The European Commission, EU Council and European Parliament announced their joint legislative priorities for 2023 and 2024 on 15 December 2022, accompanied by a working document listing the various planned directives and regulations. Key priorities for 2023 and 2024 from a finance perspective are:
- AML: Finalising the AML Action Plan. The EU Council agreed its position on 7 December 2022, and the Parliament’s rapporteurs indicated that a vote will take place in mid-March 2023, paving the way for trilogue discussions. One core component of the Action Plan (updates to the regulation on information accompanying transfers of funds to capture transfers of crypto-assets) has already been agreed (for more information, read our insights here). The new single-rulebook regulation, the related directive, and the establishment of the new central anti-money laundering authority (AMLA) remain to be finalised.
- Banking: Progressing the remaining aspects of the Banking Package i.e. the proposed regulation on requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor, and the proposed Directive on supervisory powers, sanctions, third-country branches, and ESG risks. One core aspect of that package (the ‘daisy chain’ regulation which introduces targeted adjustments to improve the resolvability of banks) has already been finalised and published in the Official Journal – for more information, read our insights here.
- Derivatives: Progressing targeted amendments to EMIR with the overarching aim of encouraging clearing in the EU. For more information, read our insights here. The EMIR proposals formed part of a Capital Markets Union-related package of measures put forward by the Commission on 7 December 2022, which also includes proposals to harmonise certain corporate insolvency rules across the EU, and to reform the Listing Act to facilitate better access by SMEs to public listings – these measures also feature on the list of priorities.
- ESG: With the next round of trilogue negotiations on the proposed EU Green Bonds Regulation due to start early in Q1 2023, that proposal features on the priority list (read our insights on the institutions' initial negotiating positions here), as does the proposed Corporate Sustainability Due Diligence Directive (for more information, read the insights from our Corporate Group here).
- European Single Access Point: The legislative framework for the proposed centralised platform allowing access to publicly disclosed information on financial services, capital markets and sustainability also features on the list. For more information, read the insights from our Corporate Group here.
- Insurance: Both the proposal to amend Solvency II, and the proposal to establish a framework for the recovery and resolution of insurance and reinsurance undertakings, feature on the priority list.
- Non-Performing Loans: While the EU Directive on Credit Servicing has been finalised and is due for transposition into national law at the end of 2023 (for more information, read our insights here), the second component of the Commission’s original proposal, an accelerated extra-judicial enforcement mechanism, features on the list (it had been split out from the part of the proposal dealing with credit servicing in the interests of progressing that element more quickly).
- Payments: Progressing the proposed regulation on instant credit transfers in euro. For more information, read our insights here. While the shape of any proposals remain to be confirmed, a review of the Payment Services Directive, the framework for open finance, and the planned proposal for a digital euro also feature on the list.
- Securities Settlement: Progressing the proposed changes to the Central Securities Depositories Regulation. For more information, read our insights here.
Other key areas which feature on the list are the consolidated tape-related amendments to MiFID II and MiFIR, the proposal to amend AIFMD (delegation arrangements, liquidity risk management, supervisory reporting, provision of depositary and custody services and loan origination), the proposal to establish a European Deposit Insurance Scheme, and the proposed regulation on the law applicable to the third-party effects of assignments of claims. While the forms remain to be confirmed, the revision of the bank crisis management and deposit insurance framework, and improvements to the retail investment framework, are also on the priority list.
We will continue to publish our insights as developments occur, and our monthly Horizon Scanner: Finance (latest edition here and archived editions here) will continue to track a wide range of developments, including each of the above priorities.