October again saw important innovations at both national and international level.
BaFin published the long-announced depositary circular at the beginning of October. At the European level, ESMA has been particularly busy in the past month, publishing numerous publications on various supervisory topics.
The EU Commission’s goal of laying the foundations for a common capital market by the end of its legislative term in 2019 has taken shape with the recently published action plan. The creation of a Capital Markets Union is seen as a contribution to the completion of the European Economic and Monetary Union.
With best regards
Dr. Ulrich Keunecke
On October 7, 2015, BaFin published Circular 08/2015 (WA) on the tasks and duties of the depositary pursuant to Chapter 1 Section 3 of the KAGB. Points to highlight include these:
BaFin points out that the circular is not a conclusive regulation.
Depositaries and KVGs must implement the requirements of the circular by April 4, 2016 at the latest.
You can access the circular here.
ESMA published guidelines on alternative performance measures (APMs) in German on October 5, 2015. The guidance applies to APMs disclosed on or after July 3, 2016. Competent authorities shall notify ESMA within two months of the publication of the guidelines whether they comply or intend to comply with them.
You can access the circular here.
On September 30, 2015, the EU Commission adopted an action plan to create a single market for capital in Europe. It comprises six blocks of measures that are to be implemented step by step until 2018:
Along with the Action Plan, three consultations were launched on venture capital, covered bonds, and the overall impact of financial market legislation.
Detailed information on the Capital Markets Union can be found at this link.
Click here to go directly to the action plan.
The following links provide more detailed information on the consultation procedures:
Consultation on venture capital and social entrepreneurship funds;
Consultation on covered bonds;
Exploring the EU regulatory framework for financial services.
As part of the Action Plan for a Capital Markets Union, the EU Commission has presented two legislative proposals on securitization:
For more information on the EU Commission’s initiative and the above-mentioned legislative proposals, please visit this link.
EU Commission adopts delegated act with implementing provisions for Solvency II
As part of the Action Plan for a Capital Markets Union, the EU Commission adopted an amendment to the delegated acts on Solvency II on September 30, 2015.
The main component is the introduction of a new asset class for investments in infrastructure, for which the risk capital to be backed is reduced.
Investments in European long-term investment funds (ELTIFs) are now subject to the same capital rules as shares traded on regulated exchanges. This puts them on an equal footing with European venture capital funds (EuVECAs) and European social entrepreneurship funds (EuSEFs).
A transitional regime for equity investments is extended to non-exchange traded investments. This is to prevent insurers from selling long-term investments.
The amendment to the delegated regulation can be found at this link.
You can find the associated annexes here.
Frequently asked questions.
The KPMG Internet portal for German, European and international regulatory texts is now available with expanded content and functions. It can be accessed via KPMG-lexlinks.de.
© 2023 KPMG Law Rechtsanwaltsgesellschaft mbH, associated with KPMG AG Wirtschaftsprüfungsgesellschaft, a public limited company under German law and a member of the global KPMG organisation of independent member firms affiliated with KPMG International Limited, a Private English Company Limited by Guarantee. All rights reserved. For more details on the structure of KPMG’s global organisation, please visit https://home.kpmg/governance.
KPMG International does not provide services to clients. No member firm is authorised to bind or contract KPMG International or any other member firm to any third party, just as KPMG International is not authorised to bind or contract any other member firm.