Welcome to the latest edition of KPMG Regulatory Horizons from KPMG's EMA Financial Services Risk & Regulatory Insight Centre (RRIC) – your ‘go to’ read for insights on financial services regulation from the perspective of the EMA region.
- Regulatory agendas bend, but do not break: In response to the COVID-19 pandemic, regulators have been introducing new concessions or restrictions and delaying the implementation of new rules or consultation deadlines. The wider regulatory agenda currently continues, though. There are changes to relative priorities and some delays to work plans, but little reduction in regulatory outputs.
- Regulatory response to COVID-19: For financial regulators, the start of 2020 has been overshadowed by the coronavirus pandemic. Work plans and timelines have required swift and decisive reprioritisation, as regulators react to the extraordinary pressures confronting markets, firms and consumers.
- COVID-19: Emerging risks: The COVID-19 pandemic is a global stress event that is testing all businesses’ financial, operational and commercial resilience. Against this backdrop, the financial services sector is having to adapt rapidly and at scale to unprecedented constraints and market conditions.
- MiFID II / MiFIR review – Started but a way to go: Given the size of the task and the impact of COVID-19 on resources, it will be sometime before the MiFID II/MiFIR review is concluded, but there are already indications of possible rule changes.
- Shaping a digital finance strategy: The European Commission is seeking views on a new digital finance strategy for Europe and on a retail payments strategy. As set out in its 2020 work programme, the Commission will publish, in Q3 2020, a new digital finance strategy/FinTech action plan that will set out areas that public policy should focus on in the coming five years.
- Spotlight on retail investment products: The regulatory focus on performance and costs of retail investment products continues. ESMA’s and EIOPA’s latest reports reveal continued issues around data availability in some sectors.