Follow Us

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

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

Articles from 21 March 2013 - 28 March 2013

Banking

Bank capital rules: Council confirms agreement with EP
The Permanent Representatives Committee today approved a compromise text on the "CRD IV" package amending the EU's rules on capital requirements for banks and investment firms. The new rules will apply from 1 January 2014 if publication takes place in the Official Journal by 30 June 2013.  View Article
ECON Committee: Cap on bankers' bonuses - Risk reducer or witch-hunt?
The planned cap on bankers' bonuses continues to stir up debate, with the UK and the City of London lobbying to water down the agreement reached by EP and Council on 28 February.   View Article
FT: UK overruled on financial services law
UK opposition to a new cap on bankers' bonuses was swept aside, as the rest of the EU discarded a convention that the UK would not be directly overruled on an industry of vital national importance.  View Article
Basel Committee issues consultative document on recognising the cost of credit protection purchased
The Basel Committee on Banking Supervision has published a proposal that would strengthen capital requirements when banks engage in certain high-cost credit protection transactions. Deadline for comments is 21 June, 2013.  View Article
ECB publishes first SEPA Migration Report and warns against risks of late migration
The report describes the state of play of the migration process in euro area countries towards the creation of a single market for SCT and SDD in euro across Europe, and provides guidance on the management of the transition process.   View Article
EBA consults on supervisory reporting for forbearance and non-performing exposures
EBA launched a consultation on definitions and associated reporting templates on forbearance and non-performing exposures. The consultation is open until 24 June, 2013.  View Article
EBA consults on draft implementing technical standards (ITS) on asset encumbrance reporting
These ITS, which will be part of the EU single rulebook, intend to develop reporting templates and instructions for asset encumbrance, with the ultimate aim of ensuring a harmonised measure of asset encumbrance across institutions. The consultation runs until 24 June, 2013.  View Article
BIS: Central bank collateral frameworks and practices - New report from the Markets Committee
This study is a timely stocktake of what central banks have done to update and adapt their collateral policies, in the light of recent experience with market stress and other underlying changes in the financial landscape.   View Article
AGB: German Banking Industry Committee calls for swift adoption of European DGS Directive
GBIC stresses that the protection of customer deposits is a top priority. It renews its call for the swift adoption of the European Deposit Guarantee Schemes Directive.  View Article
CEPS/Gros: Banking Union with a sovereign virus - The self-serving regulatory treatment of sovereign debt in the euro area
This paper find that the relative concentration of public debt on bank balance sheets is not just a result of the euro crisis - there are strong additional incentives for banks in some countries to increase their sovereign.  View Article
Robert Schuman Foundation/Ackermann: EU Banking Union - Sound in theory, difficult in practice
As with so many other institutional arrangements in the EU, the design of the banking union – at least its initial design – will be the result of what is politically possible and not necessarily what is required to put Europe's financial system on a firmer footing.  View Article
Deutsche Bank: Political compromise on banking union - Two up, three down!
European Parliament, Council and Commission have reached a compromise on the legal texts required to set up EU Banking Union, making the start of the EU supervisory mechanism possible by mid-2014.  View Article
Finance Watch: Report on the European Commission's Bank Resolution Recovery proposal
This position paper puts forward Finance Watch's analysis and position on Bank Recovery and Resolution. The report discusses preventative measures, resolution tools and questions of governance.  View Article
FSA finalises proposals for the regulation and supervision of benchmarks
The regulator has finalised new rules and regulations for financial benchmarks. This follows the recommendations of the Wheatley Review of the London Inter-Bank Offered Rate (Libor).  View Article
GOV.UK: Building the Business Bank - Strategy update
The latest publication from the Department for Business, Innovation and Skills explains how the Business Bank is being developed. It describes the Business Bank's purpose, success measures and timescales.   View Article
FSA and Bank of England relax barriers to entry for new bank entrants
This Review sets out significant changes to regulatory requirements and authorisation processes which, taken together, will reduce some of the regulatory barriers to entry into the banking sector, and as a result enable an increased competitive challenge to existing banks.   View Article

Securities

Commission extends CDS information market investigation to ISDA
The European Commission has extended the scope of an investigation into credit default swaps (CDS) to include the International Swaps and Derivatives Association (ISDA), a professional organisation of financial institutions involved in the over-the-counter (OTC) trading of derivatives.   View Article
EBF publishes response to ESMA consultation on the evaluation of the Short selling and CDS Regulation
EBF draws ESMA's attention to the fact that the current discussions regarding settlement discipline in the context of the future Regulation on Central securities depositories (CSDR) will affect the existing buy-in and penalty provisions in the SSR.   View Article
FT: Banks face removal of capital loophole
Global banking watchdogs have announced their first big crackdown on regulatory arbitrage since the passage of the Basel III reform package, with a plan for hefty charges on banks that use pricey credit default swaps to cut their capital requirements.  View Article
OTC derivatives transactions: Commission adopts report on international treatment of central banks and debt management offices
The European Commission has adopted a report to the European Parliament and the Council on the international treatment of central banks and public entities managing public debt with regard to OTC derivatives transactions.  View Article
ESMA/Maijoor: EMIR - A fair price for safety and transparency
Maijoor talked about ESMA and its role in the regulation and supervision of OTC derivatives.  View Article
EBF publishes comments on BCBS-IOSCO consultation on "Margin requirements for non-centrally cleared derivatives"
EBF published its key points and comments. Mandatory two-way Initial Margin (IM) posting should be reconsidered in view of the serious negative effects that this would have.  View Article
BBA helps banks categorise derivatives trades for EU regulations
A cross-industry agreement between banks setting out common standards for derivatives trades has been published by the BBA to bring clarity and certainty to a major reform of Europe's financial market infrastructure.  View Article
AMF highlights entry into force of certain provisions of the "EMIR" regulation with effect from 15.3.2013
Only three of the requirements laid down in EMIR are due to be implemented with effect from 15 March.  View Article
ECB/Mersch: Closing remarks at the ECB/EU Commission conference on "Post-trade harmonisation and financial integration in Europe"
Mersch remarked that a highly integrated financial system ensures that impulses diffuse homogeneously across the whole euro area.  View Article
EuropeanIssuers' response to the IOCV-IOSCO consultation on client assets protection
EuropeanIssuers responded to the IOCV-IOSCO Consultation Report on Recommendations Regarding the Protection of Client Assets. EuropeanIssuers has a strong interest in the protection of client assets, since the reduction of intermediary risk.  View Article
IOSCO consults on regulatory issues raised by changes in market structure
IOSCO published a Consultation Report on Regulatory Issues Raised by Changes in Market Structure, which identifies possible outstanding issues and risks posed by existing or developing market structures. Deadline for comments is 10 May, 2013.  View Article
BaFin: High-frequency trading - New rules for trading participants
On 28 February 2013, the Bundestag passed the Act on the Prevention of Risks and Abuse in High-frequency Trading (High-frequency Trading Act, Hochfrequenzhandelsgesetz). On 22 March 2013, the Bundesrat voted not to raise any objection to the Act.  View Article

Insurance

EIOPA consults on Guidelines for the preparation of Solvency II
The purpose of the Guidelines is to support both National Competent Authorities (NCAs) and undertakings in their preparation for the Solvency II requirements. Deadline for comments is 19 June, 2013.  View Article
EIOPA/Bernardino: "We are confident about the preparation level of insurance undertakings"
The EIOPA chairman was interviewed by 'Svijet osiguranja' (World of Insurance) regarding Solvency II and what Croatia's insurance market can expect when Croatia joins the EU in July.  View Article
EIOPA: Risk Dashboard – March 2013
EIOPA's Risk Dashboard, a common set of quantitative and qualitative indicators to identify and measure systemic risk, is published on a quarterly basis in cooperation with the ESAs and the ESRB.  View Article
Insurance Europe: EU regulation must not jeopardise long-term investment
Insurers are increasingly important suppliers of long-term financing. Insurance Europe warmly welcomes the European Commission's Green Paper on the long-term financing of the European economy.  View Article
Insurance Europe briefing note: Currency risk
This paper focuses on how currency risk is of particular relevance to insurers and reinsurers, and why the current Solvency II approach is of great concern. It outlines the industry's proposal to alleviate these concerns.  View Article
CRE: Insurers concerned over GFC regulatory backlash
Plans to subject some insurers and reinsurers to proposed systemic risk regulation are flawed and could hold back innovation, according to insurers.  View Article
CRE: Flattening Swedish market set fair as new insurers eye entrance
Swedish risk managers and brokers do not expect their local market to harden over the coming year but rather maintain the flat-to-mildly-soft conditions witnessed at recent renewals.  View Article
Statement by GIAJ chairman on recent activities and future challenges
With reconfirmation that general insurance is an important part of the overall infrastructure, the General Insurance Association of Japan is determined to make its role more robust, sound and reliable.  View Article

Asset Management

European Commission launches Green Paper on the long-term financing of the European economy
The Commission has adopted a Green Paper that launches a three-month public consultation on how to foster the supply of long-term financing and how to improve and diversify the system of financial intermediation for long-term investment in Europe. Deadline for contributions is 25 June, 2013.  View Article
EBF welcomes Long-Term Financing Green Paper
Long-term financing is central to an economy's ability to invest in major domestic projects, such as infrastructure, which produce returns over the longer term.  View Article
EVCA and other associations begin debate on long-term investment
EVCA Secretary-General Dörte Höppner said: "Pension funds and insurers need access to private equity funds to help meet future liabilities. The economy, and the companies that drive it, need the patient capital that long-term investors can provide via private equity and venture capital firms."  View Article
Long-term financing of the EU economy Green Paper - NAPF comment
NAPF Chief Executive Joanne Segars said: "This is an important paper which recognises the major role that pension funds can play as long-term investors".  View Article
ACCA: We need long-term thinking and an integrated approach on the road to inclusive recovery
ACCA welcomed the publication of the Green Paper on long-term financing of the European economy, and said the debate was crucial to restoring the EU's growth and competitiveness  View Article
Bausparkassen: EU-vote for long-term savings products
The European Federation of Building Societies welcomes the support in the green paper for long-term savings products. It regrets that there is no mention of the role of the ECB.  View Article
IMA: UK asset managers have key role to play in financing long-term projects
"The challenges that the European economy faces today are numerous and deep-seated, amid considerable constraints on public investment and bank lending, but the opportunities in financing long-term projects are enormous."  View Article
IPE: Long-term investing Green Paper a 'good start', but needs more studies
The Dutch Pensions Federation has warned that the Green Paper on Long-Term Investing represents a "good start" for an "important debate", but it should not stop Brussels from conducting further quantitative impact studies for the revised IORP Directive.  View Article
EP: State pensions must guarantee decent living standards for all, insist MEPs
Safeguarding public pensions to ensure decent living standards for all in old age must remain a priority, MEPs stressed in a resolution adopted on Thursday.   View Article
IPE: IORP II must not 'jeopardise' pension investments
The EU Committee for Employment and Social Affairs has passed a resolution urging the European Commission to ensure the revised IORP Directive does not "jeopardise" pension fund investments.  View Article
Sven Giegold: Investment fund rules (UCITS) - Bonuses for fund managers to be capped among wider investor protection in new draft EU rules
The ECON committee has voted on proposals to revise EU legislation on investment funds (the UCITS Directive), with a total sector value of almost €6.3 trillion in funds. The vote on the legislation also includes key provisions on remuneration and performance fees.   View Article
Deloitte: UCITS fund managers face variable pay cap
"These developments are likely to place the European financial services sector at a disadvantage to counterparts in the US and Asia, and will make it much harder for European firms to attract and retain their key talent."  View Article
Fund managers one step closer to tougher bonus rules after MEPs vote - PwC comments
PwC's Jon Terry said that there was a long way to go to finalise any remuneration provisions, and that the industry needed to make a strong and persuasive case to water down these proposals significantly, or risk being stuck with "onerous and restrictive rules".  View Article
IPE: French pension fund UMR on lookout for new majority stakeholder
The €10.2 billion French pension fund UMR is looking for an investor to take a majority stake in the scheme, and is likely to name a new permanent chief executive only once this shareholder is found.  View Article
IPE: President of Cyprus vows to protect accrued pension benefits
President Nicos Anastasiades has pledged that Cypriots' accrued pension benefits are to be protected, as the country winds up its second-largest lender, Laiki Bank.  View Article

Corporate Governance/Accounting

Basel Committee publishes for consultation supervisory guidance on external audits of banks
The consultation aims to enhance and supersede the existing guidance that was published by the Basel Committee in 2002 on the relationship between banking supervisors and banks' external auditors, and in 2008 on external audit quality and banking supervision. Deadline for comments is 21 June, 2013.  View Article
EFRAG – Member of the European delegation in the IFRS ASAF
EFRAG welcomes the establishment of the IFRS Accounting Standards Advisory Forum (ASAF). The set up of a multilateral technical discussion forum is a valuable enhancement of the IASB's due process. EFRAG is pleased to see that Europe has four out of the 12 seats on the ASAF.  View Article
EFRAG comments on the transition from IAS 39 to IFRS 9 for macro-hedging practices
EFRAG has analysed the impact on current macro-hedging practices of the transition between IAS 39 and the Review Draft, and published its comment letter to the IASB.  View Article
FEE's comment letters to EFRAG and IASB on classification and measurement: limited amendments to IFRS 9
FEE published its comment letters to the EFRAG and to the IASB regarding the IASB's Exposure Draft Classification and Measurement: Limited Amendments to IFRS 9 (the "ED"). As noted by EFRAG, FEE believes that there are still many concerns regarding the proposals in the ED.  View Article
FEE comments on IASB Exposure Draft on the Equity Method: Share of Net Asset Changes
On 20 March, FEE issued its comments on the EFRAG Draft Comment Letter regarding the IASB ED on the Equity Method: Share of Net Asset Changes. On 22 March, FEE provided its comments to Hans Hoogervorst, Chairman of the IASB.  View Article
Deloitte commented on equity method
Deloitte's IFRS Global Office published a comment letter responding to the IASB's ED 'Equity Method: Share of Other Net Asset Changes'. While Deloitte welcomes the initiative taken by the IASB dealing with the application of the equity method, it does not agree with the proposed solution.  View Article
IASB's proposal for amendments to IAS 19 Employee Benefits
The IASB published for public comment an ED of proposed amendments to IAS 19 Employee Benefits related to defined benefit plans: employee contributions. The IASB requests comments to these proposals by 25 July, 2013.  View Article
EFRAG commented on recoverable amount disclosures for non-financial assets
EFRAG published its final comment letter to the IASB on its ED 'Recoverable Amount Disclosures for Non-Financial Assets (Proposed Amendments to IAS 36)'.  View Article
IFAC: Companies lagging on business model reporting
The CIMA, the IFAC, and PwC, at the request of the IIRC, released a background paper, 'Business Model', which highlights the business model as being at the heart of integrated reporting.  View Article
ACCA speaks at getstats event about gaps in public finance data
The [UK] Government's financial data and whether it is understandable was the central theme of a recent event attended by ACCA, organised by getstats, a campaign of the Royal Statistical Society.  View Article

Financial Services Policy

Bundesbank/Dombret: How regulation and crisis management will change the world's financial landscape
Dombret spoke about the future of the EMU, financial sector reforms, and changes to the financial landscape.  View Article
HoL EU Committee: EU Financial Transaction Tax - Financial uphill battle gets steeper
The House of Lords EU Committee has written to Greg Clark MP, Financial Secretary to the Treasury, to state that there is a case for a legal challenge against the proposal for a Financial Transaction Tax (FTT) to be adopted in 11 Member States.  View Article
City AM: Transaction tax missing its targets
The taxes on financial transactions across Europe have devastated market activity and failed to raise as much as politicians hoped.  View Article
Deutsche Bank: Financial Transaction Tax counterproductive
The Financial Transaction Tax (FTT) that 11 EU members, including Germany, France, Italy and Spain, are planning to implement in January 2014 is misguided, counterproductive and badly designed, says Deutsche Bank.  View Article
FN: Cracks appear in early FTT talks
Dividing lines have emerged over the scope of the proposal of the FTT, possible exemptions and the implementation timeline. There is also profound confusion as to how the tax will be enforced and collected, according to several lobbyists familiar with the negotiations.  View Article
FSA: FCA business plan and risk outlook published
The FSA has published the business plan and risk outlook for the Financial Conduct Authority (FCA) for 2013/14. The FSA will be replaced by the FCA and the Prudential Regulation Authority (PRA) on 1 April, 2013.  View Article

Graham Bishop’s Articles and Speeches

Graham Bishop: Cyprus - Will the deal last? Probably not
The business model of Cyprus is comprehensively shattered and it will urgently need development aid rather than new debt. This story is a long way from over.  View Article
Graham Bishop's Blog: Cyprus right at the brink
Breaking news about possible 'national solidarity fund' bond issue. Who will subscribe?  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