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11 September 2014

Financial Services Regulation:This week in "Brussels"



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  Articles from 04 September 2014 - 11 September 2014

  Banking
 
 
European Central Bank: Sabine Lautenschläger Interview
Sabine Lautenschläger, Member of the Executive Board of the ECB, in interview with Deutschlandfunk, covered supervision of the most important European banks, deposit rates and other topics.  View Article
Barnier issues letter to EBA on bonuses
The European Commissioner has sent a letter to the Chairman of the EBA, signalling 'I would like to underline my strong concerns with regard to the continuing reports of the use of these allowances.' (A means of circumventing the legal framework for variable remuneration under CRD IV.)  View Article
FT: City bonuses set challenge for Juncker’s banking nominee
European parliament lawmakers are threatening to veto the candidate for the EU’s next financial services chief unless the nominee promises to stop banks circumventing the bloc’s strict cap on bonuses.  View Article
ECB publishes final list of significant credit institutions
The ECB has published its final list of the 120 significant credit institutions it will directly supervise from 4 November.  View Article
DRS: ECB zeroes its sights in
DRS commented upon the ECB's final list of significant credit institutions that it will directly supervise from 4 November 2014.  View Article
Basel Committee on Banking Supervision: Analysis of the trading book hypothetical portfolio exercise
The BCBS has issued the results of the trading book test portfolio exercise. One finding: the new risk measures compared to existing would increase capital requirements for all asset classes with the exception of equities.  View Article
ECB: Understanding the yield curve
Overview and policy comment by Vítor Constâncio on the role of the yield curve in monetary policy deliberations and the interpretation of information coming from fixed income markets.  View Article
BIS: Developments in collateral management services
The Committee on Payments and Market Infrastructures (CPMI) has published a report on the collateral management services industry and the attendant potential settlement-related benefits and risks.  View Article
BIS: Erkki Liikanen: Europe without banks? The future of the financial sector
Keynote speech by Mr Erkki Liikanen, Governor of the Bank of Finland, discussing the European financial system before and after the crisis, a future model and suggestions on how to get there.   View Article
BIS: Non-banks in retail payments
The Committee on Payments and Market Infrastructures (CPMI) has examined the role of non-banks in retail payment services, analysing the implications of these entities in retail payments. CPMI notes that the regulatory treatment of non-banks varies greatly across jurisdictions.  View Article
Bank of England publishes approach to supervising international banks
The BoE, through the PRA has published its final policy approach to supervising international banks. It explains how it will supervise UK branches of banks based outside the European Economic Area (EEA) and also explains in more detail the PRA’s approach to subsidiaries and EEA branches.  View Article
 
  Securities
 
 
MiFID II: Be careful what you wish for
The Securities and Markets Stakeholder Group (SMSG) published four pieces of advice to ESMA on MiFID II: Investor protection, Trading venues, Transparency for the trading of non-equity instruments, and Transparency and trading obligations (equities).  View Article
ESMA sees valuation risks rising in key market segments
ESMA published its Report on Trends, Risks and Vulnerabilities No. 2, 2014, and the Risk Dashboard for 3Q 2014. Overall, ESMA’s report finds that valuation risks in key market segments are rising and merit investor attention.   View Article
ESMA: Guidelines and Recommendations on Principles for Financial Market Infrastructures
ESMA’s Guidelines and Recommendations address the CPSS-IOSCO Principles for Financial Market Infrastructure by competent authorities, part of their duties under EMIR.  View Article
AMIC response to IOSCO consultation on Good Practices on Reducing Reliance on CRAs
AMIC members welcomed the opportunity to discuss IOSCO Consultation Paper on Good Practices on Reducing Reliance on CRAs in asset management. The Council sought to highlight the ‘public-good’ aspects of credit ratings.   View Article
Reuters: US regulator would welcome delay of EU clearing rules
A top US regulator would welcome more time to resolve a conflict between the EU with Washington over making derivatives markets safer. The current deadline is Dec. 15 for new capital requirements to kick in, making business with US clearing houses prohibitively expensive for European banks.  View Article
 
  Insurance
 
 
Risk.net: UK insurers cautioned on Solvency II credit risk assumptions
Firms may have to review how they calculate credit risk capital requirements for matching adjustment (MA) portfolios, following a note published by the PRA.  View Article
IPE: Juncker Commission to ‘eliminate’ EU funding of EIOPA
The UK’s new European commissioner for financial services, Jonathan Hill, is set to overhaul the governance and financing of the EIOPA, with the pensions and insurance industry soon to be fully responsible for all costs.  View Article
EIOPA: Insurance regulation and supervision – going global
Speech by Gabriel Bernardino, Chairman of European Insurance and Occupational Pensions Authority, on 3rd Conference on Global Insurance Supervision “Fit for Global Thinking?” in which he shared his view on whether EIOPA is fit for global thinking.  View Article
 
  Asset Management
 
 
IMA: Strong growth and increasing internationalisation in UK asset management industry
The latest annual Asset Management Survey has been published by the Investment Management Association (IMA). The Survey findings are based on responses from 72 IMA members who collectively manage £4.3 trillion worth of assets in the UK.  View Article
 
  Corporate Governance/Accounting
 
 
IFRS Foundation's Staff offer views on IAS Regulation in the EU and IFRS
The IFRS Foundation has published a Staff Paper responding to the EU's questionnaire on the use of IAS. Its commissioned research finds that capital markets benefit after adopting IFRS, even in countries with strong investor protection and high quality financial reporting and enforcement.  View Article
ECIIA: Internal audit’s independence must be clearly defined under Solvency II
According to the ECIIA, internal audit must be unambiguously independent if it is to play an effective role under Europe’s new regulatory regime for insurers known as Solvency II.  View Article
IOSCO seeks comment on proposed Statement on Non-GAAP Financial Measures
IOSCO issued a proposed Statement on Non-GAAP Financial Measures, which sets out its expectations for issuers with respect to their presentation of financial measures other than those prescribed by Generally Accepted Accounting Principles (GAAP).  View Article
EFRAG: Statement on the equity method
EFRAG has published a statement summarising comments responding to the Paper 'The Equity Method: a measurement basis or one-line consolidation?'  View Article
FEE comments on the IAASB´s ED on Disclosures in Financial Statements
FEE issued a comment letter to the IAASB on the IAASB ED "Proposed Changes to the International Standards on Auditing (ISAs)–Addressing Disclosures in the Audit of Financial Statements".  View Article
EBA comments on the IAASB´s ED on Disclosures in Financial Statements
The EBA has published its comment letter to the IAASB on the Exposure Draft: Proposed Changes to the International Standards on Auditing (ISAs)–Addressing Disclosures in the Audit of Financial Statements.  View Article
FEE comments on IASB´s ED on investment entities and the consolidation exception
FEE issued a comment letter to the IASB on IASB ED/2014/2 Investment Entities: Applying the Consolidation Exception (Proposed amendments to IFRS 10 and IAS 28.)  View Article
 
  European Council/Parliament
 
 
Dijsselbloem calls for fiscal measures and flexibility to combat crisis at ECON cttee
Fiscal measures, such as shifting taxation away from labour, should play a bigger role in combating the crisis, Eurogroup President Jeroen Dijsselbloem told Economic and Monetary Affairs Committee MEPs on September 4th. But flexibility in implementing SGP is also needed.  View Article
 
  Grahams Articles, Comments & Speeches
 
 
#TeamJunckerEU: Graham's blogs on the new Commissioner team
Two massive olive branches to the UK and France; Dear Commissioners-Designate Katainen, Moscovici and Hill: Welcome to the item at the top of your in-tray; Team Juncker is a huge reform for Europe.  View Article
Note to Commissioners-Designate Dombrovskis,Katainen, Moscovici and Hill
Welcome to the item at the top of your in-tray! You must all work closely together to create a financial system that is capable of supplying credit right across the euro zone economy. You must be bold – implement the President’s call for a Capital Market Union.  View Article
 

 


© Graham Bishop


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