Potential changes to MiFID II could mean EU asset managers setting up a branch in the UK post-Brexit would face barriers dealing with European clients.
Global Custodian looks at the recent MOUs’ between the UK and EU financial regulators and their implication for securities markets.
The agreement between ESMA and the Bank of England eases concerns of significant disruption to the Irish securities market.
Some experts believe regulation of crypto-custody is likely to be fairly imminent, with some digital assets set to be designated as securities in due course.
ESMA report highlights lack of harmonised definition of safekeeping and record-keeping of ownership of securities at an EU-level.
Fears that asset managers would be forced to arbitrarily unwind positions in non-sustainable companies have broadly subsided following ESMA’s announcement.
The European Commission has said it will adopt temporary equivalence to ensure no disruption to central clearing in the case of no-deal Brexit.
ESMA has rejected a request from the European Commission to remove the wording of LEIs in the upcoming rules.
The watchdog has called upon UK and German regulators to revise national exemptions on collateral requirements within the UCITS framework.
Industry awaits formal approval from European Commission, but Global Custodian understands it will make no 'fundamental changes' to SFTR which now looks to be adopted in at the end of the year or Q1 2019.