Implementation deadlines for derivative initial margins and “Basel III” were both recently postponed after coordinated campaigns by the finance industry. Is the pattern repeating itself, as heavyweights now push for a delay to the upcoming new Shareholder Rights Directive?

11 industry-association logotypes adorn the first page of eight in the letter sent to the European Commission just before Easter – requesting another year’s notice to implement the new Shareholder Rights Directive, SRD II. “At this stage, the Associations believe it will be difficult, or nearly impossible, to meet the implementation deadline of 3 September 2020,” they write.

Ongoing covid-19 restrictions are not only making it difficult to run implementations at full speed. They are also moving the target for the regulation – as many corporations cannot hold their general shareholder meetings under normal circumstances this spring, but need to postpone them until after the autumn date.  

The Basel Committee and IOSCO recently granted another year for stakeholders to implement the “UMR” – the new initial margin requirement rules for non-centrally cleared derivatives. This, in turn, happened only shortly after the Basel Committee’s top body decided to to delay the introduction of its Basel III regulation package.

The letter is signed by representatives of …

the European Banking Federation – EBF, 

the Association for Financial Markets in Europe – AFME, 

the International Securities Lending Association – ISLA, 

the Association of Global Custodians – AGC,

the European Central Securities Depositories Association – ECSDA, 

the Securities Market Practice Group – SMPG, 

the European Savings and Retail Banking Group – ESBG, 

Associazione Intermediari Mercati Finanziari – ASSOSIM, 

Association française des professionnels des titres – AFTI, 

the European Association of Co-operative Banks – EACB, and  

EuropeanIssuers – EI.