On June 17, the Council of the EU issued a press release regarding its adoption of a regulation and a directive enacting a one-year delay to the new securities market rules.
Under the new regulation the deadline for member states to transpose MIFID II into national legislation is July 3, 2017 and the date of application of both MIFID II and MIFIR is January 3, 2018.
On June 15, the Council of the EU released a press release stating that the Permanent Representatives Committee had agreed, on behalf of the Council, a negotiating stance on a draft regulation on money market funds, aimed at making such products more robust.
On May 30, 2016, the Council of the EU published a press release confirming that it has adopted a Regulation amending the Capital Requirements Regulation (Regulation 575/2013) (CRR) to extend an exemption from certain requirements for commodity dealers.
The expiry date for the exemption of commodity dealers from large exposure requirements and from own funds requirements has been pushed back under the amending Regulation from December 31, 2017 to December 31, 2020.
The CRR requires the European Commission to prepare reports on the prudential supervision of commodity dealers and of investment firms in general. Since the review is still underway, it is likely that new legislation that may be required would only be adopted after the initial expiry date for the exemption. The purpose of the extension is therefore to provide commodity dealers with a stable regulatory environment in the meantime.
The European Parliament adopted the amending Regulation on May 11, 2016. It will enter into force 20 days after its publication in the Official Journal of the EU (OJ).
On May 3, 2016, the Council of the EU published the text of the proposed Regulation on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds (Benchmark Regulation). This follows adoption of the Benchmark Regulation by the European Parliament on April 28, 2016.
Next, the Benchmark Regulation must be formally adopted by the Council, after which it will be published in the Official Journal of the EU. It will then enter into force on the day after its publication.
The European Commission has published two communications to the European Parliament concerning the position of the Council of the EU on the adoption of the proposed Fourth Money Laundering Directive (MLD4), and the proposed Wire Transfer Regulation (WTR). Both MLD4 and the WTR were adopted by the Council of the EU at first reading on April 20, 2015. In each case the Commission confirms that the Council’s position reflects the political agreement reached on December 16, 2014, between the Parliament and the Council, including elements proposed by both institutions, and states its support for this agreement.
On April 21, 2015, the Council of the EU published a press release announcing that it has issued a mandate to the European Commission to negotiate an agreement with the US on reinsurance.
The mandate consists of a decision authorizing the opening of talks and directives for the negotiation of the agreement. The Commission will negotiate on behalf of the EU, in consultation with a Council committee. The agreement will be concluded by the Council with the consent of the European Parliament.
Commenting on the announcement, Janis Reirs, Council president, stated that the agreement would enable the US and EU to recognize each other’s prudential rules and help supervisors exchange information.
On April 20, 2015, the Council of the EU published a press release announcing that it has adopted its position at first reading on new rules aimed at preventing money laundering and terrorist financing.
The directive and regulation will strengthen EU rules against money laundering and ensure consistency with the approach followed at international level. The regulation deals more specifically with information accompanying transfers of funds.
The strengthened rules reflect the need for the EU to adapt its legislation to take account of the development of technology and other means at the disposal of criminals. The main elements are:
The decision will enable the European Parliament, with which agreement was reached on December 16, 2014, to adopt the package at second reading at a forthcoming plenary session. Member states will have two years to transpose the directive into national law. The regulation will be directly applicable.
The Council of the EU has published an “I” item note from its General Secretariat to the Permanent Representatives Committee (COREPER) which sets out the final compromise text of the proposed Regulation on European Long-Term Investment Funds (ELTIF Regulation). “I” Item Note.
On March 3, the Council of the EU published a compromise proposal (dated January 28, 2014) on the European Commission’s proposed Directive on the prevention of the use of the financial system for the purpose of money laundering and terrorist financing (known as the Fourth Money Laundering Directive or MLD4).
MLD4 will amend and replace the Third Money Laundering Directive and is designed to further strengthen the EU’s defenses against money laundering and terrorist financing, while also ensuring that the EU framework is aligned with the Financial Action Task Force standards. Compromise Proposal.
On February 25, the European Parliament published a press release announcing that political agreement has been reached with the Council of the EU on the proposed UCITS V Directive.
The press release notes the following areas of agreement:
