EBF Report on Integration of European Financial Markets

The EBF published its Report on the Integration of European Financial Services Markets. According to the report, the model of consolidated supervision has not yet become a full reality at EU level because EU authorities have not reached a common understanding of how the concept could work in practice.

PCAOB consultation on guidance on Inspections of Foreign Registered Public Accounting Firms

The PCAOB issued, for public comment, a proposed policy statement that identifies the factors relevant to “full reliance” by the Board on the inspections systems of its non-U.S. counterparts that are sufficiently rigorous to meet the level of protection for investors that is required by the Sarbanes-Oxley Act of 2002.

Consumer Affairs Council

The Council could not reach  political agreement on a common position concerning a draft Directive regarding the minimum requirements for enhancing working mobility by improving the acquisition and preservation of supplementary pension rights.

Mlex: No EU legislation for now on sovereign wealth funds

The European Commission has ruled out for now legislating against the threat of foreign state-backed investment funds with suspect motives taking stakes in Europe's strategic industries, according to commission president Jose Manuel Barroso.

BBC: UK to block EU market regulation

The UK finance minister, Alistair Darling, is trying to block attempts to centralise the regulation of EU financial markets. Mr Darling wants minor changes to the current system, which encourages co-operation between regulators in the individual member states.

Commission approves UK rescue aid package for Northern Rock

The Commission authorised the UK authorities' package of measures to support Northern Rock. The Commission concluded that the measures comply with EU rules on rescue aid.

FESE statement on T2S

FESE issued a statement on the Target2-Securities project contributing to the ongoing discussions and in particular the future governance structure of T2S.  FESE states that T2S seems to have changed in terms of its scope and definition. In more recent discussions it became clear that other market participants would be allowed to connect directly to T2S.

EUROFI conference reveals great support for further supervisory integration

The Brussels Eurofi conference revealed overwhelming support for further steps towards European-wide supervisory integration and an upgrade of the three Lamfalussy Committees. The different and far-reaching proposals of European officials were backed by key market players.

ECOFIN meeting

The Council held an exchange of views on a review of the Lamfalussy regulatory process for financial services carried out by the Commission and set out a roadmap of certain studies an actions to be undertaken by the different institutions. Council also held a policy debate on the Solvency II directive.

Commission approves acquisition of PPF's insurance business by Generali

The Commission has cleared the proposed acquisition of the insurance business of the Czech PPF Group N.V. by Assicurazioni Generali SpA of Italy. After examining the operation, the Commission concluded that the transaction would not significantly impede competition in the European Economic Area (EEA) or any substantial part of it.

Speech McCreevy on Sovereign Wealth Funds

Speaking at the meeting of the ALDE Group in Brussels, Commissioner McCreevy refused to undertake legal measures to restrict Sovereign Wealth Funds in Europe. He reminded that member states are entitled to block investments which have the potential to compromise national security.

Daily Telegraph: Pressure for EU 'FSA' after credit crunch

Momentum is building for the creation of an EU-wide "Super Regulator" to oversee financial markets and clamp down on short-term speculators. This could emasculate the Financial Services Authority and bring the City under the direct control of Brussels for the first time.

IPE: Banks tells MPs 'we made mistakes' on credit crunch

Executives from some of the world’s largest investment banks today admitted they may have made investment products so complex investors may not be fully aware of the risks of investing in package debt products, but denied MPs’ accusation the same institutions were ‘reckless’ in their activities.

UK Treassury: London maintains risk-based system

The UK will maintain its risk-based regulatory system, Kitty Ussher, Economic Secretary to the Treasury, said at a conference in London. “I know that there are those who argue that the events of the last few months have found our system of principles-based regulation wanting”, she said. ”I want to repeat here and now, that we absolutely reject that.”

FSA calls on lenders to protect themselves against a possible worsening of liquidity and credit risks

The FSA urged lenders to protect themselves against a possible worsening of liquidity and credit risks. Clive Briault, FSA Retail Managing Director, told the Council of Mortgage Lenders Annual Conference that “there is a very real prospect that conditions will worsen further into next year, in terms of both liquidity and credit risks.”

Speech Kroes: Key challenges and trends for Europe's retail payment systems

Speaking at the EUROFI Conference in Brussels, Commissioner Kroes expressed her concern that some of the arrangements in the SEPA framework as proposed by the banking community may not be suitable to reach their goals.  “I do not want to see low cost national card schemes being replaced by more expensive payment card schemes, using SEPA as an excuse and a pretext for this move”, she said.

EBF: Review of the Lamfalussy Process

Responding to the Ecofin Council’s conclusions on the Lamfalussy Process review, the EBF encourages the Council to pay special attention to key areas which include policy initiatives aimed at significantly reducing “goldplating” as they generate significant obstacles to the proper functioning of the Lamfalussy Process and undermine the efforts to create a Single Market.

EU Reform Treaty Final Act

The Portuguese Presidency published the final text of the reform treaty, which will be signed in Lisbon on 13 December 2007. “The ratification of the Lisbon Treaty will introduce a number of significant changes to our institution”, Javier Solana said. “One of those is the change of the six-month presidency system."

EC readies MasterCard card-fee decision for year-end

The Commission is in the final stages of preparing its long-awaited decision on MasterCard’s suspected abuse of payment card fees, with publication expected just before the Christmas break. Payments networks, retailers, banks and consumers are waiting to see if the decision succeeds in rewriting the rules for the cards industry as well as reducing shop-floor prices.

Speech McCreevy: Security Markets Consolidation and its Implications

Commissioner McCreevy outlined some of the recent developments of stock exchange mergers. “We are also witnessing MiFID-driven innovation”, he said mentioning the Project Turquoise, Project Boat, Chi-X, ICAP’s new ideas, and Equiduct. “This is what we want”, he continued. “We hope to see more to come”. 

OECD: Pension markets in Focus

The OECD published its fourth edition of ‘Pension Markets in Focus’, which reviews recent trends in long-term and retirement savings, their size and economic significance, and trends in asset allocation.

Daily Telegraph: EC to rule on sovereign wealth funds

The Commission is exploring plans for an EU-wide law to regulate sovereign wealth funds, a move that could vastly complicate the City of London's ability to serve as hub for the investment flows from Asia, the Middle East, and Russia. Joaquin Almunia said Brussels would soon submit proposals to EU governments and Euro-MPs, a use of wording that hints at a legally-binding directive.

Europeans predicted to 'shy away' from hedge funds

Growth in institutional hedge funds investments will stagnate in Europe, a panel argued yesterday during a discussion on the future of institutional hedge funds investments.

AMF recommends use the new Euronext classification structure

Euronext Paris published a notice informing the market that warrants and certificates admitted to listing on the four Euronext marketplaces would be classified upon admission. Euronext recognises two major categories, namely investment products and leveraged products.

10th China-EU Summit - Joint Statement

The Tenth China-EU Summit was held in Beijing on 28 November 2007. Premier Wen Jiabao of the State Council of China attended the meeting on behalf of the People’s Republic of China.

SEC proposal on Mutual Fund summary prospectus

The SEC published a prototype ‘summary prospectus’ for mutual funds. The proposed streamlined prospectus would let investors quickly learn key information about a mutual fund. “In three or four pages, an investor could get the important facts about a mutual fund in a quick and convenient way," said SEC Chairman Christopher Cox.

Commission proposes modernisation of VAT treatment of insurance and financial services

The Commission proposed a Directive to modernise the current VAT rules applied to 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.

EBF: Banks welcome revision of VAT regime

The EBF welcomed the Commission proposal for a Directive aimed at modernising and simplifying the current VAT-regime for financial and insurance services.The 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.

FT: City suffers 'damage' from Rock crisis

London's reputation as a financial centre has been damaged by the Northern Rock crisis, said Sir David Walker, the City grandee. He warned the credit squeeze was "materially worse" than initially expected. "I think we've had a pretty serious blip," said Sir David a former financial regulator and author of the new guidelines on disclosure for private equity.

Commission Guidelines for merging companies with vertical or conglomerate relationship

The Commission has adopted Guidelines for the assessment of mergers between companies that are in a so-called vertical or conglomerate relationship, also known as "non-horizontal mergers". The Guidelines will provide guidance to companies as to how the Commission will analyse the impact of such mergers on competition.

Plenary Meeting 28-29 November

MEPs debated the future of Europe, with Spanish Prime Minister José Luis Rodríguez Zapatero. Mr 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".

US Financial Services Roundtable calls for principles-based regulation

The Financial Services Roundtable unveiled the Blueprint for U.S. Financial Competitiveness, a plan of action which seeks to ensure that the U.S. maintains a competitive position in the global financial marketplace through principles-based regulation, eight "must do" reforms, and modernized charters and new national charter options.

CESR report on Market Abuse Directive

In response to the request of the Commission, CESR published its report on administrative measures and sanctions as well as the criminal sanctions available in member states under the Market Abuse Directive.