Being better informed: financial regulatory, accounting and audit bulletin: June 2013
The pace of regulatory developments remained unabated in May, with important consultations on the Capital Requirements Directive (CRD IV), particularly examining how to define material risk takers, which may great expand the definition of which employees are subject to the new remuneration cap introduced in CRD IV. In other news from May:
- We saw a number of publications on the Alternative Investment Fund Managers Directive (AIFMD) from the European Commission, European Securities and Markets Authority (ESMA) and Her Majesty’s Treasury (HMT) in the UK. In particular, ESMA focused on the reporting obligations and HMT focused on transitional questions.
- The European Commission published its second consultation on reforming the European banking sector. The Commission is taking a steady approach to any reforms, which we welcome given the fast progress in other areas.
- The Commission also published a proposal for a single market in retail bank accounts across the EU.
- The Credit Rating Agency Regulation (CRA III) was published in the Official Journal of the European Union. CRA III particularly seeks to reduce reliance on credit rating agencies and increase competition in the sector.
- The European Council published another progress note on the revision of the Markets in Financial Instruments Directive (MiFID II). Progress here has been slow, although it now seems we might finally be reaching compromise.
Related to MiFID II and its new proposals, this month’s feature article focuses on high frequency trading and how it is regulated.