The latest regulatory roundup

Happy New Year and welcome back to Suade's RegFocus. Your trusted source for the latest regulatory updates in the United States, Europe, and the United Kingdom.

In this edition, we'll dive into key developments from:

• European Banking Authority
• ESMA
• Bank of England
• Financial Conduct Authority
• U.S. Securities and Exchange Commission
• Federal Reserve
• Commodity Futures Trading Commission

European Banking Authority

ESAs Consult on Draft Implementing Technical Standards for ESAP

8 January 2024

The ESAs published a Consultation Paper on draft implementing technical standards (ITSs) for the European Single Access Point (ESAP).

Stakeholders are encouraged to provide feedback by 8 March 2024.

ESAs Propose Extending EMIR Equity Option Exemption

20 December 2023

• Proposed two-year extension to the equity option exemption from bilateral margining under EMIR.

EBA Publishes Roadmap on EU Banking Package Implementation

14 December 2023

• Roadmap on implementing the final Basel III reforms in the EU, providing clarity and strengthening the prudential framework.

EBA Publishes Discussion Paper on Centralisation of EEA Banks Pillar 3 Disclosures

14 December 2023

• Discussion paper on centralising institutions’ prudential disclosures through the Pillar 3 data hub.

EBA Issues Revised List of ITS Validation Rules

12 December 2023

• EBA issued a revised list of validation rules in its Implementing Technical Standards (ITS) on supervisory reporting.

ESMA

ESMA Consults on Changes to Securitisation Disclosure Templates

12 December 2023

• Consultation on revising Disclosure Regulatory Technical Standards (RTS) and Implementing Technical Standards (ITS) for securitisation transactions.

ESMA Updates MMF Stress Testing Parameters and Methodology

19 December 2023

• Published the Final Report on Guidelines for stress test scenarios under the Money Market Funds Regulation (MMFR).

ESMA Finalises Technical Standards under Revised ELTIF Regulation

19 December 2023

• Final report setting out draft Regulatory Technical Standards (RTS) for the European Long-Term Investment Fund (ELTIF) regulation.

ESMA Highlights Conflicts of Interest Risks in CLO Rating Methodologies

7 December 2023

• Report on conflicts of interest risks observed in the development of Collateralised Loan Obligation (CLO) rating methodologies.

ESMA Updates ESEF XBRL Taxonomy and Conformance Suite

7 December 2023

• Published an update to the European Single Electronic Format (ESEF) XBRL taxonomy 2022 files and the ESEF Conformance Suite 2023.

Bank of England

PS17/23 – Basel 3.1 Standards Implementation (Near-Final Part 1)

19 December 2023

• PRA's proposals to exclude reserves on omnibus accounts from the leverage ratio and related updates.

PRA Publishes First Policy Statement on Basel 3.1 Standards Implementation

12 December 2023

• Near-final policy statements covering the implementation of Basel 3.1 standards for various risk categories.

Joint Proposals to Increase Resilience of Financial Sector by Overseeing Critical Third Parties

7 December 2023

• Consultation on overseeing and strengthening the resilience of services provided by critical third parties.

PRA Announces 2024 Supervision Priorities for UK Deposit Takers

11 January 2024

• The Prudential Regulation Authority (PRA) has outlined its key supervision priorities for UK deposit takers for 2024.
• This guidance focuses on the necessity for robust governance, effective risk management, and stringent control mechanisms.
• Key areas highlighted include enhancing credit risk management, bolstering financial and operational resilience, refining model risk management, and mitigating data risks.
• The PRA is set to actively collaborate with financial institutions to ensure that these evolving regulatory frameworks are consistently aligned with the dynamic financial sector.

PRAs 2024 Agenda for International Banks Supervision

11 January 2024

• The Prudential Regulation Authority (PRA) has communicated its 2024 priorities for international banks and designated investment firms operating in the UK.
• This year's focus emphasizes the need for strong governance, risk management, and controls, especially in a changing and challenging operating environment.
• The PRA highlights the importance of a robust risk culture, effective management of counterparty credit and financing risks, and the ongoing assessment of financial resilience amidst global economic uncertainties.
• Additionally, the PRA underscores the need for firms to stay vigilant regarding novel risks emerging from new technologies and the rapidly evolving financial landscape.

Financial Conduct Authority

Proposed New Rules to Encourage Companies to List in the UK

20 December 2023

• FCA's proposals to make the UK’s listing regime more accessible, effective, and competitive.

FCA Writes to Firms about Treatment of Retained Interest on Customers’ Cash Balances

12 December 2023

• FCA's concerns about how investment platforms and SIPP operators handle interest earned on customers’ cash balances.

U.S. Securities and Exchange Commission

SEC Adopts Rules to Improve Risk Management in Clearance and Settlement

13 December 2023

• Rule changes to enhance risk management practices for central counterparties in the U.S. Treasury market.

Federal Reserve

Agencies Release Annual Asset-Size Thresholds under Community Reinvestment Act Regulations

20 December 2023

• Announcement of 2024 updated asset-size thresholds defining "small bank" and "intermediate small bank" under CRA regulations.

Commodity Futures Trading Commission

CFTC Approves Proposed Amendments to Regulations Regarding Real-Time Public Reporting

15 December 2023

• Approval of proposed rule to revise CFTC regulations on real-time public reporting and swap data recordkeeping.

CFTC Seeks Public Comment on Proposed Rule to Amend Capital and Financial Reporting Requirements

15 December 2023

• Request for public comment on proposed rule to amend capital and financial reporting requirements of Swap Dealers (SDs) and Major Swap Participants (MSPs).

Coming up:

Join us next week to explore the ever-evolving landscape of RegTech and its pivotal role as regulatory requirements continue to shape the industry.

In this Suade webinar, we will bring together financial leaders and innovators in the space to explore the evolution of RegTech, along with key trends for 2023, and anticipated changes for 2024.

Our expert panel will also explore examples of transformation projects and offer strategic initiatives around successful implementation.

Register here.