Regulatory Watch – Lux Edition – April 2023

Aurexia Luxembourg Regulatory Watch adresses recent regulations updates for financial institutions.

Content

• CESOP , new reporting requirements : CESOP « Central Electronic System of Payment information » is a centralized database at European level. It has been adopted by the European Council with the Directive 202/284 of the 18^th February 2020.
• ESAP , an improvement in the access of sustainable data: On the 25^th November 2021, the Commission adopted a legislative proposal on the European Single Access Point (ESAP). This European Single Access Point will be a centralized dataset on a broad set of EU companies and EU investment products covering financial and non-financial information based on the main information reported on the regulatory reporting, the idea being not to constrain companies and financial instrument to a new reporting requirement but rather centralize the information already reported to ease the access
• ELTIF 2.0 Amendments entered into force on 05 April 9, 2023: After the European Parliament voted the formal approval of the amendments to the regulation on European long-term investment funds (ELTIF) on February 15, version 2.0 of the text was published in the official journal of the EU on February 20 March. It therefore entered into force on April 9, 2023, 20 days later.
• Fossil gas & nuclear activities, the latest challenges to apply SFDR’ obligations: It is important to note that, the final version of RTS further to the commission delegated regulation 2022/1288 has been amended and corrected by the Commission Delegated Regulation (EU) 2023/363) as two major impacts:
  • The inclusion of information that should be provided in pre-contractual documents, on websites, and in periodic reports about the exposure of financial products to investments in fossil gas and nuclear energy activities as “transitional activities” under the EU Taxonomy,
  • The Annexes II to V of the final RTS regarding templates for financial products’ pre-contractual and periodic disclosures has been updated to integrate the specific disclosure of fossil gas and nuclear energy activities.
• ECB and the ESAs call for enhanced climate related disclosure for structured finance products: The European Central Bank (ECB) and the European Supervisory Authorities (ESAs) have issued a Joint Statement calling for the development of harmonized data requirements in climate-related disclosures for structured finance products. 
• Instant Payment, Europe sets targets: Instant payments are electronic payments that allow for immediate transfer of funds between two parties. The European Union (EU) has been at the forefront of adopting instant payments, with its Payment Services Directive mandating payment service providers to offer instant payment options.

Find more

Find out more on the latest news on CESOP new reporting requirements, how ESAP will revolutionize the use of companies and financial product data, entry into force of ELTIS 2.0 amendments and the latest challenges to apply SFDR obligations. Furthermore, don’t forget to have a look on ECB and the ESAs call for enhanced disclosure for structured finance products and the new European targets for Instant payments. 

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