Welcome to our ‘summer special’, a previously unplanned edition but deemed necessary because the regulators were very busy publishing numerous updates in the lead up to the August holiday season.
The three European Supervision Authorities (ESAs) have finalised their Anti-Money Laundering (AML) guidelines on how financial institutions can take a more risk-based approach to AML and countering the financing of terrorism, under the Fourth AML Directive. These guidelines are helpful in setting out the factors that may influence whether a client could be subject to SDD (Simplified Customer Due Diligence), or indeed will require EDD (Enhanced Due Diligence).
We look at the implications of the Financial Stability Board (FSB) FinTech report, published at the end of June, highlighting ten issues that merit the attention of supervisors and regulators, of which the first three are put forward as priority areas for international cooperation.
In MiFID II news, ESMA has said it does not expect to release the final guidelines until the first half of 2018, after the implementation deadline of 3 January 2018. We look at the demanding position this leaves firms in. Continuing with cross-sector updates, the ESAs have issued the first set of Q&As relating to the PRIIP KID. With the imminent end-2017 deadline, we discuss how firms must continue to work towards this target, and the effective earlier deadline for PRIIPs invested in by other PRIIPs. And we break down the key points of latest three guidance documents relating to the joint workplan on CCP resilience, recovery and resolvability.
In asset management, IOSCO has continued its dialogue on liquidity risk management in investment funds, and has issued its report on progress made in the protection of client assets.
And in banking, our European Central Bank office has published a report on what the long term prospects of the European banking sector are, in the light of the ECB’s report on financial structures.