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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.

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