The seven consultation papers contain, among others, proposals for Draft Regulatory Technical Standards (RTS) on the methodology for calculation and maintenance of the additional amount of pre-funded dedicated own resources, Guidelines on the consistent application of the triggers for the use of Early Intervention Measures as well as Guidelines on CCP recovery plan indicators and scenarios. The closing date for responses is 20 September 2021.
These Guidelines clarify the conditions that the data inputs related to modellable risk factors should meet for their use in the expected shortfall (ES) calculations. The Guidelines, which are part of the deliverables included in the roadmap for the new market and counterparty credit risk approaches, will be applicable from 1 January 2022. Institutions using the alternative Internal Model Approach (IMA) for market risk are required to compute the expected shortfall (ES) risk measure for their modellable risk factors, i.e. for those risk factors for which a sufficient amount of verifiable prices is available.
In particular, the final Guidelines set out criteria in relation to the accuracy, appropriateness, frequency for updating and completeness of the data inputs used by institutions for their modellable risk factors.
With this supervisory statement EIOPA aims to foster supervisory convergence in the situations where insurance and reinsurance undertakings breach their capital requirement, in particular addressing the recovery plan required. The supervisory practices in such situations need to be flexible and should consider the specific situation of the insurance or reinsurance undertaking. However, it is important that when certain triggers are reached, such as non-compliance with the SCR, convergent approaches are applied to ensure a similar protection of policyholders and beneficiaries across Europe.
EIOPA has published an Opinion on the use of risk mitigation techniques by insurance undertakings.
The Opinion therefore addresses the use of risk mitigation techniques and includes a set of recommendations addressed to national competent authorities (NCAs) to ensure convergent supervision.
This Opinion raises awareness about the importance to have a proper balance between the risk effectively transferred and the capital relief in the Solvency Capital Requirement. This balance is to be assessed following a case-by-case analysis to take into account the particularities of each reinsurance structure and its specific interaction with the risk profile of the undertaking.
NCAs are expected to coordinate and cooperate in the assessment of such structures going beyond a single Member State to ensure a convergent approach.
FSB published a report on promoting climate-related disclosures based on the TCFD Recommendations
The FSB surveyed its members in H1 2021 to explore national/regional practices of financial authorities on promoting climate related disclosures. The survey identified gaps and challenges in the implementation of requirements or guidance based on the TCFD Recommendations.
The report sets high-level guidance, in the form of recommendations, to support financial authorities in their development of frameworks, as they consider appropriate to their wider public policy objectives, regulatory and legal frameworks. The report recommends that:
- Financial authorities use a framework based on the TCFD Recommendations across all sectors for climate-related financial disclosures, in line with jurisdictions’ regulatory and legal requirements.
- Financial authorities promote sharing of experiences, provide mutual support across jurisdictions on implementation of climate-related disclosure frameworks and accelerate international efforts to help build industry-wide awareness, technical knowledge and capabilities.
- Financial authorities strongly coordinate in order to provide clear and consistent expectations, guidance or requirements to firms across all sectors on climate-related disclosures.
- as disclosure practices continue to evolve and improve over time, in the longer term, authorities can help to improve the reliability of climate-related disclosures if they were to require, as appropriate, some form of third-party verification or assurance on such disclosures made by firms.
FSB published the roadmap for addressing climate-related financial risks
This roadmap for addressing climate-related financial risks, which has been prepared in consultation with standard-setting bodies (SSBs) and other relevant international bodies, supports international coordination in several ways.
- It promotes relevant initiatives at standard-setting bodies, the NGFS and other international organisations.
- By presenting relevant ongoing and planned international work in one place, it helps to identify gaps to be covered by further work, limit overlap and promote synergies.
- It sketches out how the FSB can serve as a forum for discussing cross-sectoral and systemic issues and agreeing a way forward.
- It provides input into broader international policy considerations by facilitating communication with the G20, G7 and COP26.
The roadmap focuses on work to assess and address financial risks of climate change through four main, interrelated areas: firm-level disclosures; data; vulnerabilities analysis and regulatory and supervisory tools. The FSB roadmap sets out a comprehensive and coordinated plan for addressing climate-related financial risks, including steps and indicative timeframes needed to do so, and paves the way for implementation.
(only in Italian)
L’UIF ha pubblicato il resoconto della propria attività relativa al primo semestre 2021.
Continua il trend crescente delle segnalazioni di operazioni sospette (SOS) ricevute dall’Unità. Nel semestre la UIF ha ricevuto 70.157 segnalazioni, con un incremento del 32,5% rispetto al periodo corrispondente del 2020; un aumento particolarmente rilevante si è registrato per le SOS inoltrate dai money transfer che sono raddoppiate (le relative operazioni sospette si sono triplicate). Nello stesso periodo la UIF ha analizzato e trasmesso agli Organi investigativi 68.823 segnalazioni (+29,4%) e ha adottato 20 provvedimenti di sospensione di operazioni sospette per un valore di 14,3 milioni di euro.
A febbraio la UIF ha emanato una nuova Comunicazione sulla prevenzione della criminalità finanziaria nell’emergenza da Covid-19. Nel semestre sono stati sottoscritti Protocolli di intesa con la DNA e con la CDP. La UIF e il MEF hanno promosso una “Posizione Comune”, sottoscritta da numerosi paesi membri della UE, sul “Meccanismo” sovranazionale di coordinamento e supporto delle FIU.
(only in Italian)
