From the EMA Financial Services Regulatory Centre of Excellence.
Recent developments in the battle for relocation of London-based European regulators have been hitting the headlines, with Paris becoming the unexpected home of both the European Banking Authority (EBA) and European Securities and Markets Agency (ESMA). This is a real boost for the French capital, and a clear indicator that Brexit is becoming a reality.
Sticking with the EBA, we have articles on two of their latest papers: we break down the detailed methodology of the 2018 stress tests, and we analyse their final Guidelines on the supervision of significant branches, looking at the implications for firms of both.
We have recently published a new banking paper Resolution: the evolving journey in Europe. This focuses in particular on operational continuity, minimum requirements for banks to hold loss absorbing capacity (MREL), and valuation preparedness for banks. This will potentially also be of interest to those in insurance where there are similar challenges ahead.
This brings us neatly to the insurance market, where the decision from the Financial Stability Board (FSB) that it would not be publishing a 2017 list of G-SIIs was not a surprise, but it does present challenges for the industry.
In our cross-sector articles, we digest the European Commission’s 2018 Work Programme and its plans for completing the ‘Better Regulation Agenda 2017’, and the FSB’s paper on artificial intelligence (AI) and machine learning in financial services.