Summary of new EU rules from Clifford Chance

On 17 January, Clifford Chance published a report on the progress of certain legislative and regulatory initiatives within the European Union. Below is a list of the most significant areas of progress; however a copy of the full report for further reference is available here.

·      Several new authorities including the European Banking Authority (EBA) and the European Securities and Markets Authority (ESMA) have been established and are now operational;

·      Several consultation papers were issued including EU Crisis Management, Securities Law Directive principles, Markets in Financial Instruments Directive and UCITS V, many with a 31 January 2011 deadline. Consultation conclusions will probably be issued in the second half of 2011;

·      In the first half of the year it is expected that a legislative proposal for disclosure rules relating to Packaged Retail Investment Products (PRIPs) will be finalised; 

·      There is ongoing work with regard to Basel III and Capital requirements;

·      EU Short selling regulations proposed in September 2010, look likely to be effective from July 2012.

·      EU AIFM directive to be implemented within member countries by 2013. The directive itself has been adopted by EU parliament; implementation is now being discussed with consultation and evidence on technical standards implementation being due later this month.

·      UK Retail Distribution Review, which commenced in 2006 and focused on commission fees, is now in final conclusion stages regarding the process for implementation. The RDR requirements will be effective from the end of 2012.

·      EU Corporate Governance review to make recommendations in May 2011 as a result of consultations on the Green Paper.

Clifford Chance produce very good ongoing summaries of this information from time to time and you can subscribe to their feed on their website.