2024 is set to be a pivotal year for the European
regulatory landscape, with Belgium commencing its
presidency of the Council of the European Union.
The financial landscape in the country is poised for
significant changes, with the legislative agenda taking
precedence in its program. To kickstart the year,
Avantage Reply is keen to highlight our perspective
on the key issues slated for attention.
Since the release of the BCBS 239 Principles in 2014, the European Central Bank (ECB) has been urging European banks to comply with these Principles. These Principles cover three main topics: Overarching governance and structure, risk data aggregation capabilities, and risk reporting practices (often referred to by the ECB as 'RDAR').
The year 2022 has brought a new wave of financial crime enforcement with Anti-Money Laundering (AML), Know-Your-Customer (KYC) and Countering the Financing of Terrorism (CFT) fines skyrocketing after a lull period during the COVID-19 pandemic. Fines have risen over 50% globally compared to 2021 and show no sign of slowing down in 2023.
The publication of Regulation (EU) 2022/2554 on the Digital Operational Resilience Act (DORA) for financial institutions in the Official Journal of the European Union on December 27, 2022, has significant implications for Luxembourg-based financial entities. Avantage Reply is actively assisting these entities to ensure they are prepared to meet this challenge.
On April 22nd 2022, the CSSF published the longawaited Circular on outsourcing arrangements which sets out the new regulatory requirements applicable to in-scope entities as of June 30th 2022. The new Circular translates the EBA guidelines on outsourcing arrangements into locally adapted regulations.
The discontinuation of LIBOR requires the financial industry to shift to alternatives, the socalled Alternative Reference Rates (“ARR”), with implications on products that refer to variable
interest rates. Major structural differences between LIBOR and the ARR necessitate a reconsideration of product design, operational processes and IT solutions.
In the context of growing importance of cloud-driven solutions, National Competent Authority in Luxembourg provides further details in respect to regulatory requirements around contractual clauses and obligation of notification prior to outsourcing of material IT activities.
The European Commission presented an AML package in July 2019, where it highlighted a number of deficiencies in implementation of the EU anti-money laundering framework, while the recent money laundering scandals led the need to develop a new comprehensive approach at the EU level.
Avantage Reply UK and ElysianNxt are pleased to announce that we have entered into a strategic partnership, bringing together Reply’s management and risk consulting expertise with ElysianNxt’s cutting edge risk technology.
The intention of the “Quick fix” amendments to MiFID 2 is to support economic recovery from the Covid-19 pandemic. The European Commission tries to achieve this via certain reliefs of administrative requirements on firms. Member states are required to transpose the changes into national law by 28 November 2021 and apply them by 28 February 2022.
The European Banking Authority (EBA) published on 16th of March 2021 a decision, which changes the Basel III monitoring exercise from its current voluntary nature to a mandatory exercise from December 2021.
After the European Taxonomy and the non-financial reporting directive (NFRD), the EBA is moving a step forward in its action plan on sustainable finance. Until the 16th of October, the market participants can answer a survey to develop draft implementing technical standards (ITS) on Pillar 3 disclosure of prudential information on ESG risks.
Since 2019, EBA has legal duty to lead, coordinate and monitor EU AML/CFT efforts of all EU financial institutions and competent authorities . The EBA making full use of its powers, continues to lead the development of EU AML/CFT policy and support its effective implementation to foster an effective, risk-based approach to AML/CFT.
The EU Taxonomy Regulation – the establishment of an EU classification system for sustainable activities - was published in the Official Journal of the European Union on the 22 June 2020 and entered into force on 12 July 2020. As a reminder, is a tool to help investors, companies, issuers and project promoters navigate the transition to a low-carbon, resilient and resource-efficient economy.
Due to Brexit, financial institutions have been forced to reorganize and relocate their operations, leading to an overall increase in costs. These are caused by increased liquidity costs, more complex legal entity structures and regulatory reporting portfolios, especially in the banking sector. However, a handful of European cities have benefited from those implications.
Today, a worldwide virus forced homeworking in our lives. But at Reply we strongly believed in homeworking’s multiple benefits long before this virus changed our lives and habits. We analyzed numerous combinations, turned them into models, identified how to implement it smoothly and developed a strong methodology supported by a network of highly skilled experts to roll it out fast and efficiently.
Mounting regulatory requirements and scrutiny have caused banks to worry about their regulatory reporting requirements. Avantage Reply has extensive knowledge and expertise on dealing with different regulatory reporting issues.
Following the 2008 global financial crisis, which had shown that the capacity of banks to manage risks during "stress" periods was insufficient, the Basel Committee took the initiative to publish the BCBS 239 standard.
The PRA has published on 31 October 2019, a “Dear CEO” letter regarding the reliability of regulatory returns. The letter is relevant to the responsible senior management, Executive Management and Board of your firm. The PRA has issued the letter following an independent review recommending the introduction of formal third-party reviews of key prudential information provided by firms.
The Reply Group has been active in Belgium and Luxembourg with Avantage Reply, a pan-European management consultancy established in 2004 delivering change initiatives in the areas of Risk, Compliance, Finance (Capital Management and Treasury, Regulatory Reporting) and Operations.
The British agriculture ministry recently advised UK tourists planning to travel with their pets after Brexit to mitigate no-deal Brexit risk by seeking veterinarian clearance four months in advance. These pet sounds are a microcosm of a broader issue: whereas once cross-border activities were painless, post-Brexit, the future will be less so.
As Avantage Reply celebrates its 10th anniversary in Luxembourg, its parent, the Reply Group, continues to expand and launches one of its flagship Digital Business Unit in Luxembourg, Open Reply. Open Reply combines management consulting skills and technology expertise to assist firms in developing business models to integrate processes, applications and devices, using new technology and communication paradigms.
Avantage Reply has been announced as Sponsor for the Master in Insurance & Risk Management at MIB Trieste School of Management, nationally accredited and internationally ranked among the top 10 in the World (Eduniversal Ranking 2016). Along with other sponsors, Avantage Reply will serve the School providing insight and advice as the program develops.
Avantage Reply announces its collaboration with Credo, an experienced player in credit risk since 2001, for 2017 and onwards. Through this partnership, Avantage Reply and Credo will collaborate in offering and assisting institutions with the implementation of an end-to-end solution for IFRS9 phase 2.