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Articles from 8-14 April 2022
General Financial Policy
Future of Europe: Conference nears finalisation of policy recommendations : The final Conference Plenary session is scheduled for 29-30 April in Strasbourg, where proposals are expected to be approved by the Plenary on a consensual basis, with a final say of the citizens component.
JOINT COMMITTEE REPORT ON RISKS AND VULNERABILITIES IN THE EU FINANCIAL SYSTEM MARCH 2022 : This makes financial markets vulnerable to a deteriorating market sentiment, particularly if financial conditions should tighten unexpectedly due to inflationary pressures. V
Banking Union
EBA issues an opinion on the European Commission’s proposed amendments to the EBA final draft technical standards for own funds and eligible liabilities: In the Opinion the EBA expresses its disagreement with two substantive changes proposed by the Commission and agrees with the other amendments, which are considered non-substantive.
Capital Markets Union
European Commission: Targeted consultation on the functioning of the Money Market Fund Regulation : The Money Market Fund Regulation (EU Regulation 2017/1131 - MMFR) requires the Commission to submit a report to the co-legislators assessing the adequacy of this Regulation from a prudential and economic point of view.
EBA publishes final draft technical standards on the risk retention requirements for securitisations : These RTS aim to provide clarity on the risk retention requirements ensuring a better alignment of interests and reducing the risk of moral hazard, thus contributing further to the development of a sound, safe and robust securitisation market in the EU.
ESMA: Guidelines On certain aspects of the MiFID II appropriateness and execution-only requirements : ESMA expects these guidelines to promote greater convergence in the application of, and supervisory approaches to, the MiFID II appropriateness and execution-only requirements.
EIOPA calls for changes to stress test disclosure regime : EIOPA believes that a consistent and disciplined communication of individual stress test results would enhance market discipline, increase participants’ commitment and contribute to a level playing field among insurers and across the financial sector, resulting in a healthier insurance industry.
ECON: Initial Appraisal of a European Commission Impact Assessment: Solvency II review : This briefing provides an initial analysis of the strengths and weaknesses of the EuropeanCommission's impact assessment (IA) accompanying the above-mentioned proposals, submittedon 22 September 2021 and referred to the European Parliament's Committee on Economic andMonetary Affairs (ECON).
Better Finance: Is the Trade Body of European Asset Managers Putting its Interests over End Investors? : Asset managers (“other people’s money”) are not investors. Rather, they manage assets for investors, those who bear the risks and reap the rewards (net of fees) of investing. And end investors are mostly “retail” ones: EU citizens.
Environmental, Social, Governance (ESG)
Sustainable finance: Council agrees its position on European Green Bonds : This regulation lays down uniform requirements for issuers of bonds that wish to use the designation ‘European Green Bond’ or ‘EuGB’ for their environmentally sustainable bonds made available to investors in the Union
STUDY Requested by the ECON committee: Green Bonds : An assessment of the proposed EU Green Bond Standard and its potential to prevent greenwashing
EuropeanIssuers contributes to Consultation on Upgrading Digital Company Law : Overall, EuropeanIssuers considers that there is no further need to harmonise information requirements for limited liability companies at EU level, as the current framework already extensively foresees provisions which are also easily accessible via the BRIS system.
Fin Tech Regulation
Commissioner McGuinness at the launch of the EU Digital Finance Platform : The new EU Digital Finance Platform, that we are officially launching today will play a part in continuing our work on digital innovation.
ESMA's Ross: Launch of the EU Digital Finance Platform : Today we have launched an important joint initiative between the EC, ESAs and nationalcompetent authorities. As proposed by the EU Digital Finance Strategy, the Digital FinancePlatform will support financial innovation and embrace digital technologies, for the good of our economy and EU citizens.
BIS: Central bank digital currencies: a new tool in the financial inclusion toolkit? : Central banks are considering how retail central bank digital currencies (CBDCs) may help support financial inclusion.
ECB's Panetta: More than an intellectual game: exploring the monetary policy and financial stability implications of central bank digital cu : Research about CBDCs is much more than just a game. Issuing CBDCs is likely to become a necessity to preserve access to public money in an increasingly digital economy.
IMF blog: Fast-Moving FinTech Poses Challenge for Regulators : Emerging firms are quickly making inroads into critical financial services, and often taking on more risk than traditional banks.
European Parliament: Cryptocurrency dangers and the benefits of EU legislation : The use of crypto-assets and the technology behind them has provdn to be both immensely promising and problematic. The EU wants to help boost the development of these technologies and their use in the EU, while protecting users.
Vox: Central bank digital currencies, community currencies, and the reinvention of money : Some countries have issued their own central bank digital currencies, and many European economists favour such a currency too. This column shows that when properly designed, central bank digital currencies can help stabilise the financial and monetary system.
Brexit and the City
City AM: City firms launch recruitment drive despite Brexit warnings : City firms are scrambling to snap up the best talent in the financial services industry, suggesting the London
Brexit
City AM: Made in Britain: As Brexit and Covid dismantle supply chains, UK manufacturing on verge of a renaissance amid ‘reshoring’ boom : As the government admitted last week that there are ‘significant challenges’ to UK stock levels because of Brexit and Covid, is reshoring then perhaps the answer?
City AM: Brexit onslaught deepens as a third of all UK exporters to EU simply vanish due to red tape knockout: ‘Really worrying numbers’ : The number of UK businesses exporting goods to the EU fell 33 per cent to 18,357 in 2021, from 27,321 in 2020, according to new data from HMRC.