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Financial Regulation and Funds Newsletter

  Dentons
 

European law | German law | Czech law | Luxemburg law Spanish law | About this newsletter

 
     
 

Regulatory developments in the EU 

     
OJ of the EU 28/11/2017  

Delegated Regulation supplementing MiFIR published in OJ

  Delegated Regulation (EU) 2017/2194 supplementing Regulation (EU) No 600/2014 of the European Parliament and of the Council on markets in financial instruments with regard to package orders. Entry into force: 18/12/2017. For further information, click here.
     
European
Commission
27/11/2017
 

Commission adopted Delegated Regulation supplementing PSD2

  Delegated Regulation supplementing Directive 2015/2366 with regard to regulatory technical standards for strong customer authentication and common and secure open standards of communication. For further information, click here and here.
     
OJ of the EU
25/11/2017
 

Delegated Regulation amending the CRR published in OJ

  Commission Delegated Regulation (EU) 2017/2188 amending Regulation (EU) No 575/2013 with regard to the waiver on own funds requirements for certain covered bonds. Entry into force: 15/12/2017. For further information, click here.
     

OJ of the EU
21/11/2017

Two Delegated Regulations with regard to regulatory technical standards on indirect clearing arrangements under EMIR and MiFIR published in OJ

Delegated Regulation (EU) 2017/2154 supplementing Regulation (EU) No 600/2014 with regard to regulatory technical standards on indirect clearing arrangements. Entry into force: 11/12/2017. For further information, click here.

Delegated Regulation (EU) 2017/2155 amending Delegated Regulation (EU) No 149/2013 with regard to regulatory technical standards on indirect clearing arrangements. Entry into force: 11/12/2017. For further information, click here.

 

ESMA2
21/11/2017

ESMA updated Q&A on MAR

The ESMA has updated its Questions & Answers document regarding the implementation of the MAR. For further information, click here.

 

ESMA2
20/11/2017

ESMA issued clarification on the rotation periods of CRA’s analysts

The ESMA has published an update to its Questions and Answers on the application of the CRA Regulation, adding a new section on organizational requirements. For further information, click here.

 

ESMA2
20/11/2017

ESMA updated its EMIR Q&A

The ESMA has issued an update of its Q&A on practical questions regarding the EMIR. For further information, click here.

 

European
Commission
17/11/2017

Commission adopted draft Delegated Regulation supplementing MiFIR

Delegated Regulation supplementing Regulation (EU) No 600/2014 with regard to regulatory technical standards on the trading obligation for certain derivatives. For further information, click here and here.

 

ESMA2
17/11/2017

ESMA updated Q&A on CSDR implementation

The ESMA has published an update of its Questions and Answers regarding the implementation of the CSDR. For further information, click here.

 

ESMA2
17/11/2017

ESMA clarified endorsement regime for third-country credit ratings

The ESMA has published its Final Report updating its Guidelines on the application of the endorsement regime under the CRA Regulation. For further information, click here.

 

ESMA2
17/11/2017

ESMA consults on calculation of derivative positions

The ESMA has published for public consultation future guidelines on the calculation of derivative positions by trade repositories authorized in the European Union under EMIR. For further information, click here.

 

ESMA2
17/11/2017

ESMA published final report on Money Market Funds rules

The ESMA has published a final report on the Money Market Funds Regulation. For further information, click here.

 

EBA1
17/11/2017

EBA published methodology for the 2018 EU-wide stress test

The EBA published its final methodology for the 2018 EU-wide stress test, following a discussion with industry in summer 2017. For further information, click here.

 

ESMA2
15/11/2017

ESMA updated MiFID II Q&As on transparency

The ESMA has updated its Questions and Answers regarding transparency and market structure issues under MiFID II and MiFIR. For further information, click here.

 

ESMA2
15/11/2017

ESMA updated MiFID II Q&A on market structure issues

The ESMA has updated its Questions and Answers regarding market structure issues under MiFID II and MiFIR. For further information, click here.

 

European
Commission
14/11/2017

Commission adopted two Delegated Regulation supplementing BRRD

Delegated Regulation supplementing Directive 2014/59/EU 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. For further information, click here.

Delegated Regulation supplementing Directive 2014/59/EU with regard to regulatory technical standards specifying the criteria relating to the methodologies for valuation of difference in treatment in resolution. For further information, click here.

 

ESMA2
14/11/2017

ESMA updated MiFID II Q&A on commodity derivatives

The ESMA has updated its Questions and Answers regarding commodity derivatives under the Market in Financial Instruments Directive and Regulation. For further information, click here.

 

ESMA2
14/11/2017

ESMA updated Q&A on MiFIR data reporting

The ESMA has updated its Questions and Answers regarding data reporting under MiFID II and MiFIR. For further information, click here.

 

EBA1
14/11/2017

EBA published final guidance on connected clients

The EBA published its final Guidelines on the treatment of connected clients as defined in the Capital Requirements Regulation, aiming at supporting institutions in identifying all possible connections among their clients, in particular when control relationships or economic dependency should lead to the grouping of clients because they constitute a single risk. For further information, click here.

 

European
Commission
13/11/2017

Commission launched a public consultation on institutional investors and asset managers' duties regarding sustainability

The European Commission published a consultation on institutional investors and asset managers' duties regarding sustainability. For further information, click here.

 

ESMA2
13/11/2017

ESMA clarified trading obligation for shares under MiFID II

The ESMA has updated its Question and Answers regarding the implementation of MiFID II. For further information, click here.

 

ESMA2
13/11/2017

ESMA highlights ICO risks for investors and firms

The ESMA has issued two Statements on Initial Coin Offerings, one on risks of ICOs for investors and one on the rules applicable to firms involved in ICOs. For further information, click here.

 

OJ of the EU
11/11/2017

Delegated Regulation supplementing PSD 2 published in OJ

Delegated Regulation supplementing Directive (EU) 2015/2366 with regard to regulatory technical standards for the cooperation and exchange of information between competent authorities relating to the exercise of the right of establishment and the freedom to provide services of payment institutions. Entry into force: 01/12/2017. For further information, click here.

 

OJ of the EU
10/11/2017

Corrigendum to a regulation supplementing MiFID II published in OJ

Corrigendum to Commission Delegated Regulation (EU) 2017/1018 supplementing Directive 2014/65/EU on markets in financial instruments with regard to regulatory technical standards specifying information to be notified by investment firms, market operators and credit institutions. For further information, click here.

 

OJ of the EU
10/11/2017

Corrigendum to a Delegated Regulation supplementing MiFID II (German language version) published in OJ

Corrigendum to Delegated Regulation (EU) 2017/1943 supplementing Directive 2014/65/EU with regard to regulatory technical standards on information and requirements for the authorization of investment firms. For further information in German, click here.

 

ESMA2
10/11/2017

ESMA updated Q&As on MiFID II/MiFIR Investor Protection topics

The ESMA has added four new Q&As to its Questions and Answers document on the implementation of investor protection topics under MiFID II/ MiFIR. The new Q&As cover the topics of post-sale reporting, record keeping and inducements. For further information, click here.

 

ESMA2
09/11/2017

ESMA consults on systematic internalizers’ quote rules

The ESMA has opened a public consultation on a proposed amendment to the Regulatory Technical Standard (RTS 1) which details the implementation of MiFID II and MiFIR. For further information, click here.

 

EBA1
09/11/2017

EBA published an Opinion and Report on regulatory perimeter issues relating to the CRDIV/CRR

The EBA published an Opinion addressed to the European Parliament, Council and European Commission, on matters relating to the regulatory perimeter under CRDIV/CRR. For further information, click here.

 

ESMA2
08/11/2017

ESMA updated benchmarks Q&As on third country issues

The ESMA has published updated Questions and Answers regarding the implementation of the Benchmarks Regulation. For further information, click here.

 

EBA1
01/11/2017

EBA published final guidance on supervision of significant branches

The EBA published its final Guidelines on the supervision of significant branches. For further information, click here.

 

EBA1
01/11/2017

EBA recommends proportionate approach in coverage of entities in banking group recovery plans

The EBA published its final Recommendation on the coverage of entities in banking group recovery plans. For further information, click here.

 

ESMA2
30/10/2017

ESMA updates its Q&A under the Alternative Performance Measures guidelines

The ESMA has published six new questions in its Questions and Answers document on the implementation of its Guidelines on the Alternative Performance Measures for listed issuers. For further information, click here.

 

EBA1
30/10/2017

EBA provided overview of Competent Authorities implementation and transposition of the CRD IV package

The EBA updated today all the information disclosed by EU Competent Authorities according to its Implementing Technical Standards on supervisory disclosure. For further information, click here.

 

EBA1
30/10/2017

EBA announced final timeline for the 2018 EU-wide stress test

The Board of Supervisors of the EBA agreed in its meeting on the final timeline of the 2018 EU-wide stress test. For further information, click here.

 

Dr Bernd Geier
Co-head Financial Institutions, Europe
Co-head Financial Institutions Regulatory, Europe
Partner, Frankfurt
D +49 69 45 00 12 270
Email

 

 

Regulatory Developments in Germany 

 

BaFin
November 2017

Publication of the monthly journal from the Federal Financial Supervisory Authority

Topics (selection): Initial Coin Offerings / MaRisk / Securitizations / Sustainability / Fines. For further information in German, click here.

BaFin3
27/11/2017

BaFin publishes leaflet on the authorization procedure for UCITS capital management companies

The BaFin has published a new leaflet on the authorization procedure for UCITS capital management companies in accordance with sec. 21 of the German Capital Investment Code (KAGB). For further information in German, click here.

BaFin3
20/11/2017

MiFIR / MiFID II: Transaction reporting, order record keeping and clock synchronization: BaFin will apply ESMA guidelines

The BaFin announced that it will apply the ESMA guidelines in its supervisory practice. For further information in German, click here.

 

BaFin3
15/11/2017

Consultation on the General Ruling "Exemption of systematic internalizers from the obligation to quote in respect of illiquid financial instruments" (Anhörung zur Allgemeinverfügung "Befreiung systematischer Internalisierer von der Quotierungspflicht bei illiquiden Finanzinstrumenten")

For further information in German, click here.

 

BaFin3
15/11/2017

Frequently asked questions about outsourcing according to sec. 36 of the German Capital Investment Code (Kapitalanlagegesetzbuch - “KAGB”)

In this letter the BaFin answers frequently asked questions about outsourcing under sec. 36 of the German Capital Investment Code (FAQ). For further information in German, click here.

 

German
Federal Gazette
14/11/2017

Announcement on the entry into force of parts of the Retail Investor Protection Act (Kleinanlegerschutzgesetz)

– published in the German Federal Gazette. For further information, click here.

 

German
Federal Gazette
10/11/2017

Third Ordinance amending the Securities Trading Indices and Insider Trading Ordinance (Dritte Verordnung zur Änderung der Wertpapierhandelsanzeige- und Insiderverzeichnis-verordnung)

- published in the German Federal Gazette. For further information, click here.

 

BaFin3
09/11/2017

BaFin published Consumer Warning: Risks of Initial Coin Offerings (ICOs)

The BaFin points out that the purchase of coins - depending on their design also referred to as “tokens” - involves considerable risks for investors in the context of so-called initial coin offers (ICOs). For further information in German, click here.

 

BaFin3
06/11/2017

Circular 10/2017 (BA) - Banking supervisory requirements for IT (BAIT)

On the basis of sec. 25a (1) of the German Banking Act (Kreditwesengesetz - KWG), this circular provides a flexible and practical framework for the technical and organizational equipment of the institutions, in particular for the management of IT resources and IT risk management. It also specifies the requirements of sec. 25b German Banking Act (outsourcing of activities and processes). For further information in German, click here.

 

BaFin3
02/11/2017

BaFin consults amended circular on compliance on the minimum requirements for the compliance function and the other duties of conduct, organization and transparency pursuant to sections 31 et seq. Securities Trading Act (Wertpapierhandelsgesetz - WpHG) for investment firms

Due to amendments introduced by MiFID II, which will come into force on 3 January 2018, the BaFin intends to revise its circular on the minimum requirements for the compliance function and the other duties of conduct, organization and transparency pursuant to sections 31 et seq. Securities Trading Act (Wertpapierhandelsgesetz - WpHG) for investment firms (MaComp). For further information in German, click here.

 

Dr Bernd Geier
Co-head Financial Institutions, Europe
Co-head Financial Institutions Regulatory, Europe
Partner, Frankfurt
D +49 69 45 00 12 270
Email

 

Regulatory developments in Czech Republic 

     

Czech
National Bank
13/11/2017

The Czech National Bank published a new methodological and interpretative document

It is an official answer to an enquiry regarding the amendment to the Act on Business Activities on the Capital Market with respect to changes related to position of investment intermediaries. After 03/01/2018, an investment intermediary needs to notify the Czech National Bank, without undue delay, of any changes (that happened after 03/01/2018) about the facts on the basis of which it was registered with the Czech National Bank.

In addition, there are new prerequisites for the business activities of investment intermediaries, including compulsory insurance, submission of an actual plan of commercial activity or transparent initial capital (these requirements apply only to legal entities). For more information in Czech, click here.

 

Czech
National Bank
20/11/2017

 

CNB added three new answers to existing document

The answers were added to the document “A set of answers to questions related to new MiFID II / MiFIR set of conditions.” The MiFID II / MiFIR regime will come into force on 3 January 2018. These answers are related to the concurrence of positions of compliance and risk manager of the broker (the concurrence of positions is possible under specific circumstances), the possible application of general rules on the execution of orders in the case of Over-The-Counter (OTC) derivatives agreements (general rules are applicable) and financial collateral arrangements. For more information in Czech, click here.

 

Czech
National Bank
21/11/2017

Czech version of the ESMA Statements

“ESMA alerts firms involved in Initial Coin Offerings (ICOs) to the need to meet relevant regulatory requirements” was published.

In addition, a Czech version of the ESMA Statement “ESMA alerts investors to the high risks of the Initial Coin Offerings (ICOs)” was also published.

An ICO is an innovative way of raising money from the public, using so-called coins or tokens and can also be called an initial token offering or token sale. In an ICO, a business or individual issues coins or tokens and puts them for sale in exchange for fiat currencies, e.g. Euro, or more often virtual currencies, e.g. Bitcoin or Ether. However, ICOs are very risky and highly speculative investments. They are also vulnerable to the risk of fraud or money laundering. For more information in Czech, click here and here.

 

Filip Michalec
Associate, Prague
D +420 236 082 264
Email

 

Regulatory developments in Luxemburg 

     

CSSF
Communication
29/11/2017

MiFID II / MiFIR: Mandatory LEI for Transaction Reporting

For further information in French, click here.

     

CSSF Warnings
24/1172017

CSSF Warnings

Company called “Hush” - For further information in French, click here.

Company called “Le Pay Bank” - For further information in French, click here.

Company called “Crown Managers” - For further information in French, click here.

   

CSSF Circular
17/673
15/11/2017

Circular CSSF 17/673

Adoption of the EBA Guidelines on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (EBA/GL/2016/11). For further information in French, click here.

   

CSSF Statistics
31/10/2017

Global situation of undertakings for collective investment at the end of September 2017

For further information in French, click here.

   

CSSF Press Release 17/36
30/10/2017

CSSF Reminder about EU Regulation 2016/1011 – Use of Index as Benchmark (only in French)

For further information in French, click here.

   

CSSF Newsletter
November 2017

CSSF Newsletter N°202

For further information in French, click here.

     

CSSF Circular
17/671
October 2017

Circular CSSF 17/672

FATF statements concerning
1) jurisdictions whose anti-money laundering and combating the financing of terrorism regime has substantial and strategic deficiencies;
2) jurisdictions whose anti-money laundering and combating the financing of terrorism regime requires the application of enhanced due diligence measures proportionate to the risks arising from these jurisdictions;
3) jurisdictions whose anti-money laundering and combating the financing of terrorism regime is not satisfactory. For further information in French, click here.

 

Jeannette Vaude-Perrin
Counsel, Luxembourg
D +352 46 83 83 248
Email

 

Regulatory developments in Spain 

     

Official Gazette
25/11/2017

Non-financial information and diversity

The Spanish Official Gazette (“BOE”) has published the Royal Law Decree 18/2017, dated November 24, whereby the Code of Commerce, the consolidated text of the Companies Act passed by the Royal Legislative Decree 1/2010, dated July 2 and Act 22/2015, dated July 20, on Auditors of Accounts, are amended, in order to set forth a new regime regarding non-financial information and diversity. For further information in Spanish, click here.

     

Official Gazette
25/11/2017

Payment accounts and comparability of fees

The Spanish Official Gazette (BOE) the Royal Law Decree 19/2017, dated November 24, on basic payment accounts, transfer of payment accounts and comparability of fees. For further information in Spanish, click here.

   

CNMV
16/11/2017

MIFID II / MIFIR – new aspects re markets and financial instruments

The Spanish National Securities Market Commission (CNMV) has published the implementation of new aspects regarding markets and financial instruments under MiFID II and MiFIR. For further information in Spanish, click here.

 

CNMV
14/11/2017

MIFID II / MIFIR

The Spanish National Securities Market Commission (CNMV) has authorized the deferral regime of the publishing of transactions regarding financial instruments different from variable income, pursuant to article 11 MiFIR. For further information in Spanish, click here.

 

Official Gazette
7/11/2017

Foreign collective investment schemes

The Spanish Official Gazette (BOE) has published the Circular 2/2017, dated October 25, whereby the Circular 2/2011, dated June 9, on information regarding foreign collective investment schemes filed with the registers of the Spanish National Securities Market Commission (CNMV), is amended. For further information in Spanish, click here.

 

General
Directorate of the
Treasury
6/11/2017

Public indebtedness

The General Directorate of the Treasury has published the Resolution, dated October 5, of the General Secretary of the Treasury and Financial Policy, whereby Annex I of Resolution dated July 4, on the principle of “financial prudence” regarding indebtedness and derivatives operations of Autonomous Regions (Comunidades Autonómas) and Local Entities (Entidades Locales) is updated. For further information in Spanish, click here.

 

Official Gazette
2/11/2017

Financial entities

The Spanish Official Gazette (BOE) has published the Circular 3/2017, dated October 24, of the Bank of Spain, whereby the Circular 2/2014, dated January 31, on implementation of some measures established by the European Regulation 575/2013, is amended. For further information in Spanish, click here.

 

Jesus Mardomingo
Partner, Madrid
D +34 91 43 61 370
Email

 

About this newsletter 

Through its global network of more than 120 offices, Dentons is the world’s largest law firm and provides tailored legal advice and comprehensive information on financial regulatory developments. Compliance with financial regulation has become a task that requires financial institutions to monitor all kinds of regulatory developments, many of which stem from EU legislation. Dentons tackles these challenges, and in particular monitors country risks, providing comprehensive information on regulatory developments. If you wish to learn more about this newsletter and further jurisdictions that we monitor, please contact us.
 

Dr Bernd Geier
Co-head Financial Institutions, Europe
Co-head Financial Institutions Regulatory, Europe
Partner, Frankfurt
D +49 69 45 00 12 270
Email

 
   

Dentons is the world's largest law firm, delivering quality and value to clients around the globe. Dentons is a leader on the Acritas Global Elite Brand Index, a BTI Client Service 30 Award winner and recognized by prominent business and legal publications for its innovations in client service, including founding Nextlaw Labs and the Nextlaw Global Referral Network. Dentons' polycentric approach and world-class talent challenge the status quo to advance client interests in the communities in which we live and work. www.dentons.com.

 

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