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Regulatory Trends in EMEA - Volume 1, 2021

Key developments covered in this edition include the European Union's Sustainable Finance Disclosure Regulation, the new prudential regime for investment firms and the final push towards transition away from interbank offer rates.

By Tricia O'Donovan,
Senior Consultant, Regulatory Solutions

This newsletter outlines Northern Trust’s thoughts about recent regulatory changes, and how they might affect your programmes. It summarises recent developments impacting the financial industry and how Northern Trust will support clients through this period.

In this edition, we discuss the Sustainable Finance Disclosure Regulation, the new prudential regime for Investment Firms (IFR/IFD) and the final push towards transition away from Interbank Offer Rates (IBORs).

At Northern Trust, we continue to monitor regulatory developments. Should you wish to discuss any regulatory topic in this edition in further detail, please contact your Northern Trust representative.

Update on the Regulatory Landscape

While our focus has gradually shifted away from Brexit – recognising that financial services regulatory cooperation discussions are ongoing, with a view to producing a Memorandum of Understanding – we continue to see a focus from regulators on performance fees and cost disclosures, with the European Securities and Markets Authority (ESMA) publishing guidelines in 2020.

Regulators in the region continue to focus on governance, management and oversight frameworks, and an increased focus on culture and accountability. For example, the outcome of the recent review of the implementation of fund management effectiveness framework (known as CP86) by the Central Bank of Ireland has highlighted a number of remediation actions for firms, with board-approved compliance action plans required to be in place by the end of March 2021. 

Developments in the anti-money laundering (AML) regulatory space are also gaining pace, with moves towards a centralised European Union (EU) supervisor. Further guidance is also due to be published by regulators on the potential risks applicable to cryptocurrency assets. 

We expect these areas to be the focus of most new regulation, as well as financial stability, resilience and measures aimed at encouraging retirement provision for an increasingly aging global population.

To read further, download the newsletter.


The United Kingdom's transition period ended at 11pm on 31 December 2020, completing its exit from the European Union's single market and ending passporting rights for UK firms.

In the latest edition of our regulatory newsletter, we discuss the SEC’s fund shareholder disclosure, update to their approach for regulating derivatives and ETFs, and the approved fair valuation rule. We also provide you with updates to CSDR and LIBOR.

Our regulatory newsletter highlights both the stability measures regulators are using in response to the pandemic with some countries entering a second or third wave and how they are continuing to deliver on their longer term plans.

© 2021 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to expert, institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors.For legal and regulatory information about our offices and legal entities, visit The following information is provided to comply with local disclosure requirements: The Northern Trust Company, London Branch; Northern Trust Global Investments Limited; Northern Trust Securities LLP. Northern Trust Global Services SE, 10 rue du Château d’Eau, L-3364 Leudelange, Grand-Duché de Luxembourg, RCS B232281; Northern Trust Global Services SE UK Branch, 50 Bank Street, London E14 5 NT; Northern Trust Global Services SE Sweden Bankfilial, Ingmar Bergmans gata 4, 1st Floor, 114 34 Stockholm, Sweden; Northern Trust Global Services SE Netherlands Branch, Viñoly 7th floor, Claude Debussylaan 18 A, 1082 MD Amsterdam; Northern Trust Global Services SE Abu Dhabi Branch, registration Number 000000519 licenced by ADGM under FSRA # 160018. The Northern Trust Company Saudi Arabia, PO Box 7508, Level 20, Kingdom Tower, Al Urubah Road, Olaya District, Riyadh, Kingdom of Saudi Arabia 11214-9597, a Saudi Joint Stock Company – Capital 52 million SAR. Regulated and Authorised by the Capital Market Authority License # 12163-26 CR 1010366439. Northern Trust (Guernsey) Limited (2651)/Northern Trust Fiduciary Services (Guernsey) Limited (29806)/Northern Trust International Fund Administration Services (Guernsey) Limited (15532) Registered Office: Trafalgar Court, Les Banques, St Peter Port, Guernsey GY1 3DA. Northern Trust International Fund Administration Services (Ireland) Limited (160579) / Northern Trust Fiduciary Services (Ireland) Limited (161386),  Registered Office: Georges Court, 54-62 Townsend Street, Dublin 2, D02 R156, Ireland.