The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, has recently published its Data Strategy for 2023-2028. Over the coming five years, ESMA will work to facilitate the use of new data-related technologies, reduce reporting compliance costs by regulated entities, enable the effective use of data at both EU and national level; and make data more broadly available to the public. Continue reading…

The Swiss Financial Market Supervisory Authority (FINMA) has on 24 August published guidance on the money laundering risk analysis. By doing so, it is creating transparency about its observations and experiences gained from supervisory practice in this area. FINMA has repeatedly identified shortcomings in the area of the money laundering risk analysis during on-site supervisory reviews. This prompted it to conduct an in-depth review of the money laundering risk analyses of more than thirty banks in spring 2023.

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Following a review of fund managers’ value assessments, the FCA has found that while many firms have better practices in place, some still require improvement. In 2017, the FCA published its Asset Management Market Study, which found evidence of weak demand-side pressure on fund prices, resulting in uncompetitive outcomes for investors in authorised funds. Since then, the FCA has worked closely with industry to encourage a greater focus on assessment of value, to drive improved value for money for investors.  Continue reading…

The International Association of Insurance Supervisors (IAIS) has recently published a mid-year preview of its 2023 Global Monitoring Exercise (GME) analysis in advance of publishing the Global Insurance Market Report (GIMAR) in December. The GIMAR mid-year update covers (1) interim results on solvency, profitability and liquidity positions, systemic risk developments and the interconnectedness with banks; (2) an update on the key themes in scope of the 2023 GME; and (3) next steps. The GME builds on data collected from approximately 60 of the largest international insurance groups and aggregate sector-wide data from supervisors across the globe, covering over 90% of global written premiums. Continue reading…

The European Commission welcomed the recent adoption by the Council of further targeted restrictive measures arising from Russia’s illegal invasion of Ukraine, and in response to Belarus’s involvement in the aggression. In particular, the new measures create a closer alignment of EU sanctions targeting Russia and Belarus and will help to ensure that Russian sanctions cannot be circumvented through Belarus. Continue reading…

The High Court has ruled in favour of the FCA against Robin Forster, the director of a company which took £57 million from 380 investors in an illegal care home investment scheme. The FCA will ask the Court to determine the sums that the defendants should be required to pay back to investors. Between 2016 and 2020, Qualia Care Properties Ltd and Qualia Care Developments Ltd offered investments in care homes run by a third company, Qualia Care Limited.

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The European Central Bank (ECB) is asking European citizens about their views on the proposed themes for the next series of euro banknotes. From 10 July until 31 August 2023 everybody in the euro area can respond to a survey on the ECB’s website. In addition, to ensure opinions from across the euro area are equally represented, the ECB has contracted an independent research company to ask a representative sample of people in the euro area the same questions as those in its own survey. ECB President Christine Lagarde invites everybody to participate in the survey. She said “There is a strong link between our single currency and our shared European identity, and our new series of banknotes should emphasise this. We want Europeans to identify with the design of euro banknotes, which is why they will play an active role in selecting the new theme.” Continue reading…

The European Commission endorsed last week a positive preliminary assessment of 54 milestones and targets linked to Italy’s third payment request under the Recovery and Resilience Facility (RRF), the key instrument at the heart of NextGenerationEU. On 30 December 2022, Italy submitted to the Commission a third payment request based on the milestones and targets set out in the Council Implementing Decision. After assessing the evidence provided by the Italian authorities, the Commission considered 39 milestones and 15 targets to be satisfactorily fulfilled. The 54 milestones and targets that have been satisfactorily fulfilled demonstrate significant progress in the implementation of Italy’s recovery and resilience plan. They cover wide-ranging transformative reforms in the areas of competition law, the justice system, public and tax administration, as well as education, the labour market and the healthcare system. The payment request also covers investments to foster the digital and green transition, and to improve support for research, innovation and education.
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The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) has recently published their Progress Reports on Greenwashing in the financial sector. See EBA, EIOPA, and ESMA reports. In these reports, the ESAs put forward a common high-level understanding of greenwashing applicable to market participants across their respective remits – banking, insurance and pensions and financial markets. Continue reading…

In 2013, the Financial Stability Board (FSB) established the Official Sector Steering Group (OSSG) with the view of promoting the effective collaboration of the global official sector towards the end goal of successful transition to robust benchmarks, including the transition away from LIBOR. After a decade of preparation, the LIBOR transition has entered its final stage. The end of June 2023 marked the final major milestone in the LIBOR transition with the end of the remaining USD LIBOR panel. Only three of the US dollar LIBOR settings will continue in a synthetic form after June 2023 and are intended to cease at end-September 2024. In addition, reform of other interest rate benchmarks and related transition efforts have either been completed or near their planned, final conclusion. Continue reading…