Hey there! Let’s dive into the latest buzz in the world of financial regulation. From sustainability-linked leveraged loans to European green bonds, there’s a lot happening in the CEE region. So, grab a cuppa and let’s break it down.
Sustainability-Linked Leveraged Loans (SLLLs) got a major update with the release of the Best Practice Guide by the Loan Market Association (LMA) and the European Leveraged Finance Association. This guide is all about integrating sustainability factors into leveraged loan facility agreements. It covers everything from terminology and roles to the selection and disclosure of key performance indicators (KPIs). The aim is to promote transparency and reduce greenwashing in the leveraged finance market.
The Council of the EU has given the green light to a new regulation for European green bonds. These bonds are designed to fund green technologies, energy efficiency, sustainable transport infrastructure, and more. The regulation aims to bring consistency and comparability to the green bond market, boosting investor confidence and preventing greenwashing.
The European Money Markets Institute (EMMI) is shaking things up with proposed changes to the EURIBOR methodology. The goal is to improve the benchmark and reduce operational burdens on panel banks. Feedback on the proposed changes is welcome until December 11, 2023.
On the cross-sectoral front, the ESMA, EBA, and EIOPA have jointly published criteria for ensuring the independence of supervisory authorities. These criteria focus on operational, personal, financial independence, and accountability and transparency.
The Council of the EU has also approved a new directive concerning financial services contracts concluded at a distance. This directive aims to enhance consumer protection and establish a level playing field for financial services conducted online or by phone.
The European Banking Authority has rolled out the technical package for phase 3 of its reporting framework, focusing on Interest Rate Risk in the Banking Book (IRRBB). Meanwhile, the European Insurance and Occupational Pensions Authority has updated technical documentation for calculating risk-free interest rate term structures (RFR).
The European Fund and Asset Management Association is calling for clear rules to identify beneficial owners in the new AML package proposal. The goal is to combat illicit activities effectively while maintaining efficient protection of the financial system.
In the Czech Republic, there’s a lot of action too. From digital finance and sustainability financing to investment companies and investment funds, the government is making moves to align with EU regulations.
So, that’s a wrap on the latest in financial regulation. Stay tuned for more updates and let’s see where these developments take us!
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