Financial Services Regulatory Update – November 2022 Round Up

Consumer Credit (Amendment) Act 2022

On 14 November 2022, the Consumer Credit (Amendment) Act 2022 was commenced by statutory instrument (here). This Act, which regulates the provision of high cost credit, sets a ceiling on interest rates charged by ‘high cost credit providers’, limits the maximum term of a loan agreement and aims to modernise the industry more generally. Further information on this Act is available in our briefing (here).

On the same date, the Central Bank of Ireland (“CBI”) published FAQs for high cost credit providers (here) and an information page on their website dedicated to high cost credit providers (here).

On 18 November 2022, the Consumer Credit Act 1995 (section 98 A)(Maximum Interest Rates) Regulations 2022 were published Iris Oifigiúil (here). These Regulations set maximum rates of interest chargeable under high cost credit agreements and came into effect on 14 November 2022.

CBI ‘Dear CEO’ Letter on Consumer Protection

On 17 November 2022, the CBI published a ‘Dear CEO’ letter on protecting consumers in a changing economic landscape (here).

The letter specifies the actions, as previously set out in the Consumer Protection Outlook Report (here), that the CBI expects regulated firms to take to ensure consumers are protected. The CBI emphasises that regulated firms have a responsibility to navigate the rapidly changing financial services landscape in a manner that places the best interests of consumers at the centre of their commercial decision-making.

The CBI notes that, since the publication of the Consumer Protection Outlook Report, a more challenging economic outlook characterised by energy-driven inflation and uncertainty has materialised. The letter emphasises the importance of firms meeting expectations in this evolving context and highlights several areas for attention:

• affordability and sustainability;
• provision of relevant, clear and timely information;
• effective operational capacity; and
• sales and product governance.

Retail Banking Review

On 29 November 2022, the Government published the report of the Retail Banking Review (here). The review, which examined the evolution of the retail banking sector and the current landscape, makes 34 recommendations to be implemented by the Department of Finance, the CBI and the retail banking sector itself. The review spans several core themes and includes, in particular, recommendations that:

• the Department of Finance should develop access to cash legislation and prepare heads of a bill in 2023;
• the Department of Finance should prepare legislation to require providers of credit to SMEs to be authorised and supervised by the CBI, with the intention that all SME borrowers benefit from the protections of the CBI’s SME Regulations; and
• remuneration restrictions in respect of Bank of Ireland, AIB and PTSB be amended by permitting variable pay per employee of up to €20,000 per annum, allowing the provision of standard non-pay benefits for all employees and, solely for Bank of Ireland, removing the maximum pay cap of €500,000 for an individual.  With regard to AIB and PTSB, it is recommended that the pay cap should be removed in the future when the state’s shareholding in those entities is at ‘an appropriate level’.

Consumer Rights Act 2022

On 7 November 2022, the Consumer Rights Act 2022 was signed into law by the President, following its passage through the Houses of the Oireachtas (here). This Act was commenced (with the exception of section 161) by statutory instrument on 29 November 2022 (here).

Under this Act, “service” means any service or facility including financial or other professional services. Therefore, financial service providers have obligations to consumers under this Act, with offences stipulated for breaches. These obligations include that the service be fit for purpose and that the trader has the necessary skill to provide the service with reasonable skill and care. Further detail is available in our briefing (here).

DORA

On 28 November 2022, the Council of the EU (the “Council”) announced (here) that it had adopted the proposals for a Regulation on digital operational resilience for the financial sector (“DORA”) (here) and related amending Directive (here).  DORA aims to harmonise and strengthen digital operational resilience requirements for the financial services sector in the EU.

DORA will enter into force 20 days after publication in the Official Journal of the European Union (the “Official Journal”) and will apply 24 months after its entry into force, while the Amending Directive must be transposed by Member States within 24 months.

Housing Loan Requirements

On 1 November 2022, the Central Bank (Supervision and Enforcement) Act 2013 (Section 48 (1)) (Housing Loan Requirements) Regulations 2022 were published in Iris Oifigiúil (here).

These Regulations were issued by the CBI and set limits for lenders on the proportion of mortgage loans that they may advance in certain categories by reference to the value of the property on which the mortgage loan is secured and the income of the borrower.

These Regulations take effect on 1 January 2023.

CBI Publications

On 24 November 2022, the CBI updated the crowdfunding industry notice on its website following the extension of the transitional arrangements for existing crowdfunding service providers (here).

Additionally, the CBI updated its Q&As for crowdfunding service providers (2nd Edition November 2022) (here). Included in the latest edition are Q&As in relation to (i) the extension of the transitional arrangements and (ii) the applicability of the Addendum to the Consumer Protection Code 2012.

RTS and ITS

On 8 November 2022, several Delegated and Implementing Regulations made under the Regulation on European crowdfunding service providers for business (the “Crowdfunding Regulation”) were published in the Official Journal. The Delegated Regulations containing regulatory technical standards (“RTS”) are:

• Commission Delegated Regulation (EU) 2022/2111 specifying conflicts of interest requirements for crowdfunding service providers (“CSPs”) (here);
• Commission Delegated Regulation (EU) 2022/2112 specifying requirements and arrangements for the application for authorisation as a CSP (here);
• Commission Delegated Regulation (EU) 2022/2113 on the exchange of information between competent authorities in relation to investigation, supervision and enforcement activities in relation to European crowdfunding service providers (“ECSPs”) for business (here);
• Commission Delegated Regulation (EU) 2022/2114 specifying the entry knowledge test and the simulation of the ability to bear loss for prospective non-sophisticated investors in crowdfunding projects (here);
• Commission Delegated Regulation (EU) 2022/2115 specifying the methodology for calculating default rates of loans offered on a crowdfunding platform (here);
• Commission Delegated Regulation (EU) 2022/2116 specifying the measures and procedures for CSPs’ business continuity plans (here);
• Commission Delegated Regulation (EU) 2022/2117 specifying the requirements, standard formats and procedures for complaint handling (here);
• Commission Delegated Regulation (EU) 2022/2118 on individual portfolio management of loans by CSPs, specifying the elements of the method to assess credit risk, the information on each individual portfolio to be disclosed to investors, and the policies and procedures required in relation to contingency funds (here); and
• Commission Delegated Regulation (EU) 2022/2119 regarding the key investment information sheet (here).

The Implementing Regulations containing implementing technical standards (“ITS”) are:

• Commission Implementing Regulation (EU) 2022/2120 with regard to data standards and formats, templates and procedures for reporting information on projects funded through crowdfunding platforms (here);
• Commission Implementing Regulation (EU) 2022/2121 with regard to standard forms, templates and procedures for the co-operation and exchange of information between competent authorities and ESMA in relation to ECSPs for business (here);
• Commission Implementing Regulation (EU) 2022/2122 with regard to standard forms, templates and procedures for the co-operation and exchange of information between competent authorities concerning ECSPs for business (here); and
• Commission Implementing Regulation (EU) 2022/2123 with regard to the standard forms, templates and procedures for the notifications of national marketing requirements applicable to CSPs by competent authorities to ESMA (here).

SFDR Q&As

On 17 November 2022, the European Supervisory Authorities (the “ESAs”) published a ‘Questions and answers (Q&A) on the SFDR Delegated Regulation (Commission Delegated Regulation (EU) 2022/1288)’ (the “Q&As”) (here).

The Q&As consider the Sustainable Finance Disclosure Regulation ("SFDR") RTS in the context of several topics, including:

• current value of all investments in PAI and taxonomy-aligned disclosures;
• PAI disclosures;
• financial product disclosures; and
• multi-option products.

Further detail is available in our briefing (here).

Delays to review of SFDR RTS

On 14 November 2022, the European Securities and Markets Authority (“ESMA”) published a letter (dated 26 October 2022, here) sent by the ESAs to the European Commission (the “Commission”) relating to the timeline for amendments to the SFDR RTS.

The Commission had requested that the ESAs produce amendments to the SFDR RTS concerning the indicators for principal adverse impact (“PAI”) and the financial product disclosures by April 2023. However, the ESAs state that it will not be possible to meet that original deadline and therefore they must delay the delivery of these amendments for at least six months, until November 2023. The ESAs attribute the delay to the technical aspects of the amendments and the need to seek input from specialist bodies and agencies.

Corporate Sustainability Reporting Directive

On 10 November 2022, the European Parliament (the “Parliament”) adopted the text of the Corporate Sustainability Reporting Directive (“CSRD”). The Council then announced its adoption of the CSRD on 28 November 2022 (here).

The CSRD will replace the current reporting regime under the Non-Financial Reporting Directive (the "NFRD") to introduce more detailed reporting requirements for sustainability issues such as environmental rights, social rights, human rights and governance factors. The CSRD will oblige in scope companies to disclose information on their societal and environmental impact connected with their own operations and with their value chain.

The final text of the CSRD includes changes to the Commission’s original proposal, such as easing the burden of obtaining information from other companies in a company’s value chain and providing that sustainability reporting standards applying to in scope SMEs need to be proportionate to their capacity and resources and relevant to the scale and complexity of their activities.  See our briefings (here) and (here) with further detail.

The CSRD will apply on a phased basis:

• reporting in 2025 on the financial year 2024 for companies already subject to the NFRD;
• reporting in 2026 on the financial year 2025 for companies not currently subject to the NFRD;
• reporting in 2027 on the financial year 2026 for listed SMEs except micro undertakings, small and non-complex credit institutions and captive insurance undertakings. An opt-out will be possible for in scope SMEs for the first two years; and
• reporting in 2029 on the financial year 2028 for in scope third-country undertakings.

The next step is for the CSRD to be signed by the President of the Parliament and the President of the Council, after which it will be published in the Official Journal and will enter into force 20 days afterwards. The CSRD will need to be implemented by Member States 18 months later.

Call for Evidence on Greenwashing

On 15 November 2022, the ESAs published a call for evidence (“CfE”) on better understanding greenwashing (here).

The ESAs have invited submissions covering:

• views from various stakeholders on how to understand greenwashing and what the main drivers of greenwashing might be;
• examples of potential greenwashing practices across the financial sector relevant to various segments of the sustainable investment value chain and of the product lifecycle; and
• any available data to help the ESAs get a sense of the scale of greenwashing and identify areas where greenwashing risks are high.

The deadline for comments is 10 January 2023.

Green Loans and Mortgages

On 22 November 2022, the European Banking Authority (“EBA”) published a Commission call for advice on green loans and mortgages (here). The Commission notes that green loans have an important role to play in transforming the economy and gives the example of loans which may assist improve the energy performance of buildings, change towards environmentally friendly heating sources for buildings or switch to zero emission vehicles. On this basis, the Commission requests the EBA’s advice on green retail lending. The EBA’s advice should include:

• an overview of current market practices and the prevalence of green loans in the banking market;
• proposals for a voluntary EU definition of green loans based on the Taxonomy Regulation and its disclosure requirements;
• consideration of potential legislative and non-legislative measures to encourage the uptake or access to green loans by retail and SME borrowers; and
• consideration of the merits of specifying green loan origination process requirements.

The Commission has requested that the EBA deliver its advice by 29 December 2023.

Report on Taxonomy Regulation

On 28 November 2022, the EU Platform on Sustainable Finance (“PSF”) published a report providing supplementary advice on the methodology and technical screening criteria for the climate and environmental objectives under the EU Taxonomy Regulation (here). This report supplements a March 2022 report and provides an update on work undertaken since then. This report also sets out:

• a framework methodology for ‘enabling activities’;
• recommendations for the Commission to consider in its further work on the EU Taxonomy, regarding ‘do no significant harm’ criteria and the ‘adaptation to climate change’ objective; and
• additional technical screening criteria that have been developed since March 2022

CSDDD

On 30 November 2022, the Council published its general approach (that is, its position for negotiations with the Parliament) for the proposed Corporate Sustainability Due Diligence Directive (“CSDDD”) (here). This general approach was adopted by the Council at its 1 December 2022 meeting.

The CSDDD will lay down rules on obligations for large companies regarding actual and potential adverse impacts on human rights and the environment, with respect to their own operations, those of their subsidiaries, and those carried out by their business partners in their chain of activities. It also will lay down obligations for companies to adopt a plan ensuring their business model and strategy are compatible with the Paris Agreement on climate. The CSDDD will also specify penalties and civil liability for violating the obligations.

Climate and Environmental Risks

On 2 November 2022, the European Central Bank (“ECB”) published a report outlining the results of its 2022 thematic review on climate-related and environmental (“C&E”) risks (here). The ECB also published a report containing good practices for C&E risk management observed in banks during the review (here).

The findings of the review include:

• while more than 85% of banks had basic practices in place, approaches still lacked methodical sophistication or granular information on risks;
• roughly 10% of banks were falling behind and had not demonstrated material progress in the past year;
• the use of transition planning tools with targeted client engagement was observed in only some banks; and
• nearly all banks “need to make far-reaching and enduring efforts to develop consequential, granular and forward-looking approaches to manage C&E risks”.

The ECB did highlight that “the good practices observed in numerous institutions demonstrate how the sector can harness innovation to address the prevailing challenges.”

Based on the findings of the review, the ECB has set phased deadlines for banks to meet:

• banks must adequately categorise C&E risks and conduct a full assessment of their impact on their activities by March 2023;
• banks must include C&E risks in their governance, strategy and risk management by the end of 2023; and
• banks must meet all remaining C&E risks expectations, including full integration in the internal capital adequacy assessment process and stress testing by the end of 2024.

The ECB has also set institution-specific remediation timelines which may deviate from the above due to the particular circumstances of an institution.

2023 EBA Stress Test

On 4 November 2022, the EBA published its 2023 EU-wide stress test methodology and draft templates. The methodological note (here) intends to offer guidance for banks in performing the stress test. The templates (here) and guidance on the templates (here) are to be used for collecting data from banks in relation to their resilience to shocks and their capital position.

Proposals for CRR III and CRD VI

On 8 November 2022, the Council announced (here) that it has agreed its general approach on:

• the proposal for a Regulation amending the Capital Requirements Regulation as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor (the “CRR III Regulation”) (here); and
• the proposal for a Directive amending the Capital Requirements Directive as regards supervisory powers, sanctions, third-country branches and ESG risks (the “CRD VI Directive”) (here).

The Council stated that it has added technical improvements to the areas of credit risk, market risk and operational risk. The Council has also introduced enhanced proportionality rules for small banks, particularly in relation to disclosure requirements for small and non-complex institutions. In addition, the Council has revised the ‘fit and proper’ framework for assessing the suitability of management bodies and key function holders.

The next stage is for trilogue negotiations to begin between the three EU institutions to agree on final versions of the text of the proposed Regulation and Directive.

RTS - Gross Jump-to-default (Market Risk)

On 18 November 2022, Commission Delegated Regulation (EU) 2022/2257 on RTS relating to the alternative standardised approach (“ASA”) for market risk under the Capital Requirements Regulation was published in the Official Journal (here).

The RTS stipulate technical requirements in respect of the calculation of the own funds requirement under the ASA to capture the default risk of exposures to debt and equity instruments. The Delegated Regulation enters into force on 8 December 2022.

RTS – Calculation of Exposure to CIUs

On 24 November 2022, the Commission adopted a Delegated Regulation on RTS on the calculation of risk-weighted exposure amounts of collective investment undertakings (“CIUs”) under Article 132a(4) of the Capital Requirements Regulation (here).

The provisions of this Delegated Regulation specify how institutions are to calculate the risk-weighted exposure amount referred to in Article 132a(2) of the Capital Requirements Regulation where one or more of the inputs required for that calculation are not available.

The Parliament and the Council will now scrutinise the Delegated Regulation and, if neither object, it will be published in the Official Journal and enter into force 20 days after publication.

RTS - Residual Risk Add-on under ASA

On 29 November 2022, Commission Delegated Regulation (EU) 2022/2328 containing RTS specifying exotic underlyings and the instruments bearing residual risks for the purposes of the alternative standardised approach for market risk under the Capital Requirements Regulation was published in the Official Journal (here).

The RTS specify:

• instruments that are deemed to be exotic underlyings;
• instruments that are deemed to be instruments bearing residual risks; and
• risks that do not constitute residual risks in themselves.

This Delegated Regulation enters force on 19 December 2022.

ITS - Disclosure of ESG Risks

On 30 November 2022, the Commission adopted an Implementing Regulation amending the ITS laid down in Implementing Regulation (EU) 2021/637 as regards the disclosure of ESG risks (here).

This Implementing Regulation adds a new Article 18a into Implementing Regulation (EU) 2021/637 setting out uniform formats and associated instructions for the disclosure of information on ESG risks.

The Parliament and the Council will now scrutinise the Implementing Regulation and, if neither object, it will be published in the Official Journal and enter into force 20 days after publication.

Guidelines on Applications for (Re)Insurance Authorisation

On 14 November 2022, the CBI published its Guidelines on completing and submitting life insurance, non-life insurance and reinsurance applications (here). The purpose of these Guidelines are to provide guidance for obtaining authorisation as a (re)insurance undertaking in Ireland and topics covered include:

• the criteria for assessing applications;
• making an application;
• application processing;
• authorisation in principle and authorisation granted; and
• the application fee.

EIOPA Initiatives - Sustainable Finance

On 18 November 2022, EIOPA announced details of initiatives relating to sustainable finance (here). These initiatives include:

• guidance on the application of the SFDR;
• dedicated prudential treatment of environmental and social objectives under Solvency II, consulting before the end of 2022; and
• the first European-wide dashboard on natural catastrophe insurance protection gaps (here).

Implementing Regulation -Technical Information

On 22 November 2022, Implementing Regulation (EU) 2022/2282, which sets out the technical information for calculating technical provisions and basic own funds for reporting under the Solvency II Directive, was published in the Official Journal (here).

The Implementing Regulation lays down the technical information for (re)insurers to use when calculating the technical provisions and own funds for reporting from 30 September 2022 until 30 December 2022. The Implementing Regulation entered into force on 23 November 2022 and has applied since 30 September 2022.

CBI Webpage - MiFID Forms

On 9 November 2022, the CBI updated its webpage on the forms relevant to MiFID firms (here).

RTS - Liquidity Measurement under IFD

On 14 November 2022, the EBA published a final report on RTS for specific liquidity measurement under the Investment Firms Directive (“IFD”) (here). The draft RTS specify, how the liquidity risk and elements of liquidity risk are to be measured by competent authorities in a manner that is appropriate to the size, structure and internal organisation of investment firms and the nature, scope and complexity of their activities.

The draft RTS will be submitted to the Commission for endorsement following which they will be subject to scrutiny by the Parliament and the Council before being published in the Official Journal. The RTS will apply 20 days after publication.

Information Note: Sustainable Finance and Asset Management

On 14 November 2022, the CBI published an information note ‘Sustainable finance and the asset management sector: Disclosures, investment processes & risk management’ (the “Note”) (here).

The Note is intended to provide information on the main disclosure issues and outline risks identified by the CBI in terms of potential greenwashing or areas where there has been a lack of transparency or clarity. The key aspects of the Note relate to:

• the CBI’s findings from its ‘Gatekeeper Review’ of investment fund disclosures; and
• the CBI’s supervisory roadmap in respect of sustainability disclosures.

Further detail on the Note is available in our briefing (here).

Macroprudential Framework – Property Funds

On 24 November 2022, the CBI announced a macroprudential policy framework for Irish property funds (here) which is also detailed in the CBI’s Financial Stability Review 2022:II (here). On the same date, ESMA published its advice on the new framework (here).

The new macroprudential framework consists of (a) a 60% leverage limit on the ratio of Property Funds’ total debt to their total assets and (b) a CBI Guidance on redemption terms for Property Funds to avoid liquidity mismatch.

“Property Funds”, for the purpose of the new measures, are alternative investment funds which are domiciled in Ireland, authorised under domestic legislation and which invest 50% or more directly or indirectly in Irish property assets.

Further detail on the new framework is available in our briefing (here).

CBI Letter to Managers of LDI Funds

On 30 November 2022, the CBI issued an industry letter in respect of liability driven investment funds (“LDI Funds”) (here). The purpose of this letter is to ensure that current levels of resilience are retained and to set out a notification process to the CBI in the event a fund manager is considering reducing the resilience levels of an LDI Fund denominated in GBP. The CBI also sets out expectations for LDI funds denominated in other currencies.

Further detail on the industry letter is available in our briefing (here).

ESG Consultation - Fund Names

On 18 November 2022, ESMA published a consultation paper on Guidelines on funds’ names using ESG or sustainability-related terms (here).

The draft Guidelines contained within ESMA’s consultation are aimed at ensuring that the name of a fund that uses ESG or sustainability-related terms is aligned with its investment characteristics and objectives. This alignment between the name of the fund and the investments characteristics or objectives is achieved by linking the disclosure of the ‘minimum proportion of investments’ (expressed in percentage) used to meet the financial product’s characteristics or objectives to the threshold indicated in the draft Guidelines.

The consultation period will run until 20 February 2023.

Guidelines for Money Market Funds

On 30 November 2022, ESMA published its final report on Guidelines on stress test scenarios under Article 28 of the Regulation on money market funds (the “MMF Regulation”) (here). The Annex to the final report sets out the text of the updated Guidelines and the calibration of scenarios for 2022.

Administrative Sanctions

On 16 November 2022, the CBI announced that it had fined and reprimanded a UCITS management company in respect of breaches of UCITS investment fund regulations (here).

PRIIPs Q&As

On 14 November 2022, the ESAs published an updated version of its Q&As on the key information document (“KID”) requirements for packaged retail and insurance-based investment products (“PRIIPs”) (here).

The updates to the Q&As reflect the introduction of rules contained in the amended PRIIPs RTS set out in Delegated Regulation (EU) 2021/2268 which will be generally applicable from 1 January 2023.

RTS - Commodity Derivative Clearing Thresholds

On 28 November 2022, Commission Delegated Regulation (EU) 2022/2310 amending RTS laid down in Delegated Regulation (EU) 149/2013 relating to the commodity derivative clearing thresholds under EMIR was published in the Official Journal (here).

This Delegated Regulation amends the clearing thresholds contained in Delegated Regulation (EU) 149/2013 by increasing the clearing threshold for commodity derivatives from €3 billion to €4 billion and applies from 29 November 2022.

RTS - Collateral Requirements

On 28 November 2022, Commission Delegated Regulation (EU) 2022/2311 amending RTS laid down in Delegated Regulation (EU) 153/2013 relating to temporary emergency measures on collateral requirements under EMIR was published in the Official Journal (here).

This Delegated Regulation amends Delegated Regulation (EU) 153/2013 to temporarily expand the pool of eligible collateral to public guarantees and uncollateralised bank guarantees (subject to certain conditions).

This Delegated Regulation applies from 29 November 2022 and its provisions expire on 29 November 2023.

Corrigendum to ITS

On 24 November 2022, a corrigendum to Commission Implementing Regulation (EU) 2022/1860 laying down ITS under EMIR with regards to the standards, formats, frequency and methods and arrangements for reporting was published in the Official Journal of the European Union (here).

This corrigendum makes a minor amendment in Article 4(1) on page 71, replacing the text ‘in accordance with paragraphs 2 to 14’ with ‘in accordance with paragraphs 2 to 13’.

RTS - CCP Recovery and Resolution

On 25 November 2022, the Commission adopted three Delegated Regulations containing RTS supplementing the Regulation on the recovery and resolution of central counterparties. The Delegated Regulations cover:

• RTS specifying the conditions for recompense (here);
• RTS on methodology for calculation and maintenance of the additional amount of pre-funded dedicated own resources (here); and
• RTS specifying factors considered by the competent authority and the supervisory college when assessing CCP recovery plans (here).

The Parliament and the Council will now consider the draft Delegated Regulations and, if neither object, the Delegated Regulations will be published in the Official Journal.

CSDR Q&As

On 25 November 2022, ESMA published an updated version of its Q&As on implementation of the Central Securities Depositories Regulation (the “CSDR”) (here).

ESMA has added a new Q&A on settlement discipline in Part III, relating to settlement fails, which clarifies that CSDs should publish reports on settlement fails on their website for free, on an annual basis, by the end of February of each year. The first publications should take place by the end of February 2023.

RTS – Settlement Discipline

On 15 November 2022, ESMA published a final report amending Article 19 of Commission Delegated Regulation (EU) 2018/1229 which lays down RTS on settlement discipline (here). The final report contains draft amending RTS removing the separate process established for the collection and distribution of the cash penalties in relation to settlement fails on cleared transactions to put the CSDs in charge of the entire process of collection and distribution of penalties.

ESMA will submit the draft RTS to the Commission for endorsement in the form of a Commission Delegated Regulation. Following the endorsement by the Commission, the Commission Delegated Regulation will be subject to the non-objection of the Parliament and of the Council.

MAR Q&As

On 25 November 2022, ESMA published an updated version of its Q&As on the Market Abuse Regulation (“MAR”) (here).

ESMA revised Q&A number 6 on the prevention and detection of market abuse, in particular on persons professionally arranging or executing transactions. This Q&A concerns the application of the obligation to detect and report market abuse under Article 16(2) of MAR.

The revised text explains that investment firms providing direct electronic access (DEA providers) with respect to their DEA clients’ trading activity come under the broad definition of “persons professionally arranging or executing transactions” for the purposes of the obligation to detect and report market abuse under Article 16(2) of MAR.

CBI Registers

On 9 November 2022, the CBI updated its FAQs on the Central Beneficial Ownership Register for Certain Financial Vehicles (here).

The CBI also updated FAQs on the Ireland Safe Deposit Box, Bank and Payment Accounts Register (“ISBAR”) (here). On 18 October 2022, the CBI published the attestation document for the purpose of not reporting Safe Deposit Box Returns under ISBAR (here). This attestation document is used to confirm that the safe deposit box return is not required as the credit institution does not offer a safe deposit service.

SEPA Payment Account Access rulebook

On 30 November 2022, the European Payments Council (“EPC”) published the first version of the Single European Payments Area (“SEPA”) Payment Account Access scheme rulebook (here). The rulebook is a compilation of rules, practices and standards to enable eligible assets brokers or asset holders to join, participate and operate in the SEPA Payment Account Access scheme (“SPAA”). The rulebook took effect on 30 November 2023.

Selected Consultations, Discussion Papers, Speeches and Reports Published

BPFI - Sustainable Finance Paper, Continued Public-Private Coordination Central to Ireland’s Transition to Net Zero (here)

CBI – Private Motor Insurance Report 4, National Claims Information Database (here)

EBA – Report on the application of the infrastructure supporting factor (here)

EBA - Opinion on the set-up and operationalisation of intermediate EU parent undertakings (“IPUs”) under Article 21b CRD IV Directive (here)

EBA – Consultation paper - Guidelines amending Guidelines EBA/GL/2022/01 on improving resolvability for institutions and resolution authorities under articles 15 and 16 of Directive 2014/59/EU (Resolvability Guidelines) to introduce a new section on resolvability testing (here)

EBA - Guidelines on the use of remote customer onboarding solutions (here)

EIOPA – Discussion paper on methodological principles of insurance stress testing – cyber component (here)

EIOPA - Technical information on the relevant risk-free interest rate term structures with reference to the end of October 2022 (here)

EIOPA - Technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of October 2022 (here)

ESMA – October Newsletter – Spotlight on Markets (here)

ESMA – Report: Administrative and criminal sanctions and other administrative measures imposed under the Market Abuse Regulation in 2021 (here)

ESMA – Annual Report – 2022 On the application of waivers and deferrals (here)

ESMA – Consultation Paper Review of the RTS on the information to be provided in an application for authorisation and registration under the Benchmarks Regulation (here)

ESMA – Final Report: Review of the RTS on the form and content of an application for recognition under the Benchmarks Regulation (here)

ESMA – Consultation Paper: Review of the technical standards under Article 34 of MiFID II (here)

ESMA - Final reports on Guidelines reflecting mandates introduced by the Regulation on the recovery and resolution of central counterparties (here)

ESRB - Letter to the Parliament (here) and a letter to the Council's working party (here) on the review of the regime under the Solvency II Directive

ISDA - ‘In Review’ Newsletter October 2022 - A compendium of links to new documents, research papers, press releases and comment letters published by ISDA (here)

Task Force on Nature-related Financial Disclosures - Third draft version of its disclosure framework (here)

Revenue Commissioners - updated FAQs for the central register of beneficial ownership of trusts (“CRBOT”) (here). Revenue also published updated CRBOT FAQs and troubleshooting for UK trustees and advisors (here)

Single Resolution Board – SRB Work Programme 2023 (here)

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