EBA Press Release: EBA consults on draft Technical Standards for the definition of material risk takers for remuneration purposes
The European Banking Authority launches today a consultation paper on draft Regulatory Technical Standards (RTS) on criteria to identify categories of staff whose professional activities have a material impact on an institution’s risk profile. These material risk takers will be subject to specific provisions of the Capital Requirements Directive (CRD) related, in particular, to the payment of variable remuneration. The consultation runs until 21 August.
EBA Press Release: EBA recommends supervisors to conduct asset quality reviews and adjusts the next EU-wide stress test timeline
The EBA agreed today on recommendations to supervisors to conduct asset quality reviews on major EU banks. While banks’ capital positions were significantly strengthened under the EBA’s recapitalisation exercise, the objective of the asset quality exercises will be to review banks’ classifications and valuations of their assets so to help dispel concerns over the deterioration of asset quality due to macroeconomic conditions in Europe.
The European Insurance and Occupational Pensions Authorities (EIOPA) launches the Call for Expression of Interest regarding the setting up of EIOPA Stakeholder Groups, the Insurance and Reinsurance Stakeholder Group (IRSG) and the Occupational Pensions Stakeholder Group (OPSG), following the expiration of their mandates later this year.
News agency Bloomberg committed an act of prohibited market manipulation by publishing an erroneous headline ahead of the central bank’s interest rate decision last week – HFSA established in a resolution. It has therefore imposed a fine of HUF 10 million on the news service. Although the news was published due to a technical error, the supervisory authority believes that the news agency failed to apply control mechanisms to prevent false news being published.
Mr. Steven Maijoor, Chair of the European Securities and Markets Authority (ESMA), which operates with the involvement of national financial supervisory authorities, on the invitation of Dr. Károly Szász, President of HFSA, visited Hungary on 16-17 April, 2013.
15 April 2013
27 March 2013
20 March 2013
18 March 2013, London
The report summarises the supervisory work undertaken by ESMA, during 2012, in ensuring that CRAs complied with the CRA Regulation. The report includes details on ESMA’s supervisory, registration, and policy work; and focuses on its investigation into bank rating methodologies and the follow up work to the March 2012 report on deficiencies in CRAs rating processes, governance and control mechanisms.
FRANKFURT, March 15, 2013 - The European Insurance and Occupational Pensions Authority (EIOPA) and the World Bank have signed an operational Memorandum of Understanding (MoU) to cooperate on developing the insurance sector.
The Board of Supervisors of the European Securities and Markets Authority (ESMA) yesterday elected Gérard Rameix as a member of its Management Board, which is responsible for ensuring that the Authority carries out its mission and performs the tasks assigned to it under its founding Regulation.
Frankfurt, 4 March 2013 – The European Insurance and Occupational Pensions Authority (EIOPA) has published today an Opinion on Supervisory Response to a Prolonged Low Interest Rate Environment.
28 February 2013
Recommendations of HFSA for the regulation and control of the Budapest interbank offered rates (BUBOR)
Budapest, 13 February 2013
Frankfurt, 22 February 2013 – The European Insurance and Occupational Pensions Authority (EIOPA) has published today its Report on Good Practices related to the provision of information for Defined Contribution (DC) schemes. The Report is part of EIOPA own-initiative work. It is addressed to policymakers responsible for information disclosure to pension scheme members
19 February 2013
The European Securities and Markets Authority (ESMA) has published its Final Report on The Proxy Advisor Industry. The report contains an analysis of the responses received to its March 2012 consultation and sets out the next steps for ESMA and the industry.
The European Securities and Markets Authority (ESMA) has published today its first report on trends, risks and vulnerabilities in European Union (EU) securities markets and a risk dashboard for the 4th Quarter 2012. The report looks at the performance of securities markets in 2012, assessing both trends and risks in order to develop a comprehensive picture of systemic and macro-prudential risks in the EU that can serve both national and EU bodies in their risk assessments. By regularly looking into cross-border and cross-sector trends and risks both at the wholesale and retail level, ESMA’s report will contribute to promoting financial stability and enhancing consumer protection.
1 February 2013
In a resolution dated 25 January 2013, the HFSA revoked the foundation and operating licence of AIM Általános Biztosító Zrt. (AIM General Insurance Co. Ltd.) and ordered the institution’s final settlement (winding up procedure) effective 28 January 2013.
23 January 2013
The European Securities and Markets Authority (ESMA) has published its 2013 CRA Supervision and Policy Work Plan.
The European Securities and Markets Authority (ESMA) has today published a review of 2011 IFRS financial statements related to impairment testing of goodwill - the value of intangible assets which has a quantifiable value - and other tangible assets. The review, which looked into the accounting practices of a sample of 235 European issuers from 23 countries, found €800bn (€790bn in 2010) worth of goodwill balances in the 2011 financial statements of issuers, with 5% (c. €40bn) of that amount recognised as impairment losses in 2011.
The European Securities and Markets Authority (ESMA) and the European Banking Authority (EBA) have today published the results of their joint work on Euribor and propose principles for benchmark rate-setting processes. The publications include:
The European Securities and Markets Authority (ESMA) has launched a Consultation Paper on Guidelines and Recommendations on the scope of the CRA Regulation. The draft Guidelines aim to provide clarification on certain aspects of the scope of the Credit Rating Agencies (CRA) Regulation to registered CRAs, other market participants operating on the perimeter of this sector and to national securities markets regulators.
Frankfurt, 20 December 2012 – The European Insurance and Occupational Pensions Authority (EIOPA) published today its Opinion on interim measures regarding Solvency II.
Frankfurt, 19 December 2012 – The European Insurance and Occupational Pensions Authority (EIOPA) will assess the impact of the Solvency II Long-Term Guarantees (LTG) package as requested by the Trilogue parties (the European Parliament, the Council of the EU and the European Commission).
The European Securities and Markets Authority (ESMA) has issued a Public Statement on the Treatment of Forbearance Practices in IFRS Financial Statements of Financial Institutions. The statement deals with the definition of forbearance practices, their impact on the impairment of financial assets and the specific disclosures relating to forbearance activities that listed financial institutions should include in their IFRS financial statements for the year ending 31 December 2012.
Press Release (ESMA): EU and Swiss regulators to co-operate on cross-border supervision of alternative investment funds
The European Securities and Markets Authority (ESMA) has approved the co-operation arrangements between the Swiss Financial Market Supervisory Authority FINMA and the EU securities regulators for the supervision of alternative investment funds, including hedge funds, private equity and real estate funds. ESMA has negotiated the agreement with FINMA on behalf of all 27 EU national competent authorities for securities markets regulation.
ESMA statement on Operating Principles and Areas of Exploration in the Regulation of the Cross-Border Derivatives Market
Leaders of authorities with responsibility for the regulation of the over-the-counter (OTC) derivatives markets in Australia, Brazil, the European Union, Hong Kong, Japan, Ontario, Quebec, Singapore, Switzerland and the United States,1 met on November 28, 2012 to discuss reform of the OTC derivatives market as agreed by the leaders at the G-20 Pittsburgh Summit in September 2009.
Frankfurt, 14 December 2012 – The European Insurance and Occupational Pensions Authority (EIOPA) published today its second half-year report for 2012 on the financial stability of the insurance and institutions for occupational retirement provision (IORPs) sectors in the European Economic Area (EEA).
Recommendation No. 11/2012. (XI.8) of the President of the Hungarian Financial Supervisory Authority on the complaints handling procedure of financial organisations
The general objective of recommendations issued by the Hungarian Financial Supervisory Authority(hereinafter the Authority, English acronym: HFSA) is the improved predictability in the application of law and the protection of the interests of clients, who take part in the proceedings, in order to foster uniform application of legislation referred to the the competence of the Authority. The recommendations issued by the Authority set out principles over and above the provisions of law considered as a minimum requirement. When evaluating financial organisations and its stating findings or taking measures, the Authority considers not only conducts that deviate from the Recommendation, but also the implementation of, and compliance with, the principles set forth in the Recommendation.
Frankfurt, 4 December 2012 – The European Insurance and Occupational Pensions Authority (EIOPA) held today
in Frankfurt its second Consumer Strategy Day, which attracted nearly 200 participants.
Buying consumer credit on-line: following EU action, over 75% of websites checked now give satisfactory information to clients
Before consumers enter into a loan, they need to understand its real cost and take the time to reflect, especially on the monthly repayment. The Consumer Credit Directive lists the information that need to be given in advertising of credits and as part of credit offers and provides for a 14 days reflexion time, during which the consumer may back out of the agreement without charge. Following a crackdown on websites offering consumer credits, more than 3 out of 4 sites checked a year ago now comply with EU law (compared with only 30% in September 2011). Further improvements should come as national authorities pursue their actions on outstanding cases. In this EU co-ordinated "Sweep" investigation, which took place in September 2011, national enforcement authorities checked 565 websites across the 27 Member States, Norway and Iceland. Of the 70% of sites flagged for further investigation at the time, 10% were finally deemed compliant and 35% were corrected after action by national authorities. The remaining websites either no longer exist or are subject to on-going administrative or court proceedings.
Guidelines on the assessment of the suitability of members of the management body and key function holders
The European Banking Authority (EBA) published today its guidelines on the assessment of the suitability of members of the management body and key function holders. These Guidelines set out the process, criteria and minimum requirements for assessing the suitability of those persons and are ultimately aimed at ensuring robust governance arrangements and appropriate oversight.
The Regulation (EU) No 236/2012 of the European Parliament and of the Council of 14 March on short selling and certain aspects of credit default swaps (the Regulation) was published in the Official Journal of the European Union on 24 March 2012 and is applicable from 1 November 2012.
More information is available on: https://www.kozzetetelek.hu/en/short_selling/short_selling_EN.html
Deadline of the 1st SSR notification day in Hungary: 6th November 2012, 15:30 CET.
27 October 2012
Hungarian Financial Supervisory Authority (HFSA)
EIOPA Report on Industry Training Standards emphasises diversity of national knowledge and ability requirements
The European Insurance and Occupational Pensions Authority (EIOPA) published today a Report on Industry Training Standards applied by national competent authorities. The Report is part of EIOPA’s activities in the area of consumer protection and is related to the task of developing training standards for the industry as required by the Regulation establishing EIOPA.
Press Release: EBA publishes final report on the recapitalisation of European banks and paves the way for the transition to the CRDIV framework
3 October 2012 - The European Banking Authority discloses today the final report on its EU-wide recapitalisation exercise and the data on all individual banks. Overall, the exercise led to an increase of banks’ capital positions of more than €200bn. 27 banks with an initial shortfall that submitted capital plans have strengthened their capital position by €116bn. Considering the still challenging market environment, the EBA’s Board of Supervisors underlined the need for banks to maintain their capital levels in view of the implementation of the new regulatory framework. In this respect, the EBA will adopt a new Recommendation on capital conservation once the final CRD IV/CRR text is agreed.
The European Securities and Markets Authority (ESMA) has today published its technical standards on the Regulation on OTC derivatives, central counterparties and trade repositories (EMIR), which set out the specific details of how EMIR’s requirements are to be implemented.
The European Banking Authority adopted today the final draft of the technical standards on capital requirements for Central Counterparties (CCP) under EMIR. The draft will now be sent to the European Commission for final adoption. The EBA also adopted an opinion to the EC on the same topic.
The main objective of the MoU is to ensure optimal cooperation in supervision, in particular for insurance groups with international activities in the European economic area (EEA) and Switzerland. The Memorandum creates a formal basis for cooperation in the following areas: group supervision, assistance in the work of EEA and FINMA colleges of supervisors, action required in emergency situations, safeguarding financial stability by monitoring and assessing risks, interconnectedness and conducting stress tests.
The internet is a legitimate channel that is increasingly used by firms to market investment products to retail investors. Firms use the internet to offer retail investors instant access to their systems.
The European Securities and Markets Authority (ESMA) has today published guidelines on Exchange-Traded Funds (ETFs) and other UCITS issues. These guidelines will apply to national securities markets regulators and UCITS management companies.
UCITS are authorised funds which can be sold to retail investors across the European Union. Today’s guidelines set out the information that should be given to investors about index-tracking UCITS and UCITS ETFs, together with specific rules for UCITS when entering into over-the-counter financial derivative transactions and efficient portfolio management techniques. The guidelines also set out the criteria for financial indices in which UCITS may invest.
The guidelines were developed following a review of the current regulatory regime by ESMA which was found to be insufficient to address the specific features and risks associated with these types of funds and techniques.
Frankfurt, 13 July 2012 – The European Insurance and Occupational Pensions Authority (EIOPA) hosted on 11 July a Steering Committee Meeting of the EU/US insurance dialogue project. The 4th Steering Committee Meeting was hosted by Gabriel Bernardino, Chairman of EIOPA.
The European Banking Authority published today an overview report on the implementation of the capital exercise. In line with the EBA’s Recommendation, the vast majority of the banks in the sample meet the required ratio of 9% Core Tier 1 (CT1). For the few banks that were not fully able to meet the capital level using private sources, backstop measures are currently being implemented to ensure they are in line with the EBA’s Recommendation. While the market environments remain challenging, the overall resilience of the European banking system has improved, without any significant adverse impact on lending into the real economy.
EIOPA publishes the outcome of the public consultation on Solvency II reporting and disclosure requirements for insurers
The European Securities and Markets Authority (ESMA) has today published two final sets of guidelines aimed at enhancing the protection of investors in the EU. The guidelines relate to the provisions under the Markets in Financial Instruments Directive (MiFID) relating to the suitability of investment advice and the compliance function.
The European Insurance and Occupational Pensions Authority (EIOPA) published today its first set of Guidelines with a view to establishing consistent, efficient and effective supervisory practices and ensuring common, uniform and consistent application of EU law.
The European Banking Authority (EBA) launched today three consultations on Draft Implementing Technical Standards (ITS) on disclosure for own funds, on supervisory reporting requirements for liquidity coverage and stable funding, and on supervisory reporting requirements for leverage ratio.
Guidelines on Stressed Value-At-Risk (Stressed VaR) and on the Incremental Default and Migration Risk Charge (IRC)
The EBA published today two sets of Guidelines on Stressed Value-At-Risk (Stressed VaR) and on the Incremental Default and Migration Risk Charge (IRC) modelling approaches employed by credit institutions using the Internal Model Approach (IMA).
The European Securities and Markets Authority (ESMA) has published a report on the use of administrative and criminal sanctions by European Union (EU) national regulators under the Market Abuse Directive (MAD). The report provides a comparison of the use of administrative sanctioning powers across 29 EEA Member States for 2008-2010. The results of the report will provide input to the legislative process on the new market abuse regime.
The European Securities and Markets Authority (ESMA) announces today that it considers the regulatory frameworks for credit rating agencies (CRAs) of Argentina and Mexico to be in line with European Union rules. Today’s announcement allows European financial institutions to continue using credit ratings issued in these countries for regulatory purposes after 30 April 2012.
The Joint Committee of the three European Supervisory Authorities (EBA, ESMA and EIOPA) has today published two reports on the implementation of the third Money Laundering Directive [2005/60/EC] (3MLD).
01 March 2012 - ESMA publishes today the second part of its final advice (ESMA/2012/137) on possible delegated acts for the Prospectus Directive (PD). The advice was submitted to the Commission on 29 February 2012. In its advice, ESMA proposes how to use a prospectus in a retail cascade and provides input on how to review the provisions of the Prospectus Regulation concerning tax information, indices, auditor’s report on profit forecasts and estimates and audited historical financial information. Today’s advice follows a public con-sultation started on 13 December 2011.
Frankfurt, 15 February, 2012 – The European Insurance and Occupational Pensions Authority (EIOPA) published today its final response to the European Commission’s Call for Advice (CfA) on the review of the IORP Directive.
Press Release: The EBA’s Board of Supervisors makes its first aggregate assessment of banks’ capital plans
The EBA’s Board of Supervisors today made a preliminary assessment of banks’ capital plans submitted in response to the EBA’s Recommendation on recapitalisation. Their review highlights that, in aggregate, the shortfalls are expected to be met primarily through direct capital measures. The measures are not viewed as having a negative impact on lending into the real economy. The Board of Supervisors also agreed that, in the context of the ongoing recapitalisation exercise, the EBA would undertake its next EU-wide stress test in 2013.
ESMA publishes today a consultation paper (ESMA/2012/44) setting out future guidelines on UCITS Exchange-Traded Funds (UCITS ETFs) and other UCITS-related issues. The proposals cover both synthetic and physical UCITS ETFs and detail the obligations to come for UCITS ETFs, index-tracking UCITS, efficient portfolio management techniques, total return swaps and strategy indices for UCITS
Press Release: ESMA extends transitional period for use of non-EU credit ratings, Australian CRA regime endorsed
ESMA issues regarding extending the transitional period for the use of non-EU credit ratings, the endorsement of the Australian CRA regime and the adoption of four regulatory technical standards in the field of credit rating agencies.
EIOPA publishes a joint report on calibration of risk factors in the standard formula of Solvency II
Frankfurt, 12 December, 2011 – The European Insurance and Occupational Pensions Authority (EIOPA) published today the report of the Joint Working Group (JWG) “Calibration of the Premium and Reserve Risk Factors in the Standard Formula of Solvency II” related to the non-life and health-non-similar-to-life-technique (non-SLT) calibration.
Leaders and senior representatives of the authorities responsible for the regulation of the over-the-counter (OTC) derivatives markets in Canada, the European Union, Hong Kong, Japan, Singapore and the United States met yesterday in Paris.
Press release - The EBA publishes Recommendation and final results of bank recapitalisation plan as part of co-ordinated measures to restore confidence in the banking sector
The European Banking Authority (EBA) today published a formal Recommendation, and the final figures, related to banks’ recapitalisation needs. These measures form part of a broader European package, agreed by the European Council on 26 October and confirmed during the ECOFIN Council on 30 November, to address the current situation in the EU by restoring stability and confidence in the markets.
ESMA (the European Securities and Markets Authority)
As a result of recent sovereign debt1 developments and the increased market interest in this area, there has been a lot of focus on the accounting practices of listed companies, and financial institutions in particular, with respect to their exposures to sovereign debt.
On 28 July 2011 ESMA issued a Statement2 stressing the need for enhanced transparency and the impor-tance of applying the relevant International Financial Reporting Standards (IFRS). ESMA also encouraged issuers to provide information on their exposures to sovereign debt on a country-by-country basis in their financial statements.
Since then ESMA conducted together with national competent authorities a fact-finding exercise on the accounting treatment of Greek sovereign debt in the half-year financial statements based on a sample of financial institutions listed in EU regulated markets.
ESMA's technical advice to the European Commission on possible implementing measures of the Alternative Investment Fund Managers Directive
On 2 December 2010 the European Commission sent a request for assistance to CESR (now ESMA) on the content of the implementing measures for the Alternative Investment Fund Managers Directive (AIFMD). This paper sets out ESMA’s technical advice on the content of the implementing measures for the AIFMD.
The three European Supervisory Authorities (ESAs), ESMA, EBA, and EIOPA respectively, today appointed members and alternates of their joint Board of Appeal. The joint Board of the ESAs is independent from their administrative and regulatory structures and will hear appeals from certain decisions taken by the ESAs. The decisions of the Board itself are subject to appeal before the Court of Justice of the European Union.
DBRS, Fitch, Moody’s, and S&P receive EU registration – ESMA provides update on endorsement of third countries’ ratings
On 31 October 2011 ESMA announced the successful registrations of DBRS, Fitch Ratings, Moody’s Investor Service, and Standard & Poor’s (S&P) as Credit Rating Agencies (CRAs). In order to do business in the European Union (EU), the EU Regulation on Credit Rating Agencies ((EC) No 1060/2009 – “the CRA Regulation”)1 re-quires CRAs to be registered in compliance with the requirements of the Regulation. Today’s registrations are valid for all European entities of DBRS, Fitch, Moody’s, and S&P respectively (see annex table 1 with the list of the EU entities registered).
26 October 2011
The European Systemic Risk Board (ESRB) has today published a set of recommendations on lending in currencies other than the legal tender of the relevant country (“foreign currency lending”) addressed to the Member States of the EU, their national supervisory authorities and the European Banking Authority.
OTP Bank Plc. was subject to the 2011 EU-wide stress test conducted by the European Banking Authority (EBA), in cooperation with the Hungarian Financial Supervisory Authority, the European Central Bank (ECB), the European Commission (EC) and the European Systemic Risk Board (ESRB).
Frankfurt, 4 July, 2011 – The European Insurance and Occupational Pensions Authority (EIOPA) announced today the results of its second European insurance stress test. The exercise confirms that the insurance market in Europe covered by the stress test is robust.
18 March 2011
The European Banking Authority (EBA) today published documents explaining the scenarios and methodology for its 2011 EU-wide stress test, which will be applied on a wide sample of European banks covering over 60% of total EU banking assets.
Directive 2010/76/EU of the European Parliament and of the Council of 24 November 2010 amending Directives 2006/48/EC and 2006/49/EC as regards capital requirements for the trading book and for re-securitisations, and the supervisory review of remuneration policies