Follow Us

Follow us on Twitter  Follow us on LinkedIn
 
Home>
Print Page Save to My Library <Next Article  Previous Article>
07 July 2011

This week in "Brussels"
Jump directly to
Banking Securities Insurance
Asset Management Corporate Governance/Accounting Financial Services Policy
Economic Crisis European Council/Parliament International/G20
Financial Services Month in Brussels - Report Think Tanks Commentaries
Graham Bishop's Webinars About this email

Articles from 30 June 2011 - 07 July 2011

Banking

BCBS published final version of Pillar 3 disclosure requirements for remuneration
The objective of these additional Pillar 3 requirements on remuneration is to support an effective market discipline and to allow market participants to assess the quality of a bank's compensation practices.   View Article
Basel Committee published FAQs on Basel III
The FAQs are aimed at promoting consistent global implementation of Basel III. The Committee has agreed to review FAQs periodically, and publish answers along with any technical elaboration of the rules text and interpretative guidance that may be necessary.   View Article
BIS published report on the progress so far on bank resolution policies and frameworks
The report's conclusions include that some jurisdictions continue to lack these and other important legal powers set out in the Basel Committee's 2010 recommendations, or continue to rely on general corporate insolvency procedures.  View Article
Moody's says 26 banks may need stress test support
Moody's said the overall impact of the stress test on bank ratings will be limited. Of the 91 EU banks subject to the EBA's 2011 stress test, Moody's believes that 26 rated banks have a heightened risk of needing extraordinary external support.  View Article
Banks struggle to agree Greek aid plan in Rome talks
International banks, under pressure from European governments to roll over their holdings of Greek debt, tried again to come up with a joint rescue plan on Thursday after talks over a French proposal fell apart.  View Article

Securities

Plenary debate on short selling and CDS
MEPs clashed on 4 July 2011 over how to regulate short selling during a debate on a draft law which aims to restrict the practice. The new law would place conditions on the use of credit defaults swaps - a form of government debt insurance.   View Article
ECR: A ban on naked CDS will create increasingly complex financial products
The EP position would ban purchases of uncovered credit default swap contracts on sovereign bonds. However, MEP Syed Kamall has warned that a ban on naked sovereign CDS would send a message of confusion to markets and stifle investment in EU Member States.  View Article
ISDA welcomes European Parliament decisions on market infrastructure, CDS and short selling
Members of the European Parliament, voting in Plenary session in Strasbourg, adopted positions amending the European Commission's proposal which were largely in line with those adopted in the Economic and Monetary Affairs Committee on these proposals several weeks prior to the Plenary vote.  View Article
Plenary debate on EMIR
Langen said that the Hungarian Presidency has done a very good job on EMIR, although there were some conflicting positions within the Council. Langen is optimistic that the Polish Presidency will find an agreement by September and he proposed to postpone the final Plenary vote until September.   View Article
FN: Hungarians pass 'fraught' derivatives reform to Poland
According to Financial News, the Hungarian presidency of the Council of the European Union admitted that the text of the derivatives regulation remains "fraught with political minefields" and "unresolved political issues" as it was handed over to Poland.   View Article
FT: Brussels delays decision on OTC rules
European lawmakers said that they would leave open for a few more months the possibility of reaching a deal on new European Union rules for over-the-counter derivatives with Member States.  View Article
FN: ESMA opens review of proxy advisory firms
The European Securities and Markets Authority has begun to review the role of proxy advisory firms, following the call from the Autorité des Marchés Financiers, the French regulator, for greater transparency on how the agencies reach their voting decisions.  View Article
FT: Dodd-Frank delay spells OTC dealer reprieve
A sudden slowing down in the implementation of key financial market reforms has delayed the shifting of over-the-counter derivatives to electronic trading platforms, allowing banks to cling on to a lucrative source of business for longer than expected.   View Article
Steven Maijoor speaks on the European fund industry paradigm: Combining long-term investment horizons and risk profiles
Mr Maijoor outlined challenges he believes the financial services industry faces as it deals with improving investor protection in the post-crisis landscape. He also summarised several initiatives addressing certain of the most pressing issues as far as investor protection is concerned.  View Article
Summary record of the 75th meeting of the European Securities Committee on 24 May 2011
First published today, this summary record covers the following topics that were on the meeting agenda: ESC and Expert groups, CDS, MAD and MiFID, and social businesses.  View Article
ISDA publishes Credit Clearing Comparative Analysis
The survey serves two purposes: to promote a level of standardisation at points in the work flow which can be targeted for such harmonisation; and to assess the current - and where possible future - operational CCP work flows in order to risk manage any transitional problems with upcoming models.  View Article
IOSCO consults on issues raised for market efficiency and integrity by technological developments
The work is being carried out in response to a G20 Leaders' request during the Seoul Summit in 2010.  View Article
FT: Warning over diverging derivatives rules
Proposed rules for derivatives trading could push up financing costs and create “material risks” for the global economy because of a lack of co-ordination, the US and European Union have been warned by the financial services industry.  View Article
ESMA publishes the results of an investigation into how Member States have implemented the Transparency Directive
The main purpose of the stock-take was to ascertain the extent to which Member States introduced options, discretions, additional requirements and/or more stringent rules in their national legislation in this respect.  View Article
NYSE Euronext holders to vote on takeover
European regulators, who set an initial deadline of August 4 to rule on the deal, are reviewing the transaction because it would unite venues that handle more than 90 percent of the region’s exchange-traded derivatives.   View Article
Associations warn of harmful effects of extra-territoriality
Eight global and regional trade associations today called on regulators to intensify cooperation to prevent, alleviate or limit the harmful effect of overlap, inconsistency and ambiguity resulting from extra-territoriality in regulatory efforts to implement G20 commitments.  View Article
Bloomberg: Differing EU, US derivative rules may discriminate
Banks and other investors may face "discriminatory" and competing sets of rules when they trade in derivatives because of a lack of coordination between the US and the European Union, trade associations said.  View Article
IMA calls for action on derivatives trading rules
Jane Lowe, director of markets at the IMA, said: "Under the proposed rules, investment managers may have to follow two different sets of rules for client transactions. Also, investment in less developed markets could be restricted by any attempt to overlay one nation's laws over another's”.  View Article
Keynote speech by Steven Maijoor given at the IFRS Conference
Maijoor spoke about five main priorities for ESMA: contributing to safeguarding financial stability, focusing on investor protection, creating a level playing field in financial supervision, the supervision of credit rating agencies and, finally, establishing a single rulebook for financial markets.  View Article

Insurance

EIOPA announced the results of its second European insurance stress test
Between March and May, EIOPA tested insurers' ability to meet the future Solvency II Minimum Capital Requirements (MCR), the ultimate regulatory threshold, under a number of stress scenarios. The exercise confirms that the insurance market in Europe covered by the stress test is robust.   View Article
FT: One in ten European insurers fails test
The results of the tests highlight potential vulnerabilities in the sector and foreshadow eagerly-anticipated stress test results - expected this month - for the continent's banking sector, when groups that fail will be named and shamed.  View Article
EIOPA published financial stability report
EIOPA has updated its report on the financial stability of the insurance and occupational pension fund sectors in the European Union/European Economic Area. It covers developments in the insurance, reinsurance and occupational pension fund markets as of April 2011.  View Article
IAIS ComFrame to close gap in supervision of insurance groups
As a supervisory response to the increasing globalisation in the insurance sector, combined with the key lessons learnt from the financial crisis, the IAIS is building the Common Framework for the Supervision of Internationally Active Insurance Groups (ComFrame).   View Article
FSB launched peer review on deposit on insurance systems and invites feedback from stakeholders
Using the Core Principles of Effective Deposit Insurance Systems as a benchmark, the review will take stock of existing deposit insurance systems and of planned changes.   View Article

Asset Management

AIFMD published in the Official Journal of the European Commission
The Directive will enter into force on the 20th day following its publication in the Official Journal (21st July), and Member States will have two years to transpose its provisions into national law.  View Article
EFAMA publishes its annual report
A large number of European and international regulatory initiatives unfolded, often as part of political agendas of G20 countries. In total, more than 26 regulatory initiatives were identified as having a material impact on the industry and needed to be prioritised in terms of action.  View Article
OECD/IOPS launched consultation on good practices for pension funds' use of alternative investments and derivatives
OECD/IOPS have produced a new set of principles on the use of alternative investments and derivatives by pension funds, in view of the greater use of these types of investments and the opportunities and risk they present to the security and safety of retirement benefits.  View Article
FN: EU countries miss the UCITS boat
Five of the big nine UCITS markets missed last week's deadline for implementing version four of the legislation. The delays could see them disadvantaged in the market and even sanctioned by the European Commission.  View Article
IPE: What do regulators need?
The article deals with the question 'what do good pension regulatory and supervisory bodies need?' In answer, they require detailed technical, legislative, regulatory and institutional knowledge, depending on their field, or a combination of all of the above to different degrees.  View Article
AIMA: No hedge fund today should be deemed systemically important
No hedge fund firm today should be designated a “systemically important financial institution” by regulatory authorities, according to the Alternative Investment Management Association (AIMA), the global hedge fund association.  View Article

Corporate Governance/Accounting

European Parliament calls for quotas of women in business
Women should make up 30 per cent of top management in the largest listed EU companies by 2015, and 40 per cent by 2020, believe MEPs. If voluntary measures fail to boost the number of women in senior positions, EU legislation must be used.   View Article
FEE commented on the Commission's Proposal for a Directive on the annual accounts of certain types of companies
FEE presented its views to the European Parliament on the Proposal for a Directive on the annual accounts of certain types of companies, i.e. micro-entities. FEE still believes that accrual accounting and the publication of financial information are of benefit to businesses and stakeholders.  View Article
FEE asked all stakeholders to join forces to advance audit policy
FEE organised a high level conference fostering an open debate on audit policy. The objective was to bring together all stakeholders, with a focus on regulators and market participants, as well as the entire accountancy profession in its diversity, to ensure that all views were heard and discussed.  View Article
Five FEE briefing papers regarding audit policy
FEE prepared five Briefing Papers on topics directly relevant to audit policy. These Briefing Papers are not meant to be detailed technical papers, they are meant to be brief and readable for non-professionals.   View Article

Financial Services Policy

ECOFIN: Programme of the six-month Polish Presidency in the second half of 2011
For the second half of 2011, the ECOFIN Council has the following priorities: to implement effective measures that enhance economic growth; to put public finances in the EU on a stable footing; and to launch initiatives under the Europe 2020 Strategy that support employment and economic growth.   View Article

Economic Crisis

European Commission criticised credit ratings agencies
The Commission has strongly criticised international credit ratings agencies following the downgrade of Portugal by Moody's. The Commission said the timing of the downgrade was "questionable" and raised the issue of the "appropriateness of behaviour" of the agencies in general.  View Article
Rehn: The EC has agreed to table a report on the feasibility of eurosecurities towards the end of the year
These "eurosecurities" would aim to strengthen fiscal discipline and increase stability in the euro area through markets, as well as by taking advantage of the increase in liquidity, ensuring that Member States enjoying the highest credit standards would not suffer from higher interest rates.   View Article
FT: Trichet seeks way out of dilemma
On the one hand, Trichet wants to prevent the crisis becoming a threat to the eurozone's stability. On the other, he sees the ECB's crisis-fighting role as near its political – and legal – limits.   View Article
IIF: The private financial community is ready to engage in a voluntary, cooperative, transparent and broad-based effort to support Greece
The Board of Directors of the IIF is committed to working with its members and other financial institutions, the official sector, and the Greek authorities, to deliver substantial cash-flow support to Greece, as well as to lay the basis for a more sustainable debt position.   View Article
Lagarde: IMF must continue to adapt
The former French finance minister, who took over as head of the IMF on July 5, said the Fund had a pivotal role to play in the global economy. The world still faced huge challenges after going through what she termed a "fragmented recovery".  View Article
Paul N Goldschmidt: The Greek rescue - a first useful step
While the agreement reached this weekend by EMU finance ministers to release a new instalment of €8.7 billion of the Greek financing package is undoubtedly welcome news, nevertheless the agreement offers only a short respite, during which long-term solutions to several problems must be found at short notice.  View Article

Financial Services Month in Brussels - Report

June 2011 Financial Services Month in Brussels - Graham Bishop's personal overview of June events
Global financial markets have been riveted by the travails of Greece so European leaders breathed a collective sigh of relief as Greece's parliament gave its blessing to the package of cuts.  View Article

Think Tanks

CEPS-ECRI published report on 'A New Mortgage Credit Regime for Europe - Setting the Right Priorities'
This report aims to contribute to the debate on how the EU could most efficiently respond to the challenges posed and the deficiencies revealed by the financial crisis in the area of retail credit.   View Article

Graham Bishop's Webinars

Graham Bishop's Webinar: 8th July 2011
Our next webinar will be held on the 8th July 2011 when Graham will be joined online by outstanding specialist co-hosts.   View Article




© Graham Bishop

< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information


Add new comment





 


www.grahambishop.com
// Business Applications by Denaploy 		Web Master Information
Terms & Conditions
Privacy Policy