In particular, the update covers:
- clarifications on the terms business activities with reference to the definition of a crowdfunding project;
- the definition of crowdfunding service;
- the possibility for crowdfunding service providers to offer individual portfolio management;
- the organisational and operational requirements for crowdfunding services;
- investor protection provisions.
ESMA has updated the Q&A implementing the investor protection regime of Directive 2014/65/EU (MiFID II) and Regulation (EU) No 600/2014 (MiFIR).
In particular, the update concerns:
- the identification of the target market for manufacturers and distributors;
- whether all bonds incorporating a make-whole clause are exempt from MiFID II product governance requirements;
ESMA has published an update to its Q&A relating to Regulation (EU) 2017/2402, which establishes a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation (SECRs).
In particular, the update concerns:
- the possibility to provide supervisory reporting more often than required by the Securitisation Regulation;
- the modalities of compilation of the field relating to revolving loan;
- how to fill in the primary income fields when a loan is a buy-to-let;
- the use of EBA templates for reporting securitisations related to non-performing exposures;
- the annualised constant prepayment and related default rates;
- how to complete the “Synthetic Coverage Information” section.
The final Guidelines provide further details on how the provisions under IFD on remuneration policies and variable remuneration of identified staff should be applied by class 2 investment firms. The Guidelines are as far as possible consistent with the existing Guidelines under the Capital Requirements Directive (CRD). Relevant differences between IFD and CRD (e.g., the absence of a bonus cap and differences in instruments and the length of deferral periods) have been taken into account.
The IFD contains specific governance requirements for investment firms in parallel to and consistently with the ones already applicable under the Capital Requirements Directive (CRD). These specific provisions apply to class 2 investment firms. All investment firms must also comply with the governance requirements under the Markets in Financial Instruments Directive (MiFID).
The Guidelines provide further details on how the IFD governance provisions should be applied by Class 2 investment firms, specifying the tasks, responsibilities and organisation of the management body, and the organisation of investment firms, including the need to create transparent structures that allow for supervision of all their activities.
EIOPA has published its annual Report on the use of capital add-ons during 2020.
The EU Commission has put out for public consultation a proposal for a Regulation on simplifying the requirements for the listing of companies, with a view to making public capital markets more attractive to EU companies and facilitating access to capital for SMEs.
The Commission points out that a stock exchange listing is a complex and costly operation for EU companies, especially for small and medium-sized enterprises. This prevents them from raising funds on the capital markets and reaping the benefits of listing, such as exposure to a wider range of investors and higher growth and job creation.
The consultation will end on 11 February 2022.
