Regulatory radar - issue 42 (March 2012)
In March the European Commission published its Green paper on Shadow Banking. Shadow banking is the system of credit intermediation that involves entities and activities that are outside the regular banking system, and thus are not regulated like banks. The Green Paper sets out how EU measures already address some shadow banking activities and what still needs to be done given the evolving nature of the shadow banking system.
Several important draft reports from the Committee on Economic and Monetary Affairs were also published in March i.e. the draft reports on the proposals for EMIR, MiFID II and MiFIR and MAD II. The rapporteurs identify a number of key issues and suggest important changes to the draft texts.
In the area of investment management, ESMA issued its final Guidelines on risk measurement and the calculation of global exposure for certain types of structured UCITS as well as a Discussion Paper, entitled “An overview of the Proxy Advisory Industry. Considerations on Possible Policy Options”. The aim of the Discussion Paper is to give an overview of ESMA’s understanding of the functioning of the proxy advisory industry in Europe and to gain evidence on the extent to which market failures may exist in practice that are related to the activities of proxy advisors in Europe.
With regard to tax, the European Commission published a report on the results of the European Savings Taxation Directive. The report covers the period 2005-2010 and provides for practical suggestions to make the current system even more transparent in the future. It also identifies a number of loopholes in the current Savings Tax Directive.
On a Belgian level the Royal Decree of 12 March 2012 approving the Regulation of the FSMA on the approval of compliance officers was published in the Official Journal. The Regulation introduces a mandatory approval process in order to ensure that compliance officers have the required knowledge, experience and training with regard to conduct of business rules.
We hope you enjoy the reading.
The Editorial Board