Executive Summary:
This EEA Joint Committee Decision No. 35/2019 amends Annex IX of the EEA Agreement to incorporate two Commission Implementing Decisions regarding financial services. It recognizes the equivalence of regulatory frameworks for derivatives transactions in the United States (supervised by the Commodity Futures Trading Commission) and central counterparties in the United Kingdom with EU regulations. The decision entered into force on March 29, 2019, contingent upon completion of EEA Agreement Article 103(1) notifications.
Key Points / Main Content:
* **Amendment to Annex IX:**
* Commission Implementing Decision (EU) 2017/1857 regarding the US legal, supervisory, and enforcement arrangements for derivatives transactions is incorporated.
* Commission Implementing Decision (EU) 2018/2031 determining the equivalence of the UK's regulatory framework for central counterparties for a limited time is incorporated.
* **Authentic Texts:** The Icelandic and Norwegian language versions of Implementing Decisions EU 2017/1857 and EU 2018/2031 will be published in the EEA Supplement to the Official Journal of the European Union and are authentic.
* **Entry into Force:** The Decision came into force on March 29, 2019, provided all notifications under Article 103(1) of the EEA Agreement have been made.
* **Publication:** The Decision will be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European Union.
Impact Analysis:
* **EEA Member States:**
* *Impact:* Must recognize the equivalence of the US and UK regulatory frameworks as determined by the incorporated EU decisions, impacting the oversight and regulation of financial services within their jurisdiction.
* *Action Required:* Incorporate the changes into their national legal frameworks and comply with the provisions of the amended Annex IX.
* **Financial Institutions operating within the EEA:**
* *Impact:* Need to be aware of the recognized equivalence and how it affects their operations, particularly concerning derivatives transactions with the US and central counterparties in the UK.
* *Action Required:* Adjust compliance procedures to reflect the recognized equivalence and ensure adherence to the updated regulatory landscape.
* **EEA Joint Committee:**
* *Impact:* Responsible for ensuring the proper implementation and enforcement of the Decision within the EEA.
* *Action Required:* Oversee the incorporation of the changes into national laws and monitor compliance.
Key Entities Referenced
EEA Agreement: Agreement on the European Economic Area
EEA Joint Committee: The joint committee responsible for the EEA Agreement
Commission Implementing Decision EU 2017/1857: Commission Implementing Decision on the recognition of the legal, supervisory and enforcement arrangements of the United States of America for derivatives transactions supervised by the Commodity Futures Trading Commission
Commission Implementing Decision EU 2018/2031: Commission Implementing Decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties in the United Kingdom of Great Britain and Northern Ireland is equivalent
United States of America: Country whose derivatives transactions are supervised by the Commodity Futures Trading Commission
Commodity Futures Trading Commission: A United States agency that supervises derivatives transactions
United Kingdom of Great Britain and Northern Ireland: Country whose regulatory framework applicable to central counterparties is determined as equivalent
Regulation EU No 648/2012: Regulation of the European Parliament and of the Council on OTC derivatives, central counterparties and trade repositories
L 192/44 EN Official Journal of the European Union 18.7.2019
DECISION OF THE EEA JOINT COMMITTEE No 35/2019
of 29 March 2019
amending Annex IX (Financial Services) to the EEA Agreement [2019/1221]
THE EEA JOINT COMMITTEE,
Having regard to the Agreement on the European Economic Area (‘the EEA Agreement’), and in particular Article 98
thereof,
Whereas:
(1) Commission Implementing Decision (EU) 2017/1857 of 13 October 2017 on the recognition of the legal,
supervisory and enforcement arrangements of the United States of America for derivatives transactions
supervised by the Commodity Futures Trading Commission as equivalent to certain requirements of Article 11 of
Regulation (EU) No 648/2012 of the European Parliament and Council on OTC derivatives, central counterparties
and trade repositories (1) is to be incorporated into the EEA Agreement.
(2) Commission Implementing Decision (EU) 2018/2031 of 19 December 2018 determining, for a limited period of
time, that the regulatory framework applicable to central counterparties in the United Kingdom of Great Britain
and Northern Ireland is equivalent, in accordance with Regulation (EU) No 648/2012 of the European Parliament
and of the Council (2) is to be incorporated into the EEA Agreement.
(3) Annex IX to the EEA Agreement should therefore be amended accordingly,
HAS ADOPTED THIS DECISION:
Article 1
The following points are inserted after point 31bcau (Commission Implementing Decision (EU) 2016/2278) of Annex
IX to the EEA Agreement:
‘31bcav. 32017 D 1857: Commission Implementing Decision (EU) 2017/1857 of 13 October 2017 on the
recognition of the legal, supervisory and enforcement arrangements of the United States of America for
derivatives transactions supervised by the Commodity Futures Trading Commission as equivalent to
certain requirements of Article 11 of Regulation (EU) No 648/2012 of the European Parliament and
Council on OTC derivatives, central counterparties and trade repositories (OJ L 265, 14.10.2017, p. 23).
31bcaw. 32018 D 2031: Commission Implementing Decision (EU) 2018/2031 of 19 December 2018 determining,
for a limited period of time, that the regulatory framework applicable to central counterparties in the
United Kingdom of Great Britain and Northern Ireland is equivalent, in accordance with Regulation (EU)
No 648/2012 of the European Parliament and of the Council (OJ L 325, 20.12.2018, p. 50).’
Article 2
The texts of Implementing Decisions (EU) 2017/1857 and (EU) 2018/2031 in the Icelandic and Norwegian languages,
to be published in the EEA Supplement to the Official Journal of the European Union, shall be authentic.
Article 3
This Decision shall enter into force on 29 March 2019, provided that all the notifications under Article 103(1) of the
EEA Agreement have been made (*).
(1) OJ L 265, 14.10.2017, p. 23.
(2) OJ L 325, 20.12.2018, p. 50.
(*) No constitutional requirements indicated.18.7.2019 EN Official Journal of the European Union L 192/45
Article 4
This Decision shall be published in the EEA Section of, and in the EEA Supplement to, the Official Journal of the European
Union.
Done at Brussels, 29 March 2019.
For the EEA Joint Committee
The President
Claude MAERTEN