To The Point: Financial Regulation L 12/2023

• Published date: 16 January 2024
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Insurance, Financial Services, Corporate and Company Law, Insurance Laws and Products
• Law Firm: Schoenherr Attorneys at Law
• Author: Krist'na Tup', Ondřej Havlíček, Martin Svoboda and Weronika Kapica

Welcome to our to the point newsletter. Every month we look back at the most relevant developments in the area of financial regulation in the CEE region.

Read the Polish version of this to the point newsletter here.

Insights waiting for you in this edition:

• ESG
  ESAs - New amendments to sustainability disclosures for the financial sector
  
  
• ESG
  LMA - European Parliament Economics and Monetary Affairs Committee votes to amend the ESG ratings regulation
  
  
• ESG
  LMA - European Council adopts negotiating position on CSDDD
  
  
• Capital markets
  ESMA - Parameters and methodology for MMF stress testing updates
  
  
• Investment companies and investment funds
  ESMA - Technical standards under the revised ELTIF regulation
  
  
• Banks
  EBA - Guidelines on the specification and disclosure of systemic importance indicators update
  
  
• Banks
  EBA - Amendments to disclosures and reporting on MREL and TLAC
  
  
• Insurance companies
  Council of the EU - Solvency II and IRRD - New rules for the insurance sector
  
  
• Poland: Insurance companies
  CJEU - key verdicts on CHF loans
  
  
• Poland: Insurance companies
  PFSA - Statement on wealth management companies
  
  
• Poland: Insurance companies
  PFSA - Statement on Polish register of lending institutions

ESG

04/12: ESAs - New amendments to sustainability disclosures for the financial sector

• ESAs have released their Final Report proposing amendments to the draft Regulatory Technical Standards (RTS) linked to the Sustainable Finance Disclosure Regulation (SFDR). The key amendments include:

1. New Social Indicators: The ESAs recommend incorporating new social indicators into the disclosure framework, focusing on the impact of investment decisions on society.
2. Streamlining Environmental and Social Impact Disclosure: The proposal seeks to streamline the framework for disclosing the principal adverse impacts of investment decisions on both the environment and society.
3. Product Disclosures on Greenhouse Gas Emissions Reduction Targets: The ESAs suggest introducing new product disclosures for "greenhouse gas emissions reduction" targets.
4. Improved disclosures on ensuring that sustainable investments "Do No Significant Harm" (DNSH) to the environment and society.
5. Simplification of pre-contractual and periodic disclosure templates for financial products.
6. Technical adjustments related to derivatives treatment sustainable investment calculations, and provisions for financial products with underlying investment options.

• The European Commission will review the draft RTS within a three-month period to decide whether to endorse them.

ESG

04/12: LMA - European Parliament Economics and Monetary Affairs Committee votes to amend the ESG ratings regulation

• The European Parliament's Economics and Monetary Affairs Committee voted to amend the proposed regulation on ESG rating activities by the European Commission. The amendments aim to enhance transparency and competition among ratings providers. They include:

1. Requirement for separate ESG scores instead of a single rating to prevent concealing low ratings for specific factors. If ratings are aggregated, providers must detail the weighting of each factor and justify their ratings.
2. Mandating information on how ratings align with key agreements like the Paris Agreement for environmental factors, International Labour Organisation conventions for social factors, and international standards for governance factors.
3. Encouraging a double...