Basel reforms: The deadline for transposition of the package of banking reforms to adapt EU law to Basel III (reforms of CRR/CRD/BRRD) is 28 December 2020. We expect plans to implement the directives to the Spanish legal system will be discussed and put into effect this year.
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Usury - revolving loans: In 2020, Spain’s Supreme Court is expected to outline its position on the usurious nature of consumer loans, determining whether the average rate, for considering whether the interest on a revolving loan is usurious, is the average of consumer loans in general or whether the information provided by the Bank of Spain for these kinds of revolving products should be taken as the basis.
Securitisation: The European regulation laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation has applied directly in Spain since 1 January 2019. This year may see approval of the amendment to Law 5/2015 of 27 April 2015 on lending to businesses, to adapt the current Spanish regulations to the EU regulation.
Money laundering: Further changes to Spanish anti-money-laundering regulations are expected in the coming months, to adapt to the EU’s Fifth Money Laundering Directive (AMLD V), approved in June 2018.
Market abuse - ESMA consultation: In October 2019, the ESMA launched a public consultation to review certain aspects of the EU market abuse directive. We expect the specific scope of proposed changes to become known during 2020.
Insurance: Spain’s private insurance and reinsurance bill was halted in 2019 when parliament was dissolved. The bill regulates the activity of insurance brokers and agents more comprehensively and gives more protection to users. It is to be hoped that, once the new government is formed, processing of the bill will restart.
Mortgages – unfair terms: Rulings from the CJEU are expected in the coming months on: (i) the potentially unfair nature of IRPH (Mortgage Loan Reference Index) provisions and consequences of their invalidity; and (ii) the incompatibility with Directive 93/13/EU of settlement agreements between banks and consumers to mitigate the effects of interest rate floor clauses given that these may be held to be void.