AIMA

The Alternative Investment Management Association

Alternative Investment Management Association Representing the global hedge fund industry

EU Shadow Banking

On 29 January 2014, the European Commission issued a legislative proposal for a European Regulation on the transparency of securities financing transactions (SFTs). This proposal sits alongside the banking structural reforms proposal also issued on 29 January 2014 and is intended, among other things, to prevent circumvention of the latter by banking entities shifting their activities over to the shadow banking sector.

Relevant requirements include:

  • all SFTs to be reported to a central trade repository
  • detailed disclosure and reporting by investment funds of SFT activities (including UCITS and AIFs)
  • written consent and ex ante risk disclosure for any transaction which involves the rehypothecation of assets

 This proposal follows the recommendations made within the Financial Stability Board (FSB) report of August 2013 on a policy framework for addressing shadow banking risks in securities lending and repos, as well as a European Commission Communication on shadow banking in September 2013.

The proposal will now pass to the European Parliament (EP) and Council of the European Union for disucssion. Although, due to the EP elections, it is likely that progress will not be made on this file until late 2014/early 2015.

 

An AIMA summary is available.

 

Key legislative documents

EC Proposal on reporting and transparency of securities financing transactions (January 2014)

Annexes to EC Proposal on reporting and transparency of securities financing transactions (January 2014)

 

AIMA documents

AIMA Summary of EC Proposal on reporting and transparency of SFTs and rehypothecation (April 2014)

Response to European Commission Green Paper on Shadow Banking (June 2012)

 

Consultation documents

European Commission Green Paper - Shadow Banking (March 2012)

 

Other documents

EC Communication on Shadow Banking (September 2013)

ECON Report on Shadow Banking (2012/2115(INI)) (25 October 2012)

 

 

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  1. AIMA's Policy Principles
  2. Asset Management Regulation
    1. EU Asset Management Regulation
      1. AIFMD
      2. European Capital Markets Regulation
      3. MiFID / MiFIR
      4. UCITS
        1. ETFs and Structured UCITS
      5. Venture Capital
    2. US Hedge Fund Adviser Regulations
      1. Registration and Reporting
      2. Incentive-Based Compensation
      3. JOBS Act
    3. Asia Pacific Asset Management regulation
    4. Other Jurisdictions’ Asset Management Regulation
    5. Regulation of NBFCs / SIFIS
    6. Supervision
      1. UK regulatory reform
      2. European Supervisory Authorities
      3. US Self-Regulatory Organisations
    7. Remuneration
      1. UK
      2. US
      3. CRD IV and CRR
      4. AIFMD
      5. MiFID
    8. Shadow Banking
    9. Volcker Rule
    10. Other
  3. Markets Regulation
    1. Bank/Capital Regulation
      1. Capital Requirements Directive
      2. EU Bank Structural Reforms
    2. Derivatives/Clearing
      1. EMIR
        1. EMIR Level 1
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        4. ESMA technical advice on equivalence
      2. MiFID / MiFIR
      3. MAD / MAR
      4. Dodd-Frank Act Title VII
      5. Hong Kong
      6. IOSCO
      7. Singapore
    3. High Frequency Trading
      1. ESMA Guidelines
      2. MiFID / MiFIR
      3. MAD / MAR
      4. Flash Crash
      5. IOSCO
      6. Germany
      7. CFTC Automated Trading
    4. Insurance Regulation
      1. Solvency II
    5. Market Abuse
      1. MAD / MAR
      2. Indices as Benchmarks
    6. Position Limits
      1. MiFID / MiFIR
      2. CFTC Position Limits
    7. Resolution of Financial Institutions
      1. Europe
        1. EU Bank Recovery and Resolution Directive
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      5. USA
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    11. Trading
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  4. Tax Affairs
    1. EU Savings Directive
    2. FAIFs and FINROFs
    3. FATCA
    4. FIN 48 and IAS 12
    5. Financial Transaction Tax
    6. Investment Manager Exemption
    7. UK Offshore Funds Regime
    8. Other
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    2. Jurisdictional Guides
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      1. FATCA
      2. Other Hot Asset Management Topics
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      4. UK Partnership Tax Review
      5. Volcker Rule
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