On September 1st, the European Securities and Markets Authority (ESMA) published its second Trends, Risks and Vulnerabilities (TRV) Report of 2021. The Report highlights the continued rise in valuations across asset classes in an environment of economic recovery and low interest rates, the increased risk taking of investors and the materialisation of event risks such as GameStop, Archegos and Greensill.
On August 30th, the European Systemic Risk Board (ESRB) has published the EU Non-bank Financial Intermediation Risk Monitor 2021 (NBFI Monitor). This is the sixth issue in an annual series monitoring non-bank financial intermediation, an area which has grown in recent years and now accounts for around 40% of the EU financial system.
The subsidiary of Deutsche Bank, the second listed asset manager in Europe after Amundi, is targeted by investigations in United States, after a denunciation by its former head of sustainable development. DWS would have overestimated the weight of its outstanding integrating ESG criteria (environmental, social and governance).
On July 30, the European Banking Authority (EBA) published the results of its 2021 EU-wide stress test, which involved 50 banks from 15 EU and EEA countries, covering 70% of the EU banking sector assets. This exercise allows to assess, in a consistent way, the resilience of EU banks over a three-year horizon under both a baseline and an adverse scenario, which is characterised by severe shocks taking into account the impact of the pandemic.
On July 26, the European Banking Authority (EBA) launched a public consultation on draft regulatory technical standards (RTS) setting out criteria for the identification of shadow banking entities for the purposes of reporting large exposures. The consultation runs until 26 October 2021.
On July 20, the European Commission presented an ambitious package of legislative proposals to strengthen the EU's anti-money laundering and countering terrorism financing (AML/CTF) rules.
On July 20th, the European Commission has presented an ambitious package of legislative proposals to strengthen the EU's anti-money laundering and countering terrorism financing (AML/CFT) rules. The package also includes the proposal for the creation of a new EU authority to fight money laundering.
The European Central Bank will keep interest rates lower for longer to aid the economic recovery from the Covid-19 pandemic. Following its recent strategy change, the ECB will increase rates only once if inflation reaches its 2% target or slightly higher.
This is the eleventh edition of the annual flagship report on regulation of the global asset management industry: Evolving Asset Management Regulation 2021 — Through a new lens.
130 countries and jurisdictions, including Luxembourg, have joined a new two-pillar plan to reform international taxation rules and ensure that multinational enterprises pay a fair share of tax wherever they operate.