In This Issue:

- Application of EU Requirements for Remuneration Policies for Small and Non-Complex Firms Confirmed

- US Regulators Issue the Final Interpretation on Forward Contracts with Embedded Volumetric Optionality

- European Securities and Markets Authority Consults on Expanding the Scope of the Clearing Obligation for Interest Rate Swaps

- US Office of the Comptroller of the Currency Issues Final Rule Integrating National Bank and Federal Savings Association Licensing Activities

- European Supervisory Authorities Publish Recommendations for Improving the EU Securitization Framework

- European Regulators Announce Delay for Delivery of Draft Technical Standards under the Market Abuse Regulation and the Markets in Financial Instruments Regulation and Directive

- Chairman of US Federal Deposit Insurance Corporation Delivers Speech on the Resolution of Systemically Important Financial Institutions

- European Banking Authority Consults on Valuation of Derivatives under the Banking Recovery and Resolution Directive

- Upcoming Events

- Excerpt from Application of EU Requirements for Remuneration Policies for Small and Non-Complex Firms Confirmed:

On May 14, 2015, the European Banking Authority published letters between itself and the European Commission which address the issue of application of the proportionality principle to the requirements under the EU Capital Requirements Directive and Capital Requirements Regulation. The proportionality principle states that firms should implement the remuneration provisions in a manner and to the extent that is appropriate to the firm’s size, internal organization and the nature, scope and complexity of its activities. The EBA wrote to the Commission on January 8, 2015, requesting views on the approach that the EBA should adopt to interpreting the proportionality principle in its guidelines on sound remuneration policies. The EBA’s letter pointed out that on a legal interpretation of CRD IV and CRR the remuneration principles must be applied proportionately, but that there was no room for any waiver for small or non-complex firms. However, the EBA noted that a waiver might be justified on policy grounds for small and non-complex firms because variable remuneration paid is low and the incentives for employees to take risks is low.