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New Regulatory Requirements Impact Firms Across Europe

February 12, 2014 - A new wave of regulations has come into force across the European Union, affecting a significant number of firms. The regulations aim to improve financial stability and reduce risk by introducing clearing obligations for specific asset classes and reporting requirements.

EMIR Regulations

The European Market Infrastructure Regulation (EMIR) came into effect on February 12, 2014, and firms must now comply with its provisions. Key requirements include:

  • Clearing certain derivative contracts through central counterparties (CCPs)
  • Reporting transactions to trade repositories (TRs)
  • Identifying the derivative products subject to clearing obligations
  • Assessing clearing exemptions for intra-company transactions
  • Designing, testing, and documenting business and operational clearing processes

To help firms navigate these complex changes, [Company Name] offers a range of services:

  • Initial impact assessments to understand EMIR obligations and their impact on business
  • Selection of TRs and/or CCPs to meet reporting and clearing obligations
  • Gathering of business requirements for data interface and migration processes for reporting purposes
  • Identification of derivative products subject to the clearing obligation
  • Assessment of clearing exemptions for intra-company transactions
  • Design, testing, and documentation of business and operational clearing processes

Anti-Money Laundering (AML) and Combating the Financing of Terrorism

In a separate development, the fight against money laundering and terrorist financing has become a top priority for law enforcement agencies and financial regulators worldwide. To combat this threat, institutions must implement robust AML risk assessments and controls to mitigate their risks.

To help firms comply with these regulations, [Company Name] offers a range of services:

  • Performance of AML risk assessments in line with regulatory requirements and best practices
  • Background checks on legal or physical persons to support KYC procedures
  • Creation of effective and sustainable AML compliance control programs
  • Improvement of the quality of AML internal audits
  • Design and implementation of effective customer due diligence processes
  • Training of senior executives and employees on topics ranging from specific aspects of compliance to regulatory expectations and industry trends

Internal Audit

In a separate development, the role of Internal Audit has become critical in regulated entities. Boards of Directors are facing ongoing pressure from stakeholders to mitigate risk while driving business performance.

To help firms develop their internal audit function, [Company Name] offers a range of services:

  • Development of a risk-based internal audit methodology
  • Establishment of an in-house internal audit function
  • Advising the Audit Committee and developing Audit Committee charters
  • Supporting internal audit functions with technology solutions to enhance and support their work

Recovery Plans

In another development, investment firms impacted by the Bank Recovery and Resolution Directive (BRRD) will have to prepare and submit recovery plans to CySEC. The recovery plan must set out the actions to be taken to restore the firm’s financial position in case of significant deterioration of its financial situation.

To help firms develop their recovery plans, [Company Name] offers a range of services:

  • Preparation of the recovery plan document
  • Sharing of recovery planning insights, industry best practices, and tools and templates
  • Leveraging experience with regulators to support delivery and communication strategy

For more information on how [Company Name] can help your firm comply with these regulations, please contact us.