targit GmbH: It’s time for a change!

targit GmbH will shortly be changing its company name into Be Shaping the Future GmbH.

What does this mean for you?

We will remain unchanged in our present form with our team, our products and our services being carried out as always in well-known quality.

targit GmbH has been part of the Be Group for many years. In the course of the upcoming change of name to Be Shaping the Future GmbH,we will continue to strive to expand, develop and strengthen our market value in Austria and Europe.

The implications of COVID-19: Endure, Transform, Progress!

The COVID-19 continues to march around the globe with slower – but not to be ignored – pace. In the past few months, just the blink of an eye, we all had to adapt to new rules of doing things: from simple daily tasks like (not) going to work or shopping for a new pair of shoes, to multi-company events as well as business or private travel.

There are three common parallels of the current global situation with similar ones from the past (in chorological order) – the 1918 flu pandemic, WW2, and the Financial Crisis from 2007-2009. Let me highlight some similarities and differences in short:

  • The 1918 flu pandemic. Similarity – in both cases there is a severe disease, the main difference – the modern health systems and personal awareness and knowledge
  • The WW2. Similarity – global lock-down, the difference – nations and countries are working together to overcome the situation.
  • The 2007-2009 crisis. Similarity – enormous losses, business disruptions and unemployment. The difference – now the banks are not the problem, but part of the solution.

We all will have to adapt to new routines, principles, and ways of working in our work, private and social life. It will not happen overnight, but there are lessons and good practices from the current situation, which could and should be leveraged on to ensure faster recovery and generate business models resistant to future shocks and disturbances.

 

Many of the companies in the affected countries and regions reacted fast and adequate to redesign their operations, protect their staff and customers and provide services and products in new ways. In most of the states we see estimable cooperation between business, administration and society. 

 

“Endure, Transform, Progress” is a simple motto, encompassing models, processes and solutions which will ensure business continuity and can minimize future disruption and risks. Those three words include various approaches and measures like:

 

  • Preserve business continuity and resources
  • Increase the customer care
  • Support the employees
  • Expand the plans beyond proximate future goals
  • Encourage and invest in digitalization
  • Adjust and improve the services offered
  • Trust the experts

 

The ones, who react prompt, adequate and endure the implications of COVID-19, will be in better position for the future.

 

By Marian P.

New edition (5th) of the EU Anti-Money Laundering and terrorist financing Directive (“5AMLD”)

What is 5AMLD?

It is an upgrade of the existing EU Anti-Money Laundering and terrorist financing Directive (“AMLD”) and has been applied on a national level since January 2020.

 

What is new?

First of all, the 5AMLD amends the concept of “digital space” and client identification on an EU-wide level and secondly (last, but definitely not least) – tackles the anonymity of the crypto-assets/currencies and other alternative payment methods and aligns the EU cryptocurrencies and trading rules with those applicable in the US.

Another new and at first sight – irrelevant change is related to trading in works of art (yes – art!) when those amount to EUR 10 000 or more, which thereby become subject to the AMLD.

The changes and amendment to the existing framework, can be summarized as follows:

  • Enhanced transparency on beneficial owners – establishing registers for companies, trust and similar structures’ owners
  • Politically Exposed People – broadening the definition of people who hold “prominent public functions”
  • Prepaid Cards and Remote Payments – tighter KYC prerequisites and lower thresholds for mandatory identification
  • Cryptocurrencies/assets – alignment of the EU legislation with the one existing in the US and thus setting obligations like the ones valid for fiat currencies and trading to the entities involved in transactions with cryptocurrencies
  • Works of art or real estate traders – parties involved in transactions valued at EUR 10 000 or more, become obliged to comply

 

Who is affected?

Traditional financial institutions, crypto services (exchanges, custodians, etc.) providers, art dealers and similar.

 

What’s next?

Yes, you are right – the 6th edition of the Directive is already around the corner!

It will come in December 2020 and compared to the 5AMLD, which focuses on the subjects and scope, the 6AMLD deals with the definition of crimes and the relevant penalties.

By Marian Predov.

SFTR Update

With regards to COVID-19 ESMA issued today a public statement to ensure coordinated supervisory actions on the application of Securities Finance Transactions Regulation (SFTR) ESMA expects the national competent authorities (“NCA”) not to prioritise their supervisory actions towards entities subject to Securities Finance Transactions (SFT) reporting obligations as of 13 April 2020 and until 13 July 2020. More details can be found here:

ESMA News

ESMA Public Statement pdf

 

By Marian Predov.

ESMA published its final guidelines on the SFTR reporting

On 06.01.2020 the ESMA published its final report, guidelines on reporting and the amended SFTR validation rules, along with a statement on the LEI requirements.

As the first phase of SFTR reports will come into force on 13th or 14th of April this year (subject on Easter holidays), ESMA is seeking to clarify as many of the industry’s questions as possible. The aim of the guidelines is to ensure smooth and optimal implementation of the reporting obligations, by providing precision and practical advices.

The LEI availability of non-EU issuers is one of the main concerns and ESMA published a statement to help clarify the reporting entities and – among the other provisions – allows up to 12-months grace period for obtaining the respective LEIs. ESMA underlies the fact that the relaxation only applies to third-country issuers and does not affect LEI requirements in any other instances, including the identification of third-country counterparties to an SFT.

The SFTR validation rules have also been amended in order to align with the updated ISO XML schemas published in December 2019 just before the Christmas holidays.

You can find more details on ESMA’s hompage and our experts will be happy to discuss any question regarding SFTR or other regulatory reporting topic you may have with you.

More about us on targit GmbH

 

 

By Marian Predov

ESMA published its final guidelines on the SFTR reporting

On 06.01.2020 the ESMA published its final report, guidelines on reporting and the amended SFTR validation rules, along with a statement on the LEI requirements.

As the first phase of SFTR reports will come into force on 13th or 14th of April this year (subject on Easter holidays), ESMA is seeking to clarify as many of the industry’s questions as possible. The aim of the guidelines is to ensure smooth and optimal implementation of the reporting obligations, by providing precision and practical advices.

The LEI availability of non-EU issuers is one of the main concerns and ESMA published a statement to help clarify the reporting entities and – among the other provisions – allows up to 12-months grace period for obtaining the respective LEIs. ESMA underlies the fact that the relaxation only applies to third-country issuers and does not affect LEI requirements in any other instances, including the identification of third-country counterparties to an SFT.

The SFTR validation rules have also been amended in order to align with the updated ISO XML schemas published in December 2019 just before the Christmas holidays.

You can find more details on ESMA’s hompage and our experts will be happy to discuss any question regarding SFTR or other regulatory reporting topic you may have with you.

More about us on targit GmbH

 

 

By Marian Predov

ESMA 2020. A year of changes.



The European Securities and Markets Authority (“ESMA”) is guiding and supervising the EU’s financial markets since 2011 and during the time has proved itself as reliable and constructive regulator.

Following the EU’s Parliament and Council decisions, ESMA will be assigned new and additional tasks in 2020 which will enhance its positions in the financial markets’ supervision, investor protection, transparency and appropriate practices in regard with technological evolution which is accelerating the innovations on daily basis.

ESMA already published its “2020 Annual Work Programme” explaining the focus and key priorities for the next year (more details here: https://www.esma.europa.eu/document/2020-work-programme) and here is a summary of the planned work, efforts and areas of importance:

  • Supervisory convergence – the aim is for common interpretation of rules, consistency and data quality peer review as prerequisite for data-driven supervision)
  • Risk assessment –the usage of data collected will be further utilized to ensure efficient supervision and risk prevention
  • Single Rulebook –in 2020 ESMA will advise the European Commission in regard with some key provisions of MiFID II/MiFIR and MAR, as well as to contribute the plans on the Capital Markets Union, Fintech, and Sustainable Finance
  • Direct Supervision – the supervision of Credit Rating Agencies, Trade Repositories under EMIR and SFTR, recognition of third-country Central Counterparties (CCPs) and Central Securities Depositories (CSDs) will continue with focus on the processes, internal governance, controls and information security

Most of those tasks are familiar, but they will be performed by ESMA along with the completely new ones, which include:

  • ESA’s Review – ESMA shall adapt to changes stemming from the European Supervisory Authorities (ESAs) legislation review
  • EMIR 2.2 – to ensure efficient supervisory and regulatory framework to EU and third-country CCPs in regard with EMIR 2.2
  • Cross-border funds distribution – to deliver relevant Technical and to ensure that corresponding IT tools are developed
  • Investment Firms Framework – new rules and requirements in regard with capital, liquidity and regulatory reporting for the investment firms in the EU
  • Sustainable Finance – to strengthen and improve the disclosure of information by manufacturers of sustainable financial products and financial advisors towards end-investors

Like every organisation, ESMA constantly evolves and the changes planned for 2020 will strengthen its role as one of the guardians of the financial markets in the EU.



targit GmbH (Member of Be) @ International Collateral Management Forum

On the 26th and 27th of September, specialists from targit GmbH (Member of Be) took part in the International Collateral Management Forum in Vienna. The participating employees of targit GmbH moderated the panel discussion on Regulatory Reporting.

The event was attended by numerous delegates and speakers from regulatory authorities, transaction registers, financial institutions, service and solution providers, experts and managers.

It was not only a conference, but a great place and an excellent opportunity for networking, knowledge and experience exchange on various topics such as collateral management, margining, regulatory reporting and clearing.

The panel participants of the “Regulatory Reporting” discussion, presented very interesting examples, views and opinions from practical experience, which was one of the main objectives of the panel – to broaden the understanding of the reporting challenges and how to deal with them.

Given the feedback from the audience and delegates, the Forum was able to communicate its core messages so that the next events will certainly continue to take place and we will be proud to be involved.

Stay tuned and follow us on…

Meet us at the Career Fair 2019!

”FH meets economy” is this year’s motto of the 7th career fair at the University of Applied Sciences FH – BFI Vienna in which targit will participate again this year.

The opportunity to get in contact with students and graduates has proven itself in recent years, because in personal discussions experiences and qualifications are shared and job advertisements are presented. The fair is an ideal platform for the search for new potential coworkers.

Applicants are more than welcome to visit us at the targit stand!’

More info of the Career Fair here https://bit.ly/2qqNxMw

More info about Career Opportunity with us here https://www.targit.at/en/careers/

targit at the University of Applied Sciences FH – BFI Vienna
Tuesday, 05.11.2019,  15.00-18.00 

Photos by: University of Applied Sciences BFI Vienna