Eurostat: Euro area inflation estimated at 3.2%

31 January 2008

Eurostat published its flash estimate on the Euro area annual inflation which is expected to be 3.2% in January 2008. View

BIS: Provisional international banking statistics, third quarter 2007

31 January 2008

The BIS released today provisional data for the end of the third quarter of 2007 for both its locational and consolidated banking statistics together with a short commentary. The contraction in new credit affected mainly non-banks, while there were compensating shifts in claims on banks between some financial centres. View

Telegraph: FSA warns SocGen scandal could happen in UK

30 January 2008

The FSA has warned that the global credit crunch has ramped up the risks of a rogue trader scandal, such as the Société Générale affair, washing up on British shores. View

FT: FSA warns of more credit crunch pain

30 January 2008

The banking world is facing its most difficult time since the recession of the early 1990s, the financial regulator said on Tuesday, as it warned that the credit crunch would take its toll on consumers too. View

IFRIC Update January 2008

30 January 2008

The IASB issued its latest IFRIC update. Issues include IFRIC D22 Hedges of a Net Investment in a Foreign Operation, and IAS 37 Provisions, Contingent Liabilities and Contingent Assets. View

finextra: European stock exchanges facing 'perfect storm'

30 January 2008

Lee Hogkinson, CEO of virt-x says Europe's incumbent exchanges are about to enter a 'perfect storm' of new competition driven by powerful forces of deregulation and tremendous advances in the speed and intelligence of trading technology. View

Telegraph: Increased powers for FSA

30 January 2008

Banks will have to provide more information to regulators and hand over control if they get into difficulty under new Government plans. Depositors will also have to be paid out within a week under a savers' compensation scheme. View

FT: EU leaders take credit rating agencies to task

30 January 2008

Credit rating agencies were warned by European leaders at a “credit crunch” summit in London to address conflicts of interest and provide better information to the markets or face new regulation. View

HM Treasury: Consultation on Financial stability and depositor protection

30 January 2008

The Chancellor of the Exchequer launched a consultation outlining proposals to strengthen the current framework for financial stability and depositor framework. View

BaFin Quarterly Q4/07

30 January 2008

BaFin released its latest Quarterly newsletter concentrating on the new outsourcing requirements (MaRisk). The newsletter also reports on CESR’s discussions to harmonise securities regulation, and the new capital requirements for credit lines within the Basel II agreement. View

Speech McCreevy: Opportunities and challenges of the internationalisation of financial markets 

30 January 2008

Commissioner McCreevy outlined the role of European legislation as a standard setter worldwide, and the regulatory dialogues under way with the US, Japan, China, Russia and India to promote the EU’s regulatory approach. View

finextra: Turquoise primes for September launch

30 January 2008

Turquoise is being prepped for a live launch in September, with trading in 300 stocks and a roster of top market-makers on board from day one, CEO Eli Lederman told a packed conference at Finexpo in London. View

FT: China concerns delay HK trade by mainlanders

30 January 2008

China’s worries over the subprime debacle are contributing to delays in allowing individual mainland citizens to buy shares on the Hong Kong stock market, the head of the self-governing territory’s central bank said on Tuesday. View

CEA / CRO joint letter on MCR

30 January 2008

The European Insurance industry has strongly supported the Solvency II directive proposal. In particular both CEA and the CRO Forum support the underlying economic risk-based approach, which allows for a system that reflects the true risk profile and risk mitigation schemes of insurance firms. View

Interim Report on the Activities of CESR

30 January 2008

CESR published its half-yearly report on its activities which complements CESR’s Annual published in September 2007. The report provides a half yearly update on CESR’s activities, provides an overview of ongoing procedures and also outlines the next steps to be taken on separate policy issues.  View

IASB Update January 2008

30 January 2008

The IASB issued its January Update. The January update includes, amongst others, issues on IAS 24 Related Party Disclosures, financial instruments, liabilities and equity, and insurance contracts. View

EFRAG final comment letter on ED of proposed improvements to IFRS

29 January 2008

EFRAG has completed its due process regarding the Exposure Draft of Proposed Improvements to International Financial Reporting Standards.  “There is no doubt that some very detailed aspects of existing standards are causing problems and need to be addressed", EFRAG states. View

IMF World Economic Outlook update predicts growth decline

29 January 2008

An IMF update of the key WEO projections states that the global economic expansion has begun to moderate in response to continuing financial turbulence. Global growth is projected to decelerate from 4.9 percent in 2007 to 4.1 percent in 2008. View

Speech McCreevy: Making the Single Market work better for business

29 January 2008

Commissioner McCreevy announced the European Private Company Statute to be proposed by mid 2008.  McCreevy underlined the need to harmonize standards and rules within the EU as they can facilitate doing business across the EU. View

FSA Financial Risk Outlook

29 January 2008

The FSA published its financial risk outlook  warning firms and consumers of the risks inherent in a significantly less benign economic environment. Financial markets could be more vulnerable to external shocks and the impact of shocks on firms could be bigger than it was in previous years, the report states. View

FT: EU heavy hitters review market turmoil

29 January 2008

French President Nicolas Sarkozy will use a “credit crunch” meeting in London on Tuesday to call for order to be imposed on a financial system that “sometimes seems out of control”. View

IMF Sees World Growth Slowing, With U.S. Marked Down

29 January 2008

Buffeted by recent financial market turbulence and a weakening U.S. performance, world growth is projected to slow to 4.1 percent in 2008, down from an estimated 4.9 percent last year, the IMF said in its quarterly update for the global economy. View

IMF urges policies to rebuild from subprime crisis

29 January 2008

The IMF urged countries affected by the subprime meltdown to adopt policies to address both near-term stresses and longer-term financial stability, with the aim of reducing uncertainty and strengthening the soundness of financial institutions. View

Commission study on EU conveyancing services market

29 January 2008

The Commission published a study by independent consultants on the EU markets for legal services associated with house and land sales.  The study finds that consumers have greater choice and are on average paying less for conveyancing services under deregulated systems, with no loss in quality. View

Telegraph: Northern Rock shows up mess of Basel rules

29 January 2008

Now that some sort of resolution of the Northern Rock affair seems imminent, the question arises of how to prevent similar episodes in future. More specifically, do governments and regulators need to introduce more rules for banks? And should such rules be international in scope? View

PCAOB approves New Auditing Standard No. 6: Evaluating Consistency of Financial Statements  

29 January 2008

The PCAOB adopted Auditing Standard No. 6, Evaluating Consistency of Financial Statements, and an accompanying set of amendments to the Board's interim auditing standards.  “Auditing Standard No. 6 will improve the quality of the auditor’s reporting on items that affect the consistency of financial statements” said Mark Olson, PCAOB chairman. View

ECON meeting 29 January

29 January 2008

 Ieke van den Burg presented her draft opinion on "A simplified business environment for companies in the areas of company law, accounting and auditing". ECON also held an exchange of views with Slovenian Finance Minister Bajuk on the Slovenian Presidency programme. View

Commission and ECB joint statement on SEPA launch

28 January 2008

The ECB and the European Commission welcome the official launch of SEPA and acknowledge the substantial preparatory work undertaken by European banks, through the aegis of the European Payments Council, to create SEPA. View

Telegraph: Turquoise moves closer to launch

28 January 2008

Secondary trading platform Project Turquoise is to move a step closer to launching after choosing partners to offer a real-time trading surveillance system. The platform is already facing delays having originally expected to be up and running in November 2007. View

EFRAG Discussion Paper on Equity and Liabilities

28 January 2008

EFRAG published a Discussion Paper “Distinguishing between Liabilities and Equity” on behalf of the Pro-active Accounting Activities in Europe (PAAinE). The paper was developed by the German standard-setter and presents the so-called loss absorption approach. View

Commission cost-benefit study on SEPA

28 January 2008

The Commission published a major study into the costs, benefits and opportunities created by SEPA. The study shows that, in the most favourable scenario, the net benefits to payments markets over the next six years could amount to as much as 123 billion euros with users gaining most. View

CEA supports risk–based economic approach on Solvency II

28 January 2008

The CEA confirms its support for the risk–based economic approach adopted in the framework draft Directive on Solvency II. "It is the pre-condition to building a prudential system that reflects the risk profile of the undertakings, and achieves appropriate harmonisation in supervisory practices across Europe." CEA President Gérard de la Martinière said. View

finextra: Sepa goes live

28 January 2008

The first stage implementation of the single euro payments area has gone live with the official launch of the Sepa payment instrument for credit transfers. The Sepa credit transfer scheme will enable euro credit transfers to be made within a maximum of three days, without any deductions from the principal amount. View

Commission implementing measures on Statutory Audit Directive

28 January 2008

The Commission services proposed an implementing measure of the Statutory Audit Directive. The published working document contains a draft Commission Decision concerning a transitional period for audit activities of certain third country auditors and audit entities. View

IPE: Schemes warned of deficit risk from markets

28 January 2008

Falling equity markets combined with lower bond yields and increasing longevity could push schemes back into deficit in 2008, the International Financial Services London has warned. View

CEBS and CEIOPS joint consultation on IWCFC recommendations on capital for financial conglomerates

28 January 2008

The IWCFC launched a formal consultation on its advice to the Commission on the consequences of the differences in sectoral rules on eligible capital for the supervision of financial conglomerates. View

FT: Trading troubles at SocGen make waves in China

28 January 2008

The trading scandal at Société Générale has grabbed the attention of regulators round the world – but nowhere more so than Beijing. Regulators are terrified of trading disasters. View

IMA figures reveal institutional outflows of £481m

28 January 2008

Asset managers suffered net institutional outflows of £481m in December, latest figures from the Investment Management Association show. View

European banks celebrate the launch of SEPA

28 January 2008

The Presidents of the three European Credit Sector Associations EBF, ESBG, and EACB welcomed the achievement of joint efforts by banks and European institutions. “Banks are not solely responsible for the future final achievement of SEPA”, declared Michel Pébereau, President of the European Banking Federation and Chairman of BNP Paribas. "all stakeholders must be actively committed". View

Telegraph: Sovereign wealth funds need code of conduct

27 January 2008

In Davos last week, Mervyn Davies, the chairman of Standard Chartered, said sovereign wealth funds should together draw up a code of conduct to govern their investment behaviour. If they don't, the state-backed SWFs, which control assets worth at least $2,000bn, risk being branded "irresponsible". View

UK Treasure Committee: The Run on the Rock

26 January 2008

The Treasure Committe's Fifth Report analyses the causes and consequences of the run on Northern Rock, and the lessons to be learnt from it. The directors of Northern Rock were the principal authors of the difficulties that the company has faced since August 2007, the report states. View

IPE: MEP supports need for ‘pillar model’

25 January 2008

A member of the European Parliament has backed fresh calls for the creation of a pensions pillar ‘model’ which could help to support the development of Europe-wide pensions legislation. Ieke van den Burg said she believed it was necessary to create a general model for pensions funding which recognised the role of State pensions in retirement but made it clear where ‘second pillar’ finished and ‘third’ pillar schemes started. View

FT: Regulators may force banks into greater disclosure

25 January 2008

Banks that produce complex and illiquid derivative products that have been at the heart of the credit squeeze may be forced to provide more information about them on public stock exchanges. View

US Key House lawmaker Frank says regulation needed to steady financial sector

24 January 2008

House Financial Services Committee Chairman Barney Frank said today that the recent market turmoil shows the need for increased regulation of the financial services sector, and vowed to pursue legislation to that end this year.  View

Speech Smaghi: Rapid progress is needed towards a single regulatory approach

24 January 2008

In a speech given in Milan, Lorenzo Smaghi, Member of the ECB Board outlined the Lamfalussy process asking whether financial market developments necessitate substantial improvements in the quality of the European regulatory set-up.  “Rapid progress is needed towards a single regulatory approach", he said. View