EBA has published a number of consultation papers on supervisory reporting requirements for own funds; leverage ratio and liquidity coverage/stable funding;. These ITS, which will be part of the EU single rulebook, intend to specify the main features (formats, frequencies, IT solutions) of prudential reporting to be applied by financial institutions in Europe. Responses are required by 27 August 2012.

The proposals adopted by the EC for EU-wide rules for bank recovery and are intended to ensure that a bank's critical functions can be rescued while the costs of restructuring and resolving failing banks fall upon the bank's owners and creditors rather than taxpayers. The proposed tools are pided into powers of "prevention", "early intervention" and "resolution", with intervention by the authorities becoming more intrusive as the situation deteriorates. In order to deal with EU banks or groups that operate across borders, the framework enhances cooperation between national authorities in all phases of preparation, intervention and resolution. Resolution colleges are established under the leadership of the group resolution authority and with the participation EBA, which will facilitate joint actions and act as a binding mediator if necessary.

This has been published in the Official Journal.

Further to its February 2012 consultation, FSA has now published finalised guidance and a summary of feedback received in respect of the above. This finalised guidance outlines the key components of the standard for independent advice; requirements for firms providing restricted advice; requirements for how firms hold themselves out; advice tools and investment strategies, and how their use may influence the ability of firms to meet the independent advice rules; and professional standards and how differences between the qualifications and skills of advisers may affect the ability of advice to meet the independent advice rules

The Council announced that the Solvency II delaying mini-directive (2012/0110) had gathered the support of a qualified majority of delegates in the Council.

In a speech to the Dutch Association of Insurers, Commissioner Barnier announced that revision of the Institutions for Occupational Retirement Provisions (IORP) Directive would be postponed from late 2012 to summer 2013. He noted that the present IORP directive makes reference to Solvency I regulations, and he expressed a desire to extend to pensions the benefits of Solvency II. In particular, he stressed that prudential requirements in the two sectors should be harmonised, so as to avoid regulatory arbitrage. He reiterated earlier comments, however, that occupational pensions would not be made subject to the entire Solvency II regime.

These Regulations implement Directive 2011/90/EU amending Part II of Annex I to Directive 2008/48/EC of the European Parliament and of the Council providing additional assumptions for the calculation of the annual percentage rate of charge (“the 2011 Directive”) (OJ No L296, 15.11.2011, p35). They amend certain provisions of the Consumer Credit (Total Charge for Credit) Regulations 2010 (S.I. 2010/1011) (“the 2010 Regulations”) which set out assumptions for the purposes of calculating the total charge for credit and the annual percentage rate of charge. Regulation 3 inserts a definition of “openend consumer credit agreement” into the 2010 Regulations that expands for the purposes of these Regulations the definition in s189 of CCA 1974. Regulation 4 implements the changes made by the 2011 Directive to the assumptions for calculating the total charge for credit and the APR. It does so by substituting regulation 6 of the 2010 Regulations. Regulation 5 makes an amendment to paragraph 3(g) of the Schedule to the 2010 Regulations so as to correct a typographical error in the original transposition. Regulation 6 requires the Secretary of State to review the operation and effect of these Regulations and lay a report before Parliament no later than five years after they come into force and within every five years after that. Following a review it will fall to the Secretary of State to consider whether the Regulations should remain as they are, or be revoked or be amended. A further instrument would be needed to revoke the Regulations or to amend them. (Expected date in force: 1/01/13)

The EBA has published a draft point model based on draft implementing technical standards on supervisory reporting requirements for institutions. Responses are required by 11 June 2012. The final implementing technical standards documentation (including the draft point model)) is planned to be published in July 2012.

ECB President Mario Draghi (appearing in his capacity as Chairman of the European Systemic Risk Board) spoke to the ECON about the macroprudential effects of Solvency II. He told the Committee that the Board realised Solvency II "may amplify the procyclicality of insurers' balance sheets and, in particular capital levels" but noted that "the legislator… is designing several policy instruments … to mitigate procyclicality and other factors."

ESMA’s report looks at the use of administrative and criminal sanctions by EU national regulators under the MAD and provides a comparison of the use of administrative sanctioning powers across 29 EEA Member States for 2008-2010. The results of the report will provide input to the legislative process on the new market abuse regime.