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COVID-19 Impacts on EC Priorities

The ongoing outbreak of the COVID-19 pandemic has had significant impacts on all industries and sectors, including those within financial markets.

As a result, we have seen a number of global regulators and policy makers, including the EC announce changes to their timetable of priorities.

On this page and in line with the EU Expected Developments Roadmap, you will find details of any changes to the main EU legislative proposals, implementation dates and strategies impacting securities financing markets.

Updated: 07 Oct 2020

  • New Since Last Update
  • Changed Since Last Update
  • Unchanged Since Last Update
Regulation/Directive
Original Expected Date
Updated Date/Status
Legislative Proposals
Regulation/Directive

Legislative Proposal on Basel IV Implementation

Original Expected Date Jun 2020
Updated Date/Status

Q1 2021

This initiative has been further delayed and as outlined in the European Commission’s CMU Action Plan. The legislative proposal can now be expected at the end of Q1 2021.

Regulation/Directive

Legislative Proposal on Cybersecurity/Operational Resilience in Financial Services & a Legislative Framework for Cryptocurrencies

Original Expected Date Q3 2020
Updated Date/Status

24 September 2020

The EC published its legislative proposal on digital operational resilience for the financial sector (DORA).

The EC published its legislative proposal on markets in Crypto-Assets (MICA) (Annex), which included a proposal on a pilot regime, and a proposal amending several financial regulations for clearing obstacles to the use of DLT.

The COVID-19 crisis did not have an impact on the 12 March 2020 deadline for the consultation, neither on the EC plan on these workstream as indicated in the EC Work Programme.

Regulation/Directive

Legislative Proposal to Review MiFID II/MiFIR

Original Expected Date Q3 2020
Updated Date/Status

Q4 2021/Q1 2022

The EC extended the deadline for the consultation to 18 May 2020.

This initiative has been further delayed, and as outlined in the European Commission CMU Action Plan, the legislative proposal can be expected in Q4 2021/Q1 2022.

Regulation/Directive

Legislative Proposal with Targeted Amendments to MiFID (MiFID Quick Fix)

Original Expected Date Q3 2020
Updated Date/Status

24 July 2020

The EC published the targeted review of the MiFID proposal and consultation on investment research.

Regulation/Directive

Legislative & Non-Legislative Action Plan to Fight Tax Evasion & to Make Taxation Simple & Easy

Original Expected Date Q2 2020
Updated Date/Status

The EC published its tax package with plans for action on tax policy until 2024, including:

  1. An Action Plan with 25 measures to be proposed over the coming years, and an Annex of measures – including upcoming proposals to review the VAT regime for financial services (Q4 2021), the extension of the Directive on Administrative Cooperation (DAC) to crypto-assets / e-money (Q3 2021), and a common standardised EU-wide system for withholding tax relief at source (2022/2023);
  2. A legislative proposal to amend the Directive on Administrative Cooperation (DAC7) – obliging digital platforms to report on revenue generated for sellers with operations in the EU to national competent authorities (and Annex);
  3. An updated communication on tax good governance in the EU beyond – including proposals to reform the Council’s Code of Conduct on Business Taxation, and a review of the criteria for the EU list of non-cooperative tax jurisdictions. The communication also links taxation, particularly environmental taxation, to EU trade and development policies

As indicated in the EC Work Programme.

Regulation/Directive

Ongoing Negotiations on a Financial Transaction Tax (in 10 EU Member States)

Original Expected Date Not Determined, Negotiations Ongoing
Updated Date/Status
Regulation/Directive

Legislative Proposal to Review Market Abuse Regulation (MAR) (TBC)

Original Expected Date 2021 (TBC)
Updated Date/Status
Regulation/Directive

Legislative Review of the UCITS Directive (TBC)

Original Expected Date Possibly in 2021 (TBC)
Updated Date/Status
Regulation/Directive

Legislative Review of Securities Finance Transactions Reporting (SFTR) Regulation

Original Expected Date Jan 2022
Updated Date/Status
Regulation/Directive

Legislative Review of Money Markets Funds (MMF) Regulation

Original Expected Date Jul 2022
Updated Date/Status
Regulation/Directive

Legislative Review of the Shareholders Rights Directive

Original Expected Date Jun 2022
Updated Date/Status

Q3 2023

This initiative has been further delayed and as outlined in the European Commission CMU Action Plan, the legislative proposal can now be expected in Q3 2023.

Key Implementation Dates
Regulation/Directive

Application of the SFTR Reporting Requirement (Credit Institutions and Investment Firms Plus All 3rd Country Regulated Firms)

Original Expected Date 11 Apr 2020
Updated Date/Status

13 Jul 2020

ESMA no-action relief statement on SFTR implementation.

Regulation/Directive

Application of the SFTR Reporting Requirement (CSDs & CCPs)

Original Expected Date 11 Jul 2020
Updated Date/Status

13 Jul 2020

ESMA no-action relief statement on SFTR implementation.

Regulation/Directive

Application of the SFTR Reporting Requirement (All Other Financial Counterparties)

Original Expected Date 11 Oct 2020
Updated Date/Status
Regulation/Directive

Application of the SFTR Reporting Requirement (Non-Financial Counterparties)

Original Expected Date 11 Jan 2021
Updated Date/Status
Regulation/Directive

Application of the Non-Cleared Derivatives Margin for Counterparties under EMIR

Original Expected Date Sept 2020 | Entities < €50 billion & Sept 2021 | Entities < €8 billion
Updated Date/Status

From 1 Sept 2021 | Entities < €50 billion
From 1 Sept 2022 | Entities < €8 billion

Following Basel/IOSCO’s announced delay on the implementation to September 2021 and 2022 respectively, the ESAS issued joint RTS to postpone by one year the application of the phase V and VI of the bilateral margining requirements. The EC has three months to adopt it.

The EC has still not adopted the draft RTS which were due on 1 September 2020. However, the draft RTS also introduced no-action relief language asking NCAs not to enforce the initial deadline of 1 September 2020 if the Commission had not adopted the RTS in time.

Regulation/Directive

Application of the CSDR Settlement Discipline Regime

Original Expected Date 13 Sept 2020
Updated Date/Status

1 Feb 2021 (further potential delay to 1 Feb 2022)

The EC adopted ESMA’s amending RTS on settlement discipline under CSDR, delaying the application of the settlement discipline to 1 February 2021. The RTS delaying the application of the settlement discipline provisions were published in the Official Journal of the European Union the 24 Aug 2020, entering into force 27 Aug 2020.

ESMA announced on 28 July 2020, that it was working on a proposal to possibly further delay the implementation of CSDR until 1 Feb 2022, following a request by the European Commission.

European Commission Strategies
Regulation/Directive

Business Taxation for the 21st Century

Original Expected Date Q2 2020
Updated Date/Status

Q4 2020

As indicated in the EC Work Programme.

Regulation/Directive

Capital Markets Union (CMU) Action Plan

Original Expected Date Q2/Q3 2020
Updated Date/Status

24 September 2020

The European Commission CMU Action Plan was published 24 Sep 20 (Annex)

Regulation/Directive

Digital Finance Strategy

Original Expected Date Q3 2020
Updated Date/Status

24 September 2020

The European Commission Digital Finance Strategy was published 24 September 2020

Regulation/Directive

Sustainable Finance Strategy

Original Expected Date Q3 2020
Updated Date/Status

Q4 2020

The EC extended the deadline for the Renewed Sustainable Finance Strategy consultation to 15 July 2020. The EC Work Programme confirms that the strategy is slightly delayed to Q4 2020.

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