IOSCO final report on Private Equity

IOSCO published its final report on Private Equity. The paper identifies those issues generated by the activity of the private equity industry which potentially create risks that impact on IOSCO's objectives and principles, and also sets out the next steps to be taken by IOSCO.

IOSCO report on soft commissions arrangements for CIS

IOSCO published its report on Soft Commissions Arrangements for Collective Investment Schemes, concluding that that these kinds of arrangements present a challenge to regulators. The arrangements can be subject to abuses. The Standing Committee on Investment Management will continue to monitor regulatory developments to determine whether general principles can be developed.

Article Mario Draghi: Transformation in the European Financial Industry

Current developments in financial markets will probably lead to a divergence in banks' performance and stimulate cross-border consolidation. However, the consolidation process is not irreversible, nor does it take but one shape. 

EBF: Banks welcome revision of VAT regime

The EBF welcomed the Commission proposal for modernising and simplifying the current VAT-regime for financial and insurance services. EBF notes that the current VAT rules for financial services are one of the most important remaining obstacles to the efficient operation of a Single Market for financial services.

Plenary Meeting 28-29 November

Debate on the future of Europe: Spanish Prime Minister José Luis Rodríguez Zapatero staunchly supported both the work of the European Parliament and a strong Union. "Too often have we heard that Europe is in crisis", said Mr Zapatero, but he stressed "I do not share this pessimistic outlook". The new treaty should enable Europe to become "a beacon of progress and welfare.

Commission proposes modernisation of VAT treatment of insurance and financial services

The Commission proposed a Council Directive to modernise the current VAT rules applied on the supply of insurance and financial services. The proposal will create more certainty and security for Member States and for financial and insurance institutions by setting clear modern definitions of exempt services.

UK notifies Northern Rock bail-out for state aid clearance - but not all of it

The UK government has notified the European Commission of state aid granted to distressed bank Northern Rock, following a meeting in London between competition commissioner Neelie Kroes and UK Chancellor Alistair Darling.

Speech Olsen: FEE Conference on Audit Regulation in Brussels

Speaking at the FEE Conference on Audit Regulation in Brussels PCAOB Chairman, Mark Olson, revealed that the PCAOB has developed a framework for cross-border oversight, a staff proposal that the Board is scheduled to consider on 5 December. The policy statement would not be in the form of a new rule but rather further guidance on the implementation of Rule 4012.

NAPF to include advice on environmental issues in updated voting guidelines

Updated corporate governance policy and voting guidelines from the National Association of Pension Funds will include guidance on environmental issues for the first time. The new guidelines bring in directions on environmental, social and governance issues and guidance on markets outside the UK in recognition of their growing importance to pension funds.

Speech McCreevy: EU-US co-operation on reporting standards audit oversight and regulation

Speaking at the FEE Conference on Audit Regulation in Brussels, Commissioner McCreevy focused on EU – US relations. McCreevy criticised those who argue that the SEC should have accepted an EU brand of IFRS along with IFRS as adopted by the IASB.  “The difference between IFRS as adopted in the EU and IFRS as adopted by the IASB concerns one minor optional carve-out”, he said.

UK's Payments Council proposes end to cheques

The UK Payments Council is mulling plans to phase out paper-based cheques in favour of a UK-wide shift to automated and card-based payments. The proposals to eliminate cheques are part of a public consultation that will ultimately lead to the creation and adoption of a national payments plan.

NY to surpass London in IPO race

The amount of money raised through initial public offerings in New York is set to surpass London for the first time in three years as companies fuel a surge in IPO volume in spite of the turmoil in capital markets. The figures suggest recent efforts to improve the regulatory regime in the US are paying off.

BBA paper: Regulating a multi-jurisdictional bank

The BBA issued a paper on regulating a multi-jurisdictional bank, stating that regulatory co-operation across borders without political protectionism is essential to achieve the objectives of the Lisbon Strategy. The paper sets out the key principles which should govern the EUs regulatory framework.

BNP Paribas to provide post-trade processing for Nyfix dark liquidity ATS

French banking group BNP Paribas has agreed a deal to provide pan-European post trade services for Nyfix's Euro Millennium, an off-exchange trading system for listed cash equities that is expected to launch in early 2008.

Speech McCreevy: Blueprint for the Development of European Financial Services

Speaking at the association of Compliance Officers in Ireland Conference in Dublin, Commissioner McCreevy said that no further action with regard to pre and post trade transparency in the bond markets. “There is little evidence of market failure in the wholesale business”, McCreevy said. “No market failure, no regulation.”

Article: Preparing for the next financial crisis

There is a natural tendency for financial regulators and supervisors to fight the last battle, looking for systemic weaknesses revealed by the most recent crisis. It happened after the 1987 stock market crash, during the Asian crisis, and again following the LTCM collapse. And it seems almost certain to happen again this time.

CESR: A proposed evolution of EU securities supervision beyond 2007

CESR issued a document outlining possible future steps for the evolution of EU securities supervision contributing to the review of the Lamfalussy approach for the regulation of European Securities Markets. Uniform supervisory behaviour should not be expected within the current framework as CESR members may have no alternative but to respect legitimate national discretions.

Speech Trichet: Global Capital – Threat or Salvation

Speaking at the Frankfurt European Banking Congress Jean Claude Trichet, President of the ECB, outlined some first provisional lessons which can already be drawn from the sub-prime market turbulences. Pointing on the role rating agencies play in structured credit markets he noted that “some investors may also have misinterpreted the risk dimensions covered by a rating".

Clearstream launched Euro Night-time Funding Link service

Clearstream launched its Euro Night-Time Funding Link service to TARGET2. This service will allow customers to access their liquidity held in TARGET2 Real Time Gross Settlement accounts and make it available for the settlement of transactions in euro during Clearstream’s night-time processing.

Banks face mortgage regulation in new EC paper

A draft copy of the European Commission's new White Paper on Mortgage Credit reveals plans for new regulation in the mortgage industry in the areas of early repayment, pre-contractual information and APRs, contrary to the expectation that banks would get off lightly in the new policy document. 

IOSCO principles for the valuation of Hedge Fund Portfolios

IOSCO published its ‘Principles for the Valuation of Hedge Fund Portfolios’ focussing on principles for valuing the investment portfolios of hedge funds and the challenges that arise when valuing illiquid or complex financial instruments.