Management Plan 2019 DG Financial Stability, Financial Services and Capital Markets Union - Europa ...
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Ref. Ares(2018)6618446 - 21/12/2018
Management Plan 2019
DG Financial Stability, Financial Services and Capital
Markets UnionContents INTRODUCTION ............................................................................................................ 3 PART 1. MAIN OUTPUTS FOR THE YEAR ........................................................................... 5 PART 2. MAIN ORGANISATIONAL MANAGEMENT OUTPUTS FOR THE YEAR ................................. 48
INTRODUCTION
Under the leadership of Vice-President Dombrovskis (in charge of Euro, Social Dialogue
and Financial Stability, Financial Services and Capital Markets Union), the Directorate-
General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA)
is responsible for initiating and implementing policy in the area of banking and finance.
DG FISMA also contributes to a number of projects steered by Vice-President Katainen
(in charge of Jobs, Growth, Investment and Competitiveness).
DG FISMA is fully committed to delivering on the completion of the Banking Union as
envisaged in the October 2017 communication.1 Work will continue on risk reduction and
risk sharing in the banking sector.
DG FISMA aims at completing the Capital Markets Union (CMU) agenda in 2019 by
playing its role of honest broker in the negotiations on legislative texts and implementing
the remaining non-legislative actions, thereby completing the CMU agenda with some 70
actions in total since 2015 for the benefit of the EU enterprises and consumers.
In line with new political and economic challenges in the European Union, the focus of DG
FISMA's work has broadened in recent years. DG FISMA is actively contributing to
legislative and non-legislative proposals envisaged in the Commission action plan on
financing sustainable growth and the FinTech action plan, both published in March 2018.
In the same vein, DG FISMA will also engage in the important measures adopted in
September 2018 to fight money laundering more effectively across the EU.
DG FISMA will also continue its efforts in 2019 on the preparation of the United
Kingdom’s withdrawal to ensure stability and continuity.
As part of the Commission’s performance management framework, DG FISMA identified
the political priorities (among those identified by President Juncker in 2014) to which it
could most effectively contribute. These long-term priorities were set as “general
objectives” in the multi-annual “Strategic Plan” 2016-2020, which is designed to guide
the work of all DGs.2
DG FISMA's General and specific objectives are the following:
General objective Specific objective
1.1:Companies raise more equity in public and
private capital markets
1. A new boost for jobs, growth 1.2 Debt funding for the corporate sector, in
and investment particular for SMEs, is more diversified
1.3 Access to funding for SMEs is less
fragmented
1
Communiction on Banking Union October 2017 : "As highlighted by President Juncker in his State of the
Union Address on 13 September 2017,1 the Banking Union must be completed if it is to deliver its full
potential as part of a strong Economic and Monetary Union (EMU)"
2
DG FISMA's Strategic Plan can be found at: (https://ec.europa.eu/info/publications/strategic-plan-2016-2020-
financial-stability-financial-services-and-capital-markets_en )
31.4 Banks, insurance companies and pension
funds have greater incentive to invest in and lend
to the real economy in a sustainable way,
including investing in long-term European
projects
1.5 Barriers to the free movement of capital are
identified and eliminated
1.6 An increased cross-border investment flow
2.1 Banks and non-banks compete to provide
cheap, safe and reliable payment systems and
funding to consumers
2.2 Strengthened legal and investor protection
for intra-EU investors and a financial system that
is less reliant on external credit ratings, with
greater diversity in the credit rating industry
2.3 Financial and non-financial reporting by
companies, as well as audit, is of a high quality
2. A Deeper and Fairer Internal
Market with a Strengthened
2.4 Consumers have access to safe and reliable
Industrial Base
insurance, pension and UCITS products.
2.5 The financial regulatory framework is
evaluated, appropriately implemented and
enforced across the EU
2.6 Financial institutions can absorb losses and
liquidity shocks, financial market infrastructures
are stable and function effectively, and structural
and cyclical macro-prudential risks are
proactively addressed
3.1 The market exit of a non-major financial
institution has a limited economic impact in the
euro area
3.2 Risk in the banking sector is reduced
3. A Deeper and Fairer Economic
and Monetary Union 3.3 Appropriate country surveillance to ensure
macro-financial stability
3.4 Closely and continuously monitor
developments in the EU financial system,
including financial stability
4PART 1. MAIN OUTPUTS FOR THE YEAR
1 – New boost for jobs, growth and investment
DG FISMA aims at completing the Capital Market Union (CMU) in 2019. The CMU’s aim
is to facilitate access to finance, in particular for innovative companies, start-ups and
Small to Medium Enterprises (SMEs), to enhance the attractiveness of capital markets for
retail and institutional investors and to facilitate cross-border investment. Important
achievements have already been made notably with the adoption of a modern regime on
prospectuses for public issuances of equity and bonds, removal of some regulatory
barriers to investments in infrastructure by insurers, measures to revive securitisation
markets and an improved framework for European venture capital funds.
Building on the CMU's first achievements, the Communication on the CMU Mid-term
review of June 2017 identified new priorities going forwards with a view to increasing the
level of ambition. In 2019, the aim is to finalize the CMU agenda in line with the roadmap
announced in the CMU Mid-term review.
As part of the CMU work strand, the DG will be working on the following initiatives:
(i) DG FISMA aims to finalize the remaining negotiations of the legislative texts on
investment firms, investment funds, growth markets for SMEs and
crowdfunding. In April 2019 the Commission will publish a report on the remaining
non-legislative actions.
(ii) As part of the Sustainable Finance agenda, DG FISMA proposed several legislative
and non-legislative proposals in May 2018. In 2019 the work on these proposals will
continue. Negotiations on all three proposals are progressing in Council and Parliament
with a view to reaching agreements before the next elections in May 2019. During 2019,
the Commission also envisages to present – on the basis of the technical advice currently
being developed by the European Supervisory Authorities (ESAs) - Delegated Acts on
fiduciary duties in relation to the integration of sustainability risks under the
Undertakings for Collective Investment in Transferable Securities Directive (UCITS), the
Alternative Investment Fund Managers Directive (AIFMD), the Solvency II Directive, the
Insurance Distribution Directive (IDD) and the Directive on Markets in Financial
Instruments II (MiFID II). In line with the action plan, the Commission will also update
the guidelines for companies on non-financial reporting, specifically with regard to
climate-related information based on the work of the Technical Expert Group on
Sustainable Finance (TEG).
(iii) Following up on the FinTech action plan that was presented in 2018, DG FISMA will
execute the actions in its remit. In line with the Commission's Digital Single Market
strategy and the Capital Markets Union, the FinTech Action Plan aims at ensuring that
innovative firms and solutions can scale-up across the EU. It will ensure that the whole
European financial sector can harness the benefits brought by innovation while
preserving financial stability and consumer protection. In 2019, building on the
assessment of risks, opportunities and suitability of the applicable regulatory framework
for crypto-assets and ICOs, DG FISMA will assess whether regulatory action at EU level is
required. It will also present a report with best practices for regulatory sandboxes.
(iv) DG FISMA will work to conclude negotiations on the proposals for an integrated
covered bond framework and then start work with Member States to facilitate
complete and conform transposition of the provisions in the related directive. The
proposal on covered bonds will aim at fostering the use of covered bonds as a cheap and
stable long-term source of funding for banks throughout the EU, and at addressing the
5prudential concerns envisaged in the 2016 European Banking Authority Report. This
could in turn translate into more and cheaper lending to the real economy. As such, this
initiative will serve the objective of supporting that banks finance themselves and lend to
the real economy under the Capital Markets Union, boosting jobs, growth and
investment. In parallel, DG FISMA will explore possible follow-up work to the advice of
the European Banking Authority on European Secured Notes (ESNs) as an instrument
for small and medium-sized enterprises (SMEs) and/or infrastructure loans.
(v) As the Securitisation Regulation will enter into effect in January 2019, the
Commission will finalise the adoption of the technical standards mandated by the
Regulation in order to ensure its proper implementation. This regulation creates a
common framework for the securitisation market and a new asset class of high quality
securitisations Together with the European Supervisory Authorities (ESAs), the
Commission will monitor market developments with a view to ensuring that the
Regulation delivers the intended impact – the development of high-quality securitisation
in Europe.
(vi) DG FISMA will continue to implement legislation to improve the effectiveness
and proportionality of EU derivatives rules, such as the European Market
Infrastructure Regulation (EMIR).
(vii) Finally, the Commission will adopt a number of level 2 measures as part of the
implementation of the Prospectus Regulation before the start of application of the new
regulatory framework in July 2019. DG FISMA will also adopt a number of implementing
decisions in order to implement article 3 (list of public authorities) and article 20 (list of
EU and national critical benchmarks) of the Benchmark Regulation.
(viii) DG FISMA will continue to work on the adoption of ‘equivalence’ decisions.
2 - Deeper and Fairer Internal Market with a Strengthened Industrial Base
Several legislative actions will be taken forward under this general objective, including
facilitating and concluding the negotiations on the regulation on the cross-border
distribution of investment funds3. In 2018, a proposal was presented with the aim to
reduce regulatory barriers for cross-border sales of funds. This important deliverable of
the CMU Mid-term review will contribute to reducing the costs of setting up funds, and
will lead to economies of scale and a larger choice of funds.
In 2019, the Commission may present – on the basis of ESA proposals – amendments
to Level 2 rules on the Packaged Retail and Insurance-based Investment
Products Delegated Regulation (PRIIPS 2)) with the purpose of facilitating its
application by Undertakings for Collective Investment in Transferable Securities Directive
(UCITS) and retail Alternative Investment Funds (AIFs). DG FISMA will also start
preparations for the overall PRIIPs review. Furthermore, as part of the European long-
term investment fund regulation (ELTIF), there will be a regulatory technical standard on
cost disclosures. In addition, DG FISMA will continue work related to the Alternative
Investment Fund Managers Directive (AIFMD) review and the partial review of the UCITS
Directive.
Throughout the year, DG FISMA will continue to engage with co-legislators to ensure
maximum progress of pending proposals, such as the review of the ESAs and the
European Systemic Risk Board (ESRB). Moreover, as the parent DG of the three
3
COM(2018) 110 final
6European Supervisory Authorities (ESAs), DG FISMA will continue to closely cooperate
with the Authorities on a day-to-day basis in order to promote a good alignment of work
and priorities with the Commission’s agenda in general and a strong focus on supervisory
convergence in particular.
In 2019, DG FISMA will dedicate important resources to the review of the transposition of
the Payment Services Directive (PSD2), Mortgage Credit Directive (MCD) and
Payment Accounts Directive (PAD) by Member States. In the context of PSD2, DG
FISMA will monitor the implementation of the communication interfaces by the market.
The implementation of these interfaces will open up further business opportunities for
open banking, where in the context of the FinTech action plan DG FISMA will work on
actions to facilitate a smooth transition.
In 2019, DG FISMA will finalise its Fitness Check on supervisory reporting
requirements in EU financial legislation that is meant to provide a comprehensive
overview of the key sources of the potential costs and burdens of supervisory reporting.
The longer term objective thereof is to simplify and streamline supervisory reporting
while ensuring that supervisors continue to receive the data which they need to fulfil
their mandates, and as such continue to ensure financial stability, market integrity and
consumer protection.
DG FISMA will also complete its Fitness Check on the EU framework for public
reporting by companies in order to assess whether it is still fit for purpose (effective,
relevant and efficient in achieving the intended objectives), fit for new challenges (such
as sustainability and digitalisation), coherent and adds value at EU level. In the same
vein, the Commission will also prepare a communication in response to review clauses in
the Accounting and Transparency Directives, addressing outstanding requests for post
implementation reviews contained in those Directives.
Concerning the endorsement of the International Financial Reporting Standard on
insurance contracts (IFRS 17) that will replace the current IFRS 4, DG FISMA will
follow closely the forthcoming International Accounting Standard Board amendments to
IFRS 17. The objective is to ensure that the relevant concerns identified by EFRAG on
IFRS 17 will be adequately addressed.
3 - Deeper and Fairer Economic and Monetary Union
In 2019, working towards the completion of the Banking Union will form an important
part of DG FISMA’s workload. The October 2017 Communication on the Completion of the
Banking Union sets out what has been achieved in creating the Banking Union and what
still needs to be completed.4 It urged the European Parliament and the Council to
progress quickly to adopt measures to tackle the remaining risks in the banking sector
and suggested new actions to reduce non-performing loans and to help banks diversify
their investment in sovereign bonds. The Communication also aimed to give new impetus
to the negotiations on the European Deposit Insurance Scheme (EDIS) and maps out the
path towards the setting up of a last resort common fiscal backstop for the single
resolution mechanism. An agreement was reached by the co-legislators in December
2018 on the proposed ‘banking package’ (Capital Requirements Regulation and Directive,
Single Resolution Mechanism Regulation, Bank Recovery and Resolution Directive).
4
See https://ec.europa.eu/info/publications/171011-communication-banking-union_en
7In 2019, DG FISMA will continue to produce, together with the European Central Bank
and the Single Resolution Board, the regular monitoring on progress on risk
reduction, which should inform political decisions on the next steps in risk
sharing. In June 2018, the Euro Summit concluded that "adhering to all the elements of
the 2016 roadmap in the appropriate sequence, work should start on a roadmap for
beginning political negotiations [on EDIS]". DG FISMA has been actively engaged the
follow-up to these conclusions. The aim is to achieve significant progress before the
European Parliament elections in 2019.
In order to ensure adequate financing of Resolution in the Banking Union, Member States
agreed that a backstop facility should be put in place before the end of the build-up
period of the Single Resolution Fund (SRF). In December 2017 the Commission
presented an initiative to transform the European Stability Mechanism into a European
Monetary Fund, within the framework of Union law. In June 2018, the Euro Summit
concluded that “The ESM will provide the common backstop to the Single Resolution Fund
(SRF)”. DG FISMA will continue to be involved in the technical work on the set-up and
operationalisation of the backstop throughout 2019. The Commission proposed an
enabling framework for Sovereign Bond Backed Securities (SBBS), which may help
reduce banks' home bias and increase the supply of assets in financial markets.
DG FISMA is also strongly involved in the effective day to day functioning of the
Banking Union. The Commission holds the ultimate responsibility as regards decisions
under Article 18 of the Single Resolution Mechanism Regulation (SRMR) and of article 44
of the Bank Recovery and Resolution Directive (BRRD). DG FISMA, jointly with the Single
Resolution Board (SRB), exercises the functions of a resolution authority and in this
respect has developed structures and procedures necessary to fulfil its role. In particular,
it has created strong links with the SRB (including through its presence in the Executive
and Plenary bodies), the Single Supervisory Mechanism (SSM) and other EU and non EU
resolution authorities. DG FISMA also ensures that state aid decisions presented for
College adoption are compatible with the EU resolution Framework (SRMR, BRRD and
implementing legislation). The function of resolution authority also implies a strong
involvement of DG FISMA in contributing to the work of the Legal Service as regards
judicial proceedings before the European Court of Justice.
In view of the experience gained as regards the operation of the Resolution Framework in
the Banking Union, and in particular the resolution cases handled in previous years, DG
FISMA will in 2019 participate, together with the SRB and the SSM, in a "lessons-
learnt" exercise that is intended to improve the functioning of the Banking Union
resolution framework. As foreseen under Article 94 of the SRMR Regulation, DG FISMA
will, in 2019, issue a report on the functioning of the Single Resolution
Mechanism.
DG FISMA, in its function as resolution authority, together with the SRB, will continue
working with non-Banking Union jurisdictions to ensure the effectiveness of resolution
decisions related to institutions with presence in multiple jurisdictions. In the context of
the Trilateral Resolution Exercise between the Banking Union, the UK and the US, DG
FISMA will contribute to the different areas (such as funding, communication, positioning
of loss absorption capacity, etc.) identified by the three parties as being critical for the
smooth operation of a resolution of an institution present in all three jurisdictions.
DG FISMA will also continue to work on specific issues pertaining to the deepening of
Economic and Monetary Union, such as working towards a safe asset for the euro
area, or revisiting the structure of the standard collective action clauses in euro area
sovereign bond contracts.
8Since the financial crisis and the G20 reforms to enhance centralised clearing, Central
Counterparties (CCPs) have become increasingly important actors in managing risk in
the financial system. In this respect, the adoption of the European Market Infrastructure
Regulation (EMIR) supervision proposal as well as the Commission’s proposal on CCP
Recovery and Resolution during 2019 is vital. Once agreed, DG FISMA will contribute to
the swift implementation of the corresponding level 2 legislation.
DG FISMA will engage with the co-legislators to ensure that, further to the political
agreement reached in trilogue in December 2018, the prudential backstop for non-
performing loans is finally adopted.
DG FISMA will also continue its preparatory work on the implementation of the
finalised Basel III framework agreed by the Basel Committee in December 2017. To
this end, DG FISMA will carry out an analysis of the impacts of implementing the
framework in Union law. The analysis will build, among other things, on the EBA's reply
to DG FISMA's call for advice and on replies received to a public consultation that will be
launched in the second half of the year.
DG FISMA, supported by the EBA, will continue its work on a report on the progress
towards the implementation of the Deposit Guarantee Scheme Directive (DGSD),
to be delivered by July 2019. This will address several issues such as the impact of the
DGSD on the diversity of banking models or the adequacy of the current coverage level
for depositors.
Both the EDIS and DGSD work streams require regular high-quality evidence-based
analyses and modelling. DG FISMA is supported in this work by the Joint Research Centre
(JRC) and cooperation will continue in 2019.
4 – Other work to be carried out in 2019
International level: DG FISMA will continue to work in 2019 on the quality of financial
regulation and will seek to foster international regulatory and supervisory coordination.
To this end, DG FISMA will continue to play an active role in international standard
setting bodies, such as the Financial Stability Board, the Basel Committee, the
International Association of Insurance Supervisors and the International Organisation of
Securities Commission. Moreover, DG FISMA will further intensify relations with key
jurisdictions, foster existing relations and launch new regulatory dialogues with key third
country jurisdictions. In this respect, DG FISMA will also actively contribute, to the
implementation of the financial services and investment chapters of the free-trade
agreements concluded by the Union as well as to the definition of those chapters in the
agreements under negotiation. Furthermore, DG FISMA represents the Commission in the
Monitoring Group that is engaged in reforming the audit standard-setting process in the
public interest. DG FISMA will furthermore pursue its work to consider the recognition of
third country regulatory frameworks as equivalent, which is a key instrument for the EU
to effectively manage cross-border activity of market players in a sound and secure
prudential environment with third-country jurisdictions that adhere to, implement and
enforce rigorously the same high standards of prudential rules as the EU.
The decision of the United Kingdom to leave the EU will have a significant impact on the
resources of FISMA, given the very significant level of integration in financial services and
the very profound implications in terms of financial stability risks, market integrity and
investor protection. The commitment in the Political Declaration to finalise equivalence
assessment by June 2020 involves significant resources across the DG and will require a
strong coordination platform, also taking into account Council, Parliament and
stakeholder interests. This activity will come on top of and influence the broader
9international activities in financial services – standard setting, bilateral cooperation,
negotiations.
DG FISMA will continue contributing to the work on strengthening the international role
of the euro. Related to that, DG FISMA will also continue specific actions as regards
securing the economic and financial sovereignty of the Union in the global setting.
Furthermore, DG FISMA will actively contribute to the discussions and work on
strengthening the International Financial Architecture, under the auspices of the
G-20 process.
Monitoring and assessing financial markets and the financial system: With a view
to contributing to financial stability, DG FISMA will continue its monitoring of financial
markets, institutions and policies at country level in the context of the EU surveillance
framework and in cooperation with other DGs. Some of this work is provided in regular
market reports delivered to a wide range of recipients across the Commission.
Other, more targeted ad-hoc output complements this work strand. Advice is formulated
via Country-Specific Recommendations in the European Semester process or
through the Post Programme Surveillance of Member States which benefitted from
external assistance. Implementation is carefully checked on a regular basis, as part of an
ongoing monitoring of developments in financial markets and institutions. In this context
particular attention is paid to Greece that is under Enhanced Surveillance, a procedure,
which is for the first time applied. Beyond dealing with the legacy of the crisis, country
knowledge will be further developed with a view to avoid financial distress in a timely
way and track policy implementation and initiatives to assess their contribution to growth
and investment. In line with the mandate in the Single Supervisory Mechanism
Regulation, DG FISMA will start preparatory work on the next report reviewing the
application of that Regulation.
Safeguarding consumers' interests in financial services: In 2019, the Financial
Services Users Group (FSUG) will continue advising the Commission in the preparation
and implementation of legislation or policy initiatives affecting the users of financial
services. DG FISMA will continue to provide financial support to two EU-wide non-
industry organisations, Finance Watch and Better Finance, which enable civil society to
have a stronger say in EU policy making on financial services. DG FISMA will also
continue to manage the network of alternative dispute resolution bodies in the area of
financial services, FIN-NET, to facilitate the resolution of cross-border complaints about
financial services and to obtain information on consumer issues in the Member States.
DG FISMA will seek to develop more synergies between these three entities to ensure
that consumer interests are fully taken into account in financial services policymaking
and that any consumer issues are closely monitored to identify needs for adapting or
developing the regulatory framework.
2019 is envisaged as a year of political agreement and of implementation of previously
agreed measures, many of them CMU-related. For example, the IORP2 Directive for
occupational pensions, adopted by EP and Council in 2016, will enter into application in
January 2019, and the revision of the Delegated Act of the Solvency II Directive,
containing inter alia measures to facilitate insurers' investments in unlisted equity and
unrated debt, will undergo EP and Council scrutiny, having been adopted by the
Commission at the end of 2018. Adoption by the co-legislators of the proposed
amendments to the Motor Insurance Directive, including in particular a mechanism to
guarantee compensation of victims of motor accidents in case of insolvency of the
insurer, is also aimed for during the first half of 2019.
Work towards the adoption of various delegated and implementing acts covering
all parts of financial services will continue to be a major part of DG FISMA’s work in
2019, as presented in the tables here after.
10Implementing, reviewing and enforcing legislation that is already in place will
remain an important element of DG FISMA’s workload in 2019. DG FISMA will, in
particular, monitor the national transposition of financial services Directives, ensure the
follow-up to the related infringement proceedings and prepare regular updates for
discussions at the ECOFIN Council on the implementation of financial services legislation
in Member States.
11Relevant general objective(s): 1 A New Boost for Jobs, Growth and
Investment
Specific objective: 1.1 Companies raise more Related to spending
equity in public and private capital markets programme(s) …
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
All new initiatives / significant evaluations from the Commission Work
Programme
Output Indicator Target
Report on the Capital Markets Adoption by the Commission April 2019
Union non-legislative actions
PLAN/2018/4558
Commission report on the state-of-
play and way forward for the 19
remaining actions announced in the
2017 Mid-term Review of the CMU
Action Plan. These actions provide
key contributions towards deep and
liquid capital markets: they concern
areas such as high-yield corporate
bonds, private placements,
corporate finance for entrepreneurs
and start-ups, retail and institutional
investment, as well as post-trade
market infrastructure and the
interconnection between pan-
European and local markets.
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Delegated Act on MAR - art.26(2) Adoption by the Commission
with regard to RTS on cooperation Q3 2019
with third countries
2015/FISMA/145
RTS containing a template
document for cooperation
12arrangements that are to be used by
competent authorities of Member
States where possible
Report on the functioning of the Adoption by the Commission End of 2019
Market Abuse regime
PLAN/2018/4555
The objective is an assessment of
the application of Regulation (EU)
No 596 on market abuse pursuant to
Article 38 thereof. The report should
include an assessment of the
sanctions regimes, of the definition
of inside information, of the
application of the closed period
regimes and the possibility of
establishing a Union framework for
cross-market order book
surveillance.
Delegated Act on the Prospectus to Adoption by the Commission January 2019
be published when the securities
are offered to the public or
admitted to trading.
PLAN/2017/1390
The objective of this Delegated act is
to ensure that conditions are
interpreted in the same manner by
the competent authorities. For this
purpose it will establish detailed
provisions concerning the content,
format and information in and of
prospectuses.
Delegated act on the content of the Adoption by the Commission Q3 2019
green bond prospectuses
PLAN/2018/3931
This regulation will impose
additional requirements only for
issuers that offer green bonds. More
prominent and detailed disclosure
of the use of proceeds for green
projects would be beneficial to
investors.
13Amendment to Commission Adoption by the Commission February 2019
Delegated Regulation (EU)
2017/588 under MiFIR (RTS 11)
PLAN/2018/3784
The amendment to this RTS aims to
address the issue of inappropriate
tick size in certain financial
instruments where only a marginal
proportion of the trading is
executed on EU trading venues and
the main pool of liquidity is located
outside of the EU.
Implementing Regulations Adoption by the Commission March 2019
amending the list of critical
benchmarks under BMR
PLAN/2018/3589
PLAN/2018/4515
PLAN/2018/4574
The implementing acts add new
benchmarks to the list of critical
benchmarks, established in
accordance with Art. 20(1) of the
Benchmark Regulation.
Implementing Act establishing a list Adoption by the Commission June 2019
of public authorities in the Union
falling within the definition under
Article 3(3) of BMR
PLAN/2018/4511
The Commission shall publish a list
of public authorities designated by
Member States for the purpose of
BMR
Relevant general objective(s): 1 A New Boost for Jobs, Growth and
Investment
Specific objective: 1.2 Debt funding for the Related to spending
corporate sector, in particular for SMEs, is more programme(s) …
diversified
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
14All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Technical Standards following the Adoption by the Commission Q1 2019
entry into force of the
Securitisation Regulation
PLAN/2018/2692
PLAN/2018/2700
PLAN/2018/2733
PLAN/2018/4507
The Securitisation Regulation enters
into application on 1 January 2019.
It aims to revive the securitisation
market with a view to improve the
financing of the EU economy in the
long run. It will diversify the sources
of funding for the corporate sector,
including for SMEs, and broaden the
distribution of risk. The Regulation
contains empowerments for a series
of delegated and implementing acts.
In addition to the technical
standards adopted in 2018, the
Commission should adopt 3
Regulatory Technical Standards and
1 implementing technical standards
by the Commission in 2019.
Delegated Act on type of fees Adoption by the Commission Q2 2019
following the entry into force of the
Securitisation Regulation
PLAN/2018/2691
Delegated act on the fees which
Securitisation Repositories can
15charge.
Relevant general objective(s): 1 A New Boost for Jobs, Growth and
Investment
Specific objective: 1.3 Access to funding for Related to spending
SMEs is less fragmented programme(s) …
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
Proposal for a Regulation on Adoption by the co-legislators May 2019
European Crowdfunding Service
Providers (ECSP).
2018/0048 (COD)
Proposal for a Directive amending
MIFID II (crowdfunding)
2018/0047 (COD)
Broadening access to finance for
innovative companies, start-ups and
other unlisted firms is at the heart of
the CMU Action Plan. However,
investment finance remains difficult
for these companies, particularly
when they move from start-up into
the expansion phase. Alternative
sources of finance such as crowd
and peer-to-peer finance
('crowdfunding') can be an
important source of non-bank
financing in support of innovative
companies and start-ups provided
that appropriate safeguards are in
place.
Proposal for a regulation on the Political agreement by the co- May 2018
promotion of the use of SME legislators
growth market
2018/0165 (COD)
SME Growth markets are new
16categories of trading venues that
aim to attract SMEs and facilitate
access to market-based financing
for smaller issuers. This proposal
aims at reducing the compliance
costs and administrative burden
on SMEs and to reinforce the
attractiveness of SME growth
markets.
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Relevant general objective(s): 1 A New Boost for Jobs, Growth and
Investment
Specific objective: 1.4 Banks, insurance Related to spending
companies and pension funds have greater programme(s) …
incentive to invest in and lend to the real
economy in a sustainable way, including
investing in long-term European projects
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
17Proposal for a Regulation on the Adoption by the co-legislators May 2019
establishment of a framework to
facilitate sustainable investment
2018/0178 (COD)
Proposal for a Regulation on
disclosures relating to sustainable
investments and sustainability risks
2018/0179 (COD)
Proposal for a regulation on low
carbon benchmarks and positive
carbon benchmarks
2018/0180(COD)
Reorient capital flows towards
sustainable investment – scale-
up green projects supporting the
transition towards low carbon,
resource efficient and circular
economy of the EU.
Proposal for a Regulation on Adoption by the co-legislators May 2019
exposures in the form of covered
bonds
2018/0042 (COD)
Proposal for a Directive on the issue
of covered bonds and covered bond
public supervision
2015/0043 (COD)
The use of covered bonds
reduces the cost of funding for
banks and thus increases lending
to the real economy. In parallel,
the Commission will explore in
182019 the possibility of developing
European Secured Notes (ESNs)
as an instrument for SME and/or
infrastructure loans.
All new initiatives / significant evaluations from the Commission Work
Programme
Output Indicator Target
Delegated act under UCITS Adoption by the Commission Q3 2019
concerning fiduciary duty
PLAN/2018/3366
Delegated act under AIFMD
concerning fiduciary duty
PLAN/2018/3367
Delegated act under Solvency II
concerning fiduciary duty
PLAN/2018/3368
Delegated Acts under IDD
concerning fiduciary duty
PLAN/2018/3369
PLAN/2018/3370
Delegated Acts under MIFID II
concerning fiduciary duty
PLAN/2018/3379
PLAN/2018/3380
In the Action Plan of Sustainable
Finance the Commission expressed
intention to clarify fiduciary duties
and increase transparency in the
field of sustainability risks and
sustainable investment
opportunities with the aim to
-reorient capital flows towards
sustainable investment;
-assess and manage relevant
financial risks stemming from
climate change, resource depletion,
19environmental degradation and
social issues; and
-foster transparency and long-
termism in financial and economic
activity.
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Update of the guidelines for Adoption by the Commission June 2019
companies on non-financial
reporting
PLAN/2018/4107
In line with the action plan on
sustainable finance, update of
guidelines for companies on non-
financial reporting, specifically with
regard to climate-related
information based on the work of
the TEG. The guidelines provide non-
binding methodology for reporting
non-financial information as
provided by article 2 of the Non-
Financial Information Directive
(2014/95/EU)
Amendment to PRIIPs Regulatory Adoption by the Commission Q4 2019
Technical Standard with regard to
the presentation, content, review
and revision of key information
documents and the conditions for
fulfilling the requirement to
provide such documents
PLAN/2018/3934
The objective of the RTS is to
facilitate application of the PRIIPs
20Regulation by UCITS and retails
AIFs.
Relevant general objective(s): 1 A New Boost for Jobs, Growth and
Investment
Specific objective: 1.5 Barriers to the free Related to spending
movement of capital are identified and programme(s) …
eliminated
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Relevant general objective(s): 1 A New Boost for Jobs, Growth and
Investment
Specific objective: 1.6 An increased cross-border Related to spending
investment flow programme(s) …
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
21Relevant general objective(s): 2. A Deeper and Fairer Internal Market with a
Strengthened Industrial Base
Specific objective: 2.1 Banks and non-banks Related to spending
compete to provide cheap, safe and reliable programme(s) …
payment systems and funding to consumers
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Evaluation of the Payment Adoption by the Commission Q4 2019
Accounts Directive
Review of the Payment Accounts
Directive (2014/92/EU) with a view
to assess the effectiveness of
provisions on transparency,
switching and access to payment
accounts, in compliance with
Articles 27 (Evaluation) and 28
(Review) of the Directive.
Review of the Mortgage Credit Award of consultancy contract(s) Q2 2019
Directive (2014/17/EU)
With a view to assess the
effectiveness of provisions on
consumers and internal market, the
wider challenges of private over-
indebtedness and the need for
supervision of credit registers in
compliance with Articles 44 (Review
clause) and 45 (Further initiatives in
responsible lending and borrowing)
of the Directive.
Staff Working Document with best Publication of the SWD Q1 2019
practices on regulatory sandboxes
22The Commission considers that
more supervisory convergence is
needed as regards "innovation
facilitators" which have been set up
by national authorities to support
innovative firms and solutions.The
ESAs will map the current initiatives
across the EU and identify best
practices by the end 2018. Based on
the work of the ESAs, DG FISMA will
present a report with best practices
for regulatory sandboxes.
Relevant general objective(s): 2. A Deeper and Fairer Internal Market with a
Strengthened Industrial Base
Specific objective: 2.2 Strengthened legal and Related to spending
investor protection for intra-EU investors and a programme(s) …
financial system that is less reliant on external
credit ratings, with greater diversity in the
credit rating industry
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Progress Report on the Adoption by the Commission Q3 2019
implementation related to CRA of
the Action Plan on Sustainable
Finance
PLAN/2018/3914
In the framework of the "Action
Plan: Financing Sustainable Growth",
the EC acknowledged the need to
greater understanding of and
23transparency about how CRA take
sustainable factors into account.
Engaging with the relevant
stakeholders, the EC will explore the
merits of amending the CRAR to
mandate CRAs to explicitly integrate
sustainability factors into their
assessments in a proportionate way
and will report on the progress
made on this.
Adoption by the Commission
ECAI mapping - ITS amending
Implementing Regulation (EU)
2016/1801
PLAN/2017/2239
Amending Implementing
Regulations in order to provide
mapping for the newly registered or
certified external credit assessment
institutions (ECAIs) in accordance
with Regulation (EC) No 1060/2009
of the European Parliament and of
the Council on credit rating
agencies, and to remove the
mapping for one ECAI that has been
deregistered since the Implementing
Regulations were adopted
ECAI mapping - ITS amending Adoption by the Commission Q3 2019
Implementing Regulation (EU)
2016/1799
PLAN/2018/3360
ESAs continuously monitor the
mapping for external credit
assessment institutions (ECAIs)
having already provided a mapping.
The monitoring strategy agreed in
July 2017 established that the 25
existing mappings would be
reviewed in a sequential manner. As
a consequence, Implementing
Regulation (EU) 2016/1799 should
be amended in order to provide
mapping for 11 ECAIs have been
identified as needing amendments
24to their mapping reports.
ECAI mapping - ITS amending Adoption by the Commission Q3 2019
Implementing Regulation (EU)
2016/1800
PLAN/2018/3361
ESAs continuously monitor the
mapping for ECAIs having already
provided a mapping. The monitoring
strategy agreed in July 2017
established that the 25 existing
mappings would be reviewed in a
sequential manner. As a
consequence, Implementing
Regulation (EU) 2016/1800 in order
to provide mapping for 11 ECAIs
have been identified as needing
amendments to their mapping
reports.
Relevant general objective(s): 2. A Deeper and Fairer Internal Market with a
Strengthened Industrial Base
Specific objective: 2.3 Financial and non- Related to spending
financial reporting by companies, as well as programme(s) …
audit, is of a high quality
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
Adoption by the co-legislators May 2019
Proposal for a Directive on
Corporate Tax Transparency
2016/0107 (COD)
This initiative contributes to the
achievement of this specific
objective by enhancing transparency
on taxes paid by companies on a
country-by-country basis. More
intense scrutiny by investors and the
public at large would contribute to
informing the public, thereby
contributing to maintain public trust
in the tax systems and to informed
public debates, as well as promote
the reduction of tax avoidance by
25companies.
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Commission Report on the Adoption by the Commission June 2019
activities of the IFRS Foundation,
EFRAG and the PIOB in 2018
PLAN/2018/3414
Commission Report on the activities
of the IFRS Foundation, EFRAG and
the PIOB in 2018
Commission Regulation: Adoption by the Commission Q3 2019
Endorsement of various
international financial standards
and interpretations (IFRIC 14, IFRS
3, IAS 1-8, 16)
PLAN/2018/3355
The amendments to international
financial reporting standards and
interpretations will clarify several
terms and concepts used.
Relevant general objective(s): 2. A Deeper and Fairer Internal Market with a
Strengthened Industrial Base
Specific objective: 2.4 Consumers have access to Related to spending
safe and reliable insurance, pension and UCITS programme(s) …
products.
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
Output Indicator Target
Adoption by the co-legislators May 2019
Proposal for a Regulation on cross-
border distribution of collective
26investment funds.
2018/0045 (COD)
Proposal for a Directive on cross-
border distribution of collective
investment funds.
2018/0041 (COD)
The objective of this initiative is to
increase the cross-border
distribution of UCITS and AIFMD
funds across the EU by reducing
regulatory barriers to their cross-
border distribution. This will be
achieved by (further) harmonising
national requirements relating to
marketing, notification,
administrative arrangements and
regulatory fees, providing greater
transparency over remaining
national requirements, and
streamlining the rules governing the
operation of the UCITS and AIFMD
passports. This initiative forms part
of the Capital Market Union (CMU)
Action Plan and in this context aims
to foster the development of larger
and more efficient investment funds
(economies of scale), allocate capital
more efficiently across the EU and
compete within national markets to
deliver better value and greater
innovation.
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
27ELTIF – Regulatory Technical Adoption by the Commission Q1 2019
Standard on disclosure
requirements
PLAN/2017/2091
The objective of this initiative is
to provide further guidance on
cost disclosures for ELTIF,
building on the PRIIPs Regulation
Relevant general objective(s): 2. A Deeper and Fairer Internal Market with a
Strengthened Industrial Base
Specific objective: 2.5 The financial regulatory Related to spending
framework is evaluated, appropriately programme(s) …
implemented and enforced across the EU
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
Output Indicator Target
Proposal for a Regulation on the Adoption by the co-legislators May 2019
prudential requirements of
investment firms
2017/0359 (COD)
Proposal for a Directive on the
prudential requirements of
investment firms
2017/0358 (COD)
The Commission is mandated to
review the CRR in order to
determine a more appropriate
prudential treatment for Investment
firms. The objective of the proposal
adopted in December 2017 is to
identify the more systemic 'bank-
like' investment firms in order to
distinguish these firms from less
systemic investment firms and the
requirements they are subjected to,
respectively.
Amended Proposal for a Regulation Adoption by the co-legislators May 2019
reviewing the European
Supervisory Authorities, to include
the tasks related to the prevention
28and combating of money-
laundering and terrorist financing
2017/0230 (COD)
Proposal for a Directive amending
Directive 2014/65/EU- MIFIR and
Directive 2009/138/EC -Solvency II
2017/0231 (COD)
Proposal for a Regulation on
European Union macro-prudential
oversight of the financial system
and establishing a European
Systemic Risk Board European
Systemic Risk Board
201/0232 (COD)
This is a package of measures
adopted by the Commission in
September 2017 and September
2018 proposing changes to the way
the ESAs and ESRB function. Its key
measures are: stronger coordination
of supervision in the EU, extension
of ESMAs supervisory powers on
capital markets, changes to the
governance and funding of the ESAs
and enhancing the role of EBA in
combating money laundering and
terrorist financing across the
financial sector.
Amendment to the Directive on Adoption by the co-legislators 1st half of 2019
the insurance against civil
liability in respect of the use of
motor vehicles, and the
enforcement of the obligation to
ensure against such liability
2018/0168 (COD)
Following an evaluation of the
Motor insurance Directive, the
Commission proposed in May
2017 targeted amendments
covering: a mechanism to
29guarantee compensation of
victims of accidents when the
insurer is insolvent, non-
discriminatory treatment of
claims history statements,
enhanced powers of Member
States to combat uninsured
driving, and harmonised
minimum amounts of insurance
cover. The proposal also clarifies
the scope of the Directive in the
light of recent CJEU judgements.
All new initiatives / significant evaluations from the Commission Work
Programme
Output Indicator Target
Adoption of the Staff Working Q2 2019
Fitness Check of supervisory
Document
reporting requirements
PLAN/2017/1740
This is a follow-up action to the Call
for Evidence. The assessment of
supervisory reporting requirements
in EU financial legislation will check
if these requirements are meeting
their objectives, if the different
supervisory reporting frameworks
are consistent with one another,
and if the cost and burden of
supervisory reporting is reasonable
and proportionate. It will identify
any potential areas where the
reporting cost and burden for
supervisory purposes could be
reduced by streamlining
requirements, while continuing to
ensure financial stability, market
integrity, and consumer protection.
Fitness check of corporate Adoption of the Staff Working Q2 2019
reporting Document
PLAN/2017/1854
The fitness check of corporate
reporting is meant to assess
whether the current corpus of
accounting and reporting legislation
is still fit for purpose (effective,
relevant and efficient in achieving
30the intended objectives), fit for new
challenges (such as sustainability
and digitalisation), coherent and
adds value at EU level .
Report in response to review Adoption by the Commission Q2 2019
clauses in the Accounting and
Transparency Directives
PLAN/2017/1364
In this communication, the
Commission will address
outstanding requests for post
implementation reviews contained
in the Accounting Directive
(2013/24/EU) and the Transparency
Directive (2013/50/EU).
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Report on the functioning of the Adoption by the Commission Q1 2019
benchmarking of internal models
PLAN/2017/2047
The report will evaluate the
functioning of the benchmarking
process under Article 78 of the CRD.
Report on the application of the Preparatory work on the report 2nd half of 2019
SSM Regulation
The SSM Regulation mandates the
Commission to prepare a report on
the application of the Regulation
every three years. Preparatory work
on the next report will start in the
second half of the year.
31Relevant general objective(s): 2. A Deeper and Fairer Internal Market with a
Strengthened Industrial Base
Specific objective: 2.6 Financial institutions can Related to spending
absorb losses and liquidity shocks, financial programme(s) …
market infrastructures are stable and function
effectively, and structural and cyclical macro-
prudential risks are proactively addressed
Main outputs in 2019:
Delivery on legislative proposals pending with the legislator
Output Indicator Target
May 2019
Proposal for a Regulation amending Adoption by the co-legislators
the EMIR regulation (REFIT)
2017/0090 (COD)
The Commission is mandated to
review regulation 648/2012, to
produce appropriate legislative
proposals. EMIR aims to improve the
stability, transparency and efficiency
of derivatives markets. The
legislative proposal is a Commission
Work Programme 2017 REFIT item
and aims to improve the
proportionality and effectiveness of
EMIR's rules.
Proposal for a Regulation on the
Adoption by the co-legislators Q1 2019
supervision of central counter
parties (CCPs)
2017/0136 (COD)
These revisions of the EMIR and
ESMA regulations build on the
Commission Communication of 4
May 2017 on the challenges for
critical financial market
infrastructures and further
developing CMU. The proposal helps
to foster a more pan-European
approach to supervision of CCPs
based in the EU; and help to address
important issues arising from third-
country CCPs which are of systemic
importance for the EU and its
Member States.
32Adoption by the co-legislators May 2019
Proposal for a regulation on the
recovery and resolution of central
counterparties (CCPs)
2016/0365 (COD)
This follows the adoption of a
comprehensive EU recovery and
resolution framework for banks and
investment firms. It sets out
provisions comparable to those in
the framework applicable to banks
and investment firms to facilitate
orderly recovery and resolution,
adapting them to the specific
features of CCPs’ business models
and the risks they incur, including by
determining how losses would be
shared in scenarios where CCPs’
existing pre-funded resources
required under EMIR are exhausted,
in line with international standards.
All new initiatives / significant evaluations from the Commission Work
Programme
Important items from work programmes/financing decisions/operational
programmes
For a complete listing of expenditure-related outputs please refer to the Programme Statements published together with
the Draft Budget for 2019.
Other important outputs
Output Indicator Target
Finalisation of Basel III framework Public consultation 2nd half of 2019
In view of the agreement in Basel in Work on the impact assessment Q4 2019
December 2017, preparatory work
to understand the impact of the
changes to the Basel framework will
be done. This will include, among
other things, an analysis of the EBA's
reply to the call for advice and of the
replies to a public consultation.
Report on the systemic risk and Adoption by the Commission Q4 2019
cost compliance of interoperability
arrangements – EMIR Art. 85(4)
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