Why you should
watch:
Well, there's Brexit... Even
though the trade agreement (for the most part) doesn't cover financial
services, there are important new rules that will come into force on January 1
- and there is a big question as to whether the flow of funds to the EU 27 will
be followed by a flow of personnel. And, if so, to where? Paris? Frankfurt?
Amsterdam? Other than that, it has been a busy month in Brussels - with the row
over the budget and the Recovery Fund, issues over public debt, the call for
'bad banks' to handle escalating NPLs, important reports from EFAMA and ESMA,
and more talk of a Green 'taxonomy' - and the EU's role in the Green economy.
As usual, Graham Bishop is supported by two euro-experts.
Moderator: Andrew Hilton
(Director, CSFI)
Graham Bishop is chair of the National Council of the UK branch of the European Movement, a Board
member of the Kangaroo Group and a Council member of the Federal Trust. He is a
former bond analyst for Phillips & Drew, S.G. Warburg, Salomon Bros and
Citibank.
Elisa Martinuzzi writes an Opinion column for Bloomberg covering all aspects of
finance. She is a former managing editor for European finance at Bloomberg
News, who joined Bloomberg as a financial correspondent in 2001.
Peter Snowdon is a legal consultant at Norton Rose Fulbright in London, having
recently retired as a partner in the financial services group. He previously
worked in the General Council Division of the FSA, advising on EU regulatory
law.
_________________________________________________________________
My choice of the key topics for discussion
Brexit
-
Is there a deal? Does it matter to financial
services?
- End of “transition” events: EBA statement,
passporting, STS securitisation, Derivative trading obligation (DTO), Share
trading obligation (SHO)
General
-
MFF/ NGEU/RRF progress – Poland/Hungary veto
side-stepped. Significance of waning veto threat via enhanced co-operation/
inter-governmental agreements
-
ESM Treaty – agreement at Eurogroup, longer term
significance
-
Bruegel: public debt management
-
“Collective redress” agreed
Banking
-
Capital buffer drawdown v MREL – problems
-
NPLs “all over the place” – SSM
-
EBA on benchmarking insolvency procedures
Capital Markets Union
-
ESMA: first Annual Statistical Report drawn from
regulatory reporting – the shape of the EU securities markets
ESG
-
EFAMA: the scale of sustainable investment
-
GRI emerging as the common “language”
-
IIRC & SASB merger of systems
-
The problem of Taxonomy Regulation Art 8
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About GrahamBishop.com
Graham Bishop's analysis targets the interaction of the driving forces of politics and economics as they force the required changes in financial regulation – at the macro level - rather than covering the micro aspects of detailed implementation. These are precisely the topics where a well-informed financial professional should remain competent: it can form part of their Continuing Professional Development (CPD).
Banking union and capital markets union are already underway, but obstacles remain and consumer protection is a necessary conditon for success.
The next big project – enhancing the international role of the euro – is only under discussion but the EU is seeking to neutralise any “weaponising” of the dollar
Environmental, Social and Governance (ESG) policies are a key priority for the new Commission – with a European Green Deal planned within its first 100 days. But “sustainable finance” goes beyond “green” and includes social considerations as well as the governance that brings it to the forefront of financial decision-making.
The Fin Tech Action Plan will help the financial industry make use of the rapid advances in technology such as blockchain and other IT applications and strengthen cyber resilience. The impact on payment systems will be at the cutting edge.
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As a `Friend of GrahamBishop.com' you can easily `scan the horizon’ for politics and economics driving regulatory reform of European financial markets by joining the 'Brussels' Finance Watchers community
His proposal for a Temporary Eurobill Fund is one of the range of options in this study. His proposal offers a modest, technical but concrete step that can be expanded progressively into a financial, economic and political structure if circumstances develop propitiously. This author has developed the TEF plan over several years and has comprehensively updated it in the form of “30 FAQs”. Click to download.