Share with your friends
FS Regulatory Insights March 2018

FS Regulatory Insights June 2018

FS Regulatory Insights June 2018

Articles this month from the European regulators and international standard setters include:

  • the Basel Committee work programme and the shift of emphasis from policy development to consistent implementation;
  • the European Council response to CRR 2 and BRRD 2;
  • the EBA and ESMA statement on the treatment of retail holdings of bank debt for BRRD;
  • the European Commission’s proposals on sustainable finance.

There have been further updates on MiFID II this month as the European Parliament continues to react to market implementation issues – policymakers are taking an active role in adjusting MiFID II where necessary.

In addition to our European perspectives, in the UK the PRA and the Bank of England have finalised a number of policies following earlier consultation papers. We feature this month the finalisation of the Bank of England’s principles for the valuation capabilities of banks subject to a resolution strategy, where a number of important changes have been made as a result of the consultation process. In addition, the Bank of England and the PRA have finalised, with only minor changes, their policies on:

  • banks’ preparedness for valuation to support resolution (consulted upon in August 2017 and taking effect from January 2021) – further insights below;
  • setting internal MREL (minimum requirement for own funds and eligible liabilities) within banking groups (consulted upon in October 2017 and taking effect for relevant subsidiaries of G-SIBs from January 2019, and for relevant subsidiaries of other banking groups from January 2020);
  • banks’ reporting of their regulatory capital and other debt eligible to count towards meeting their MREL requirements (consulted upon in January 2018 and taking effect from January 2019); and
  • algorithmic trading (consulted upon in February 2018 and taking effect from end-June this year).

Previous edition