Reform tracker

Take a quick overview of the major changes planned in financial services regulation with the Reform Tracker. Entries are colour-coded to reflect their current status: from blue-sky consultations to imminent implementation. Use the search bar and filters below to narrow your focus by country and sector. Alternatively, use the Regulatory Timeline tool for more information on timetables and deadlines.
  • Blue: No legislative proposal as of yet
  • Green: Legislative proposals published but not yet adopted/finalised
  • Yellow: Legislation in force but main substantial provisions not yet effective
  • Red: Legislation in force and main, substantial provisions now effective
  • Grey: Not proceeding
  • Magenta: No longer updated

Showing 1 - 10 of 14 matches filtered by 'Insurance'

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  • Subject:
    Solvency II
    Status:
    Solvency II now in effect; Solvency II phasing-in period commenced on 1 April 2015 for supervisory approval processes and decisions related to group supervision; 1 January 2016 was the Solvency II implementation deadline.
    Last updated:
    22/12/2016
    Overview/summary:

    The recast Directive on the taking-up and pursuit of the business of Insurance and Reinsurance (2009/138/EC) (Solvency II) is a major piece of prudential regulation for the EU insurance industry, establishing new EU-wide capital requirements and risk management standards.

    Solvency II implementation had been subject to many delays and set-backs, requiring multiple ‘delaying directives’. The phasing-in period for Solvency II (for supervisory approval processes and decisions related to group supervision) commenced from 1 April 2015. On 1 January 2016 Solvency II entered into force.

    This reform tracker item is no longer updated.

    Publications by date:

     

    17 December 2009 Final text of Solvency II published in OJ.
    19 January 2011 European Commission publishes Omnibus II Directive proposal which extends Solvency II transposition, repeal and implementation dates by two months.
    12 September 2012 Amending Directive, which pushes back implementation dates of Solvency II, adopted.
    1 November 2012 Date by which firms were originally expected to implement the new regime by.
    20 December 2012 EIOPA publishes opinion on Solvency II interim measures and outlines actions national supervisors should be taking in interim period before Solvency II comes into force.
    11 March 2014 European Parliament finally adopts Omnibus II.
    22 May 2014 Omnibus II published in Official Journal of the EU.
    23 May 2014 Omnibus has entered into force.
    August 2014 PRA launches CP16/14 on proposed changes to the PRA’s rules to implement Solvency II as amended by Omnibus II.
    October 2014 PRA launches CP23/14 on Solvency II approvals.
    November 2014 PRA publishes CP24/14.
    17 January 2015 Delegated Regulation (2015/35/EC) that supplements Solvency II was published in the OJ.
    February 2015 EIOPA publishes first set of Solvency II Guidelines in all the EU official languages.
    March 2015 The EC adopted the first set of Solvency II Implementing Regulations laying down implementing technical standards (ITS).
    March 2015 PRA publishes PS2/15 on the new regime for insurers.
    March 2015 FCA publishes PS15/8.
    March 2015 FCA launches joint consultation with PRA CP15/16 on changes to the Approved Persons Regime for Solvency II firms.
     
    1 April 2015
    Solvency II phasing-in period commences.
    April 2015 PRA publishes supervisory statement SS22/15 concerning the application of EIOPA’s Set 1 Guidelines to PRA-authorised firms.
    10 April 2015 PRA launches CP16/15 on consistency of UK generally accepted accounting principles with the Solvency II Directive.
     14 April 2015  EIOPA published an Opinion on internal models.
     5 June 2015 The Commission has adopted its first third country equivalence decisions under Solvency II, publishing the text of delegated acts with regard to Switzerland, Australia, Bermuda, Brazil, Canada, Mexico and the USA.
     19 June 2015  EIOPA has modified the methodology for calculating the relevant risk-free interest rate term structures for Solvency II.
     6 July 2015  EIOPA  published a second set of Solvency II technical standards and guidelines.
     July 2015  EIOPA published a note which stressed the importance of high quality public information and the relevant use of external audit services in relation to Solvency II public disclosures.
    14 September 2015 

     EIOPA issued second set of Solvency II Guidelines.

     

    European Parliament decided not to object to EC's grant of full equivalence to Swiss insurance regulatory regime regarding Solvency II.

     25 September 2015

    Commission Delegated Decision (EU) 2015/1602 of 5 June 2015 on the equivalence of the solvency and prudential regime for insurance and reinsurance undertakings in force in Switzerland based on Articles 172(2), 227(4) and 260(3) of Directive 2009/138/EC of the European Parliament and of the Council.

     

    EIOPA published an Opinion on the group solvency calculation in the context of equivalence.

    29  September 2015 EIOPA published Final report on the identification and calibration of infrastructure investment risk categories.
    27 October 2015  EIOPA  published revised documents related to the Solvency II reporting and disclosure package, including several consultation papers.
     12 November 2015

    The European Commission has adopted a second group of seven Solvency II Implementing Technical Standards (OJ L295).

    ESAs Joint Committee: published draft ITS on credit assessments by External Credit Assessment Institutions (ECAIs) relating to CRR and Solvency II.

     19 November 2015 EIOPA launched a call for evidence regarding the treatment of infrastructure corporates under Solvency II.
    November 2015   Corrigendum to Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
     9 December 2015 Commission Delegated Decision (EU) 2015/2290 of 12 June 2015 on the provisional equivalence of the solvency regimes in force in Australia, Bermuda, Brazil, Canada, Mexico and the United States and applicable to insurance and reinsurance undertakings with head offices in those countries.
     31 December 2015 The third group of Solvency II Implementing Regulations were published in the Official Journal.
    1 January 2016  Entry into force of Solvency II.
    8 January 2016  EIOPA published  first Solvency II relevant risk-free interest rate term structures to be applied by (re)insurance undertakings in the calculation of their technical provisions with reference to the end of December 2015.

     

    Further past dates are accessible via the news feed on the RegZone Solvency II topic page here.

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  • Subject:
    Packaged Retail and Insurance-based Investment Products (PRIIPs)
    Status:
    Packaged Retail and Insurance-based Investment Products (PRIIPs) Regulation (1286/2014) has been adopted but is not yet in force. The European Commission has delayed the entry into force by one year (previously expected to enter into force 31 December 2016). The PRIIPs Regulation and Delegated Regulations apply as of 1 January 2018.
    Last updated:
    02/01/2018
    Overview/summary:

    The Regulation on Key Information Documents for Investment Products (1286/2014) requires that intermediaries provide retail customers with a short, standard form Key Information Document (KID) before they invest in any Packaged retail and insurance-based investment products (PRIIPs, formerly PRIPs).

     

    PRIIPs is a ‘horizontal’ category of products that may take a variety of different forms (including funds, structured deposits, some pensions and insurance products) but which fulfil similar functions: capital accumulation over a medium-to-long term at more than the risk-free rate, where the investor does not hold assets directly but by means of some sort of ‘wrapper’. The Regulation was part of a wider legislative package on such products, also including IDD and UCITS V.

     

    The PRIIPs regulation entered into force on 29 December 2014. The European Commission has delayed the entry into force by one year (previously expected to enter into force on 31 December 2016). This followed on from the European Parliament's rejection of RTS relating to the KID and calls from Member States to postpone the regulation. The European Commission is now working with the ESAs to resubmit the RTS to address some of the concerns raised (certain revised RTS were met with no objection in April 2017). It is estimated that the revised PRIIPs framework should be in place during the first half of 2017 and apply as of 1 January 2018.

    Publications by date:

     

    3 July 2012 Commission publishes proposal for regulation imposing KID requirement.
    22 October 2013 ECON voted on Parliament's report and approved proposed Regulation.
    20 November 2013 European Parliament voted to adopt amendments to legislative proposal for a Regulation on KIDs for PRIPs.
    4 April 2014 Political agreement announced on PRIPS (now known as 'PRIIPs', but with a similar scope as before).
    9 December 2014 Regulation No 1286/2014 (PRIIPS) published in the Official Journal to enter into force 20 days after publication (29 December 2014).
    13 December 2014  A corrigendum to the text of the PRIIPS KID Regulation was published in the OJ correcting the date in Article 8(5) regarding the date by which the ESAs must submit the draft regulatory technical standards to the Commission (from 31 March 2015 to 31 March 2016).
    23 June 2015 The European Supervisory Authorities published a technical discussion paper on risk, performance scenarios and cost disclosures for KIDs for PRIIPS.
    3 July 2015 EIOPA delivered its technical advice on criteria and factors to be taken into account in applying product intervention powers under the PRIIPS regulation to the European Commission.
    20 August 2015 The European Supervisory Authorities (EBA/EIOPA/ESMA) published responses to the technical discussion paper on risks, performance scenarios and cost disclosures on KIDs for PRIIPS.
    14 September 2015 Steven Maijoor, Chair of ESMA, delivered a statement to ECON in which he updated the committee on the work being done on the regulatory technical standards (RTS) under PRIIPS.
    9 November 2015  The European Commission published a study -  Consumer testing study of the possible new format and content for retail disclosures of packaged retail and insurance-based investment products. 
    11 November 2015  The ESAs launched a Joint Consultation Paper on PRIIPs Key Information Documents to gather stakeholder views on proposed rules on the content and presentation of the Key Information Documents (KID).
     6 January 2016 ESAs published corrections to errata found in formulae in Joint Consultation Paper on PRIIPs KID.
     6 January 2016 Insurance Europe published a note regarding concerns over the short timeframe in which the industry must  implement the KID for PRIIPs: Insurance Europe: PRIIPs implementation timeframe – extension required.
    10 February 2016 ESMA published responses to its earlier consultation on KID under PRIIPs. Draft RTS were submitted to the Commission for approval.
    11 March 2016 

    ESMA's Securities and Markets Shareholder Group published text of a letter it sent to Jonathan Hill and others which raised concerns over aspects of the PRIIPs Regulation, specifically the elimination of past performance in the contents of the KID, and its replacement by “future performance scenarios”. It urges amendments to the Level 1 Regulation before it enters into force on 31 December 2016.

    7 April 2016 EBA/EIOPA/ESMA published finalised RTS on KIDs for PRIIPs.
    8 April 2016 Insurance Europe published a press release regarding PRIIPs. Specifically, Insurance Europe maintains that the proposed PRIIPs KID will mislead consumers owing to design faults.
    26 April 2016 ESMA published its responses to the Commission's Green Paper on retail financial services: including responses in relation to IDD, MiFID II, PRIIPs, UCITS, personal pension products and covered bonds, redress and the Impact of digital technologies on the retail financial markets.
    26 May 2016 Insurance Europe published a new paper highlighting technical concerns over final draft RTS. 
    30 June 2016 European Commission Delegated Regulation with regard to the presentation, content, review and revision of key information documents and the conditions for fulfilling the requirement to provide such documents has been adopted.
    1 July 2016 Joint letter on the supervisory convergence work by the ESAs on PRIIPs was published - specifically noting the work on level 3 materials.
    15 July 2016 Commission Delegated Regulation of 14.7.2016 supplementing Regulation (EU) No 1286/2014 of the European Parliament and of the Council with regard to product intervention has been adopted by the European Commission. 
    1 September 2016 ECON has unanimously rejected the Commission's investor protection proposals, saying they were "misleading" and "flawed", with much criticism directed at the KID.

    Further past dates are accessible via the news feed on the PRIIPs page.

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  • Subject:
    Individual Accountability in Insurance - Senior Insurance Managers’ Regime
    Status:
    The Senior Insurance Managers’ Regime commened 7 March 2016; Solvency II is a new regime for the prudential regulation of European insurance firms that entered into force on 1 January 2016.
    Last updated:
    22/12/2016
    Overview/summary:

    The Senior Insurance Managers’ Regime (SIMR) is based on similar rules that apply to senior bankers as of March 2016 (and all other senior managers across all regulated financial firms by 2018) but it is specifically tailored to the different business models and associated risks of insurers. For firms other than insurers, the Senior Managers’ and Certification Regime (SM&CR) will replace the Approved Persons’ Regime. The SIMR to be introduced by the PRA (and changes to the APR applying to insurers made by the FCA) will cover the assessment of fitness and propriety of senior insurance managers and directors, the allocation of certain responsibilities to senior individuals, and the application of relevant conduct rules to senior individuals.

     

    The SIMR applies to insurance firms that are within the scope of Solvency II and insurance firms that are outside the scope of Solvency II. Solvency II is a new regime for the prudential regulation of European insurance firms that entered into force on 1 January 2016. The PRA estimates around 100 insurance firms in the UK will fall outside of the scope of Solvency II. Currently, the PRA is consulting on proposals to apply the SIMR to non-Directive firms (NDFs) with assets of more than £25 million.

     

    For details regarding the Senior Managers’ and Certification Regime (SM&CR), please see the separate Reform Tracker item on this topic.

    Publications by date:
    November 2014 FCA (CP14/25) and PRA (CP26/14) published consultation papers setting out proposals on how they intend to reflect changes brought about by the Solvency II Directive and the Banking Reform Act 2013.
    March 2015 PRA published Policy Statement PS2/15 that set out the rules along with supervisory statements required for the implementation of the Solvency II Directive.
    March 2015 PRA (CP13/15) and FCA (CP15/16) launched consultation papers on changes to the Approved Persons Regime for Solvency II firms and outlined the consequential changes, transitional arrangements and forms required.
    August 2015 PRA published Consultation Paper CP26/15 setting out implementation proposals for non-Solvency II firms; it contained a key proposal of applying the SIMR to non-Directive firms with assets of more than £25 million.
    13 August 2015 PRA published Policy Statement PS21/15 that sets out key elements of the Senior Insurance Managers’ Regime for insurance firms that are outside the scope of Solvency II.
    28 August 2015 PRA published Consultation Paper CP31/15 concerning the PRA’s approach to third-country insurance and pure reinsurance branches under the Solvency II Directive.
    6 October 2015 PRA and FCA published Consultation Paper CP36/15 Strengthening accountability in banking and insurance: regulatory references.
    14 October 2015 First reading of Bank of England and Financial Services Bill in the House of Lords.
    15 October 2015 HMT published the policy paper Senior Managers’ and Certification Regime: extension to all FSMA authorised persons.
    11 November 2015  PRA published an occasional consultation paper proposing minor amendments to certain rules and to supervisory statements SS13/13 and SS12/13. Chapter 4: consequential amendments to the senior managers' regime (SMR) and the senior insurance managers' regime (SIMR).
     20 November 2015 PRA published PS26/15: The prudential regime, and implementation of the senior insurance managers regime, for non-Solvency II firms.
    15 December 2015  PRA published SIMR: preparing for grandfathering. This letter was aimed at small non-Solvency II insurance firms and sets out what they need to do ahead of the SIMR and where to find further details.
     16 December 2015 FCA published PS15/31: Final rules on changes to the approved persons regime for insurers not subject to Solvency II.
     6 January 2016

    PRA launched CP1/16 regarding individual responsibility in banking and updated SS28/15. 

     FCA launched CP1/16 "Consequential changes to the Senior Managers' Regime".

    1 March 2016 PRA published: Strengthening accountability update (concerning SIMR and the SM&CR).
    7 March 2016 SIMR entered into force.
    10 March 2016 PRA published: Modification by consent of non-Solvency II Firms – SIMR.
    11 March 2016 PRA has published revised versions of its approach to banking and insurance documents. Annexes in both documents set out synopses of changes made, which include new sections on SMR/SIMR.
    8 June 2016 Bank of England and Financial Services Act 2016 (Commencement No 3) Regulations 2016 (SI 2016/627) have been published. The majority of provisions enter into force on 6 July 2016 (including certain provisions relating to the senior managers and certification regime).

    Further past dates are accessible via the RegZone news feed here.

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  • Subject:
    Foreign Account Tax Compliance Act (FATCA)
    Status:
    FATCA in effect, applying to withholdable payments made on or after 1 January 2013.
    Last updated:
    29/11/2016
    Overview/summary:

    The Foreign Account Tax Compliance Act (FATCA) is a US Congressional Act designed to target offshore evasion by identifying US citizens receiving unreported income outside the US. International co-operation with FATCA was obtained by means of various intergovernmental agreements; under these agreements, financial institutions in the EU (and elsewhere) are required to report identifying information and account details for any US account holders to national authorities (e.g. HMRC in the UK), who in turn pass this information on to the US Internal Revenue Service.

    This reform tracker item is no longer updated.

    Publications by date:

     

    18 March 2010 US Hiring Incentives to Restore Employment (HIRE) incorporating FATCA signed in.
    July 2012 France, Germany, Italy, Spain, UK and US announce publication of the Model Intergovernmental Agreement to Improve Tax Compliance and to Implement FATCA.
    12 September 2012 (UK) UK-US FATCA Agreement signed. End of 2012: UK draft implementing legislation published. The IGA reduces some of the administrative burden of complying with the US regulations, and provides a mechanism for UK financial institutions to comply with their obligations without breaching the data protection laws.
    28 January 2013 Final US Regulations published.
    31 May 2013 (UK) Further draft regulations and guidance notes published by HMT.
    12 July 2013 The IRS issued a notice providing for an effective six month delay for all substantive provisions.
    6 August 2013 (UK) The International Tax Compliance (United States of America) Regulations 2013 SI 2013/1962 made.
    1 September 2013 (UK) The International Tax Compliance Regulations come into force.
    19 May 2014 IRS published  Notice 2014-33 (IRB 2014-21) announcing a transition period for the purposes of IRS enforcement and administration with respect to the implementation of FATCA by withholding agents, foreign financial institutions, and other entities.
    25 August 2014 IRS published Revenue Procedure 2014-47 (IRB 2014-35) regarding updated withholding foreign partnership and withholding foreign trust agreements.
    3 September 2014 (UK) HMRC has published revised guidelines on the implementation of FATCA.
    7 October 2014 IRS published Notice 2014-59 on the modified applicability of dates for the standards of knowledge applicable to a withholding certificate or documentary evidence to document certain payees and the circumstances under which a withholding agent or payor may rely on documentary evidence provided by a payee instead of a withholding certificate to document the foreign status of the payee.
    1 December 2014 IRS published Announcement 2014-38 update on jurisdictions treated as of they had an IGA in effect.
    1 January 2015 US IRS deadline for reporting Model 1 FFIs to ensure that they are included on the IRS FFI list.
    26 March 2015 (UK) HM Treasury published summary of responses regarding their earlier consultation on implementing agreements under the global standard on automatic exchange of information to improve international tax compliance.
    31 March 2015 IRS reporting deadline for FFIs in non-IGA jurisdictions and FFIs in Model 2 IGA jurisdictions.
    24 September 2015 The Competent Authority of the United States has signed Competent Authority Arrangements (CAA) with the Competent Authorities of Australia and the United Kingdom.
    20 November 2015  The International Tax Compliance (Amendment) Regulations 2015/1839  entered into force. The Regulations give effect to agreements and arrangements reached between the UK and other jurisdictions to improve international tax compliance. 
    3 May 2016  US Court dismisses case against FATCA disclosures.
    12 May 2016 (UK) HMRC published in final form its International Exchange of Information Manual. The IEIM incorporates in one place HMRC’s guidance on FATCA, the OECD’s Common Reporting Standard, the EU’s Council Directive on Administrative Cooperation and the UK’s Inter-Governmental Agreement with the Crown Dependencies and Overseas Territories.
    30 June 2016 This date marks the end of the two-year 'grace period' for compliance with FATCA granted by the IRS. From this date, foreign FIs without a validated FATCA classification will default to a ‘withholding’ status.

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  • Subject:
    European Market Infrastructure Regulation (EMIR)
    Status:
    EMIR entered into force 16 August 2012, but some provisions are yet to enter into effect. The first clearing obligations for certain interest rate derivatives apply as of 21 June 2016.The reporting requirement came into effect 12 February 2014, applicable to all types of derivatives contracts. Various margin requirements for uncleared trades apply as of 1 September 2016 for major market participants. Initial margin requirements are to be phased in from 1 September 2016.
    Last updated:
    02/02/2018
    Overview/summary:

    The European Markets Infrastructure Regulation (648/2012) (EMIR) implements the 2009 G20 agreements on over-the-counter (OTC) derivatives clearing in the EU. EMIR applies to all entities that enter into any form of derivative contract, including those not involved in financial services. The Regulation also applies indirectly to non-EU firms trading with EU firms.

    EMIR establishes a clearing obligation for certain derivative (e.g. credit, equity, FX, etc.) trades. The identity of the counterparties and the type of derivative contract being traded determines whether or not the trade must be cleared through a central counterparty (CCP).

    EMIR creates a reporting requirement that means entities that enter into any form of derivative contract (including interest rate, FX, credit, equity, and commodity derivatives) must report that contract to a trade repository.

    EMIR implements new risk mitigation standards, including operational processes and margining, for all OTC derivatives trades which are not centrally cleared (i.e. the class of derivative is not subject to the clearing obligation or the counterparties to the trade do not fall within the scope of the clearing obligation).

    EMIR establishes registration and supervision requirements for central counterparties, as well as for trade repositories.

     

    EMIR reforms:

    On 4 May 2017, the European Commission adopted a legislative proposal for a Regulation amending EMIR. The Council of the EU published a number of compromise proposals regarding the proposed Regulation in November 2017.



    In June 2017, the Commission published a legislative proposal for a Regulation amending EMIR regarding the procedures and authorities involved for the authorisation of CCPs and requirements for the recognition of third-country CCPs. The Commission published a modified legislative proposal in October 2017.

    Publications by date:

     

    4 July 2012 EMIR level 1 published in OJ.
    16 July 2012 EMIR technically in force (but not yet in effect).
    19 December 2012 European Commission adopted nine RTS and ITS.
    Beginning of 2013 Start of the process to determine which OTC derivatives will be subject to the clearing obligation.
    23 February 2013 Six RTS published in OJ.
    15 March 2013 Most EMIR RTS come into force. Notification requirements for non-financial counterparties exceeding clearing threshold begins.
    1 April 2013 FSMA 2000 (OTC derivatives, central counterparties and trade repositories) Regulations 2013 (SI 2013/504) come into force, which partially implement EMIR in the UK.
    November 2013 ESMA published draft RTS on EMIR's application to third-country entities; these were adopted by the Commission as a Regulation in February 2014.
    12 February 2014

    The trade reporting requirements came into effect.

    March 2014 The final EMIR cross-border RTS published in the EU OJ. They set out the circumstances in which the EMIR clearing obligation, risk mitigation techniques and margin requirements will apply to contracts between two non-EU entities.
    April 2014 The European Supervisory Authorities (ESAs) published a consultation paper on draft RTS on the risk management procedures for counterparties in non-centrally cleared OTC derivatives, the criteria concerning intragroup exemptions and the definitions of practical and legal impediments.
    11 April 2014 European Commission published consultation on FX financial instruments.
    21 June 2014 Commission Delegated Regulation (EU) no 285/2014 supplementing EMIR with regard to RTS on direct, substantial and foreseeable effect of contracts with the Union published in OJ.
    19 June 2014 Commission Delegated regulation (EU) no 667/2014 supplementing EMIR with regards to rules of procedure for penalties imposed on trade repositories by ESMA including rules on the right of defence and temporal provisions published in OJ.
    July 2014 ESMA launched first round of consultations to prepare for central clearing of OTC derivative in the EU.
    8 July 2014 European Commission issued response to ESMA’s letter regarding frontloading requirement under EMIR; this letter was published on the ESMA website. Frontloading should be avoided in cases where it could  undermine the overarching objective of the clearing objective to reduce systemic risk.
    23 July 2014 European Commission wrote a letter to ESMA regarding the definition of a financial instrument relating to foreign currency (FX contract).
    29 September 2014 ESMA published a consultation paper on future guidelines clarifying the definition of commodity derivative as financial instruments under the current MiFID 1.
    29 September 2014 ESMA issued a letter to Michel Barnier, Commissioner for Internal Market and Services, outlining the postponement of reports due under Article 85.3 of EMIR together with justification.
    1 October 2014 ESMA launched consultation on draft RTS for the clearing of foreign exchange non-deliverable forwards under EMIR.
    1 October 2014 ESMA issued a final draft RTS for the central clearing of Interest Rate Swaps.
    25 November 2014 ESMA has published a letter it has sent to the EC, announcing that it will delay delivery of the second set of regulatory technical standards on the clearing obligation until the EC has finalised its assessment of the first set.
    December 2014

    European Commission sent a letter to ESMA informing its intention to endorse with amendments the draft RTS on the clearing obligation for interest rate swaps.

    11 December 2014

    European Commission confirmed in a press release the adoption of an implementing act extending the transitional period for capital requirements for EU banking groups’ exposures to CCPs under the European Capital Requirements Regulation by six months.

    January 2015 ESMA published opinion on draft RTS on the clearing obligation on interest rate swaps in response to the European Commission’s notification to adopt (with amendments) these draft RTS
    January 2015 IOSCO published report on risk mitigation standards for non-centrally cleared OTC derivatives.
    February 2015 European Commission published a report that recommends granting pension funds a two-year exemption from central clearing requirements for their OTC derivative transactions.
    February 2015 ESMA issued feedback statement on the central clearing of non-deliverable forwards. ESMA is not proposing a clearing obligation on NDFS based on the feedback received following the consultation on the clearing obligation for NDFs
    March 2015 Basel Committee on Banking and IOSCO released a revision to the implementation schedule for margin requirements for non-centrally cleared derivatives. A delay of 9 months has been agreed.
    March 2015 EMSA published the 12th update to its Q&A on EMIR. This update includes further guidance on the authorisation of CCP services, the clearing obligation and the Regulatory Technical Standards on direct, substantial and foreseeable effect of contracts within the European Union.
    27 April 2015 ESMA published a revised Q&A which focuses on level 2 validation that ESMA expects Trade Repositories to implement by the end of October 2015.
    May 2015 ESMA has recognised ten third-country CCPs established in Australia, Hong King, Japan and Singapore.
    May 2015 ESMA published a CP setting out draft RTS establishing a clearing obligation on further classes of interest rate derivatives that were not included in the first RTS on clearing obligation for interest rate swaps.
    10 June 2015 ESAs CP draft RTS as follow up to April 2014 draft
    July 2015 ISDA published a classification letter that will enable counterparties to notify each other of their status under EMIR.
    6 August 2015 The Commission published the provisional text of the Delegated Regulation it has adopted setting out the RTS for the introduction of a central clearing obligation for OTC interest rate swaps. The clearing obligations will enter into force subject to scrutiny by the European Parliament and Council of the EU and will be phased in over three years to allow additional time for smaller market participants to begin complying.
    August 2015 FMLC published paper expressing concern about draft RTS produced by the ESAs
    21 September 2015 ESMA has updated its list of CCPs that have been authorised to offer services and activities in the Union in accordance with EMIR.
    2 October 2015 ESMA updated Q&A document to include guidance on procedure to be followed by counterparties and trade repositories in order to update counterparty's indentifier in cases where a counterparty obtains LEI or its LEI changes due to a merger/acquisition.
     4 November 2015  ESMA updated its list of CCPs authorised under EMIR.
     5 November 2015 ESMA launched a consultation on draft requirements on indirect clearing arrangements (for OTC derivatives and exchange-traded derivatives) under EMIR and MiFIR.
     9 November 2015  ESMA published additional draft RTS on the central clearing of IRS which it is required to develop under EMIR.
     13 November 2015 ESMA published an update of existing technical standards regarding data reporting requirements under EMIR.
     19 November 2015  ESMA issued statement that it will not exempt the collateralisation of bank guarantees for energy derivatives under EMIR.
     30 November 2015 HM Treasury published consultation outcome re: Recognised Clearing Houses: response to the call for evidence (27 November 2015).
     1 December 2015 Delegated Regulation ((EU) 2015/2205) on RTS on central clearing for interest rate derivatives under Article 5(2) of EMIR (Regulation 648/2012) was published in the Official Journal.
     11 December 2015 ESMA published a consultation on draft technical standards on access to data and aggregation and comparison of data across trade repositories under Article 81 of EMIR. 
     14 December 2015 ESMA launched a consultation on the review of Article 26 of RTS No 153/2013 with respect to MPOR for client accounts.
     21 December 2015 ESMA published responses to its consultation paper on indirect clearing under EMIR and MiFIR.
     18 January 2016 ESRB published a report to the European Commission on the Systemic Risk Implications of CCP Interoperability Arrangements.
     26 January 2016 ESMA established two Memoranda of Understanding (MoUs) with the Mexican Comisión Nacional Bancaria y de Valores (CNBV) and the South African Financial Servcies Board (FSB).
     2 February 2016 ESMA published ESMA/2016/184: Opinions on exemptions from the clearing obligation for pension schemes. (Applicable to 16 UK pension schemes.)
    4 February 2016 

    ESMA published ESMA/2016/242: Q&A on practical questions regarding the European Markets Infrastructure Regulation (EMIR).

    Further to its earlier consultation (14 December 2015 MPOR), ESMA published responses.

    5 February 2016 ESMA published ESMA/2016/234: Annual Report on Supervision and 2016 Work Plan.
    10 February 2016 

    European Commission and the US Commodity Futures Trading Commission (CFTC) issued a press release in which they announced  they have agreed a  common approach on the equivalence of Central Counterparty (CCP) regimes.

    ESMA published responses to its earlier consultation on access, aggregation and comparison of trade repository data.

    16 February 2016 

    ESMA published three tables and an updated Q&A:

    ESMA/2016/274: Guidelines and Recommendations for establishing consistent, efficient and effective assessments of interoperability arrangements (ESMA/2013/322);
    ESMA/2016/273: Guidelines and Recommendations regarding written agreements between members of CCP colleges (ESMA/2013/661);
    ESMA/2016/275: Guidelines on the implementation of the CPSS-IOSCO Principles for Financial Market Infrastructures in respect of Central Counterparties (ESMA/2014/1133);

    ESMA/2016/293: Q&A XVI on EMIR implementation

    18 February 2016 ESMA published a list of UK pension scheme arrangements exempted from the clearing obligation under EMIR.
    19 February 2016  ESMA published an updated version of its Public Register for the Clearing Obligation.
    1 March 2016

    European Commission adopted Commission Delegated Regulation on central clearing for credit default derivatives.

    ESMA issued ESMA/2016/328: Possible systemic risk and cost implications of interoperability arrangements.

    (UK) FCA published a list of pension scheme arrangements exempted from the clearing obligation.

    8 March 2016 

    Joint Committee of the European Supervisory Authorities (ESAs) have published draft RTS:

    ESAs/2016/23: Final Draft Regulatory Technical Standards on risk-mitigation techniques for OTC-derivative contracts not cleared by a CCP under Article 11(15) of Regulation (EU) No 648/2012

    14 March 2016 Council of the EU stated that it is giving a one-month extension to the period for raising objections to regulation supplementing regulation 648/2012 on OTC derivatives.
    15 March 2016

    European Commission adopted an Implementing Decision:

    Commission Implementing Decision (EU) 2016/377 (adoption of an equivalence decision for the CCP regime of CFTC ).

    16 March 2016 Commission Implementing Decision (EU) 2016/377 of 15 March 2016 on the equivalence of the regulatory framework of the USA for central counterparties that are authorised and supervised by CFTC to the requirements of Regulation (EU) No 648/2012 of the European Parliament and of the Council - published in the Official Journal of the EU.
    21 March 2016 ESMA published Practical guidance for the recognition of third-country CCPs.
    22 March 2016 ESMA and South Korean Financial Services Commission and the Financial Supervisory Service establish an MoU.
    4 April 2016 ESMA published an updated EMIR Q&A.
    5 April 2016

    ESMA published Review of Article 26 of RTS No 153/2013 with respect to MPOR for client accounts.

    ESMA published draft technical standards on access to data and aggregation and comparison of data across TR under Article 81 of EMIR.

    13 April 2016

    ESMA published Opinions regarding the exemption from clearing obligations for pension schemes:

    ESMA/2016/592 to 594: Opinions - Exemption from the clearing obligation for pension schemes

    14 April 2016 ESMA issued a press release announcing the first EU-wide stress tests concerning CCPs.
    15 April 2016 ISDA published an updated classification letter that will enable counterparties to notify each other of their status for clearing and other regulatory requirements under EMIR. It covers the clearing obligation for certain interest rate derivatives classes denominated in EEA currencies and certain CDS index classes.
    19 April 2016

    ESMA added credit derivatives, notably for iTraxx main and iTraxx crossover contracts, to the clearing obligation on the updated register.

     

    Commission Delegated Regulation 2016/592 of 1 March 2016 supplementing Regulation (EU) No 648/2012 of the European Parliament and of the Council with regard to regulatory technical standards on the clearing obligation has now been published in the Official Journal.

    21 April 2016 European Commission adopted an amending Delegated Regulation with regard to the time horizons for the liquidation period to be considered for the different classes of financial instruments.
    17 May 2016 European Commission published responses following from the 'Call for Evidence' regarding the EU's FS regulatory framework.
    26 May 2016 ESMA published final draft technical standards re: MiFIR/EMIR. The report included the standards on indirect clearing under MiFIR and EMIR which clarifies provisions of indirect clearing arrangements for OTC and exchange-traded derivatives and help to ensure consistency and that an appropriate level of protection for indirect clients exists. The standards have been submitted to the Commission.
    27 May 2016 Commission Delegated Regulation amending Delegated Regulation (EU) No 153/2013 as regards the time horizons for the liquidation period to be considered for the different classes of financial instruments ((EU) 2016/822) has been published in the Official Journal.
    2 June 2016 ESMA published a discussion paper regarding distributed ledger technology applied to securities markets (and the interaction with certain EU legislation, including EMIR).
    3 June 2016 European Commission adopted a Council proposal on the position to be taken by the EU in EEA Joint Committee concerning the incorporation of the Regulations on the ESAs and on and certain related Regulations and Directives (ESRB Regulation, AIFMD and related delegated acts, the Short Selling Regulation and related delegated acts, EMIR and CRA Regulation and related delegated acts).
    6 June 2016

    ESMA published the text of an MoU agreed with the US Commodities Futures Trading Commission.

    ESMA published an updated Q&A re: the clearing obligation. 

    8 June 2016 European Commission Implementing Regulation regarding extension of the transitional periods related to own funds requirements for exposures to CCPs published in OJ.
    10 June 2016

    European Commission Delegated Regulation adopted:

    Delegated Regulation on RTS on the clearing obligation under EMIR (with accompanying annex).

    Further past dates are accessible via the news feed on the RegZone EMIR page here.

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  • Subject:
    Insurance Distribution Directive (IDD)
    Status:
    Insurance Distribution Directive was published in the Offical Journal in February 2016 - Member States' implementation deadline is 1 July 2018. The application date is 1 October 2018.
    Last updated:
    01/10/2019
    Overview/summary:

    The Insurance Distribution Directive (IDD) is the proposed recast of the Insurance Mediation Directive that would update the regulation of insurance selling practices. The IDD was formerly referred to as IMD II; the name was changed in September 2014 to reflect the focus on regulating the distribution of insurance products. The most controversial change proposed was the requirement for mandatory prior disclosure by intermediaries of the nature (fee and/or commission), basis and amount of any remuneration received. After debate, the current draft settles on pre-contractual disclosure of the intermediary and the nature, not amount, of their remuneration (whether commission, fee or other type of arrangement). Other proposals include extending the scope of the regulations to direct sales; stricter, MiFID-based requirements for the sale of products with investment elements; and additional rules for the sale of bundled products.

    The existing IMD regime applies to insurance intermediaries while the IDD will apply to a wider regulation of insurance distributors and includes strict requirements for packaged retail insurance-based products (PRIIPs).  IDD is a minimum harmonisation directive; it allows member states to set higher standards (‘gold plate’) if they so choose. This allows the UK to maintain its rules for retail investment advisers under the Retail Distribution Review (RDR).

    On 20 December 2017, the European Commission proposed to put back the application date of the Directive by seven months to 1 October 2018.

    On 14 February 2018, the European Parliament confirmed that Member States' transposition deadline would now be 1 July 2018, and the IDD application date would now be 1 October 2018.

    Publications by date:

    15 January 2005

    Deadline for transposing IMD I.

    2 July 2009

    CEIOPS publishes a report on IMD.

    3 July 2012

    European Commission published IMD II proposal.

    14 January 2013

    European Parliament publishes draft report, which sets out marked-up suggested amendments to IMD II.

    26 February 2014

    European Parliament votes to adopt a number of amendments to IMD II (but the trialogue process continues).

    28 October 2014

    Council of the EU published compromise proposal on IMD II.

    5 November 2014

    Council issues a press release confirming its agreement on the direction of a sixth compromise text.

    30 January 2015

    Lord Hill gave a speech on the IDD and said he was confident that the trialogue negotiations would be finalised during the first half of 2015.

    16 July 2015

    The European Commission published the final compromise text following the 30 June trialogue.

    22 July 2015

    The Permanent Representatives Committee approved, on behalf of the Council, an agreement reached with the European Parliament on IDD.

    2 November 2015

    EIOPA publishedGuidelines on product oversight and governance arrangements for insurance undertakings and insurance distributors.

    12 November 2015

    The Committee on Economic and Monetary Affairs published a supplementary report on the proposed Insurance Mediation (recast) - dated 3 November 2015.

    19 November 2015

    The European Commission published marked-up text of IDD with suggested amendments.

    24 November 2015

    The European Parliament adopted the text.

    30 November 2015

    European Commission published anInformation Note regarding the European Parliament’s first reading of the proposed IDD

    10 December 2015

    European Commission published an 'I' note regarding IDD. This 'I' note suggested that the Council mayapprove the European Parliament's position at a forthcoming meeting, adding that if the Council approves the European Parliament's position, the legislative act will be adopted.

    14 December 2015

    The Council adopted IDD.

    5 January 2016

    EIOPA launched an online survey regarding the Insurance Distribution Directive (IDD).

    2 February 2016

    Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast) published in the OJ.

    4 March 2016

    EIOPA published the text of a letter from the Commission - Request for technical advice on possible delegated acts concerning the Insurance Distribution Directive.

    13 April 2016

    EIOPA publishedPreparatory guidelines on product oversight and governance (further to a consultation in October 2015).

    26 April 2016

    ESMA sets out its response to the European Commission's Green Paper on retail financial services, including specific comments in relation to IDD.

    28 November 2018

    EIOPA consults on draft technical advice on integrating sustainability risks and factors into Solvency II and IDD delegated acts.

    Further past dates are accessible via the news feed on the RegZone IDD page here.

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  • Subject:
    Institutions for Occupational Retirement Provisions Directive (IORP II)
    Status:
    On 8 December 2016 the Council adopted IORP II. Member States' transposition deadline is 13 January 2019.
    Last updated:
    07/08/2019
    Overview/summary:

    In 2014 the European Commission published proposals for recast Institutions for Occupational Retirement Provisions Directive "IORP II". The proposed revision aims to enhance governance, risk management and transparency, as well as facilitating cross-border IORP activity. Controversial elements of the earlier proposal – including a new harmonised solvency standard for IORPs – have been dropped.

    EIOPA’s 2016 Work Programme highlights work on IORPs as high priority. On 8 December 2016, the Employment, Social Policy, Health and Consumer Affairs Council formally adopted the European Commission's IORP II proposal. It entered into force on the 20th day following that of its publication in the Official Journal. Member States have two years to transpose it into their national laws. The transposition deadline is 13 January 2019.

    Publications by date:

    27 March 2014

    IORP II proposed.

    14 April 2014

    Committee referral announced in Parliament, 1st reading/single reading.

    20 October 2014

    Committee referral announced in Parliament, 1st reading/single reading.

    25 January 2016

    Vote in committee, 1st reading/single reading.

    Committee decision to open interinstitutional negotiations with report adopted in committee.

    3 February 2016

    Committee report tabled for plenary, 1st reading/single reading.

    April 2016

    EIOPA decided not to recommend the introduction of a new, more stringent solvency regime for European occupational pension plans (IORPs) “at this point in time”.

    30 June 2016

    Council of the EU/European Parliamentissued a press release stating that an agreement had been reached on the final proposal for IORP II.

    24 November 2016

    Vote on IORP II by European Parliament.

    8 December 2016

    Council adopted IORP II.

    10 July 2019

    The European Insurance and Occupational Pensions Authority (EIOPA) has published four opinions to assist member states' supervisory authorities in the implementation of Directive (EU) 2016/2341 on the activities and supervision of institutions for occupational retirement provision (IORPs) (IORP II).

    The opinions cover the following areas:

    • the use of governance and risk assessment documents in the supervision of IORPs;
    • the practical implementation of the common framework for risk assessment and transparency;
    • the supervision of the management of operational risks, including cyber risk; and

    the supervision of the management of environment, social and governance (ESG) risks faced by IORPs.

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  • Subject:
    Money Market Fund Regulation
    Status:
    The Money Market Funds Regulation entered into force on 2 July 2017 and will apply from 21 July 2018.
    Last updated:
    07/08/2019
    Overview/summary:

    Money market funds (MMFs) are an important source of short-term finance for corporations, governments and financial institutions. MMFs are viewed as systemically interconnected to the banking sector and the money market. In Europe, around 22% of short-term debt securities issued either by governments or by the corporate sector are held by MMFs. MMFs hold 38% of short-term debt issued by the banking sector.

     

    The European Union’s Economic and Monetary Affairs Committee stated in February 2015 that MMFs need to be more resilient to financial crises. The proposed Regulation aims to make MMFs safer, ensure more transparency, and increase investor information and investor protection. The proposed Regulation fits with a broader European Commission aim of addressing the risks posed by the shadow banking system.

     

    There are two kinds of MMFs: those that offer a constant net asset value (CNAV) per unit or share when they distribute income to investors and those that offer a variable net asset value (VNAV). Under the proposed Regulation, it is proposed to limit CNAV MMFs to two types (Retail CNAV and Public Debt CNAV). There would also be a new type of MMF, the Low Volatility Net Asset Value (LVNAV) MMF.

     

    The proposed Regulation would tighten MMFs’ transparency rules. MMFs would be required to report the following information on a weekly basis to their investors: liquidity profile; credit profile and portfolio composition; weighted average maturity of the portfolio; weighted average life of the portfolio; and concentration of the top five investors in the MMF. 

     

    The European Commission intends the Regulation to apply to all MMFs that invest in money market instruments, regardless of whether the MMF is governed by UCITS or whether the MMF operates as an alternative investment fund (AIF) as per the definition in the AIFMD.

     

    In February 2016, ESMA published Follow-up Peer Review Money Market Fund Guidelines. In April 2016 the Council of the EU published a marked-up Presidency compromise document. Further to the text published in April, in May 2016 the Council published another marked-up Presidency compromise text. In June 2016 COREPER agreed its approach regarding the proposed Regulation. In November 2016 an agreement was reached between the European Parliament and the Presidency of the Council of the EU regarding the proposed regulation. In December 2016 the Permanent Representatives Committee approved, on behalf of the Council, an agreement with the European Parliament on money market funds. It is expected that the regulation will be approved by the Parliament at first reading and thereafter adopted by the Council. The Regulation was adopted by the Parliament on 5 April 2017; it was adopted by the Council on 16 May 2017.

    Publications by date:

    September 2013

    European Commission published a legislative proposal for an MMF Regulation (2013/0306(COD))

    December 2014

    The Council of the European Union published a compromise proposal

    26 February 2015

    Vote in committee, 1st reading/single reading

    4 March 2015

    Committee report tabled for plenary session, 1st reading/single reading

    28 April 2015

    Debate in European Parliament

    29 April 2015

    European Parliament approved the published provisional version of amendments to the MMF Regulation at its plenary session

    September 2015

    IOSCO publishes report setting out the findings of the review of the MMF Regulation. The review constituted a Level 1 or ‘Adoption Monitoring Review’.

    16 February 2016

    ESMA published ESMA/2016/297: Follow-up Peer Review Money Market Fund Guidelines.

    14 April 2016

    Council of the EUpublished a marked-up Presidency compromise document (dated 12 April).

    10 April 2018

    The European Commission adopted a Delegated Regulation (C(2018) 2080 final) on simple, transparent and standardised securitisations and asset-backed commercial papers, requirements for assets received as part of reverse repurchase agreements and credit quality assessment methodologies under the Regulation on money market funds ((EU) 2017/1131) (MMF Regulation).

    13 November 2018

    ESMA consults on draft guidelines on reporting to NCAs under MMF Regulation.

    19 July 2019

    ESMA published a final report on its guidelines on stress test scenarios produced under Article 28 of the Regulation on money market funds (MMFs).

    The guidelines establish common reference parameters of the stress test scenarios that MMFs or MMF managers should include in their stress scenarios. MMFs and MMF managers are expected to measure the impact of the common reference stress test scenarios specified in the guidelines, and send results using the reporting template to the relevant national competent authorities with their first quarterly reports, scheduled for the first quarter of 2020.

    19 July 2019

    ESMA published a final report on guidelines on reporting to national competent authorities (NCAs) produced under Article 37 of the Regulation on money market funds (MMFs).

    The final text of the new guidelines is set out in Annex III to the final report. They provide guidance on how to fill in the reporting template on MMFs that MMF managers are required to submit to relevant NCAs. The guidelines are designed to complement the information in Commission Implementing Regulation (EU) 2018/708, so that managers have all the necessary information to fill in the reporting template

    Further past dates are accessible via the RegZone money market funds newsfeed here.

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  • Subject:
    Fourth Money Laundering Directive (MLD4)
    Status:
    The Fourth Money Laundering Directive (on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing) came into force on 25 June 2015. It entered into force and effect as of 26 June 2017.
    Last updated:
    03/07/2017
    Overview/summary:

    The Fourth Money Laundering Directive (MLD4) is a minimum harmonisation directive designed to reinforce the supranational approach to combating money laundering and terrorist financing. The Directive brings the EU’s framework into alignment with the Financial Action Task Force’s (FATF) international anti-money laundering (AML) and counter-terrorist financing (CTF) recommendations. MLD4 goes beyond the FATF’s recommendations in relation to scope, beneficial ownership information and sanctions).

     

    Falling within the scope of the Directive are: financial services institutions; auditors, external accountants and tax advisers; notaries and legal professionals; trust or company service providers; estate agents; natural/legal persons trading in goods where (single or linked) payment made/received is in excess of EUR10,000; and providers of gambling services.

     

    The Directive sets out a three-tier risk assessment: the supranational risk assessments carried out by the Commission; the national risk assessments carried out by member states; and the specific risk assessments that firms must carry out themselves.

     

    MLD4 was published alongside the revised Wire Transfer Regulation ((EU) 2015/847) (WTR) which amends and replaces the original Wire Transfer Regulation ((EC) 1781/2006). WTR came into force on the same day as MLD4, and it shares the same implementation date (26 June 2017). The WTR regulates what information must accompany transfers of funds.

     

    The European Commission intends to amend and reinforce MLD4 - rushing these amendments through by Summer 2016. These changes are to take into account new technologies and developments such as virtual currencies, anonymous pre-paid cards, etc. 

     

    Proposed MLD5 amends the implementation date of MLD4 - the new date by which Member States must transpose MLD4 is 1 January 2017. The UK HM Treasury submitted a memo to the EU expressing concerns about this new timetable. The memo noted that a large number of Member States expressed concerns about the new timeframe and that it may be liable to change. The Maltese Presidency of the Council is seeking to reach political agreement on MLD5 by 30 June 2017.

    Publications by date:

     

    5 February 2013

    European Commission published provisional version of a legislative proposal for the Fourth Money Laundering Directive (the finalised version of this proposal was published on 8 February 2013) for the EP and Council to consider.

    15 November 2013 Economic and Financial Affairs Council debated the proposal.
    11 March 2014 European Parliament adopted its first reading position on the proposal.
    17 December 2014

    Council announced that political agreement with the Parliament had been reached at trialogue meeting of 16 December 2014.

    27 January 2015

    The Council, ECON (Committee on Economic and Monetary Affairs) and LIBE (Council of Civil Liberties, Justice and Home Affairs) endorse the MLD4 text.

     

    10 February 2015

    Press release announced that Committee of Permanent Representatives (COREPER) approved the informal trialogue agreement on the proposal (on 21 January 2015).

     

    20 April 2015

    Council of the European Union sets out the position of the Council at first reading as having adopted the MLD4 text by a unanimous vote.

     

    27 April 2015

    Commission announced its acceptance of the Council’s position at first reading.

    5 June 2015

    MLD4 published in Official Journal (OJ).

     

    25 June 2015

    MLD4 entered into force.

     

    25 June 2015 Revised Wire Transfer entered into force.
    2 February 2016 The European Commission issued a press release in which it noted amendments would be made to MLD4 so as to cover new technology/developments (virtual currencies, pre-paid cards) and to reinforce due diligence measures.
    7 April 2016 European Commission published a Money Laundering Directive inception impact statement.
    27 April 2016 European Parliament published an Opinion on virtual currencies asks the European Commission to evaluate and consider extending the scope of MLD to include virtual currency exchange platforms.
    5 July 2016 The European Commission adopted a text setting out amendments to address terrorist financing and transparency issues
    14 July 2016 The European Commission adopted a Delegated Regulation with regard to identifying high-risk third countries with strategic deficiencies (includes annex).
    12 August 2016 The EBA welcomed the European Commission's proposal re: bringing virtual currencies within the scope of MLD4. However, the EBA noted that clarification is required and outlined the proposals in the Opinion. 
    7 September 2016 (UK) HM Treasury has published the text of its response to the Commission's July 2016 proposals to amend MLD 4. It raises concerns in relation to proposals on beneficial ownership, PEPs and identification of persons holding or controlling payment or bank accounts.
    28 November 2016 Council of the EU published the text of a Commission Delegated Regulation amending Commission Delegated Regulation (EU) 2016/1675 supplementing Directive (EU) 2015/849 by identifying high-risk third countries with strategic deficiencies.

     Further past dates are accessible via the money laundering newsfeed here.

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  • Subject:
    GI add-ons
    Status:
    FCA 'General insurance add-ons' Market Study published, including suggested remedies; FCA launched CP15/3 in March 2015 as a follow on from the earlier market study. Policy statement was issued in September 2015 with finalised rules and guidance.
    Last updated:
    08/10/2018
    Overview/summary:

    The FCA Market Study 14-1: General insurance add-ons market study (11 March 2014), found that competition in the sale of general insurance add-ons (insurance products sold alongside, and at the same time as, other retail or financial products, including bank accounts) was not effective, and there was a “clear case” for intervention by the regulator. This was the FCA’s first OFT-style competition Market Study, and also made use of its recent research into behavioural economics.

    In March 2015, the FCA launched CP15/3 that proposes to ban opt-out selling and issues guidance to help firms deliver better and more timely advice to add-on buyers (particularly when using price comparison websites). This consultation paper is a follow on from the market study; the study found that due to weaknesses in the sale of add-ons, consumers are more likely to buy inappropriate or unsuitable products or receive poor value for money. The FCA estimates that this translates as overpayment of around £108m a year.

    Further to the March consultation, in September 2015 the FCA published PS15/22. The rules outline FCA's expectations regarding when add-ons could be introduced (for example, earlier in the sales journey), how it could be made easier for customers to compare packages of primary products and add-ons, and how price could be displayed for add-ons to aid customers' decision-making. The intention is for the guidance to apply broadly to general insurance add-on sales, although the focus in the guidance is on price comparison websites. 

    Appendix 2 of the policy statement contains the non-Handbook guidance which took effect immediately. Rules and Handbook guidance entered into force 1 April 2016. The FCA expects firms to have made the necessary changes to their sales journey by 30 September 2016.

    Further to PS15/22, which provided new rules and guidance to prohibit opt-out selling and improve the information provided to add-on buyers, the FCA published a note (31 March 2016) containing three case studies which are intended to illustrate three initiatives set out in the PS.

    Publications by date:

    October 2011

    FSA publishes CP 11/20: Packaged bank accounts: New ICOBS rules for the sale of non-investment insurance contracts.

    July 2012

    FSA publishes CP 12/17: Feedback to CP11/20 including final rules and further consultation.

    31 March 2013

    New FSA/FCA rules on packaged bank accounts implemented.

    11 March 2014

    FCA published MS14/1 General Insurance Add-ons: Provisional findings.

    24 July 2014

    FCA published MS14/1 General Insurance Add-ons: Final Report.

    25 March 2015

    FCA launches CP15/13 that includes banning opt-out selling and supporting informed decision-making for add-on buyers.

    11 May 2015

    FCA publishedTR 15/5: Provision of premium finance to retail general insurance customers.

    22 May 2015

    FCA publishedTR15/6: Handling of insurance claims for Small and Medium-sized Enterprises.

    2 June 2015

    FCA publishedTR15/7: Delegated authority: Outsourcing in the general insurance market.

    10 June 2015

    FCA publishedPS15/13: Guaranteed Asset Protection insurance: competition remedy including feedback on CP14/29 and final rules.

    24 June 2015

    FCA publishedDP15/4: General insurance add-ons market study – remedies: value measures.

    3 August 2015

    HMT/FCA launchFinancial Advice Market Review.

    28 September 2015

    FCA published PS15/22: General insurance add-ons market study –remedies: banning opt-out selling across financial services and supporting informed decision-making for add-on buyers.

    20 November 2015

    FCA publishCP15/38: Provisions to delay disclosure of inside information within the FCA’s Disclosure and Transparency Rules.

    3 December 2015

    FCA publishedCP15/41 Increasing transparency and engagement at renewal in general insurance markets.

     

    1 March 2016

    FCA published -FS16/1: Feedback Statement on DP15/4 – general insurance value measures.

    31 March 2016

    Further to the FCA'sPS15/22: GI market study - the FCA publisheda note outlining theirexpectations and case studies.

    18 September 2018

    - FCA to publish third set of data in GI value measures pilot alongside consultation on reporting of GI value measures. The FCA updated its webpage on general insurance (GI) value measures.

     

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