FS Regulatory Insights June 2018 | KPMG | IE
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FS Regulatory Insights March 2018

FS Regulatory Insights June 2018

FS Regulatory Insights June 2018

Articles this month from the European regulators and international standard setters include:

  • the Basel Committee work programme and the shift of emphasis from policy development to consistent implementation;
  • the European Council response to CRR 2 and BRRD 2;
  • the EBA and ESMA statement on the treatment of retail holdings of bank debt for BRRD;
  • the European Commission’s proposals on sustainable finance.

There have been further updates on MiFID II this month as the European Parliament continues to react to market implementation issues – policymakers are taking an active role in adjusting MiFID II where necessary.

In addition to our European perspectives, in the UK the PRA and the Bank of England have finalised a number of policies following earlier consultation papers. We feature this month the finalisation of the Bank of England’s principles for the valuation capabilities of banks subject to a resolution strategy, where a number of important changes have been made as a result of the consultation process. In addition, the Bank of England and the PRA have finalised, with only minor changes, their policies on:

  • banks’ preparedness for valuation to support resolution (consulted upon in August 2017 and taking effect from January 2021) – further insights below;
  • setting internal MREL (minimum requirement for own funds and eligible liabilities) within banking groups (consulted upon in October 2017 and taking effect for relevant subsidiaries of G-SIBs from January 2019, and for relevant subsidiaries of other banking groups from January 2020);
  • banks’ reporting of their regulatory capital and other debt eligible to count towards meeting their MREL requirements (consulted upon in January 2018 and taking effect from January 2019); and
  • algorithmic trading (consulted upon in February 2018 and taking effect from end-June this year).
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