(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 live links to the underlying news - please click on the button)
Articles from 1-7 October 2021
General Financial Policy
Eurogroup: Main results - macro-economic developments, international meetings, work programme, banking union : Banking union update and reporting on operational aspects - impact of the COVID-19 pandemic on credit risk, structural transformation of the European banking sector and adjustments of business models driven by digitalisation and climate risk...
2022 Work Programme of the Joint Committee of the European Supervisory Authorities : The three ESAs regularly coordinate through the Joint Committee their activities within the scope of their respective responsibilities to ensure consistency in their practices. They further exchange information and best practices among themselves and with the ESRB.
FSB launches new financial stability surveillance framework : The framework supports the comprehensive, methodical and disciplined review of vulnerabilities by the FSB, and thereby helps to identify and address new and emerging risks to financial stability.
SUERF: The Path to Euro Area and Banking Union Membership: Assessing the Incentives for “Close Cooperation” and Adherence to the Exchange Rate : ECB announcement that both Bulgaria and Croatia were required entry to ‘close cooperation’ with their respective central banks ... after fulfilling the necessary supervisory and legislative steps prior to the inclusion of their respective currencies in the Exchange Rate Mechanism II (ERM II).
Banking Union
Commissioner McGuiness: Banking on the future: keynote address at the European Banking Summit 2021 : To move our banking sector forward, we need to think about new ways to increase profitability, resilience, digitalisation and sustainability.
EBA consultation on review on Guidelines for the Supervisory Review and Evaluation Process: EBF response : The EBF has commented on various parts of the consultation paper, which are further elaborated in the response.
EBA publishes its work programme for 2022 : For 2022, the EBA has set five vertical priorities - and two horizontal prorities
EBA Risk Dashboard points to stabilising return on equity in EU Banks but challenges remain for those banks with exposures to the sectors mo : The data indicate that banks are benefitting from the economic recovery with RoE remaining broadly similar to the previous quarter. Capital ratios remained stable and there was a further decline in NPL ratios.
MEP Giegold: PandoraPapers: Tougher measures against tax evasion and money laundering needed : “Tax evasion and money laundering continue to flourish through letterbox companies despite all past scandals. The policy measures taken after scandals like the Panama Papers are insufficient..."
MEP Giegold: Upside-down world at the EU finance ministers' meeting: After PandoraPapers, EU tax havens list gets slashed : At today's meeting of EU Economic and Finance Ministers (ECOFIN), a decision was made on the EU list of tax havens. Despite the biggest tax leak ever, the PandoraPapers, the list was shortened.
Capital Markets Union
EIOPA sets out its strategic priorities for the coming year : The European Insurance and Occupational Pensions Authority (EIOPA) has outlined its strategic priorities for the coming year, under the overarching goal of building a safe and sustainable EU for citizens in times of transformation.
FESE: New analysis of consolidated tape models recommends balanced approach : Provided data quality is improved and changes in market structure are implemented, a new cost-benefit study suggests a 15-minute delay post-trade tape would be the optimal starting position.
ISDA: Landmark Change in Interest Rate Derivatives Market as New Definitions Take Effect : ISDA has today announced the implementation of its new standard definitional booklet for interest rate derivatives, designed to ensure ISDA’s documentation keeps pace with changes in market practice, regulation and technology.
AFME says MiFID rules prevent conflicts of interest, but better supervisory convergence required on PFOF : AFME agrees that payment for order flow (PFOF) models are unlikely to be compatible with existing MiFID II rules on avoiding conflicts of interests and ensuring best execution outcomes for clients.
European Commission consultation on the functioning of the EU securitisation framework: EBF response : The EBF welcomes the initiative of the European Commission to comprehensively review the EU securitisation framework.
Environmental, Social, Governance (ESG)
Insurance Europe: Insurers welcome EC proposal for EU Green Bond Standard and suggest refinements to ensure its uptake : There are, however, some improvements that can be made to ensure the uptake of the EUGBS...
ESBG: Proposal for a Regulation on European green bonds : The European Commission adopted its proposal for a EUGBS in July 2021 and later launched a public consultation. In this context, ESBG has recently finalised a position paper that indicated some of the mainconcerns with the adopted proposal.
ISDA: Role of Derivatives in Carbon Markets : Companies subject to carbon compliance programs use carbon derivatives to meet their obligations and manage risk in the most cost-effective way.
IAIS Global Insurance Market Report provides first quantitative study on the impact of climate change on insurers’ investments : Drawing on unique quantitative and qualitative data gathered from the wide IAIS membership, analysis was carried out to better understand insurers’ asset-side exposures to, as well as supervisors’ views on, climate-related risks.
Protecting Customers
Insurance Europe: Relevance of DMD Directive must be reviewed and inconsistences with product specific rules — like the IDD — must be avoided :Insurance Europe highlighted concerns about the continued relevance of the DMD in the light of more recent product specific legislation, such as the Insurance Distribution Directive (IDD).
BETTER FINANCE response to the European Commission Consultation on Distance Marketing of Consumer Financial Services : While the Directive’s objectives are still relevant, it is unclear to what extent it contributes to addressing the current challenges consumers face when purchasing a financial service at distance i.e. online or off-premises.
BEUC: PUBLIC CONSULTATION ON THE DIRECTIVE ON DISTANCE MARKETING OF CONSUMER FINANCIAL SERVICES : it is crucial for EU legislation to adequately protect consumers when they purchase financial services
Fin Tech Regulation
FSB publishes progress report on the regulation, supervision and oversight of “global stablecoin” arrangements : The report notes that standard-setting bodies (SSBs), including BCBS, CPMI and IOSCO, are assessing whether and how existing international standards and principles may apply to stablecoin arrangements
IMF: Crypto Boom Poses New Challenges to Financial Stability : Crypto assets offer a new world of opportunities: Quick and easy payments. Innovative financial services. Inclusive access to previously “unbanked” parts of the world. All are made possible by the crypto ecosystem.
CPMI and IOSCO publish guidance, call for comments on stablecoin arrangements : The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) today published for public consultation preliminary guidance that confirms and clarifies that stablecoin arrangements should observe international standards for payment, clearing and settlement systems.
Economic Policies Impacting EU Finance
Parliament slams EU governments during debate on Pandora Papers : MEPs unanimously expressed indignation and disgust at the Pandora Papers revelations and criticised governments’ woefully inadequate response for over a decade.
Council:Taxation: Anguilla, Dominica and Seychelles removed from the EU list of non-cooperative jurisdictions : Twice a year the Council revises its list of non-cooperative jurisdictions and an accompanying state of play document. This practice was established in 2017 to promote global good governance in taxation and inform member states on which non-EU jurisdictions engage in abusive tax practices.