There have been many developments in national and European financial markets regulation over the past month. We provide a brief overview of these developments, which include the Basel Committee’s post-crisis reforms agreement, the Dutch Central Bank’s supervisory priorities for 2018, and Euronext’s new rules for reverse listings.
Consultations of the Dutch Ministry of Finance
Financial markets Amendment Decree 2018
The Dutch Ministry of Finance has published the Financial Markets Amendment Decree 2018. This draft decree includes the following proposals:
The consultation closes on 14 January 2018.
Financial Markets Remedial Decree 2018
The Dutch Ministry of Finance has launched a consultation on a decree remedying a number of mistakes and omissions which occurred during the implementation of European directives and regulations, including the Capital Requirements Directive, the Capital Requirements Regulation and the Solvency II Directive.
The consultation closes on 31 December 2017.
Euronext announces new rules for reverse listings
Euronext has published new rules for reverse listings. In the context of the new policy, “reverse listings” are defined as transactions by an issuer that lacks any meaningful assets (as determined by Euronext). The new rules include:
The listing fees will consist of an administrative fee of EUR 40,000 and the subsequent admission fee for the listing of the shares to be issued and listed.
Euronext has also amended its Rule Book II to reflect these changes in the reverse listing rules. The new policy will apply from 1 January 2018.
Basel Committee’s post-crisis reforms agreement
The Basel Committee on Banking Supervision has reached an agreement on outstanding Basel III bank capital reforms, including changes to:
In addition, the output floor for capital requirements was set at 72.5%.
These reforms must be implemented throughout the EU in order to become binding on banks. The European Commission has said that it will consult European institutions, member states and various stakeholders before amendments to implement these standards in the EU Capital Requirement Regulation and Directive are proposed.
Developments: EU Banking Reform package
Following the political agreement reached in October 2017, the European Parliament and the Council of the EU have adopted:
The Estonian EU Presidency has also published a progress report on the package and has published presidency compromise texts of the four remaining legislative proposals in the package.
On 5 December 2017, the Dutch Minister of Finance launched a consultation for the draft bill implementing the directive amending the BRRD in relation to bank creditor hierarchy. The consultation will run until 9 January 2018.
Common rules and new framework for securitisation adopted by the Council of the EU
Following the adoption by the European Parliament, the Council has now also adopted new rules to ensure simple, transparent and standardised securitisation. This includes a regulation on securitisation and an amendment to the CRR.
MiFID II publications
The Dutch financial markets supervisor AFM expects market participants to comply with MiFID II requirements as of 3 January 2018, unless this cannot be reasonably expected from individual market participants. In its supervision under MiFID II, the AFM will focus on investor protection and on implementing safeguards for the proper functioning of the financial markets.
Recent MiFID II publications by the European financial markets supervisor (ESMA) include:
The Dutch Bank supervisory publishes supervisory priorities
The Dutch Central Bank (DNB) has published its “Supervision Outlook for 2018” and “Vision on Supervision for 2018-2022”. In the coming years, DNB will prioritise the key themes of technological innovation and the impact of climate change. DNB will also harden its stance on combating financial and economic crime. DNB’s Supervision Outlook for 2018 details the sector-wide priorities identified in the supervisory strategy for banks, insurance companies, and pension funds.
Implementation of the PRIIPs Regulation
The Decree implementing the Regulation on Key Information Documents (KIDs) for Packaged Retail and Insurance-Based Investment Products (PRIIPs) was published in the Bulletin of Acts and Decrees on 28 November 2017. It will enter into force on 1 January 2018. The Act implementing the PRIIPs Regulation will also enter into force on 1 January 2018.
New Q&As on the Market Abuse Regulation
ESMA has published an updated version of its Q&As on the MAR to include new questions on transactions by managers:
Official Journal EU
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