Financial Services SpeedRead - Germany: 27 March 2024 edition
27 March 2024
Welcome to the latest edition of the Germany specific Financial Services SpeedRead, a collection of bite-sized updates designed to help you keep on top of key regulatory developments in financial services over the preceding fortnight. Please get in touch if you want to explore any of the topics covered in this fortnight's edition of Financial Services SpeedRead in more detail.
On 8 March 2024, the following were published in the Official Journal of the EU:
The MiFID Amending Directive and MiFIR Amending Regulation introduce changes to the MiFID II and MiFIR regime in order to improve access to market data and transparency. In particular the amending legislation:
The amending legislation will enter into force on 28 March 2024 (20 days after their publication in the Official Journal). The MiFIR Amending Regulation will then apply immediately, whilst member states will have until 29 September 2025 to transpose the MiFID Amending Directive to their local laws. Banking and Prudential
On 13 March 2024, the Single Resolution Board (SRB) published a public consultation on the adoption of the Minimum Bail-in Data Template (MBDT).
The minimum bail-in data points were updated in June 2022, requiring banks to self-assess themselves to ensure they have adequate management information systems to identify and produce the requisite data points within 24 hours. The SRB is considering adopting the MBDT to implement the bail-in data set instructions and explanatory note, by enhancing definitions and providing a template and guidance to ensure structured and standardised data collection across banks under the SRB's remit.
The consultation aims to gather stakeholders' views on the following:
The consultation closes on 8 May 2024, and can be responded to via the SRB's survey.
On 6 March 2024, the European Securities and Markets Authority (ESMA) published the official translation (including in English) of the guidelines on stress test scenarios under the Money Market Fund (MMF) Regulation (Regulation (EU) 2017/1131).
The objective of the guidelines is to ensure common, uniform and consistent application of the provisions of Article 28 of the MMF Regulation. The guidelines establish common reference parameters of the stress test scenarios to be included in the stress tests conducted by MMFs or managers of MMFs, considering the following factors specified in Article 28(1) of the MMF Regulation:
The guidelines will apply from 6 May 2024, with the exception of the parts in red which will apply from the dates specified in Articles 44 and 47 of the MMF Regulation. The guidelines will then be updated at least every year to take into account the latest market developments.
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On 15 March 2024, ESMA published an updated version of their consolidated Q&A on the PRIIPs Key Information Document (KID). ESMA has made clarifications in a number of areas, including, but not limited to:
On 15 March 2024, the German Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht, BaFin) published that the Comparison Website Reporting Regulation (Vergleichswebsitemeldeverordnung, VglWebMV) came into force on 2 March 2024.
The VglWebMV was issued by BaFin in accordance with the provisions of the Payment Accounts Act (Zahlungskontengesetz, ZKG) to supplement the planned amendments to Section 16 et seq. ZKG. The amendments of the ZKG are based on Article 26 of the German Future Financing Act, which implements Article 7 of the Payment Accounts Directive (Directive 2014/92/EU) on comparison websites.
The VglWebMV specifies
The data is to be reported via BaFin's reporting and publication platform (Melde- und Veröffentlichungsplattform, MVP). The reporting obligation applies to payment service providers, in particular to CRR credit institutions, that offer payment accounts for consumers.
Payment service providers must report for the first time for the period of 1 to 30 September 2024.
On 8 March 2024, the European Banking Authority (EBA) published a consultation paper on the Guidelines for the plans to orderly redeem asset-referenced tokens (ARTs) or e-money tokens in the event an issuer fails to fulfil their obligations under the Markets in Crypto Assets Regulation (MiCAR).
The draft Guidelines lay down the framework for issuers of ARTs when drawing up their redemption plan, as well as for competent authorities when assessing such plans. The draft Guidelines also:
The deadline for feedback is 10 June 2024, and the Guidelines will come into force two months after the publication of the translations in all official languages.
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The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.