12/1/2023- C545 : Publication of CySEC’s feedback from reviews  regarding the compliance with the reporting obligation in accordance with article 9 of Regulation (EU) No 648/2012 on OTC Derivatives, Central Counterparties, and Trade Repositories, as amended (‘EMIR’). 

CySEC issued its feedback comments through an additional article on C545 (dated on 30/11/2022). The additional issue refers to a series of reviews that CySEC carried out on Trade Repositories which are included in Circular No. 545.

Particularly, the publication refers to:

• Scope of the reviews 
• Areas of concern/observations identified
• Next steps that CySEC will follow for the compliance reviews.

C545 | CySec Reviews of Compliance

25/01/2023 – C546 : Introduction of prudential reporting of Cyprus Investment Firms (CIFs) through CySEC’s XBRL Portal

CySEC wishes to inform all   CIFs of its intention to submit to the European Banking Authority (the ‘EBA’) the supervisory and financial reporting data, which they receive from all CIFs.

Therefore, all CIFs should:

(a)    Register to CySEC XBRL portal by Monday 30/01/2023.

(b)    Submit their prudential reporting via the XBRL portal.

C546 | Introduction of prudential reporting of CIFs through CySEC’s XBRL Portal

No new announcements/circulars/directives for this month

24/01/2023 - ECB publishes new climate-related statistical indicators to narrow the climate data gap.

ECB has published a first set of climate-related statistical indicators to better assess the impact of climate-related risks on the financial sector and to monitor the development of sustainable and green finance, fulfilling another of the commitments of its climate action plan.

The indicators are intended to start a broader conversation within the statistical and research community and with other key stakeholders on how to better capture data on climate-related risks and the green transition. 

ECB New climate-related statistical indicators

11/01/2023 - EBA publishes its peer review on authorisation of payment institutions and e-money institutions. 

EBA published its peer review on authorisation of payment institutions and e-money institutions under the revised Payment Services Directive (PSD2).

The Review examined the implementation of the EBA Guidelines in this area, and also shows that the average duration of the overall authorisation process varies significantly across competent authorities.

The EBA adopted follow-up measures for component authorities in:

• Review their authorisation resources.
• Ensure the applicants that have a “three lines of defence” model that includes the functions of risk management, compliance, and internal audit.
• Ensure that applicants are effectively managed and controlled.

EBA peer review on authorisation under the Payment Services Directive

12/01/2023 - European Supervisory Authorities (ESAs) which includes EBA, EIOPA, ESMA.

ESAs published a Report on national financial education initiatives on digitalisation with a focus on cybersecurity, seams, and fraud. They highlight the importance of appropriate digital financial skills and cyber security.

European Supervisory Authorities good practices for financial education initiatives 

13/01/2023 : The liquidity coverage ratio of EU banks declined in the first half of 2022 but is still well above the minimum requirement.

EBA published its Report on liquidity measures, which monitors and evaluates the liquidity coverage requirements currently in place in the EU.

The evolution of banks’ LCR levels is particularly relevant given the uncertain economic outlook with high levels of inflation and the process of normalisation of the monetary policy. EU banks hold materially lower liquidity buffers in foreign currencies, particularly the USD, which requires enhanced monitoring by banks and supervisors to avoid excessive vulnerability to disruptions in the foreign exchange markets.

Liquidity coverage ratio of EU banks 

16/1/2023 -The EBA published its annual quantitative Report on Minimum Requirements for own funds and eligible liabilities as of 31/12/21.

MREL (Minimum Requirements and Eligible Liabilities) ensures that a bank maintains at all times sufficient eligible instruments to facilitate the implementation of the preferred resolution strategy. 

EBA annual quantitative monitoring report on the minimum requirement for own funds and eligible liabilities 

19/01/2023 -The EBA observed a significant increase in the number of high earners across EU banks in 2021.

The EBA observed a significant increase in the number of high earners accessing EU banks in 2021.
This report has been developed by collecting information on the number of individuals per institution that are remunerated EUR one million or more per financial year including the business area involved and the main elements of salary, bonus, long-term award, and pension contribution.
EBA observations 

No new announcements/circulars/directives for this month