarking – specification of portfolio 12, Click here -- Specialised Lending exposures, Click here -- Revolving exposures, Click here -- Value for column c040 of template C 101.00 in case of counterparties with multiple ratings, Click here

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22.03.2018

ECB news item: publication of speech Sabine Lautenschläger (Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB) Banking regulation and supervision – you can’t have one without the other, Click here

15.03.2018

Publication of parliamentary documents: 34906 - Voorstel van wet van de leden Snels, Tony van Dijck, Leijten, Nijboer, Van Raan, Van Rooijen en Azarkan tot wijziging van de Wet op het financieel toezicht in verband met aanscherping van de definitie van “vaste beloning” en introductie van een instemmingsrecht voor de Minister van Financiën met betrekking tot de vaststelling of verhoging van de vaste beloning van een bestuurder van een systeemrelevante bank; Memorie van toelichting (initiatiefvoorstel); Memorie van toelichting, No. 1 Click here, No. 2 Click here, No.3 Click here

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Insurance 07.03.2018

EIOPA news item: Q&A on regulation, Click here

09.03.2018

EC press release: Insurance distribution: Council delays application of new rules, Click here

19.03.2018

Publication in EU Journal: Directive to amend the implementation date of IDD, Click here

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Investment Firms 07.03.2018

ESMA news item: MiFID II: ESMA publishes double volume cap data, Click here

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Clearing/Derivatives 01.03.2018

ESMA news item: ESMA updates EMIR validation rules, Click here

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Funds 12.03.2018

EC publication: New legislative proposals on facilitating cross-border distribution of investment funds Click here

12.03.2018

Publication of parliamentary document EU: Proposal for a regulation of the European Parliament and of the council on facilitating cross-border distribution of collective investment funds and amending Regulations (EU) No 345/2013 and (EU) No 346/2013, Click here

Commission staff working document impact assessment, Click here

Commission staff working document executive summary, Click here

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Consumer Credit 01.03.2018

AFM news item: Vooraf ingevulde bedragen beïnvloeden kredietwaardigheidstoets bij telefoonkrediet Click here

21.03.2018

AFM news item: Toetsrente hypotheken voor tweede kwartaal 5%, Click here

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Trust Offices 19.03.2018

Publication of parliamentary documents: Dutch legislative proposal: Wet Toezicht Trustkantoren 2018 Click here

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Payment Services 13.03.2018

Publication in EU Journal: Commission Delegated Regulation (EU) 2018/389 of 27 November 2017 supplementing Directive (EU) 2015/2366 of the European Parliament and of the Council with regard to regulatory technical standards for strong customer authentication and common and secure open standards of communication, Click here

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Compliance/AML/Sanctions 09.03.2018

EC press release: Fighting fraud with non-cash means of payment: Council agrees its position, Click here

09.03.2018

EC publication of speech: United against cyber threats – Introductory remarks by Benoît Cœuré, Member of the Executive Board of the ECB, at the first meeting of the Euro Cyber Resilience Board for panEuropean Financial Infrastructures, Frankfurt, 9 March 2018, Click here

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Capital Markets 12.03.2018

EC publication: Capital Markets Union: covered bonds, cross-border distribution of investment funds and cross-border transactions in claims and securities, Click here

12.03.2018

EC publication: Capital Markets Union: breaking down barriers to cross-border investments and accelerating delivery, Click here

20.03.2018

ESMA news item: ESMA report on trends, risks and vulnerabilities 1, 2018, Click here

20.03.2018

ESMA news item: ESMA risk dashboard 1, 2018, Click here

20.03.2018

ESMA news item: High risks persist for European securities markets and investors, ESMA says Click here

21.03.2018

ESMA news item: ESMA publishes responses to its Consultation on draft RTS under the new Prospectus

22.03.2018

EC press release: Sustainable Finance: High-Level Conference kicks EU’s strategy for greener and cleaner

Regulation, Click here economy into high gear, Click here TOP

Financial litigation 06.03.2018

Publication of provisional text of EU Judgment of the Court (Grand Chamber) Achmea B.V./ Slovak Republic 06.03.2018 - Reference for a preliminary ruling — Bilateral investment treaty concluded in 1991 between the Kingdom of the Netherlands and the Czech and Slovak Federative Republic and still applicable between the Kingdom of the Netherlands and the Slovak Republic — Provision enabling an investor from one Contracting Party to bring proceedings before an arbitral tribunal in the event of a dispute with the other Contracting Party — Compatibility with Articles 18, 267 and 344 TFEU — Concept of ‘court or tribunal’ — Autonomy of EU law, Click here

01.03.2018

Publication Rechtspraak.nl: Court (Rechtbank) Amsterdam 31.01.2018 Renteswap, grote professionele partij met eigen adviseur, execution-only relatie, geen schending zorgplicht of mededelingsplicht. Click here

05.03.2018

Publication rechtspraak.nl: Trade and Industry Appeals Tribunal (College van Beroep voor het bedrijfsleven) 07.02.2018 Accountant heeft geen aanleiding hoeven zien om te veronderstellen dat de geldleningen

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verband kunnen houden met witwasssen of financiering van terrorisme en dat hij om die reden de transacties op grond van artikel 16 van de Wwft had moeten melden. Accountant heeft echter wel onvoldoende invulling gegeven aan het cliëntenonderzoek als bedoeld in artikel 3 van de Wwft. Daarmee heeft betrokkene inbreuk gemaakt op het fundamentele beginsel “professioneel gedrag”. Click here TOP

Contact Should you require any assistance in the field of Financial Regulatory, please contact your trusted adviser of our Financial Regulatory Team.

Disclaimer Although this publication has been compiled with great care, Loyens & Loeff N.V. and all other entities, partnerships, persons and practices trading under the name ‘Loyens & Loeff’, cannot accept any liability for the consequences of making use of this issue without their cooperation. The information provided is intended as general information and cannot be regarded as advice.

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Financial regulatory news updates - maart 2018  

The Financial Regulatory News Updates An overview in which our Banking and Finance Practice Group highlights: - Loyens & Loeff publications...

Financial regulatory news updates - maart 2018  

The Financial Regulatory News Updates An overview in which our Banking and Finance Practice Group highlights: - Loyens & Loeff publications...