European Supervisory Authority Guidelines, Recommendations & Opinions

 

European Banking Authority

The European Banking Authority (EBA) publishes a list of its consumer protection and financial innovation related Technical Standards, Guidelines, Recommendations, Opinions, Reports, and other publications here.

 

European Insurance and Occupational Pensions Authority

The European Insurance and Occupational Pensions Authority (EIOPA) publishes its consumer protection and financial innovation related Guidelines and other publications here.

 

European Securities and Markets Authority

The European Securities and Markets Authority (ESMA) publishes its Guidelines and Technical Standards here. Read the Central Bank's Markets Update.

 

European Banking Authority Publications

EBA Guidelines on Remuneration Policies for Sales Staff

13 February 2017

On December 13th 2016, the European Banking Authority (EBA) published Guidelines on remuneration policies and practices related to the provision and sale of retail banking products and services. In accordance with Article 16(3) of Regulation (EU) No. 1093/2010, competent authorities and financial institutions must make every effort to comply with the guidelines. The guidelines apply from 13 January 2018.

The guidelines apply to remuneration paid to staff employed by credit institutions, mortgage credit intermediaries, retail credit firms, payment institutions, electronic money institutions and credit unions when providing deposits, payment accounts, payment services, electronic money, residential mortgages, and other forms of credit to consumers.

The guidelines include detailed requirements on (1) the design and monitoring of remuneration policies and practices, which should take into account the rights and interests of consumers; (2) documentation, notification and accessibility of the remuneration policies and practices; (3) approval of and responsibility for the remuneration policies and practices; and finally (4) monitoring of compliance with the guidelines.

In addition to existing requirements on remuneration, firms are expected to comply with these guidelines by their effective date, 13 January 2018. These guidelines will be incorporated into the Central Bank’s on-going supervisory practices and processes.

EBA Guidelines on Arrears and Foreclosure

29 March 2016

On 1 June 2015, the EBA published Guidelines on Arrears and Foreclosure. The guidelines provide additional detail to the requirements in Article 28 of the Mortgage Credit Directive (Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property). In accordance with Article 16(3) of the EBA Regulation (Regulation (EU) no 1093/2010), competent authorities and financial institutions must make every effort to comply with these guidelines. The guidelines are effective from 21 March 2016.

The guidelines apply to creditors in Ireland that provide credit that falls within the scope of the Mortgage Credit Directive, i.e. credit institutions, retail credit firms and credit unions.

The Central Bank of Ireland intends to comply with these guidelines, and will incorporate them into its on-going supervisory practices and processes for the firms that fall within the scope of the Mortgage Credit Directive in Ireland. Firms are expected to comply with these guidelines from 21 March 2016.

EBA Guidelines on Creditworthiness Assessment

29 March 2016

On 1 June 2015, the EBA published Guidelines on Creditworthiness Assessment. The guidelines provide additional detail to the requirements in Articles 18 and 20(1) of the Mortgage Credit Directive (Directive 2014/17/EU on credit agreements for consumers relating to residential immovable property). In accordance with Article 16(3) of the EBA Regulation (Regulation (EU) no 1093/2010), competent authorities and financial institutions must make every effort to comply with these guidelines. The guidelines are effective from 21 March 2016.

The guidelines apply to creditors in Ireland that provide credit that falls within the scope of the Mortgage Credit Directive, i.e. credit institutions, retail credit firms and credit unions.

The Central Bank of Ireland intends to comply with these guidelines, and will incorporate them into its on-going supervisory practices and processes for the firms that fall within the scope of the Mortgage Credit Directive in Ireland. Firms are expected to comply with these guidelines from 21 March 2016.

Decision of the EBA specifying the benchmark rate under Annex II to Directive 2014/17/EU (Mortgage Credit Directive)

22 March 2016

On 21 March 2016, the EBA published its decision specifying the benchmark rate under the Mortgage Credit Directive.

In certain circumstances, as set out in Schedule 2 of the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 (S.I. No. 142 of 2016), creditors must use this benchmark rate to calculate the illustrative example of the Annual Percentage Rate of Charge and an illustration of a maximum instalment amount. These illustrations must be provided to the consumer in the European Standardised Information Sheet.

EBA Guidelines on Product Oversight and Governance

9 December 2015

On 15 July 2015, the EBA published guidelines on Product Oversight and Governance Arrangements for Retail Banking Products (Guidelines) which set out requirements for manufacturers and distributors when designing and bringing to the market retail banking products such as mortgages, personal loans, deposits, payment accounts, payment services and electronic money. In accordance with Article 16(3) of Regulation (EU) No 1093/2010, competent authorities and financial institutions must make every effort to comply with the guidelines.

The guidelines are divided into two parts:

  • The first part sets out requirements for manufacturers of retail banking products on their internal control functions; the identification of the target market; product testing; disclosure; product monitoring, remedial actions, and distribution channels.
  • The second part of the guidelines sets out requirements for the distributors of retail banking products on their governance arrangements, the identification and knowledge of the target market, and information requirements.

The Central Bank of Ireland will apply the guidelines to consumers as defined in the guidelines and will not extend that definition to include micro-enterprises and small and medium- sized enterprises.

The guidelines apply to all products brought to the market after the implementation date of the guidelines as well as to existing products on the market that are significantly changed after the implementation date of the guidelines. The Central Bank of Ireland will not, at this time, extend the application of the guidelines to products that are brought to the market before the implementation date of the guidelines. However, this will not preclude the Central Bank of Ireland from raising a potential product oversight and governance issue with a regulated entity regarding an existing product where there are concerns relating to actual or potential consumer detriment. The Central Bank of Ireland will keep the matter of application to some or all existing products under review.

The Central Bank of Ireland intends to comply with the guidelines and will incorporate them into its ongoing supervisory practices and processes. The Central Bank of Ireland does not, at this point, propose amendments to the legal framework.

The Guidelines will apply from 3 January 2017.

EBA Guidelines on the Security of Internet Payments

11 June 2015

On 19 December 2014, the EBA published Guidelines on the Security of Internet Payments (Guidelines) which set the minimum security requirements for Payment Service Providers (PSPs) in the European Union. These Guidelines seek to strengthen requirements for the security of internet payments across the EU and were developed in response to concerns about the increase in fraudulent activity related to internet payments. In accordance with Article 16(3) of Regulation (EU) No 1093/2010, competent authorities and financial institutions must make every effort to comply with the guidelines.

Among other things, PSPs will be required to carry out strong customer authentication in order to verify the customer identity before proceeding with an on-line payment.  PSPs will also be required to provide assistance and guidance to their customers in relation to the secure use of internet payments.  In particular, they will have to initiate customer awareness programmes so as to ensure their users understand potential risks and best practices in internet payments.

The Central Bank of Ireland intends to comply with the guidelines, and will incorporate them into its on-going supervisory practices and processes for PSPs.  All firms within the scope of these guidelines are expected to comply from 1 August 2015.

European Insurance and Occupational Pensions Authority

EIOPA Preparatory Guidelines on Product Oversight and Governance

29 July 2016

On 13 April 2016, the EIOPA published preparatory guidelines on Product Oversight and Governance Arrangements by Insurance Undertakings and Insurance Distributors (Guidelines) which set out requirements for manufacturers and distributors when designing and bringing to the market insurance products. In accordance with Article 16(3) of Regulation (EU) No 1094/2010, competent authorities and financial institutions must make every effort to comply with the guidelines.

The guidelines are divided into two parts:

  • The first part sets out requirements for manufacturers of insurance products on the establishment and review of product oversight and governance arrangements; the identification of the target market; skills, knowledge and expertise; product testing; product monitoring, remedial actions, and distribution channels.
  • The second part of the guidelines sets out requirements for the distributors of insurance products on the establishment and review of product distribution arrangements; obtaining information about the target market; distribution strategy; and the provision of sale information to the manufacturer.

The guidelines apply to all products brought to the market after the implementation date of the guidelines as well as to existing products on the market that are significantly changed after the implementation date of the guidelines. The Central Bank of Ireland will not, at this time, extend the application of these guidelines to products that are brought to the market before the implementation date of the guidelines. However, this will not preclude the Central Bank of Ireland from raising a potential product oversight and governance issue with a regulated entity regarding an existing product where there are concerns relating to actual or potential consumer detriment. The Central Bank of Ireland will keep the matter of application to some or all existing products under review.

The Central Bank of Ireland intends to comply with the guidelines and will incorporate them into its ongoing supervisory practices and processes. The Central Bank of Ireland does not, at this point, propose amendments to the legal framework.

The Guidelines will apply from 3 January 2017.