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The IMS Group's European Regulatory Develpoment Round-Up: November 2011
With so many regulatory developments currently in train at the various institutions of the EU, some of them a response to the 2008 financial crisis, others chalked into the schedule prior to it, it can be difficult to keep track of what is happening and when. Making this task even more challenging is the fact that the legislation in question is often still in proposal form and many months (even years), consultations, negotiations and votes lie ahead.
With this in mind this special publication will review certain of the key EU regulatory developments, seven in total, explaining their relevance to wholesale asset managers and securities firms while assisting firms to better understand the timeline of regulatory change that is heading our way. The EU regulatory developments discussed here are:
- the Regulation on Short Selling and certain aspects of credit default swaps
- the Regulation on OTC derivatives, central counterparties and trade repositories
- the Regulation on insider dealing and market manipulation (market abuse) and the Directive on criminal sanctions for insider dealing and market manipulation
- an amended and enhanced version of the Markets in Financial Instruments Directive (“MiFID”) and the Markets in Financial Instruments Regulation (“MiFIR”), collectively referred to as “MiFID II” or “the MiFID review”
- proposed amendments to the Transparency Directive
- a proposal for a Financial Transaction Tax
- a new Directive and a Regulation, collectively known as the Capital Requirements Directive (“CRD”) IV.
To aid this publication we have updated our regulatory timeline as we head into 2012. Click here for the latest version.
With the theme of regulatory change in national and international regimes for the regulation of financial services very much in the headlines, The IMS Group is holding a Regulatory Forum to help prepare investment firms for what lies ahead in 2012 and beyond. The event will be held on Wednesday, 25th January 2012 at Bloomberg’s premises in the City of London and will inform and entertain executives at wholesale financial services firms, in particular Compliance Officers, COOs and CEOs. Click here for more details.
We will continue to keep you informed about developments in the regulatory environment including enforcement actions relevant to you and your business through our regular briefings and periodic newsletter.
If you have any questions regarding any of the articles below, please contact Peter Moore, Stephen Burke or Alan Leale-Green. Alternatively telephone 020 7408 2448 to speak to your usual IMS contact.
Click here for a PDF of the whole content of this newsletter (printer friendly version).
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Bare necessities? The EU's harmonised Short Selling regime targets naked sovereign CDSAfter many months of discussion and divergence the EU finally reached agreement on its harmonised short selling regime on 18th October 2011. Whilst the measures are still subject to ratification by European Parliament and Council, they are expected to come into force on 1 November 2012.
Transparency in the Wild West: the European Commission’s proposal for the regulation of OTC derivatives
A year on from the G20’s Pittsburgh congress the European Commission published its proposals under EMIR’s official name of “Regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories”.
Watching MAD men: enhancement of the EU’s market abuse regime
On the 20th October 2011 the European Commission tabled its proposals to replace the existing Market Abuse Directive (MAD) with a new regulation and make amendments to criminal sanctions under a new directive.
The European Commission's MiFID II legislative proposal
On 20 October 2011, the European Commission published its legislative proposal to revise the Markets in Financial Instruments Directive (better known as “MiFID”).
Increased clarity: European Commission publishes draft proposals to amend the Transparency Directive
Faced with a motorcade of regulatory developments that are exhausting firms’ business change budgets, it will come as a relief to encounter one where the UK is ahead of schedule. On 25 October 2011, the European Commission published proposed amendments to the Transparency Directive (“TD”).
EU Financial Transaction Tax proposed from 2014
On the 28th of September 2011 the European Commission presented a proposal for a Financial Transaction Tax (“FTT”) to be levied on all transactions in financial instruments (including shares, bonds, derivatives and structured financial products) carried out between financial institutions when at least one party is located in the EU. It would come into effect some time from 1 January 2014 onwards.
Capital Requirements Directive goes fourth
In an effort to address the shortfalls in regulatory capital exposed by the financial crisis, the European Commission has issued far reaching proposals for a new Directive and a Regulation, collectively known as the Capital Requirements Directive (“CRD”) IV, which seeks to implement the globally agreed capital and liquidity standards known as Basel III.
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