Publication of the regulatory technical standards draws near.
Initial margin, reporting, requirement to clear.
Act in good time, there'll be no cause for fear.
A number of deadlines for the introduction of EMIR have fallen by the wayside, but ESMA appears now to have set some harder end dates, targeting September 2013 at the earliest, and September 2014 at the latest for the publication of the technical regulatory standards. If this target proves realistic, then 2013 really is the 'Year of EMIR' and pension funds, insurance companies and all other market participants have nine months to put preparations in place.
Nine months. Not exactly bags of time. Not when the first challenge is that many still don't understand how derivative markets are changing and what the implications of the changes will be. And it's not as if this is the sole change impacting the UK pension space happening this year, with CPAC, Smoothing, Levies to name but a few, the constantly shifting goalposts make trustees' challenge to understand the impact of every change quite a difficult prospect. And it's pretty clear that 2013 is not going to be a gimme year.
So how do you get on top of this and figure out what the impact to your scheme could be?
Redington is running a teach-in on the subject (open to all trustees) on Monday 4th February. The session will be hosted jointly with Morgan Stanley and will give an overview of the why, how, what and when of EMIR, as well as the impact and potential plans of action for schemes affected. Please come along, make contact, let us know you are concerned about this area in 2013 and speak to us about how we can help you assess the risks and optimise the transition to the new central clearing environment. We plan to leave attendees of the teach-in with the following:
– A detailed understanding of the regulations, their context, their rationale and their implementation schedule.
– An understanding of how EMIR fits into the global regulatory response to the financial crisis and relates to Dodd-Frank and Basel III.
– A full picture of the impact on pension funds resulting from the proposed changes to derivative regulations.
– A list of actions that pension funds can take in order to prepare themselves for the regulations and optimise their transition into the new regulatory environment.