Grant Thornton’s "The Financial Services Insider" is a Quarterly Newsletter designed to help you navigate the constantly changing regulatory landscape within which your business operates.
"The Financial Services Insider" covers the main regulatory developments in the Financial Services sector, published by the EU and Greek competent authorities the previous quarter, in order to help you remain up-to-date with the most significant regulatory updates affecting your organization.
The most important highlights of the second quarter 2020
Second Quarter 2020 has seen a lot of activity in terms of regulatory and supervisory developments in the financial markets with a focus on the areas of Anti-Money Laundering (AML), Governance, Environmental, Social and Governance (ESG), Risk Management, Capital Markets and FinTech.
Anti-Money Laundering (AML)
The European Commission has proposed a comprehensive approach to further strengthen the EU's fight against money laundering and terrorist financing through the publication of a multifaceted Action Plan, which sets out concrete measures that the Commission will take over the next 12 months to better enforce, supervise and coordinate the EU's rules on combating money laundering and terrorist financing. The aim of this new, comprehensive approach is to shut down any remaining loopholes and remove any weak links in the EU's rules.
Governance
The European Securities and Markets Authority (ESMA) has published the final guidelines on the MiFID II compliance function. These guidelines replace ESMA’s guidelines on the same topic issued in 2012 and include updates that enhance clarity and foster greater convergence in the implementation, and supervision, of the new MiFID II compliance function requirements.
Environmental, Social and Governance (ESG)
Environmental, Social and Governance (ESG) disclosure has been another important policy initiative in the EU. The European Supervisory Authorities (EBA, EIOPA and ESMA - ESAs) have issued a Consultation Paper seeking input on ESG disclosure standards for financial market participants, advisers and products. These standards have been developed under the EU Regulation on sustainability-related disclosures in the financial services sector (SFDR).
Risk Management
The European Banking Authority (EBA) published its Guidelines on loan origination and monitoring that expect institutions to develop robust and prudent standards to ensure newly originated loans are assessed properly. The Guidelines also aim to ensure that the institutions’ practices are aligned with consumer protection rules and respect fair treatment of consumers.
Capital Markets
The European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have proposed an extension of the application of the margin requirements because of the Covid-19 impact, while ESMA has highlighted the risks for retail clients when trading under these highly uncertain and unprecedented market circumstances.
FinTech
The European Commission has published two related consultation documents: on the EU’s retail payments strategy on an integrated EU payments market and on the EU’s new digital finance strategy to spur the development of digital finance in the EU. The outcomes of each consultation will help the Commission prepare its retail payments strategy and digital finance strategy, which are expected to be published by the Commission in Q3 2020.
For more information contact us: RiskandRegulatory@gr.gt.com
