EBA published final draft regulatory technical standards (RTS) and Implementing Technical Standards (ITS) on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

These draft standards, developed in consultation with ESMA, provide a solid framework for (i) cooperation in the supervision of investment firm groups through colleges of supervisors and (ii) for information exchange for investment firms operating within the EU through branches or the free provision of services. The final draft RTS on colleges of supervisors for investment firm groups specify the conditions under which colleges of supervisors exercise their tasks. The final draft RTS on colleges are structured around four main sections: (1) establishment of colleges, (2) functioning of colleges; (3) planning and coordination of supervisory activities in going concern situations; and (4) planning and coordination of supervisory activities in preparation for and during emergency situations.

The final draft RTS specify the information that competent authorities in the host Member State and those in the home Member State shall exchange, whereas the final draft ITS establish standard forms, templates, and procedures for sharing the information specified in the RTS.

All three standards apply to Class 2 and 3 investment firms and have been prepared reflecting on the supervisory experience in exchange of information and functioning of colleges for credit institutions, adjusting them to the needs of investment firms’ supervision and embedding the proportionality principle.

EIOPA published technical information on the relevant risk free interest rate term structures (RFR) with reference to the end of June 2021.

RFR information has been calculated on the basis of the content of the Technical Documentation published on 31 May 2020 and based on RFR coding released on 8 October 2019.

EIOPA published the technical information on the symmetric adjustment of the equity capital charge for Solvency II with reference to the end of June 2021.

ECB and the European Systemic Risk Board (ESRB) published a joint report that takes a closer look at how a broadened set of climate change drivers affects millions of global firms and thousands of financial firms in the European Union.

It maps out prospective financial stability risks and contributes by further developing the analytical basis for more targeted and effective policy action. The report tackles measurement gaps and, building on previous work in this field, establishes a detailed topology of physical and transition risks arising from climate change across regions, sectors and firms. It also applies a scenario analysis with long-dated financial risk horizons to capture prospective financial losses resulting from the timeliness and effectiveness of climate policies and technologies.

Long-term scenario analysis for EU banks, insurers and investment funds suggests that credit and market risk could increase as a result of a failure to effectively counteract global warming.

Financial Action Task Force (FATF) published a report on Data Pooling, Collaborative Analytics and Data Protection

Technological advances in recent years allow financial institutions to analyse large amounts of structured and unstructured data more efficiently and identify patterns and trends more effectively. This report examines commercially available or emerging technologies that facilitate advanced AML/CFT analytics within regulated entities. It also looks at technologies that allow collaborative analytics between financial institutions, while respecting national and international data privacy and protection legal frameworks.

Financial Action Task Force published a report on opportunities and challenges of new technologies for AML/CFT

This report identifies emerging and available technology-based solutions. The report highlights the necessary conditions, policies and practices that need to be in place to successfully use these technologies to improve the efficiency and effectiveness of AML/CFT. The report also examines the obstacles that could stand in the way of successful implementation of new technology. New technologies for AML/CFT refer to:

• innovative skills, methods, and processes that are used to achieve goals relating to the effective implementation of AML/CFT requirements or
• innovative ways to use established technology-based processes to comply with AML/CFT obligation.

On the Official Journal of the European Union have been published the Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements:

• Implementing Decision (EU) 2021/1103 on the recognition of the legal, supervisory and enforcement arrangements of Brazil for derivatives transactions entered into by Brazilian institutions under the regulation of the Central Bank of Brazil as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories
• Implementing Decision (EU) 2021/1104 on the recognition of the legal, supervisory and enforcement arrangements of Canada for derivatives transactions supervised by the Office of the Superintendent of Financial Institutions as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories
• Implementing Decision (EU) 2021/1105 on the recognition of the legal, supervisory and enforcement arrangements of Singapore for derivatives transactions supervised by the Monetary Authority of Singapore as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories
• Implementing Decision (EU) 2021/1106 on the recognition of the legal, supervisory and enforcement arrangements of Australia for derivatives transactions supervised by the Australian Prudential Regulation Authority as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories
• Implementing Decision (EU) 2021/1107 on the recognition of the legal, supervisory and enforcement arrangements of Hong Kong for derivatives transactions supervised by the Hong Kong Monetary Authority as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories
• Implementing Decision (EU) 2021/1108 on the recognition of the legal, supervisory and enforcement arrangements of the United States of America for derivatives transactions supervised by the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Farm Credit Administration and the Federal Housing Finance Agency as equivalent to certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties and trade repositories

Bank of Italy presented the Bank’s Responsible Investment Charter, which draws up a set of principles and lines of action designed to structurally integrate financial assessments with those on the sustainability of its investments.

The Charter contains the Bank’s principles and vision for the sustainable management of its financial investments and indicates precise commitments through which it intends to make its work on a sustainable model for economic growth more concrete. The Charter also aims to foster greater awareness of sustainable finance issues in the financial community and to encourage firms to adopt forms of management that are mindful of the environment, society and the best corporate governance practices.