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ESMA Sees High Risk For Investors In Non-Regulated Crypto Assets

ESMA Sees High Risk For Investors In Non-Regulated Crypto Assets Date 17/03/2021 The European Securities and Markets Authority (ESMA), the EU securities markets regulator, today publishes its first Trends, Risks and Vulnerabilities (TRV) Report of 2021. The Report analyses the impact of COVID-19 on financial markets during the second half of 2020 and highlights the increasing credit risks linked to significant corporate and public debt overhang, as well as the risks linked with investments in non-regulated crypto-assets. Continued high risk across financial markets Globally, risks in markets under ESMA’s remit remain very high. The significant rebound of equity markets and the valuation of debt indices which reached pre-pandemic levels, contrast with weak economic fundamentals. The main risk for European Union’s (EU) financial markets is that this ongoing decoupling leads to a reversal in investor risk assessment and a sudden market correction.

EBA Consults On Changes To Its Guidelines On Risk-Based AML/CFT Supervision

EBA Consults On Changes To Its Guidelines On Risk-Based AML/CFT Supervision Date 17/03/2021 The European Banking Authority (EBA) launched today a public consultation on changes to its Guidelines on Risk-Based Supervision of credit and financial institutions’ compliance with anti-money laundering and countering the financing of terrorism (AML/CFT) obligations. The proposed changes address the key obstacles to effective AML/CFT supervision that the EBA has identified during its review of the existing Guidelines, including the effective use of different supervisory tools to meet the supervisory objectives. The Guidelines are central to the EBA’s mandate to lead, coordinate and monitor the EU financial sector’s fight against money laundering and terrorist financing. The consultation runs until 17 June 2021. 

ESAs Consult On Taxonomy–Related Product Disclosures

ESAs Consult On Taxonomy–Related Product Disclosures Date 17/03/2021 The three European Supervisory Authorities (EBA, EIOPA and ESMA – ESAs) have today issued a Consultation Paper seeking input on draft Regulatory Technical Standards (RTS) regarding disclosures of financial products investing in economic activities that contribute to an environmental investment objective. These economic activities are defined by the EU Regulation on the establishment of a framework to facilitate sustainable investment (Taxonomy Regulation). The proposed draft RTS aim to: facilitate disclosures to end investors regarding the investments of financial products in environmentally sustainable activities.; and create a single rulebook for sustainability disclosures under the Regulation on sustainability-related disclosures in the financial services sector (SFDR) and the Taxonomy Regulation. This will be done by amending the draft RTS under the SFDR,  to minimise overlapping or duplica

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