Financial Crime World

Council of November 25th, 2015 Adopts New Regulations for Payment Services and Insurance Sector

The Council of the European Union has adopted new regulations aimed at improving payment services and insurance sector supervision. These measures are expected to enhance financial stability and consumer protection in the EU.

Payment Services Regulation

The new regulation amends several existing directives, including:

  • Directives 2002/65/EC, 2009/110/EC, and 2013/36/EU
  • Regulation (EU) 1093/2010

These changes aim to improve the efficiency and effectiveness of payment services in the EU. Under the new regulation, national supervisors will have broader powers to monitor payment service providers, including:

  • Conducting on-site inspections
  • Issuing binding administrative provisions

Insurance Sector Regulation

The Council has also adopted a new regulation aimed at strengthening insurance sector supervision. The Solvency II Directive 2009/138/EC has been transposed into Portuguese law, setting out a comprehensive framework for the insurance sector.

Key responsibilities of the Insurance and Pension Funds Supervisory Authority include:

  • Verifying the solvency position, technical provisions, assets, and eligible own funds of insurance and reinsurance companies
  • Verifying accounting frameworks, internal governance structures, and business conduct towards policyholders

Investment Funds Regulation

The Council has also adopted a new regulation aimed at improving investment fund supervision. The Undertakings for Collective Investment in Transferable Securities (UCITS) Directive V has been partially transposed into Portuguese law, while the Alternative Investment Fund Managers Directive has been partially transposed as well.

Key responsibilities of the Securities Market Commission include:

  • Supervising activities of undertakings for collective investment and alternative investment funds
  • Verifying technical, financial, accounting, and legal compliance
  • Issuing regulations on a wide range of matters, such as:
    • Conditions for organization, functioning, and management of undertakings for collective investment

Conclusion

The new regulations adopted by the Council are expected to enhance financial stability and consumer protection in the EU. The measures aim to improve payment services, strengthen insurance sector supervision, and ensure that investment funds operate in a transparent and prudent manner.