In context

Financial Markets in brief – new regulation and other developments

October 16, 2018
In context

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 the European Parliament’s ICOs regulation, the adoption of the bill implementing PSD2 by the Second Chamber of the Dutch Parliament, and new Q&As on the Market Abuse Regulation.

Highlighted publications


European Parliament ICOs regulation

The European Commission submitted a proposal for a regulation on European crowdfunding service providers in March. The European Parliament has recently proposed including ICOs in these new rules. This means that ICOs with a consideration of more than EUR 8 million per issuance may be regulated. The regulation will only apply to:

  • the primary issuance or selling of tokens;
  • ICOs of tokens where there is a centralised issuer of the tokens;
  • ICOs of tokens that are either loans or transferable securities.


Thematic review of banks’ profitability and business models

The European Central Bank (ECB) has published the findings of its thematic review, conducted from 2016 to the end of the first quarter of 2018, into the profitability and business models of banks. The profitability and business models remain under pressure, despite the general improvement in banks’ economic situation. These findings feed into the 2018 Supervisory Review and Evaluation Process (SREP) and may lead to on-site inspections and “deep dives”.


Implementation of PSD2 in the Netherlands

The Second Chamber has adopted the bill implementing the Payment Services in the Internal Market Directive (PSD2) in the Netherlands. According to the First Chamber, the preparatory research of its finance committee was to take place on 16 October 2018.


Following a consultation for the draft Decree implementing PSD2 in September 2017, the Minister of Finance published the draft Decree on 17 September 2018. The Decree will implement new PSD2 requirements for obtaining authorisation as a payment institution, for internal operations, and for provision of information by payment initiation services providers.


Implementation of Directive amending bank creditor hierarchy

The bill amending the Bankruptcy Act to implement the directive amending the Bank Recovery and Resolution Directive (BRRD) as regards bank creditor hierarchy was adopted by the Second Chamber on 27 September 2018. According to the website of the First Chamber, the bill will be passed by the First Chamber as a formality without a debate on 16 October 2018. The Directive requires that member states create a new class of “non-preferred senior debt” eligible for bail-in.


European supervisors intend to propose amendments to PRIIPs Delegated Regulation

The European Supervisory Authorities (ESAs) have sent a letter to the European Commission to express their concerns about the possibility of duplicating information requirements for investment funds as of 1 January 2020 due to the Regulation on Key Information Documents (KIDs) for Packaged Retail and Insurance-Based Investment Products (PRIIPs). They deem it unsatisfactory that retail investors would receive both a PRIIPs KID and a UCITS key investor information document. To avoid such a situation, and to address other issues related to the practical application of the KID, the ESAs intend to submit proposals for targeted amendments to the PRIIPs Delegated Regulation to the European Commission in the first quarter of 2019. A short public consultation will be launched by the ESAs during the fourth quarter of this year.


DNB launches final Q&A on the ORSA

Following a consultation launched by DNB on a Q&A regarding the question of whether insurers are permitted to proportionally execute the Own Risk and Solvency Assessment (ORSA), DNB published the final Q&A on 17 September 2018. DNB has also published a factsheet on the applicability of proportionality.


New Q&As on the Market Abuse Regulation

ESMA has updated its Q&A document on the Market Abuse Regulation. It includes three new questions on:

  • the conditions for delayed disclosure of inside information by credit institutions and financial institutions
  • whether these institutions are required to notify their national competent authority of the expected duration of the delay
  • whether these institutions are allowed to delay publication on their own responsibility when the national competent authority does not consent to the delay.


Other publications














Official Journal EU











  • Creditor Identifier Overview (Version 6.0) (EPC262-08), EPC, 18 September 2018
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