ECB Publishes Draft Consultation on Charging a Supervisory Fee
On May 27, the European Central Bank (ECB) published a consultation paper and accompanying questions and answers on its website concerning its draft regulation on supervisory fees. Under the draft regulation, the ECB would charge an annual fee to supervised banks and supervised banking groups to recover its cost of supervising Euro Area banks under the Single Supervisory Mechanism (SSM). The SSM Regulation (Regulation 1024/2013) requires the ECB to charge such a fee.
The draft regulation sets out the framework for calculating the fee, apportioning it between supervised entities and collecting the fee. Comments on the draft regulation are invited and the consultation will close to comments on July 11, 2014. The ECB will hold a public hearing on the consultation on June 24, 2014, where comments can be submitted. Consultation Paper. Q&As. Public Hearing.
FCA Publishes Regulation Round-Up
On May 27, the Financial Conduct Authority (FCA) published its May issue of regulation round-up, a newsletter providing details of the FCA's recent activity.
One issue identified in the regulation round-up is the weakness of many smaller banks' anti-money laundering safeguards, in particular with regard to the identification and management of high-risk customers and the monitoring of transactions. Regulation Round-Up.
Council of EU Publishes Compromise Proposal on ELTIF Regulation
On May 27, the Council of the EU published a compromise proposal (10215/14), dated May 23, 2014, in respect of the European Commission's proposed Regulation on European Long-Term Investment Funds (ELTIF Regulation).
The ELTIF Regulation seeks to create a new type of investment fund available for retail and professional investors (an ELTIF). ELTIFS will be used as long term collective investment vehicles to invest in infrastructure projects and un-listed companies that issue equity or debt securities for which there is no readily identifiable buyer. ELTIFS will be subject to various investment constraints, such as a prohibition on short selling of assets and a prohibition on taking exposure to commodities. The ELTIF Regulation (2013/0214(COD)). Compromise Proposal. ELTIF Regulation.