News Centre

EBA Starts Delivering On The Implementation Of The New Regulatory Framework For Investments Firms

Date 04/06/2020

• The EBA is strongly committed to implementing the Investment Firms Regulation and Investment Firms Directive (IFR/IFD) where it plays a significant role;
• The EBA will ensure a proportionate implementation of this new framework to take account of the different classes of investments firms.
• The EBA will deliver on its IFR/IFD mandates following a four-phased approach running from 2020 to 2025.

European Commission Helps Shareholder Engagement By Rejecting The Request Led By Financial Intermediaries To Delay The Implementation Of The New Shareholder Rights

Date 04/06/2020

On 29 April 2020 the heads of European and Member State organisations representing individual shareholders across Europe sent an Open Letter to the European Commission (EC) opposing lobbying attempts led by powerful financial intermediaries to postpone the implementation of the Shareholder Rights Directive II (SRD II). Their call has now been heeded.

Statement Of CFTC Commissioner Dan M. Berkovitz Regarding Prohibiting Exemptions From Commodity Pool Operator Registration For Persons Subject To Certain Statutory Disqualifications

Date 04/06/2020

I support today’s final rule to prohibit commodity pool operators (“CPOs”) or their principals who are subject to statutory disqualification under Section 8a(2) from claiming an exemption from registration.  This rule narrows a loophole in our CPO registration framework and strengthens the Commission’s regulations to protect customers and market integrity.

SEC Awards Record Payout Of Nearly $50 Million To Whistleblower - Whistleblower Program Reaches $500 Million In Total Awards

Date 04/06/2020

The Securities and Exchange Commission today announced a nearly $50 million whistleblower award to an individual who provided detailed, firsthand observations of misconduct by a company, which resulted in a successful enforcement action that returned a significant amount of money to harmed investors.  This is the largest amount ever awarded to one individual under the SEC’s whistleblower program. The next largest is a $39 million award to an individual in 2018.  Two individuals also shared a nearly $50 million whistleblower award that same year.

Statement Of CFTC Commissioner Dawn D. Stump Regarding Final Rule Prohibiting Exemptions Under Rule 4.13 On Behalf Of Persons With Certain Statutory Disqualifications

Date 04/06/2020

One of the great strengths of our derivatives markets – today, just as in the past – is their dynamic nature.  These markets are constantly, and often rapidly, evolving in terms of the scope of products traded, the platforms on which those products are traded, and the participants that trade them.  As a result, “one-size-fits-all” rules often turn out not to be a “good fit” at all.

Nasdaq Stockholm Orders Hitech & Development Wireless Sweden Holding AB To Pay A Fine Corresponding To Eight Annual Fees

Date 04/06/2020

The Disciplinary Committee of Nasdaq Stockholm has found that Hitech & Development Wireless Sweden Holding AB (publ) (“HDW” or the “Company”) has breached the Nasdaq First North Growth Market Rulebook (the “Rulebook”) and has therefore ordered the Company to pay a fine of eight annual fees, corresponding to an amount of SEK 800 000.

Statement Of Commissioner Rostin Behnam Regarding Amendments To Registration And Compliance Requirements For CPOs And CTAs: Prohibiting Exemptions Under Regulation 4.13 On Behalf Of Persons Subject To Certain Statutory Disqualifications

Date 04/06/2020

I support today’s adoption of a final rule (the “Final Rule”) requiring any person that files with the CFTC a notice claiming an exemption from registration as a commodity pool operator (“CPO”) under Regulation 4.13 of the Commodity Exchange Act (“CEA” or the “Act”) to affirmatively represent that neither the claimant nor any of the CPO’s principals has in its background any statutory disqualifications listed in section 8a(2) of the CEA, which are required to be disclosed as a part of a CPO registration application with the Commission.  Beyond closing a regulatory gap that allows certain persons that would generally fail to meet the CEA’s basic conduct requirements to nevertheless claim an exemption from CPO registration, the Final Rule invigorates the Commission’s stance as an active regulator with respect to the most diverse registration category within our jurisdiction.  As I have said before, CPOs (and commodity trading advisors or “CTAs”) are often identifiable by variable organizational structures, investment focus, participation, and solicitation, as well as complexity in how they are regulated within our authority.[1]  These factors demand that when we act, we do so with a laser focus on customer protections.  I am pleased that this Final Rule aggressively advances customer protection in a tangible way.   

EBA Publishes Opinion On Obstacles To The Provision Of Third Party Provider Services Under The Payment Services Directive

Date 04/06/2020

The European Banking Authority (EBA) published today an Opinion on obstacles to the provision of third party provider services (TPPs) under the Regulatory Technical Standards (RTS) on strong customer authentication (SCA) and common and secure communication (CSC). The Opinion aims to support the objectives of the revised Payment Services Directive (PSD2) of enabling customers to use new and innovative payment services offered by TPPs by addressing a number of issues regarding the interfaces provided by account servicing payment service providers (ASPSPs) to TPPs.

Statement Of Support By CFTC Commissioner Brian Quintenz Regarding Amendments Prohibiting CPO Exemptions Under Regulation 4.13 On Behalf Of Persons Subject To Certain Statutory Disqualifications – Final Rule

Date 04/06/2020

I am pleased to support today’s final rule amending the procedures for certain commodity pool operators (CPOs) to claim an exemption from registration.  It is sound policy to prevent a firm from claiming a registration exemption if the entity or its principals are “statutorily disqualified” under section 8a(2) of the Commodity Exchange Act, when the same disqualification would prevent them from registering with the Commission.  The disqualification applicable under today’s amendment covers some of the most serious offenses under the Act, including fraud.  While an exempt CPO is more limited in its activities than a registered CPO, for example, no pool has more than 15 participants or the CPO’s commodity interest activity must remain below certain initial margin and notional amount thresholds, an exempt CPO still manages money for the public.  I therefore agree with today’s amendment that the firm should be held to one of the most fundamental customer protection standards under the Commodity Exchange Act.

BIS: Debt De-risking

Date 04/06/2020

Focus

We examine how corporate bond fund managers manipulate the risk of their portfolios in response to competitive pressure. How bond funds react to the pressures of competition and investor redemptions is important, given the sector's strong growth over the past few years. Corporate bond funds also matter from the standpoint of financial stability, because the funds allow their shareholders to pull out their money any time, even if the underlying assets are difficult for the asset manager to sell quickly. Market turbulence can ensue if managers are forced to sell off illiquid assets in so-called fire sales.