Cookie-Bestimmungen

Unsere Website verwendet Cookies. Durch die Nutzung der Website und durch Ihre Zustimmung zu den Nutzungsbedingungen stimmen Sie dem Gebrauch von Cookies zu Cookie-Bestimmungen.

 
 

#Covid-19 RegWatch

In response to Covid-19, many regulatory authorities at international, European and local levels have adopted emergency measures to protect financial stability and to enable market actors, such as asset owners and asset managers, to focus their efforts on business continuity. These regulatory initiatives include deferral of regulatory obligations and measures regarding preservation of funds liquidity.

On this website, our regulatory experts provide an overview of the key measures taken at international and EU-level, as well as in several key EU markets.

Select your region

  • International×
  • Europe×
  • France×
  • Luxembourg×
  • Germany×
  • Ireland×
  • Italy×
  • Spain×
  • United Kingdom×

1. International

1.1 Bank of International Settlements– Basel III implementation postponed

On 27 March 2020, the Bank of International Settlements (“BIS”) published a press release announcing the deferral of the implementation of the so-called Basel III standards i.e. those standards still outstanding. The deferral aims to increase the operational capacity of banks and supervisors in order to respond to the situation created by Covid-19.

Specifically:

  • The implementation date of the Basel III standards finalised in December 2017 has been deferred by one year to 1 January 2023. The accompanying transitional arrangements for the output floor has also been extended by one year to 1 January 2028.
  • The implementation date of the revised market risk framework finalised in January 2019 has been deferred by one year to 1 January 2023.
  • The implementation date of the revised Pillar 3 disclosure requirements finalised in December 2018 has been deferred by one year to 1 January 2023.

Read here

1.2 Bank of International Settlements – Additional supporting measures

On 3 April 2020, the BIS issued a press release announcing additional measures to alleviate the impact of Covid-19 on the global banking system.
Read here

Of particular interest, the BIS has agreed, together with the International Organisation of Securities Commissions (IOSCO), to extend the deadline by one year of completion of the final two implementation phases of the margin requirements for non-centrally cleared derivatives.

This one year extension will provide additional operational capacity for firms to respond to the immediate impact of Covid-19 and at the same time, help covered entities act diligently in complying with the requirements by the revised deadline.

The final implementation phase will take place on 1 September 2022, at which point covered entities with an aggregate average notional amount (AANA) of non-centrally cleared derivatives greater than EUR 8 billion will be subject to the requirements. As an intermediate step, from 1 September 2021 covered entities with an AANA of non-centrally cleared derivatives greater than EUR 50 billion will be subject to the requirements.
Read here

1.3 Financial Stability Board – FSB reprioritises work programme

On 2 April 2020, the Financial Stability Board (“FSB”) issued a statement on reprioritising its work programme for 2020 in light of Covid-19.

The reprioritisation includes the following elements:

  • A vulnerabilities assessment: the FSB will focus on monitoring current risks to global financial stability, and in particular the impact of Covid-19 on the resilience of the financial system.
  • Non-bank financial intermediation (NBFI): reprioritisation will support the discussion of policy issues arising from NBFI vulnerabilities (becoming transparent during the Covid-19 crisis), and decisions as to how to organise such work in the FSB.
  • OTC derivatives. Finalising the oversight arrangements for the Unique Product Identifier (UPI) and the Unique Transactions Identifier (UTI) will continue given UPI service providers are awaiting clarity on oversight arrangements.
  • Benchmark transition. The transition from LIBOR remains a priority as firms cannot rely on LIBOR being produced after 2021. Benchmark transition will help to strengthen the global financial system.

Read here

2. Europe

2.1 ECB Banking Supervision provides further flexibility to banks in reaction to coronavirus

On 20 March 2020, the European Central Bank (ECB) announced further measures to ensure that its directly supervised banks can continue to fulfil their role to fund households and corporations amid the coronavirus-related economic shock to the global economy.
Read here

2.2 EU commission – Extension of consultation deadlines

On 3 April 2020, in light of the global COVID-19 crisis, the European Commission (EC) extended the deadline for the MiFID II//R and the NFRD consultations by four weeks. As such:

  • The deadline for the MiFID II/R review consultation will now be 18 May 2020 (previously this was 20 April 2020).
  • The deadline for the non-financial reporting directive (NFRD) review will now be 11 June 2020 (previously this was 14 May 2020).

Read here

2.3 ESMA – Recommendations aimed at ensuring business continuity of financial market participants in response to Covid-19

On 11 March 2020, the European Securities and Markets Authority (ESMA) made recommendations to financial market participants in respect of business continuity planning, market disclosure, financial reporting and fund management.
Read here

2.4 ESMA – Extension of consultations response dates

On 20 March 2020, ESMA decided to extend the response date for all ongoing consultations with a closing date on, or after, 16 March by four weeks.
Read here

2.5 ESMA- Postponement of reporting requirements under SFTR

On 26 March 2020, ESMA asked National Competent Authorities (NCAs) not to prioritise their supervisory actions towards entities subject to securities financing transactions reporting obligations during the period 13 April to 13 July 2020. ESMA expects trade repositories to be registered sufficiently ahead of the next phase of the reporting regime, i.e. 13 July 2020, for credit institutions, investment firms, CCPs and CSDs and relevant third-country entities to start reporting as of this date. The 13 April 2020 reporting deadline has been postponed to 13 July 2020 due to the covid-19 pandemic.
Read here

2.6 ESMA – Postponement of reporting obligations under MMFR

On 31 March 2020, ESMA announced that submission of the first quarterly reports to the NCAs was postponed to September 2020.
Read here

2.7 ESMA – clarifications for best execution reports under MiFID II

On 31 March 2020, ESMA issued a public statement to clarify issues regarding the publication by execution venues and firms of the general best execution reports required under RTS 27 and 28 of MiFID II, in light of the COVID-19 pandemic.
Read here

2.8 ESMA - Actions to mitigate the impact of COVID-19 on the deadlines for the publication of periodic reports by fund managers

On 9 April 2020, ESMA published a public statement to promote coordinated action by NCAs in the context of the COVID-19 pandemic. It concerns the obligations of the entities listed below to publish annual and half yearly reports in respect of funds they manage, in relation to reporting periods ending from 31 December 2019 to 30 April 2020.

  • UCITS management companies
  • Self-managed UCITS investment companies
  • Authorised AIFMs
  • Non-EU AIFMs marketing AIFs pursuant to Article 42 of the AIFMD
  • EuVECA managers, and
  • EuSEF managers.

Read here

2.9 EIOPA - recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure - Coronavirus/COVID-19

On 20 March 2020, EIOPA published recommendations addressed to competent authorities for the insurance sector regarding the deadline of supervisory reporting and public disclosure (annual reporting – quarterly reporting – Solvency and Financial Condition report) and a Q&A in relation thereto.
Read here

2.10 EIOPA - EIOPA urges (re)insurers to suspend all discretionary dividend distributions and share buy backs

On 2 April 2020, EIOPA issued a public statement urging (re)insurers to suspend all discretionary dividend distributions and share buy-backs. EIOPA considers this essential to ensuring access to and continuity of insurance services, safeguarding the ability of the insurance sector to continue to perform its role as risk transfer mechanism from citizens and businesses and its capacity to mobilise savings and invest them in the real economy.
Read here

2.11 EIOPA – other measures impacted by Covid-19

On 2 April 2020, EIOPA issued a public statement outlining the impact of Covid-19 on its work programme. Among others, EIOPA mentions the following impacts:

  • Review of technical implementation means for the package on Solvency II Supervisory Reporting and Public Disclosure. The comments deadline is extended by six weeks from 20 April to 1 June 2020
  • Consultation on the implementing technical standards for the pan-European Personal Pension Product (PEPP). The comments deadline is extended by four weeks from 20 May to 17 June 2020
  • Consultation on Discussion Paper on IBOR transitions. The comments deadline is extended by nine weeks from 30 April to 30 June 2020
  • Climate risk sensitivity analysis 2020, data request to complete data available for top-down element and qualitative survey to groups reporting for FS purposes as agreed in the roadmap for the 2020 exercise on climate-related transition risks will be cancelled. The report will be performed with the available information.
  • Data collection for the work on the impact of ultra-low yields on insurers to complement Solvency II data planned for Q1/Q2 will be launched later also to incorporate Covid-19 reflections if necessary

Read here.

3. France

3.1 French Government – Ordinance relating to extending deadlines

On 26 March 2020, the ordinance n°2020-306, adopted pursuant to the Emergency Law, was published in the Journal Officiel. The ordinance provides, inter alia, for the extension of deadlines as regards some contractual arrangements (such as cash financing arrangements).
Read here

3.2 French Government – Ordinance relating to general meetings and governing bodies

On 26 March 2020, the ordinance n° 2020-321, adopted pursuant to the Emergency Law, was published in the Journal Officiel. Amongst others, this ordinance relates to annual general meetings and deliberations of annual general meetings and governing bodies of legal persons. These exceptional measures are intended to apply only during the Covid-19 crisis period.
Read here

3.3 AMF – Short selling ban

On 17 March 2020, the Autorité des marchés financiers (AMF) decided to ban the creation or increase of short net positions from 18 March until 16 April 2020.
Read here

3.4 AMF – FAQ dedicated to Covid-19

On 31 March 2020, the AMF published its Frequently Asked Questions (FAQ) on Covid-19 in order to support fund management companies. In this FAQ, which will be frequently updated, the AMF:

  • Welcomes the use of “swing pricing”, Anti Dilution Levies- ADL (with reduced formalism) and “gating” mechanisms in the current period, given the low liquidity of some underlying assets and potential high costs of portfolio readjustment;
  • Reminds ManCos of the existing rules in respect of net asset value (NAV) calculation. In particular, any decrease in the frequency of the NAV, such as a change from a daily NAV to a weekly NAV, must be subject to appropriate notification to UCITS or AIFs investors including with a possibility of withdrawal free of charge for at least 30 calendar days;
  • Postponement of the delivery of specific reports, such as annual reports on internal controls, postponed to June 24th, and the climate commitment report postponed to 20 April 2020.

Read here

3.5 ACPR – Recommendation addressed to insurance companies

On 3 April 2020, the Autorité de Contrôle Prudentiel et de Résoution (ACPR) issued a recommendation addressed to insurance companies to suspend distribution of dividends, in the context of Covid-19.
Read here

4. Luxembourg

4.1 Luxembourg Government - Shareholder meetings and meetings of management bodies in digital form

On 20 March 2020, the Government of Luxembourg enacted by way of decree a number of temporary measures. Among these are rules allowing all Luxembourg companies, private or listed, to hold their shareholder or partner meetings (including the annual general meeting) without any participant attending in person. The same rule applies to meetings of management bodies such as boards of directors, boards of managers and supervisory boards.
Read here

4.2 CSSF FAQ dedicated to Covid-19

On 3 March 2020, the CSSF published and keeps updated a FAQ on Covid-19 answering the following items inter alia:

  • Swing factor to be applied on the NAV up to the maximum level laid down in the prospectus of UCITS, UCI Part II & SIFs;
  • Swing factor increase to be applied beyond the maximum swing factor laid down in the fund prospectus of UCITS, UCI Part II & SIFs;
  • Deadlines for reports to be submitted by UCIs, SIFs, SICARs, investment fund managers, pension funds and securitisation undertakings;
  • Deadlines for reports to be submitted by investment firms be extended;
  • Postponement of quarterly reporting requirements under Article 37 of the Money Market Funds Regulation.

The CSSF will update the FAQ if and when needed.
Read here

4.3 CSSF FAQ on swing pricing and dilution levy mechanisms

On 20 March 2020, the CSSF published a communication and an update of its FAQs on the use of the swing pricing and dilution levy mechanisms by Luxembourg regulated UCITS, Part II UCIs and SIFs further to the questions received from industry participants in the context of the financial market developments around Covid-19.
Read here

4.4 CSSF – Press release on regulatory reporting

On 23 March, the CSSF issued a press release in light of the COVID-19 situation as regards regulatory reporting obligations.
Read here

4.5 CSSF – Press release on submission of long form reports

On 25 March, the CSSF issued a press release in light of the COVID-19 situation as regards the submission of long form reports.
Read here

4.6 CSSF – Launch of a new questionnaire to investment fund managers – update on financial data and governance arrangements

On 9 April 2020, the CSSF issued a weekly questionnaire to investment fund managers (IFMs).

The objective is to provide the CSSF with weekly updates on financial data (total net assets, subscriptions and redemptions) and an update on governance arrangements in relation to the activities performed by IFMs established in Luxembourg or in other European/non-European countries and managing at least one UCITS, AIF and/or any other UCI (not qualifying as AIF).

The first questionnaire, covering the period 13 to 17 April 2020, should be submitted to the CSSF by close of business on 22 April 2020.
Read here

4.7 CSSF - ESMA Guidelines on the Reporting under Articles 4 and 12 SFTR

On 9 April 2020, the CSSF issued a Circular 20/739 announcing that the CSSF applies the ESMA “Guidelines on the Reporting under Articles 4 and 12 of the securities financing transactions Regulation 2015/2365 (published on 6 January 2020) and has integrated those guidelines into its administrative practice and regulatory approach.
Read here

4.8 CAA – Publications

Throughout March and April 2020, the Commissariat aux Assurance (CAA) published inter alia the following in the context of Covid-19:

  • On 25 March 2020, the CAA published that the CSSF will follow these recommendations and extend deadlines for the submission of Solvency 2 reporting and public disclosure, in accordance with the EIOPA's recommendations of 20 March 2020 ( « Recommendations on supervisory flexibility regarding the deadline of supervisory reporting and public disclosure - Coronavirus/COVID-19 (EIOPA-BoS-20/236)).
  • On 2 April 2020, the CAA offered some relief in respect of annual and quarterly reporting including in respect of Solvency II reporting SOLO.

Read here

5. Germany

BaFin - FAQ on supervisory approach to Covid-19 crisis

On 24 March 2020, the German Bundesanstalt für Finanzdienstleistungsaufsicht (“BaFin”) issued a press release outlining its supervisory approach in the context of the Covid-19 crisis.

In the press release, BaFin set out a range of measures in order to ease the burden on financial market participants while ensuring financial stability.

The measures focus on credit institutions, insurers, pension funds, and firms active in the securities services sector.
Read here

By way of example, BaFin will not raise any objections to a temporary passive exceedance of the statutory proportion of real estate held through investment funds of insurance and pension funds subject to the German Investment Regulation (Anlageverordnung).

All specific measures taken by BaFin are listed in a FAQ which will be updated and expanded as the Covid-19 situation develops.
Read here

6. Ireland

6.1 Companies Registration Office - Update Regarding Filing of Annual Returns

In March 2020, the Companies Registration Office decided that all annual returns due to be filed by any Company now and up to 30th June 2020 will be deemed to have been filed on time if all elements of the annual return are completed and filed by that date. This will enable businesses and their financial advisers to focus on the more immediate financial challenges facing them at this time. The situation will be kept under review and the date of 30th of June may be extended depending on the situation as it develops.

6.2 Central Bank of Ireland Covid-19 FAQs

In March 2020, the Central Bank of Ireland published a page on its website with FAQ’s and a press release on the current situation in Ireland surrounding Covid-19.
Read here

The Central Bank continues to seek real time information about how Irish funds are operating in the current COVID-19 environment in order to seek to fulfil its public mandate role of protecting the interests of investors. They have also confirmed that they will also maintain appropriate regulatory oversight throughout this period.

The Central Bank have noted through updates to industry bodies that there are no Central Bank or legal rules regarding in person voting for contractual or other arrangements and that the ability of a board to hold telephone (or other remotely held) meetings is a matter typically addressed by the entities constitutional documentation.

7. Italy

7.1 Bank of Italy grants extensions to certain reporting obligations

On 20 March 2020, the Bank of Italy granted extensions (from 60 to 150 days depending on the different topics) to certain reporting obligations in order to enable the banking and financial system to concentrate all its efforts on dealing with the Covid-19 crisis.

The Bank of Italy is also in the process of rescheduling on-site inspections and evaluating whether to allow some flexibility regarding the deadlines for supervisory and central credit register reporting, in coordination with the European supervisory authorities
Read here in Italian
Read here in English

7.2 CONSOB grants extensions for reporting obligations

On 25 March 2020, the CONSOB granted a 60 day extensions to certain reporting obligations stated in its Circular 17297/2010 in order to enable the banking and financial system to concentrate all its efforts on dealing with the Covid-19 crisis. In particular: reporting on collective investment management activity, investment and ancillary services, distribution of financial products and annual reporting on organizational structure for AM Companies, SICAVs, SICAFs.
Read here

7.3 COVIP extends reporting deadlines

On 11 March, 20 March and 1St April 2020, in light of the Covid-19 crisis, the COVIP, Italian regulatory authority for pension schemes, issued three circulars in order to extend specific deadlines. Among others: 2019 balance sheet approval, 2019 communications to clients, “2019 Rendiconto”, “Relazione Responsabile fondo pensione”, regulatory reporting. Furthermore, COVIP will allow pension schemes to organise their general assembly using video-audio conference tools even if not explicitly written in their official documentation.

Official COVIP communications link below:

ITA - https://www.covip.it/wp-content/uploads/COVIP-1096-COVID_19_Circolare.pdf
ITA - https://www.covip.it/wp-content/uploads/COVID_19_Circolare_ANIA_revfinale.pdf
ITA - https://www.covip.it/wp-content/uploads/EPP_Circ_1577_01042020.pdf

7.4 Italian Inland Revenue Agency

On 3 April 2020, the Italian Inland Revenue Agency published Circular letter no. 8 which clarifies measures recently adopted through Law Decree 17 March 2020, n. 18 to mitigate the impacts of the Covid-19 emergency. In particular, the Inland Revenue has confirmed that it is possible to extend to 15 June 2020 the validity of Certificates of residence (COR) issued by foreign tax authorities and which expired on 31 March 2020.

This applies whenever it has been ascertained that due to the declared Covid-19 emergency in his tax residence state, a foreign investor has been unable to obtain a renewed Certificate of Residence
Read here

8. Spain

8.1 Government – Royal Decrees published dedicated to covid-19 measures

On 20 March 2020, the Spanish Government issued Royal Decree (RD-Ley 8/2020) related to economic measures. The Royal Decree includes new limitations on foreign investments and changes in the corporate governance of issued companies, how shareholder meetings are held during 2020 and extensions to the deadlines for annual audited financial statements, intermediate management statements and semi-annual financial statements
Read here

On 31 March 2020, the Spanish Government issued Royal Decree (RD-Ley 11/2020) related to social and economic measures that complement and maintain all the provisions already included in RD- Ley 8/2020. Among others:

  • Exceptional period of 6 months, from 14th March, 2020 (Declaración de estado de alarma), for pension funds´ shareholders to get their investment under special circumstances (e.g. temporal unemployment, business owner of establishments whose opening to the public has been seen suspended, etc). This measure is also extended to the rest of saving investment products (i.e. EPSVs, PPAs)
  • Additional extraordinary measures for the corporate governance of juridic entities (SICAVs) and annual reports produced during the current situation (estado de alarma)
  • In the case of investment funds, CNMV will have the capacity to: 1) require asset managers to reinforce the liquidity ratio in their institutional portfolios and to increase the investment in more liquid assets and 2) to set preadvise periods for redemptions.

Read here

8.2 CNMV – different measures & communications to market players due to covid-19

Throughout March 2020, given market volatility, the Spanish regulator Comisión Nacional del Mercado de Valores (“CNMV”) communicated guidelines on a ban on short selling & the creation or increase of net short positions on shares.

13 March 2020 - CNMV temporarily prohibited short selling in 69 listed companies. CNMV communicated the decision to ban short sales during the day’s trading session for all liquid shares admitted to trading on the Spanish stock exchanges whose price fell by more than 10% on 12 March and on all illiquid shares (in accordance to Delegated Regulation 918/2012) whose price fell by more than 20%.

16 March 2020 - In light of the extreme market volatility seen recently in Spain due to the impact of the COovid-19 virus on financial markets, on 16 March 2020, the CNMV decided to prohibit the short selling of, and the increase of existing short positions, on all Spanish securities and financial instruments for a period of one month. This ban came into place at the start of trading on 17 March and will end on 17 April 2020, but could be extended for a period of 3 months depending on market and social conditions, as contemplated within article 24 of EU regulation 236/2012. This ban is applicable to trades traded on the BME and MAB, the trading venues over which the CNMV has regulatory control. Any equity trades, or those related to stock indices (cash trades, derivatives traded on organized markets or traded OTC) which create a net short position, or increase a pre-existing short position, albeit intraday, are subject to the ban.
Read here

22 March 2020 - Q&A published by CNMV on short selling ban on the creation and increase of net short positions (update to communication made on 16 March 2020).
Read here

27 March 2020 - CNMV made further comments in regards to information to be provided by asset managers as consequence of Covid-19 and in response to the Q&A issued by Inverco.
Read here

8.3 Ministry of Economy and Digital Transformation – Directorate General for Insurance and Pension Funds - EIOPA´s recommendations on supervisory reports

On 24 March 2020, T2S stated that T2S will temporarily move the start of Night Time Settlement from 8:00pm CET to 9:00pm CET until further notice. The change is mostly aimed at minimising the impacts due to the current exceptional market conditions and volumes.

On 30 March 2020, T2S announced that the move would remain in place until 06 April 2020.

8.4 T2S- Spain – Night time settlement cut-off postponement

On 24 March 2020, T2S stated that T2S will temporarily move the start of Night Time Settlement from 8:00pm CET to 9:00pm CET until further notice. The change is mostly aimed at minimising the impacts due to the current exceptional market conditions and volumes.

On 30 March 2020, T2S announced that the move would remain in place until 06 April 2020.

9. United Kingdom

9.1 FCA extends deadlines for publishing fund reports and accounts

On 06 April 2020, the FCA announced temporary relief to the regulatory deadlines for publishing funds’ half-yearly and annual reports and accounts because of the impact of Covid-19.
Read here

9.2 FCA removes Mifid 10% drop notifications until October

The FCA will not implement rules for wealth managers and advisors that require reporting a 10 per cent drop in the value of retail investors’ portfolios, granting supervisory flexibility for six months, until the end of September.
Read here

9.3 FCA – Expectations of investment firms

The FCA has set out its general guidance and rules regarding its expectations of firms in the light of the coronavirus (Covid-19) crisis.
Read here

9.4 FCA – Non-critical Regulatory Change

The FCA is reviewing the possibility of delaying or postponing activity which is not critical to protecting consumers and market integrity in the short-term. This will allow firms to focus on supporting their customers during this difficult period.

This includes extending the closing date for responses to open consultation papers and calls for input until 1 October 2020 and rescheduling most other planned work.

For a full list covering Asset & Wealth Management, Insurance, Pensions and more see the FCA’s website here

Shorcuts

Folgen Sie uns