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The German Presidency gets underway amidst a welter of historic developments – with a stark warning to the UK. Germany also makes some unfortunate history: a staggering fraud at formerly–iconic Wirecard. The Commission’s digital finance strategy consultation draws very positive feedback. The Single Market for ordinary people takes some genuine steps forward: consumers can now get effective redress cross-border, the Commission consults on the retail payments strategy and the Instant Credit Transfer limit is raised to €100,000 (so why do we need cyber money??).
Brexit: the “extension” window shuts, Merkel is blunt that the talks could fail and EU negotiator Barnier on UK financial service proposals “I will be blunt: its proposals are unacceptable”
Graham Bishop
(This e-mail provides the headers of a selection of the articles published this week. If you would like to upgrade to our Gold service and access all articles - with liive links to the underlying news - please click on the button)
Articles from 26 June to 2 July
General Financial Policy
Programme for Germany’s Presidency of the Council of the European Union: together for Europe’s recovery. : It is more important now than ever before to set clear priorities and to join forces. Germany is well aware of its responsibility for the European Union.
EURACTIV: Merkel kicks off EU presidency with Brexit warning : The European Union must prepare for the possibility that talks with Britain on their post-Brexit relationship could fail, Chancellor Angela Merkel warned Wednesday (1 July) as Germany took the helm of the bloc’s rotating presidency.
FCA: Building a financial regulatory system suitable for the UK in the new era : The ‘new era’ will be defined by developments brought about by Brexit, Covid-19 and technological and societal changes. On Brexit, we all need to continue to prepare for a range of scenarios, to be ready for the end of the year
Banking Union
European Liberal Forum: Banking Union: imminent crisis and possible solutions : The Banking Union is an essential pillar of the Economic and Monetary Union. However, it is still not completed and not as resilient and weather-proof as one would wish. View Article
VOX: Usable bank capital : The COVID-19 induced ‘Great Lockdown’ has cast doubt on the efficacy of bank buffers in supporting the real economy in times of crisis. Despite accommodative regulatory and supervisory action, banks remain hesitant to draw on their buffers to maintain credit provision.
Financial Institutions
Insurance Europe: Views on EIOPA’s Solvency II holistic impact assessment : Insurance Europe considers Solvency II to be unnecessarily conservative and that a net reduction in aggregate capital levels is justified.
Banking Union
SCT Inst transaction limit increased to 100,000 euros : As of today, the maximum amount per Instant Credit Transfer transaction went up from 15,000 to 100,000 euros. Payment end-users can use the scheme in higher-value business-to-business and business-to-consumer transactions.
Retail payments strategy for the EU: EBF response to the Commission consultation : The EBF has responded to the Commission consultation on retail payments strategy for the EU.
Capital Markets Union
ICSA, EFAMA & MFA Call for Global Principles to Address Escalating Market Data Costs : They call for the implementation of internationally recognized principles to address excessively high market data fees and unfair licensing provisions.
IA: Traders call for an end to outdated market hours in Europe : Traders in the investment management and banking industries have continued their call for a reduction to market trading hours, making the case to the pan-European exchange, Euronext.
ISDA: New Survey on Derivatives Market Liquidity and COVID-19 : The survey explores the impact of the coronavirus pandemic on derivatives market liquidity. The survey investigates the causes of the liquidity disruption that occurred in March 2020, the scope and extent of the problem, and the impact of government intervention.
Protecting Customers
EU consumers obtain access to collective redress : Consumers across the EU are about to be granted broader opportunities for the collective defence of their rights.
Environmental, Social, Governance (ESG)
Better Finance: Wirecard AG: an outrageous case of corporate governance, external auditing and supervisory failures, once again at the expen : It is with surprise that BETTER FINANCE and its member organisations representing financial services users read the headline on 18 June 2020 that Wirecard AG (“WD”), one of Europe’s FinTech success stories, may have mis-reported €1.9 bn in its balance sheets, filling for insolvency in a few days.
FT: Audit review head calls for urgent reform after Wirecard scandal : Firms should have ‘obligation to find fraud rather than stumble over it’, says City heavyweight Donald Brydon
IBA: The rise of ESG engagement : Investor engagement with environmental, social and governance (ESG) factors has risen over the last two years. Business reaction to the Covid-19 pandemic has underscored the importance of these three areas to the long-term survival of businesses and societies ...likely to bring about lasting change.
IOSCO encourages issuers’ fair disclosure about COVID-19 related impacts : The Board of IOSCO issued a public statement highlighting the importance to investors and other stakeholders of having timely and high-quality information about the impact of COVID-19 on issuers´ operating performance, financial position and prospects.
Fin Tech Regulation
The EBA supports the Commission’s proposal for a new Digital Finance Strategy for Europe : The EBA is committed to securing technology neutrality in regulatory and supervisory approaches and strongly supports the Commission’s initiative towards a new Digital Finance Strategy.
ESMA response to EC consultation on a new Digital Finance Strategy for Europe : ESMA welcomes the Commission’s consultation and notes that it builds on the 2018 FinTech Action Plan that set a number of deliverables for the ESAs, all of which were completed.
ICMA responds to European Commission Consultation on a new digital finance strategy for Europe / FinTech Action Plan : ICMA has responded notably to questions on the use of identifiers (LEI, UTI, UPI), access to publicly available data, areas for AI-applications in the financial sector, and standardising concept definitions and reporting obligations.
Brexit
Eurofi: Barnier Update on EU-UK financial services relations in the post Brexit context : "We are proposing to include...a chapter on financial services..Our proposals would give UK operators legal certainty that they would not face discrimination ... And the same for EU operators in the UK. The UK, however, is looking to go much further.I will be blunt: its proposals are unacceptable."
FT: Recriminations fly between EU and UK over financial services : Talks over market access rights for City of London after Brexit make little headway
EPC: Vox, bank capital, drawdown : Negotiations of the post-Brexit agreement has stalled. The British still seem to be fighting the Brexit referendum campaign. The EU reacts with orthodox positions to defend the single market.
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