Follow Us

Follow us on Twitter  Follow us on LinkedIn
 
Home>
Print Page Save to My Library <Next Article  Previous Article>
04 April 2013

This week in "Brussels"
Jump directly to
Banking Securities Insurance
Asset Management Corporate Governance/Accounting Financial Services Policy
Graham Bishop’s Articles and Speeches Financial Services Month in Brussels - Report About this email

Articles from 28 March 2013 - 04 April 2013

Banking

Basel Committee issues consultative document on measuring and controlling large exposures
The proposed new standard aims to ensure greater consistency in the way banks and supervisors measure, aggregate and control exposures to single counterparties. Comments on the proposals should be submitted by 28 June, 2013.  View Article
FN: Bank capital rules could create an uneven playing field
New EU bank capital rules allow for sufficient discretion by national regulators to threaten the hoped-for 'level playing field' under Basel III, which starts to come into effect from today, bankers have warned.  View Article
FT: Bailey calls for bank capital transparency
Banks should be required to make their individualised capital requirements public so that investors can see which financial groups have attracted regulatory concerns about risk and why, says the UK's new top financial watchdog.  View Article
ECB/Cœuré: Currency fluctuations - The limits to benign neglect
In his speech at the Conference on Currency Wars: Economic Realities, Institutional Responses, and the G20 Agenda, Cœuré looked at the current debate on competitive devaluations and the peril of a currency war.  View Article
BBA: Libor becomes a regulated activity
The process of reforming Libor takes some significant steps this week – principally the statutory regulation of benchmarking activities.   View Article
BBA: Cyprus was right to hit big deposits - but the EU must still end too-big-to-fail
The difficulties the EU has had in financially stabilising Cyprus offer many lessons. European politicians are wondering how in future they can improve their coordination. But there are implications also for the banking sector policy and regulation.   View Article
ESRB: European banks' use of US dollar funding - Systemic risk issues
This Commentary outlines developments in European banks' use of US dollar funding prior to and during the crisis, the systemic risks associated with that use, and the measures taken to reduce those systemic risks.  View Article
Anne Sibert: Deposit insurance after Iceland and Cyprus
Depositors in eurozone banks are facing a steep learning curve on just exactly what deposit insurance means.   View Article
HM Treasury: Government plans to open up banking sector take a step forward
The UK Government launched a consultation setting out proposals for introducing a new system of competition-focused regulation for payment systems. This forms part of the Government's work to create a more competitive, consumer-focused banking sector. Deadline for comments is 25 June, 2013.  View Article
HM Treasury: Government announces board members of new Financial Conduct Authority
The board will be responsible for overseeing the work of the FCA as it pursues its operational objectives from 1 April, 2013.  View Article

Securities

ESMA publishes guidelines on market making and primary dealer exemption - application deadline starts
The publication of the translated guidelines triggers a transitional period of two months, during which national supervisors have to declare whether they intend to comply with the guidelines, or otherwise explain the reasons for non-compliance.   View Article
IPE: No further plans to regulate repo market, says ESMA chairman
ESMA does not intend to draft any further guidelines governing securities lending and the repo market other than those already announced, the authority's chairman has said.  View Article
BCBS and IOSCO publish responses to consultation on margin requirements
BCBS and IOSCO published today the public responses to the second consultative paper on margin requirements for non-centrally cleared derivatives.  View Article
Bundesbank: Sovereign default swap market efficiency and country risk in the eurozone
The results of this paper indicate that, despite the financial crisis and concerns regarding sovereign indebtedness for eurozone countries, price discovery processes function efficiently for sovereign CDS markets.  View Article
ISDA publishes 'Risk sensitive capital treatment for clearing member exposure to CCP default funds'
In its latest paper, ISDA concludes that capitalisation of clearing members' exposure to CCPs should be done on a consolidated basis across all CCPs, not at the CCP level which is the current regulatory requirement.  View Article
CFTC approves final regulations governing exemption from required clearing for inter-affiliate swaps
Barclays Plc, JPMorgan Chase & Co and other banks will be exempt from Dodd-Frank Act swap market rules when trading between their own affiliates, under a measure completed by the US Commodity Futures Trading Commission.  View Article
FT: LSE says openness is key to Clearnet
In coming weeks, the London Stock Exchange is set to close its 18-month pursuit of a controlling stake in LCH.Clearnet, the transatlantic clearing house. It is potentially its most significant deal in years.  View Article
Bloomberg: CME pushes for more European business before new exchange
CME Group Inc, the world's largest futures exchange, is pushing to expand its European business as it starts a new London-based market and IntercontinentalExchange Inc (ICE) advances its planned purchase of NYSE Euronext.  View Article
IntercontinentalExchange to establish ICE Trade Vault Europe as trade repository for European swaps and futures data
ICE Trade Vault Europe plans to serve the commodities, credit, interest rate and foreign exchange asset classes. The launch of ICE Trade Vault Europe is subject to approval by ESMA.  View Article

Insurance

EIOPA/Bernardino interview: "It's not Solvency II that provokes challenges to business, it's the economic environment"
In an interview with Versicherungs-Wirtschaft (Germany), the EIOPA chairman talked i.a. about Solvency II, artificial volatility, the long-term guarantee assessment and pension funds.  View Article
EIOPA/Bernardino: Solvency II is coming closer
Writing in the Börsen-Zeitung, Bernardino said that EIOPA planned to present the findings of the long-term guarantee assessment, together with conclusions, in June.  View Article
EIOPA: EU-US insurance dialogue agrees high level project plan
The Steering Committee of the EU-US Insurance Dialogue Project to increase mutual understanding and enhance cooperation agreed on a high level work plan from 2013 to 2017.  View Article
Risk.net: Insurers 'should be exempt from IM requirements' on ALM hedges
Insurers should be exempt from posting initial margin under new global standards on derivatives, and should not be restricted in their use of assets backing policyholder liabilities as collateral, according to Insurance Europe.  View Article
IAIS: Self-assessment and peer review on regulation and supervision supporting inclusive insurance markets
The International Association of Insurance Supervisors and the Access to Insurance Initiative (A2ii) have launched the Self-Assessment and Peer Review (SAPR). This SAPR assesses the supportiveness of supervisors to the cause of enhancing inclusive insurance markets.  View Article
Risk.net: Extensive reporting guidelines in Solvency II interim measures "will challenge insurers"
Consultants say the proposed measures on reporting would place a heavy burden on insurers. However, the guidelines would be beneficial by enabling insurers and regulators to gain some of the benefits of Solvency II sooner than the full implementation date, which is unlikely to occur before 2016.   View Article
FT: Insurers' hunt for yield begins
Insurance companies will shift their asset allocation away from government bonds and into equities in the next five years, fund managers believe - despite fears that Europe's impending Solvency II regime will force them to move in the opposite direction.  View Article
Risk.net: Allianz leads German insurers in guarantees shake-up
German life insurers are pioneering new temporary guarantee concepts, in a bid to reduce their exposure to a prolonged low interest rate environment.   View Article
Willis Re: New capital is a threat to reinsurers
Many traditional reinsurers now see the flow of capital coming into the reinsurance market as a direct threat to their existing portfolios, according to Willis Re, the reinsurance broking arm of Willis Group Holdings.  View Article

Asset Management

ESMA publishes draft RTS to determine types of alternative investment fund managers
This final report sets out the final text of the draft RTS required by Article 4(4) of the AIFMD.  View Article
Hedgeweek: Fund managers still have AIFMD concerns, says Northern Trust survey
While 86 per cent of respondents to a Northern Trust survey say they broadly understand the implications of the AIFMD, close to 70 per cent feel their investors are not engaged in AIFMD considerations.  View Article
ECMI/de Manuel Aramendía: Implementing the AIFMD - Success or failure?
The author looks at the implementation of some of the provisions that have raised concern among industry participants. He finds that on balance, a practical and flexible approach to implementation has been followed that should help secure the success of the framework.  View Article
EBF publishes response to IOSCO consultation on protection of client assets
The European Banking Industry supports the IOSCO initiative and is in favour of global principles with the aim of enhancing the protection of client assets, which is an essential element in restoring confidence in global financial markets.  View Article
NAPF: TPR's Code for DC pensions risks being counterproductive
The [UK] Pensions Regulator's proposed Code of Practice for defined contribution (DC) pensions does not cover half the DC market and risks being counterproductive, NAPF has warned.  View Article
FT: EU pensions key for long-term investment
There is a growing need for long-term investment in Europe. Yet in the current environment where banks are undergoing a period of deleveraging and where government policies are constrained by excessive fiscal imbalances, it is increasingly clear that the supply of financing will remain insufficient.  View Article
IPE: All eyes on auto-enrolment
Good pension ideas are rarely cross-fertilised between countries, so it is encouraging that auto-enrolment has the ear of policymakers outside the UK, even if widespread adoption may be some time away.  View Article
UK Parliament: MPs publish report on State Pension reforms
In a report published today, the Work and Pensions Committee welcomes the improvements in retirement income that the new Single-tier State Pension will bring.  View Article
IPE: Dutch pension fund assets top €1 trillion
Dutch pension fund assets have surpassed €1 trillion, new statistics published by Dutch regulator De Nederlandsche Bank (DNB) reveal.  View Article
IPE: Developments in Dutch pooling
According to this report, recent bilateral agreements and regulatory developments are making the Netherlands more attractive as a jurisdiction for asset pooling.  View Article
EDHEC-Risk's annual European ETF Survey confirms satisfaction levels and investor approval of ESMA guidelines
EDHEC-Risk Institute has announced the results of the EDHEC European ETF Survey 2012, which represents a comprehensive survey of 212 European ETF investors. The survey was conducted as part of the Amundi ETF research chair at EDHEC-Risk Institute on "Core-Satellite and ETF Investment".  View Article
SEI Study: Hedge fund managers face tough business climate and heightened investment expectations
A new study conducted by SEI in collaboration with Minard Capital LLC finds that hedge fund managers must rethink their business models, provide tailored solutions, and offer multi-faceted client communications.  View Article
Avinash Persaud: Leave risk to hedge fund and equity investors
Persaud responds to an opinion piece in the FT by Michael Pettis, who had said that the funding of risk-taking entrepreneurs was crucial for wealth creation.  View Article
EVCA launches interactive map of private equity at work in Europe
EVCA has released an interactive map of European case studies to illustrate how private equity works in practice. The map is part of EVCA's ongoing effort to improve the accessibility of information about private equity.  View Article

Corporate Governance/Accounting

EBF response to the IASB's ED Classification and Measurement: Limited Amendments to IFRS 9
EBF commented on clarifications proposed to the HTC business model, modified economic relationship, implementation of IFRS 9 and assessing the IFRS 9 revision against its objectives.  View Article
IAIS response to IASB's ED Classification and Measurement: Limited Amendments to IFRS 9
The IAIS's comments are made in light of the current stage of the Insurance Contracts project (IFRS 4 phase II).  View Article
FASB proposes improvements to reporting discontinued operations
The FASB issued for public comment its proposal to improve financial reporting about discontinued operations of major business lines or major geographic areas of operations for public and private companies, and not-for-profit organisations. The comment deadline is August 30, 2013.  View Article
FASB extends comment deadline on proposal for accounting for credit losses on financial assets
The FASB has extended the comment deadline for its proposal to improve financial reporting about expected credit losses on loans and other financial assets held by banks, financial institutions, and other organisations. The new comment deadline on proposed ASU (Subtopic 825-15) is now May 31, 2013.  View Article
ACCA: Application of capitals to integrated reporting explored in new background paper
The current and future applications of capitals in integrated reporting are explained in a new report prepared for the IIRC by a group led by ACCA and the NBA.  View Article
IASB: Request for information on rate regulation
The IASB issued a Request for Information as an early step in its reactivated Rate-regulated Activities research project. The objective of the Request for Information is to identify a range of rate-regulatory schemes. The deadline for responses is 30 May, 2013.  View Article
SIFMA: Industry recommendations for the creation of a consolidated audit trail
SIFMA's white paper, 'Industry Recommendations for the Creation of a Consolidated Audit Trail', presents how a CAT system should be organised, provides key principles on operations, structure, governance and scope, and outlines the vision of how the CAT system should be implemented and expanded.  View Article
Deloitte commented on novation of derivatives and continuation of hedge accounting
Deloitte Touche Tohmatsu Ltd published its response to the IASB's ED Novation of Derivatives and Continuation of Hedge Accounting (ED/2013/2).  View Article
Deloitte commented on clarification of acceptable methods of depreciation and amortisation
Deloitte Touche Tohmatsu Ltd published its response to the IASB's ED Clarification of Acceptable Methods of Depreciation and Amortisation (ED/2012/5). Deloitte agrees with the general prohibition of a revenue-based method of depreciation or amortisation for the reasons expressed in the ED.  View Article

Financial Services Policy

Commission consults on proposal for simplifying procedures under the EU Merger Regulation
The proposal aims to make EU merger control even more business-friendly by cutting red tape and streamlining procedures. Replies to the consultation can be submitted until 19 June, 2013  View Article
Reuters: City of London study says EU transaction tax costly for UK
According to the study, 'The impact of a financial transaction tax on corporate and sovereign debt', the planned EU tax on transactions would raise the cost of issuing UK debt by nearly £4 billion.  View Article
Shadow rapporteur warns EU on PRIPs information overload
ECON chair Sharon Bowles is calling for additional layers of disclosure, but the shadow rapporteur for PRIPs, Syed Kamall MEP, says there is a risk of information overload.  View Article

Graham Bishop’s Articles and Speeches

Financial World: Incredible shrinking banks (Graham Bishop article)
At some stage, says Graham Bishop, society has to balance its thinking on making banks super-safe against the need for riskier investments.  View Article
Graham Bishop's Blog: Dijsselbloem 'shocks' the banking commentariat about Cyprus...
Mene, Mene... The R&R Directive is 'written upon the wall'.  View Article

Financial Services Month in Brussels - Report

March 2013 Financial Services Month in Brussels
Graham Bishop's personal overview: The events of March 2013 will probably be seen as another milestone on the route to the new financial and political landscape of the euro area. But legislative progress in many fields was overshadowed by the Cyprus fiasco.  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