Please find enclosed the current issue of our newsletter. As always, it provides information on a wide range of current regulatory topics in Europe, including the following:

• The International Organization of Securities Commissions (IOSCO) has published a report setting out how decentralized finance (DeFi) is quickly evolving to mirror conventional financial markets. The IOSCO report offers a comprehensive review of the fast-evolving DeFi market, its new products, services and principal participants.
• The European Supervisory Authorities issued a warning that many crypto-assets are highly risky and speculative. The warning comes in the context of growing consumer activity and higher interest in crypto-assets and the aggressive promotion of those assets and related products to the public, including through social media.
• The European Supervisory Authorities have published their joint supervisory statement on the application of the Sustainable Finance Disclosure Regulation (SFDR). It includes a new timeline, expectations for quantifying the product disclosures under Articles 5 and 6 of the Taxonomy Regulation and for the use of estimates. 
• In Luxembourg, the Commission de Surveillance du Secteur Financier (CSSF) has published new amendments to the 2004 law on securitization introducing multiple improvements such as, for example, broadening the securitization vehicle’s sources of funding, allowing active management of debt portfolios in private transactions and extending the types of eligible legal form.
• In the Netherlands, the Dutch National Bank (DNB) launched a consultation process on good practices for ESG (environmental, social, governance) risk management in order to adequately address the materially increased risks connected therewith.
• In Germany, the Federal Financial Supervisory Authority (BaFin) consults on a draft guidance note on external bail-in implementation. The draft guidance note is an extended version of the previous guidance note published on April 13, 2021.

We hope that you will enjoy and benefit from the enhanced insights of the Financial Regulatory Hub Europe. We would very much appreciate your feedback on the new format or thoughts on how we can better meet your needs—we look forward to hearing from you.

Enjoy the read!