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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.
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.
January 28, 2021
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.
March 19, 2021
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.
March 19, 2021
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.