EU banks’ funding plans to return to a pre-pandemic funding composition by 2023

10 September 2021

The European Banking Authority (EBA) recently published its annual update on EU banks’ funding plans, which helps EU supervisors assess the sustainability of banks’ main sources of funding. The results of the funding plans assessment show the impact the pandemic had on EU banks’ funding composition. The plans point to a gradual ‘normalisation’ of banks’ sources of funding over the next three years. This implies in particular a partial replacement of central bank funding with market-based funding. Continue reading…

Foundation SOMI starts collective investigation into 533 million leaked Facebook accounts

08 September 2021
Knowledge Base

As of today, the SOMI Foundation makes it possible for all European consumers to check via its SOMI app whether they have become a victim of the Facebook data leak from April this year. It can also reveal which of their personal data is circulating on the Dark Web. In total, personal data of more than 533 million Facebook accounts were leaked in April 2021, including 96.7 million European accounts. After verifying their own data, consumers can participate in the foundation’s legal investigation and possible collective claim against Facebook, which requires collection of evidence of GDPR violation from the data breach. The foundation is offering a total of €10,000 to anyone who can prove with their personal data that Facebook has violated the GDPR. Continue reading…

Photo: 18-01-2018, amsterdam, ict recht, Partners Arnoud Engelfriet en Steven Ras foto en copyright leonard faustle

Arnoud Engelfriet: “We are going to innovate the legal market and make it more efficient”

06 September 2021
Knowledge Base

by Michel Klompmaker

We recently spoke with Arnoud Engelfriet in the heart of Amsterdam about Lynn Legal’s legal tech solution. Lynn Legal is actually a kind of cross between a modern IT company and a legal consultancy. Founders Arnoud Engelfriet and Steven Ras (see photo from left to right) are convinced that legal processes can be organised more intuitively and efficiently thanks to the application of modern technology. Their lawyer bots have already reviewed more than 14,000 NDAs and more than 1,000 data processing agreements since the beginning of 2021. In total, more than 50,000 legal problems have been spotted and resolved. We spoke with Arnoud about the background, the present and the future. Continue reading…

The lessons we are learning from the COVID-19 pandemic: An FSB perspective

03 September 2021

Dietrich Domanski, Secretary General, Financial Stability Board recently delivered a keynote speech at the Asian Banker Finance China 2021 Conference: New Era, new finance and new collaboration. Thank you for inviting me to Finance China 2021. I am sorry I am unable to attend in person, but I am optimistic that we will be able to travel more regularly and meet in person soon. Vaccines are rolling out across the globe, even though at different pace across countries and regions. And while there are mounting signs of global recovery, some risks to financial stability still remain elevated. Economic uncertainty is still high and negative surprises could test the liquidity of financial markets. Continue reading…

Lieve Lowet

Lieve Lowet

EU Affairs consultant and lobbyist

The supervision of run-off undertakings

01 September 2021
Knowledge Base

On 23 July 2021, EIOPA issued a consultation on a potential new supervisory statement, focusing this time on the supervision of run-off undertakings. The aim of any supervisory statement is to ensure the application of high-quality and convergent supervision. Run-off undertakings or portfolios are unabridged subject to the Solvency II (SII) prudential framework in which no specific provisions are foreseen for these “insurance undertakings”. In a dynamic and competitive European insurance market where it should be possible for players to come and go, a clear framework for run-off undertakings seems logical. In addition, there is an increasing interest in the acquisitions of run-off portfolios and run-off undertakings by other insurance undertakings and specialised investment entities such as private equity. Therefore, one could argue that, because the SII framework is lacking a specific regulation, this void needs to be filled. Does this mean that the proportionality principle is not specific enough to deal with particularities of nature, size and complexity?  Continue reading…

FCA stops BDSwiss offering contracts for differences (CFDs) to UK customers

26 August 2021

The FCA has acted to stop a Cypriot-based firm, BDSwiss Holding Plc, and other members of the BDSwiss Group from offering high risk contracts for differences (CFDs) to UK investors. The BDSwiss Group trades using the brands BDSwiss, Swissmarkets and BDS Trading. The BDSwiss Group used the fact that one of its firms was regulated in the UK to convey legitimacy on the group as a whole. However, 99% of UK consumers taken on by the group traded through the group’s overseas entities. These overseas firms had no authorisation to provide regulated services in the UK, and consumers who traded with the overseas firms lost the protections given to consumers who trade with an authorised firm. In particular, the overseas firms did not comply with the FCA’s restrictions on the marketing and sale of CFDs to retail consumers. Continue reading…

BIS Innovation Hub and HKMA investigate how tokenised green bonds can improve sustainable investment

25 August 2021
Knowledge Base

In many countries, issuing and investing in bonds can be cumbersome and complex, involving many steps and parties, and typically requiring a considerable financial commitment from the investor. For those investing in environmentally friendly projects, there is uncertainty about whether the bond issuer is delivering the positive green impact it committed to at issuance. Also, there are typically no liquid and transparent secondary markets for retail investors. The Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre and the Hong Kong Monetary Authority (HKMA) joined forces with the technology industry on Project Genesis to build a prototype digital infrastructure that enables green investments, improves transparency on the use of proceeds, and thereby helps meet regional and global environmental and sustainability goals. Continue reading…

Fraud involving sale of facemasks halted thanks to Eurojust support

20 August 2021
Knowledge Base

An online scam involving the sale of protective materials against COVID-19, such as facemasks, has been halted with the support of Eurojust. During a joint action day conducted on 10 August, 34 searches took place across Romania, Ireland and the Netherlands. In total, 23 suspects were charged, of whom ten have been detained, with Eurojust enabling cross-border judicial cooperation. Companies in at least 20 countries were defrauded of approximately EUR 1 million. Continue reading…

DTCC Derivatives Repository fined €408,000 for EMIR data breaches

18 August 2021
Knowledge Base

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, has fined DTCC Derivatives Repository Plc (DDRL) a total of €408,000 for seven infringements of the European Market Infrastructure Regulation (EMIR) regarding data confidentiality, data integrity, and direct and immediate access to data. The breaches relate to: granting certain asset managers access to data that they were not entitled to receive; setting up its IT system in a way which altered the substance of certain information reported to DDRL; and failing to provide regulators with direct and immediate access to relevant data. Continue reading…