The European Commission has published a draft of regulatory technical standards on the issue of secondary prospectuses which, minor drafting amendments aside, match those published by the European Securities and Markets Authority in December 2013.
Currently, under article 16(1) of the European Prospectus Directive, a supplemental prospectus must be issued if any new factor arises (or a material inaccuracy in a prospectus is detected) between the approval of a prospectus and the closing of the offer or commencement of trading of the relevant securities to which it relates. The draft regulatory technical standards set out the specific triggers for and contents of supplementary prospectuses.
Having now cleared the European Commission, the next step is for the regulations to be put before the European Parliament and Council for their consideration prior to their eventual enactment. Draft Regulatory Technical Standards.
On February 12, the CFTC and the European Commission announced jointly that the two agencies have made significant progress in their collaboration on the regulatory frameworks for CFTC-regulated swap execution facilities (SEFs) and EU-regulated multilateral trading facilities (MTFs). Joint Release.
On January 27, the European Commission published a report setting out a proposal for a framework for regulatory cooperation in financial services in the context of negotiations for an EU-US trade deal, known as the Transatlantic Trade and Investment Partnership (TTIP).
The EU intends to establish, within the TTIP framework, a process by which the EU and the United States are committed to working together towards strengthening financial stability. This cooperation would be based on a number of principles, backed by specific arrangements for the governance of the EU-US regulatory cooperation, guidelines on equivalence assessments and commitments to exchange necessary and appropriate data between regulators. Report.
On January 2, the United Kingdom House of Commons Scrutiny Committee published its 28th Session 2013-2014 report. In particular, the report considers the European Commission’s proposed MLD4 Directive on money laundering and terrorist financing and the proposed Wire Transfer Regulation.
Areas of concern over MLD4 highlighted in the report include supranational risk assessments, e-money, politically exposed persons, third country policy and sanctions and supervision. Report.
On December 10, the UK House of Lords EU Sub-Committee on Economic and Financial Affairs published a follow-up report to its March 2012 report on the European Commission’s proposals for a financial transaction tax (FTT).
The Committee’s report identifies “serious” flaws with the Commission’s use of enhanced cooperation, including the adverse impact on institutions in non-participating member states, such as the UK. Report.
On December 4, the European Commission announced that it had fined eight international banks a total of more than 1.7 billion for their participation in illegal cartels in markets for financial derivatives covering the European Economic Area.
Using the cartel settlement procedure, the Commission reached two separate decisions; one decision involved seven separate bilateral infringements relating to interest rate derivatives denominated in Japanese yen. The companies involved were UBS, RBS, Deutsche Bank, JPMorgan, Citigroup and RP Martin.
The other decision was made in relation to a collusion by four banks in relation to interest rate derivatives denominated in euro. The banks were Barclays, Deutsche Bank, RBS and Société Générale. Utilizing the Commission’s 2006 Leniency Notice, Barclays and UBS received complete immunity from fines. Announcement.
On November 20, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) published its report (dated November 19) on the proposed Directive on payment accounts.
The report contains a European Parliament legislative resolution on the proposed Directive on payment accounts, the text of which sets out suggested amendments to the European Commission’s original proposal, which was published in May 2013. Report.
On November 14, the European Commission published an updated document setting out its agenda and timetable for the legislative proposals and non-legislative acts related to financial services that it expects to adopt between November 1 and December 31. The most recent previous version of this document was the July 2013 update. Updated Document.
In a press release dated October 23, the European Parliament announced its adoption of the final report of the special committee (CRIM). The European Commission also published a press release welcoming the report.
On October 3, the European Commission published a consultation paper on crowdfunding in the EU alongside a set of FAQs. In launching the consultation, the Commission aims to explore how EU action could promote crowdfunding in Europe. A range of soft-law measures, such as awareness raising, public funding and coordination of self-regulatory or national regulatory best practices will be considered. Responses can be submitted via an online questionnaire until December 20, and the consultation closes on December 31. Consultation Paper. FAQs.
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