Proposed deferral of intra-group compensation obligation
On 27 September 2018, ESMA issued its final report on the compensation obligation under EMIR for intra-group transactions.
The report proposes an amendment to technical regulatory standards that allows for an extension of the deadline to apply the compensation obligation for intra-group transactions where an entity belonging to the group is located in a non-member country. The current regulations had already provided for a deferred implementation date where no equivalence decision has been passed with the non-member country concerned. However, considering the prolonged absence of such equivalence decisions and the imminent deadline for presenting the first reports, ESMA has had to propose an extension of these exemptions for a brief period of time. The proposed amendment to the technical standards has been presented to the European Commission for approval.