Business specialists from Wolters Kluwer Financial Services regularly produce "Comment Pieces" on topical business issues relating to Risk and Regulatory Compliance.
On 4 November 2013 regulation on the Single Supervisory Mechanism (SSM) came into force. This regulation which was agreed upon by the European Parliament, the European Council, and the European member states, represents a highly significant change to the way banking supervision and in particular, prudential supervision will be conducted throughout Europe. The SSM is part of the effort to establish a European Banking Union is widely considered in the market as necessary to the health of the European Economy.
The European Parliament, the Council of EU Finance Ministers and the EC has re-engaged in trilogue negotiations to hammer out the final shape of the MiFID II package.
The findings of a research survey conducted by Wolters Kluwer Financial Services into the state of regulatory reporting and compliance of Financial Services Institutions (FSI) in Australia, shows that the Basel III liquidity ratios and data management are the leading causes for concern.
Australian regulatory bodies are steadily moving forward with many of the global initiatives designed to strengthen the financial system and improve regulatory reporting. These initiatives include the introduction of new liquidity ratios under Basel III, more transparency of risk via the reporting of OTC derivative trades into designated trade repositories and the continued transfer of regulatory reporting to XBRL (eXtensible Business Reporting Language). These three regulatory initiatives in Australia will require ADIs to further invest in their systems and processes in order to efficiently produce and submit reports in accordance with regulatory requirements.
On 22 July 2013, the AIFMD was transposed into law having been originally published in the Official Journal of the European Union, just over two years before on 1 July 2011. Firms are required to be compliant from July 2013; however AIFMs already in operation may need to wait until July 2014. This article lays out the parameters of the directive and highlights how AIFMs are affected.