CENTRE for REGULATORY STRATEGY EMEA Risk and Regulation Monthly November 2020 Contents CONTENTS HIGHLIGHTS COVID-19 BANKING CAPITAL MARKETS INVESTMENT MANAGEMENT CENTRAL BANK OF IRELAND OTHER CONTACTS Highlights In Ireland, the Central Bank published the outcome of its thematic review of fund management companies. It was found that a significant number of firms have not fully implemented the framework for governance, management and oversight in fund management companies. The European Commission published a consultation on AIFMD. This ask respondents whether fund delegation rules should be accompanied with quantitative criteria or a list of core functions that cannot be delegated. For a full list of COVID-19 related regulatory, monetary and fiscal policy initiatives, please see our report available here. COVID-19 Speech by Pablo Hernández de Cos, Governor of the Bank of Spain, on EU Spain's experience with risks and ECB vulnerabilities in the corporate sector as a result of the COVID-19 crisis Speech by Philip R. Lane, Member of the Executive Board at the ECB, on the Speech by Luigi Federico Signorini, ECB’s monetary policy in the pandemic Deputy Governor at the Bank of Italy on mobilising private finance for a Interview of Christine Lagarde, green recovery and hence “building President of the ECB on the role of the back better” ECB in non-normal times Macroprudential bulletin covering the Speech by Randal K Quarles, Vice usability of capital buffers Chairman for Supervision of the Board of Governors of the Federal Reserve ECB - SSM System, on lessons from the COVID-19 Keynote speech by Yves Mersch, stress on the financial system Member of the Executive Board at the ECB, on European economic Speech by Klaas Knot, President of the governance in relation to early lessons Dutch Central Bank on COVID-19 and from the COVID-19 crisis how to contain its impact on the financial system Int’l Speech by Randal K Quarles, Vice BIS Chairman for Supervision of the Board of Governors of the Federal Reserve Panel remarks by Agustín Carstens, System, on the Financial Stability General Manager at the BIS, on Board's roadmap for addressing NBFI rebuilding better banks, central banks vulnerabilities and governments in a COVID-19 economy Speech by Burkhard Balz, Member of the Executive Board of the Deutsche Speech by Cecilia Skingsley, Deputy Bundesbank, on COVID-19 and cashless Governor of the Sveriges Riksbank, on payments post-pandemic monetary policy and the future of the interest rate as a Welcome address by Ignazio Visco, policy tool Governor at the Bank of Italy, on financial stability implications of the Speech by Tiff Macklem, Governor of pandemic the Bank of Canada, on the importance of risk management from COVID-19 to Speech by Klaas Knot, President of climate Dutch Central Bank, on monetary policy responses to COVID-19 Publication by Patrizia Baudino, Senior Advisor at the Financial Stability Speech by Pablo Hernández de Cos, Institute, on stress-testing banks Governor of the Central Bank of Spain, during the COVID-19 pandemic on the role of the European Central Bank's monetary policy in the COVID- Blog by Gabriel Makhlouf, Governor of 19 crisis the Central Bank of Ireland, on inclusion, diversity, and the pandemic IMF Report on Global Financial Stability Assessment of the key vulnerabilities to which the global financial system is exposed Back to top Banking October 2020 Euro area bank lending survey Prudential Speech by Kerstin af Jochnick, Member EU of the Supervisory Board of the ECB, on supervision in times of uncertainty EBA ESMA Final guidelines on the appropriate subsets of exposures in the application Published its annual Public European of a systemic risk buffer Common Enforcement Priorities for 2020 Consultation response supporting the harmonisation of creditworthiness Int’l assessments for consumer credit BIS across the EU Research papers on the outlook for business bankruptcies, unemployment and reallocation from COVID-19 Final draft regulatory technical Speech by Pablo Hernandez de standards specifying the prudential Cos, Chair of the BCBS, on treatment of software assets COVID-19 and banking supervision, and future EBA Opinion on Finansinspektionen implications measure to enhance the resilience of Swedish banks to downward Statistical release on global corrections in residential real estate liquidity indicators at end-June markets 2020 Opinion to address possible infection FSB risk stemming from legacy instruments Update on work to address Issue of first monitoring report on market fragmentation TLAC-MREL instruments accompanied Conduct by 15 recommendations EU Consultation on revised guidelines on sound remuneration policies EBA ECB - SSM Consultation on the revision of Letter from Andrea Enria, Chair of the the guidelines on major incident Supervisory Board of the ECB, to Mr reporting under PSD2 Schirdewan, MEP, on the supervision of ECB - SSM Wirecard Bank AG Opinion piece by Yves Mersch, Speech by Kerstin af Jochnick, Member Member of the Executive Board of the Supervisory Board of the ECB of the ECB, regarding the ECB SSM, on the priorities for ECB Banking “raising the bar on bank Supervision amid the pandemic governance” Presentation by Edouard Fernandez- ECB Central Bank Bollo, Member of the Supervisory Board of the ECB, on financial Blog post by Isabel Schnabel, regulation in 2020, trends in the EU Member of the Executive Board and global patterns of the ECB, titled "Don’t take it for granted: the value of high- Opinion piece by Andrea Enria, Chair of quality data and statistics for the the Supervisory Board of the ECB, on ECB’s policymaking" bank asset quality SRB Speech by Elke Konig, Chair of Interview with Andrea Enria, the Single Resolution Board, to Chair of the Supervisory Board the European Parliament at the of the ECB ECON Committee on 27 October Int’l 2020 BIS Other Speech by Lael Brainard, EU Member of Board of Governors ECB - SSM at the US Federal Reserve, on modernizing and strengthening Letter from Andrea Enria, Chair Community Reinvestment Act of the Supervisory Board, to Mr regulations Melo, member of the European Parliament, on the appointment of national central bank governors Back to top Capital Markets Announcement on addition of UK venues to opinions on third-country Conduct trading venues EU Final report on amendments to the EC Market Abuse Regulation (MAR) for the promotion of the use of SME Adoption of CSDR RTS, further Growth Markets postponing settlement discipline measures until 1 February 2022 Int’l ECOFIN BIS Announcement on Council agreeing its Report submitted by a study group position on the Capital Markets chaired by Andréa M Maechler on FX Recovery Package execution algorithms and market functioning ESMA FSB Updated Q&As on securitisation topics and guidelines on portability of Announcement regarding FSB information between Securitisation publishing a global transition roadmap Repositories for LIBOR Public Consultation on Articles 15 and Other 49 of EMIR – this consultation covers EU technical standards in relation to authorisation for a CCP and validations ECB Central Bank of CCP’s changes to models Summary of feedback on public Consultation, aimed at clarifying consultation on compounded €STR common procedures for supervisory rates review, on guidelines under Article 21 of EMIR, which sets out an obligation for NCAs to review processes and mechanisms implemented by central counterparties and to evaluate the risks they are exposed to Back to top Investment Management Consultation on the review of AIFMD seeking views on how the AIFMD can be Conduct amended to ensure a more efficient EU EU AIF market ECON ESMA ESMA issues latest double volume cap Consultation on a review of the ELTIF to data evaluate the effectiveness of the ELTIF framework and to determine why the ELTIF market has not developed as expected Back to top Central Bank of Ireland Gerry Cross, Director of Policy and Risk and Investment Banking Supervision Domestic (Interim) delivered a speech titled “A The Central Bank published the financial sector better serving citizens outcome of its thematic review of fund and the economy: the role of management companies Supervisory Inspections in driving The Central Bank issued a press release improvements” titled “Impact of COVID-19 on Irish Deputy Governor Sharon Donnery enterprises has been sudden, large and delivered a speech on Ireland’s uneven” Engagement in Europe and Deeper Integration of Europe Back to top Other Speech by François Villeroy de Galhau, Governor of the Bank of France, on the Cyber digital revolution in payments EU Speech by Denis Beau, First Deputy ECB - SSM Governor of the Bank of France, on how the FinTech ecosystem can Speech by Pentti Hakkarainen, contribute to a more efficient and Member of the Supervisory Board of stable financial system the ECB, on banks' cyber resilience in the digital world FSB EIOPA Report on the use of supervisory and regulatory technology by authorities Guidelines on information and and regulated firms communication technology Final report and recommendations on security and governance, the regulation, supervision and including cyber security oversight of global stablecoin (GSC) capabilities arrangements Int’l Enhancing Cross-border Payments: FSB Stage 3 roadmap IMF Note on responses to the public consultation on effective practices for Policy paper on potential macro- cyber incident response and recovery financial effects of the use of central Publication