Dear colleagues,
In this issue, we look at key regulatory developments at European level that are highly relevant for compliance officers:
The Bundesbank has published an updated FAQ document on financial sanctions, ESMA has issued new technical advice on market abuse and SME growth markets, and the EBA is updating the technical standards on resolution planning. These changes are not just regulatory routine – they mark important shifts in the way sanctions, market transparency and bank resolution are handled.
Table of Contents
- 1. New FAQ from the Bundesbank: Focus on clarifications on financial sanctions
- 2.ESMA advice on market abuse: New guidance for SME growth markets
- 3.EBA updates requirements for resolution planning: New standards for banks
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1. New FAQ from the Bundesbank: Focus on clarifications on financial sanctions
Summary:
The Deutsche Bundesbank has comprehensively updated its FAQ on financial sanctions. The document answers practical questions on the implementation of sanctions in accordance with EU regulations, particularly in the context of the Russia embargo. Among other things, details on the freezing of funds, the handling of property and economic resources and the role of financial institutions in identifying sanction-relevant issues are specified.
Opinion:
This update must not just be taken note of – it must be implemented in compliance practice without delay. Financial institutions and obliged entities must align their existing sanctions processes, in particular their screening and reporting channels, with the new requirements. The need for training for employees in the operational area increases immediately. Those who are negligent here risk regulatory sanctions and international liability consequences.
2.ESMA advice on market abuse: New guidance for SME growth markets
Summary:
The European Securities and Markets Authority (ESMA) has published technical advice on adapting the Market Abuse Regulation (MAR) with regard to SME growth markets. The aim is to reduce the administrative burden for SMEs, in particular through simplified disclosure requirements and a more precise definition of inside information. At the same time, measures are proposed to strengthen confidence in the integrity of these markets.
Opinion:
For compliance officers in listed SMEs, this advice is highly relevant. It signals a regulatory move towards more proportionate requirements without weakening protection against market abuse. Companies should familiarize themselves with the potential changes at an early stage in order to make their ad hoc publicity and insider information processes efficient and compliant.
3.EBA updates requirements for resolution planning: New standards for banks
Summary:
The EBA has updated its technical standards on resolution planning to improve the efficiency and usability of data for resolution authorities. The changes promote harmonization, proportionality and simplification:
- Elimination of redundant data points (including MREL/TLAC, CoRep, FinRep),
- Reduction of parallel data collection by different authorities,
- Introduction of a modular reporting approach, tailored to the size and complexity of the institutions.
Opinion:
The changes offer clear relief – but only for institutions that take action now. Carry out a gap analysis in the short term and adapt your reporting processes. This will help you avoid unnecessary expenses and strengthen your crisis resilience. IT and reporting must implement the new modular structures promptly.
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We wish you a successful week.
Your Riscreen team