There have been many developments in national and European financial markets regulation during the past month. We provide a brief overview of these developments, which include PSD2 publications, anti-money laundering publications, and the ECB’s SREP methodology for less significant institutions.
The Dutch Central Bank has announced that as of 6 July 2018, interested parties may apply for a licence under PSD2 to provide payment services. The Dutch supervisor will immediately start assessing these applications, enabling it to grant PSD2 licences soon after the PSD2-related legislation comes into effect. The latter date depends on a number of factors, including how long parliament will take to consider amendments to the bill implementing PSD2.
The European Banking Authority (EBA) has published an opinion on the implementation of the regulatory technical standards (RTS) which will supplement PSD2 on strong customer authentication (SCA) and common and secure communication (CSC). A number of issues identified by market participants and Competent Authorities have been clarified and are meant to assist in the implementation of the standards.
The EBA has also launched a consultation on draft guidelines clarifying a number of issues identified by market participants in relation to these RTS. The consultation guidelines set out a pragmatic and consistent proposal for the four conditions that providers must meet in order to benefit from an exemption from the fallback option envisaged under Article 33(6) of the RTS.
In addition, the EBA has announced that it has updated its online Interactive Single Rulebook and Q&A tool to include PSD2.
The Fifth Anti-Money Laundering Directive has been published in the Official Journal of the EU. In addition, a bill implementing the Fourth Anti-Money Laundering Directive in the Netherlands was adopted by the First Chamber of the Dutch parliament on 10 July 2018. It is expected that this bill will enter into force soon.
Act on Transparent Financial Markets Supervision enters into force
This legislation entered into force on 1 July 2018.
ECB’s new SREP methodology for less significant institutions in Single Supervisory Mechanism
The European banking supervisor ECB has published the supervisory review and evaluation process (SREP) methodology for less significant institutions (LSIs). The ECB directly supervises the significant institutions in the euro zone, whereas LSIs are supervised by national supervisory authorities. In the Netherlands, the Dutch Central Bank is the national supervisory authority.
Within the Single Supervisory Mechanism (SSM), the ECB must ensure a level playing field among all banks (regardless of whether they qualify as significant or less significant), and it has a number of tools it can use to achieve this. These tools include developing joint supervisory processes. The SSM LSI SREP methodology was developed in close cooperation between the ECB and the national supervisory authorities and will impact how national supervisory authorities supervise LSIs.
National supervisory authorities must implement this methodology in an optional staggered approach, starting in 2018 for the high-priority LSIs (as a minimum), and by 2020 for all LSIs.
Second Directive on Institutions for Occupational Retirement Provision
The Dutch Central Bank has issued an update on IORP II and has published a presentation it gave during an IORP II workshop in June 2018. Click here for an IORP II page on the Dutch Central Bank website.
Financial Supervision Funding
The 2018 Ministerial Regulation on the Funding of Financial Supervision has been published. The new fees for ongoing supervision by the Dutch supervisor AFM and the Dutch Central Bank are broadly in line with the fees in 2017.
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