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(Full description) It is designed to keep you "knowledgeable and competent" in accordance with ESMA's Guidelines (details) to implement MiFID II. We update you on EU-level developments in regulation, market structure, economic figures and events that may influence investment products marketed by your firm. This is NOT investment research attempting to forecast security prices.

Content

We select articles from our database to produce a a "10-minute Read 'n Verify" e-mail of about 1500 (normal maximum 2000) words of content per week. Each article has a link that enables you to drill down into more detail - depending on your corporate subscription level. Moreover, you can browse our website - subject to your subscription - to broaden your understanding of a subject. or set up a personalised alert.

Verify

The Verify test enables you to check your comprehension of our choice of the top three issues this week.

1. FAQs on Basel III definition of capital published by the Basel Committee

2. European Commission: Creating a stronger and more integrated European financial supervision for the Capital Markets Union

3. Annual inflation up to 1.5% in the euro area

At the foot of this e-mail is a link to a multiple choice test and you can use a "100% success" on the three questions to verifiy 10 minutes of CPD to your employer and/or professional qualification body.

Jump directly to articles on:- Banking Union Capital Markets Union Clients Union Insurance Corporate Governance/Accounting Financial Services Policy Economic         About this email

Articles from 14 September 2017 - 21 September 2017

Banking Union     ECB: Regulation, supervision and market discipline – striking a balance In her statement, Sabine Lautenschläger, Member of the Executive Board of the ECB, looks over the issues which still need to be resolved in order to support stability in the banking sector.  View Article ECB: Gaming the rules or ruling the game? – How to deal with regulatory arbitrage Regulatory arbitrage is a matter of great concern for regulators and supervisors. Danièle Nouy, in her speech, takes a closer look at how it works and what we can do about it.  View Article FAQs on Basel III definition of capital published by the Basel Committee The Basel Committee on Banking Supervision published answers to a fourth set of FAQs on the Basel III definition of capital. These aim to promote consistent global implementation of Basel III, by providing clarifications and interpretative guidance on the Committee's standards.  View Article BIS: Challenges for regulators and supervisors after the post-crisis reforms In his speech, Mr Jaime Caruana, General Manager of the BIS, highlights the magnitude of the post-crisis regulatory reforms and their progress and expresses his belief that the Financial Stability Institute can support the standard setters.  View Article     Capital Markets Union     European Commission: Creating a stronger and more integrated European financial supervision for the Capital Markets Union The proposals also include steps to foster the development of FinTech and to make sure that sustainability considerations are systematically taken into account in supervisory practices at the European level.  View Article Bruegel: Capital Markets Union and the fintech opportunity Policymakers need to consider four questions urgently: Develop a European or national fintech market? What regulatory framework to pursue? Should supervision of fintech be exercised at the European level? What is the overall vision for the EU’s financial system?  View Article ISDA publishes recommendations for CCP recovery and resolution framework The paper builds on the work conducted by CPMI, the International Organization of Securities Commissions and the Financial Stability Board (FSB), and calls on regulators to finalize and implement CCP recovery and resolution strategies.   View Article ESMA lays out procedure for ETDs access to CCPs under MiFID II ESMA issued a procedure under Markets in Financial Instruments Regulation laying out the steps for trading venues to temporarily opt-out from access provisions for exchange-traded derivatives.  View Article IPE: Four managers U-turn on MiFID II research costs Four of Europe’s biggest institutional asset managers have reversed decisions about how to pay for external investment research costs under MiFID II. Schroders, Invesco, Union Investment and Janus Henderson have announced they will absorb costs onto their balance sheets.  View Article Financial Times: BlackRock to foot bill for external research under MiFID II BlackRock will pay for external research out of its own pocket, a decision by the world’s largest fund manager that will pile pressure on rival fund houses to follow suit.  View Article FCA - MiFID II: authorisation and variation of permissions MiFID II widens the scope of MiFID by capturing some financial entities that did not previously require authorisation. Some firms who are already authorised may also need new authorisations or a Variation of Permission (VoP) to carry out activities from next year.  View Article ECB: Final migration wave of T2S successfully completed Baltics and Spain successfully connect to Eurosystem’s TARGET2-Securities (T2S) securities settlement platform. This now renders the single European securities settlement platform fully operational.  View Article ESMA publishes the responses to its Consultation on CSDR guidelines on internalised settlement reporting ESMA published the responses received to its Consultation on guidelines on internalised settlement reporting under Article 9 of CSDR.  View Article EBA launches consultation on significant risk transfer in securitisation The discussion paper aims at seeking stakeholders' views on how to further harmonise the regulation and supervision of the risk transfer through securitisation. The EBA's proposals are based on the newly agreed European securitisation legislation.   View Article     Clients Union     State of the Union 2017: A framework for the free flow of non-personal data in the EU The new measures will enable the storage and processing of non-personal data across the Union to boost the competitiveness of European businesses and to modernise public services in an effective EU single market for data services.   View Article     Insurance     EIOPA publishes a new set of Solvency II statistics on the European insurance sector The statistics contain aggregated country level information about the balance sheet, own funds, capital requirements, premiums, claims and expenses and refer to the latest information available at the extraction date.  View Article Insurance Europe: Response to Commission proposal for the European supervisory authorities Following the publication of the Commission’s proposal for the revision of the ESAs, Michaela Koller, director general of Insurance Europe, supported the decision that EIOPA will oversee both prudential and conduct of business issues for insurers.  View Article     Corporate Governance/Accounting     IASB's Hoogervorst: The times, they are a-changin’ In a speech delivered at Accountancy Europe’s event in Brussels, the Chairman of the IASB Hans Hoogervorst sets out his views on how financial reporting will continue to provide a vital anchor for investors in their evaluation of a company.   View Article     Financial Services Policy     AFME comments on European Supervisory Authorities Review Following the publication by the Commission of its proposal for a Directive on the review of the ESAs, AFME's Simon Lewis said that the ESAs need appropriate funding in order to allow them to be adequately equipped to deliver on their ambitious agenda.  View Article Bloomberg: ESMA set for power boost as Brexit, MiFID II loom The top European Union markets regulator is in line for an injection of sweeping new powers as the bloc braces for the impact of Brexit and new MiFID II rules on its capital markets.  View Article     Economic     Remarks by Vice-President Dombrovskis at the informal ECOFIN Economic and financial affairs ministers of the EU discussed deepening the EU, Fintech and centralising European IT systems to make customs more efficient. They also agreed to develop new digital taxation rules.  View Article State of the Union 2017 - Trade Package: Commission unveils initiatives for a balanced and progressive trade policy The proposals include the creation of a European screening framework to ensure that foreign direct investment does not compromise the EU's strategic interests when it comes to security and public order, as well as draft mandates to open trade negotiations with Australia and New Zealand.  View Article CEPS: The Commission’s views on strengthening the Euro Area: Barking up the wrong tree? Daniel Gros writes that Juncker’s proposals on the euro area are lacking in substance and coherence. Small, concrete steps aimed at strengthening financial stability would have been more useful.  View Article September 2017 BIS Quarterly Review: Strong outlook with low inflation spurs risk-taking Low inflation despite a stronger economic outlook helped push markets up in recent months and reduced the expected pace of tightening of monetary policy in major economies. Signs of increased risk-taking have become apparent in a number of areas, including narrow credit spreads, increased carry trade activity and looser bond covenants.  View Article Remarks by Jeroen Dijsselbloem following the Eurogroup meeting The Eurogroup President said he wasn't sure of talking about 'recovery' anymore since "confidence is ever increasing". EU leaders hold discussion on how to make the monetary union more resilient and on the state of play in Greece.  View Article Annual inflation up to 1.5% in the euro area Euro area annual inflation was 1.5% in August 2017, up from 1.3% in July 2017. In August 2016 the rate was 0.2%. European Union annual inflation was 1.7% in August 2017, up from 1.5% in July 2017. A year earlier the rate was 0.3%.  View Article

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