Insurance Europe has warned
that certain aspects of the European Commission’s proposed Regulation on the reporting and transparency of securities financing transactions (SFTs) are unnecessarily burdensome for insurers. The EC proposal provides a set of measures aiming to enhance regulators’ and investors’ understanding of SFTs.
Insurance Europe’s concerns relate primarily to the operational costs generated by some of these regulatory requirements, the timeline for reporting and the scope of the proposal.
In order to minimise the costs of compliance, Insurance Europe recommends that any additional reporting requirements should be harmonised with those in the European Market Infrastructure Regulation (EMIR), the Markets in Financial Instruments Directive (MiFID) and the guidelines by the European Securities and Markets Authority (ESMA).