UCITS and PRIIPS - Reports on use of key information documents under the UCITS Directive and EU PRIIPS Regulation - 10 November 2021
The European Parliament has published its final reports on draft amendments to:
- a proposal for a Directive amending the Undertakings for the Collective Investment in Transferable Securities Directive (2009/65/EC) (UCITS Directive) in relation to the use of key information documents (KIDs) by management companies of UCITS; and
- a proposal for a draft Regulation amending the EU Packaged Retail and Insurance-based Investment Products Regulation (1286/2014/EU) (PRIIPs Regulation) in relation to the extension of transitional arrangements for management companies, investment companies and advisers.
The final reports follow the draft reports published by the European Parliament’s Committee on Economic and Monetary Affairs (ECON) on 18 October 2021, as previously reported in this Bulletin. There have been no changes to the proposed amendments set out in the draft reports.
Report on the proposal for a directive of the European Parliament and of the Council amending Directive 2009/65/EC as regards the use of key information documents by management companies of undertakings for collective investment in transferable securities (UCITS)
Report on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 1286/2014 as regards the extension of the transitional arrangement for management companies, investment companies and persons advising on, or selling, units of undertakings for collective investment in transferable securities (UCITS) and non-UCITS
European Securities and Markets Authority
Crowdfunding - ESMA publishes final report on draft technical standards - 11 November 2021
The European Securities and Markets Authority (ESMA) has published a final report on 12 sets of draft technical standards under the European Crowdfunding Service Providers Regulation ((EU) 2020/1503) (the Crowdfunding Regulation).
The report contains:
- ESMA’s responses to feedback received on its consultation in relation to seven sets of regulatory technical standards (RTS) and two sets of implementing technical standards (ITS), published in February 2021; and
- additional draft technical standards that ESMA is mandated to deliver by 10 May 2022, on which it concluded a consultation would be disproportionate to the standards’ scope and impact. These technical standards are: (i) RTS on the key investment information sheet under Article 23(16) of the Crowdfunding Regulation; and (ii) ITS on co-operation between national competent authorities (NCAs) under Articles 31(8) and 31(9), and co-operation between NCAs and ESMA under Article 32(4), of the Crowdfunding Regulation.
The draft technical standards have been submitted to the European Commission for endorsement.
Final Report: Draft technical standards under the European crowdfunding service providers for business Regulation (ESMA35-42-1183)
Tables: Miscellaneous reporting to ESMA (ESMA35-42-1305)
European Banking Authority
EMIR - EBA publishes consultation paper relating to RTS on initial margin model validation - 4 November 2021
The European Banking Authority (EBA) has published a consultation paper relating to draft regulatory technical standards (RTS) on initial margin model validation (IMMV) under Article 11(15) of Regulation (EU) No 648/2012 on over the counter (OTC) derivatives, central counterparties and trade repositories (EMIR) (EBACP/2021/33). This mandates the EBA, in cooperation with the European Securities and Markets Authority (ESMA) and the European Insurance and Occupational Pensions Authority (EIOPA), to specify the supervisory procedures that would ensure initial and ongoing validation of the risk management procedures referred to in Article 11(15), which require the exchange of variation and initial margins.
The draft RTS propose, among other things, that that the supervisory procedures will apply to large and medium-sized counterparties by using a dual approach that is proportionate to the size of the counterparty. The supervisory requirements will be implemented in phases, allowing more time for smaller counterparties to comply with the new rules, and transitional provisions will be available for validation models already in use without explicit supervisory approval.
The consultation closes on 4 February 2022. The EBA intends to hold a public hearing on 15 December 2021. Following this, all contributions received will be published, unless requested otherwise.
Consultation paper: Draft Regulatory Technical Standards on Initial Margin Model Validation (IMMV) under Article 11(15)(aa) of Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (EMIR) (EBACP/2021/33)
See the Beyond Brexit section for an item on CCP equivalence.