Follow Us

Follow us on Twitter  Follow us on LinkedIn
 
Home>Weekly Email - Lite
Print Page Save to My Library <Next Article  Previous Article>
23 November 2017

This week in "Brussels"
Jump directly to
Banking UnionCapital Markets UnionInsurance
Asset ManagementCorporate Governance/AccountingMarket Abuse
Graham's Articles, Comments & SpeechesEconomic Brexit & UK
About this email

Articles from 16 November 2017 - 23 November 2017

Banking Union

EBA publishes methodology for the 2018 EU-wide stress test
The EBA published its final methodology for the 2018 EU-wide stress test, following a discussion with industry in summer 2017. The methodology covers all relevant risk areas and, for the first time, incorporates IFRS 9 accounting standards. 
FSB publishes 2017 G-SIB list
The Financial Stability Board (FSB) published the 2017 list of global systemically important banks (G-SIBs) using end-2016 data and an assessment methodology designed by the Basel Committee on Banking Supervision (BCBS). 
BIS: Further details on the assessment of global systemically important banks
In connection with the publication by the Financial Stability Board of the updated list of global systemically important banks (G-SIBs), the Basel Committee on Banking Supervision has released further information related to the 2017 G-SIB assessment.  
EBA updates list of CET1 instruments
The European Banking Authority published its sixth updated list of capital instruments that Competent Authorities (CAs) across the European Union have classified as Common Equity Tier 1 (CET1). 
EBA observes good progress in implementation of SREP Guidelines but challenges remain
The EBA published its third annual Report on the convergence of supervisory practices across the EU. The Report reviews consistency in the application of the SREP in order to promote comparable supervisory approaches and consistency in supervisory outcomes across the single market.  
ECB's Lautenschläger: The European banking sector - the big challenges
The Vice-Chair of the Supervisory Board of the ECB focused on the two main risks for EU banks: non-performing loans, Brexit. In addition to that, Lautenschläger discussed a third topic which is closely connected to risk: capital buffers, and how to calculate them using internal models. 
EBA publishes final Guidelines on the estimation of risk parameters under the IRB Approach
These Guidelines aim to restore market participants' trust in internal models by reducing the unjustified variability in their outcomes, ensuring comparability of risk estimates while at the same time preserving risk sensitivity of capital requirements. 
ECB's Draghi: Hearing of the Committee on Economic and Monetary Affairs of the European Parliament
ECB President Mario Draghi discussed the outlook for the euro area economy and the recalibration of ECB‘s monetary policy measures, as well as the role of TARGET2 in supporting financial integration and the implementation of ECB’s monetary policy. 
Bruegel: Sovereign concentration charges: A new regime for banks’ sovereign exposures
Europe’s banking union has been central to the resolution of the euro-area crisis, but remains unfinished business. If it remains in its current halfway-house condition, it may eventually move backwards and fail. EU leaders should seize these opportunities, authors at Bruegel suggest. 
European Payments Council: Instant credit transfers are now a reality in eight European countries
The SEPA Instant Credit Transfer (SCT Inst) scheme created by the European Payments Council is operational. Nearly 600 payment service providers (PSPs) from eight European countries are now offering instant payment solutions based on SCT Inst.  
EBA welcomes Council decision on its relocation
The European Banking Authority (EBA) welcomes the Council's decision on its relocation to Paris, in light of the UK's intention to withdraw from the EU.  
OECD: Zombie firms, weak banks and depressed restructuring in Europe
This paper presents robust evidence that zombie firms are more likely to be connected to weak banks. Authors use two different zombie definitions with very similar results, and none of them depends on new lending, but indebtedness, so we account for forbearance. 

Capital Markets Union

AIMA: Steven Maijoor speaks about ESMA priorities in 2018
The Chairman of the European Securities and Markets Authority identified key principle workstreams for ESMA for 2018 and discussed ESMA's measures regarding Brexit. 
Capital markets union: Council adopts securitisation rules
The new rules are part of the EU’s plan to develop a fully functioning capital markets union by the end of 2019. Developing a securitisation market will help create new investment possibilities and provide an additional source of finance, particularly for SMEs and start-ups. 
ECB's Mersch: Securitisation revisited
In his speech, Yves Mersch, Member of the Executive Board of the ECB, addresses the following questions: Is securitisation part of CMU agenda? It is not helping banks to sanitise their balance sheets more rapidly when there is such a great need? 
AFME welcomes a report by Expert Group on European Corporate Bond Markets
AFME, as a member of the expert group which was set up with a view to improving the efficiency and resilience of corporate bond markets, contributed to the report reviewing the functioning of the European corporate bond markets, in the context of building a Capital Markets Union. 
Investment & Pensions Europe: MiFID II: Asset managers to rely less on third-party research
More than three-quarters of European investment professionals expect to source less research from external providers after MiFID II is implemented in January, according to a survey by the CFA Institute. 
ESMA updates Q&A on CSDR implementation
ESMA published an update of its Questions and Answers regarding the implementation of the Central Securities Depository Regulation. 
ESMA publishes final report on Money Market Funds rules
The final report contains final versions of the technical advice, draft ITS, and guidelines on stress test scenarios carried out by MMF managers under the MMFR. The key requirements relate to asset liquidity and credit quality, the establishment of a reporting template and stress test scenarios carried out by MMF managers. 
ESMA updates its EMIR Q&A
ESMA issued an update of its Q&A on practical questions regarding the European Markets Infrastructure Regulation. 
ESMA consults on calculation of derivative positions
ESMA published for public consultation future guidelines on the calculation of derivative positions by trade repositories authorised in the European Union under the European Market Infrastructure Regulation. 
ISDA/AFME Briefing Note on SA-CCR
SA-CCR, a methodology to calculate the capital required to address the risk that the counterparty to a derivative contract will not live up to its contractual obligations, is a replacement for two existing ‘simple’ and outdated non-modelled exposure methods – CEM and SM. 
ESMA issues clarification on the rotation periods of CRA’s analysts
ESMA has published an update to its Q&A on the application of the CRA Regulation, adding a new section on Organisational Requirements.  

Insurance

FSB statement on identification of global systemically important insurers
The Financial Stability Board (FSB), in consultation with the International Association of Insurance Supervisors (IAIS) and national authorities, has decided not to publish a new list of global systemically important insurers (G-SIIs) for 2017. 
Commercial Risk Europe: FSB reconsidering GSII ‘too big to fail’ criteria – report
Global financial regulators have decided to throw out the ‘too big to fail’ gauge for assessing the riskiness of insurers, according to a report from Reuters that cites a source briefed on the matter. 
EIOPA identifies a search-for-yield trend in the investment behaviour of insurers
As part of its supervisory response to the ongoing low yield environment, the European Insurance and Occupational Pensions Authority published survey results analysing trends in the investment behaviour of European insurers over the past 5 years.  
Investment & Pensions Europe: EU and UK insurers flag concerns about liability accounting rules
A lack of transparency from the International Accounting Standards Board (IASB) has hampered efforts to prepare for the introduction of a new insurance company liabilities standard, according to a group of European insurers. 
EIOPA: Insurance and pensions reloaded: A game changer
Mr. Bernardino touched upon four themes that cross over the main strategic priorities of EIOPA: maintaining sound regulation in an evolving landscape; the building up of a common European supervisory culture; reinforcing consumer protection in a digital age and preserving stability.  

Asset Management

Invest Europe: Global investors set to increase investment in Europe
The majority of global investors polled in a new survey for the launch of Invest Week believe Europe has become a more attractive investment destination and expect investment to increase. Global investors showed surprising disparities in their investment decisions due to Brexit. 

Corporate Governance/Accounting

BCBS: Monitoring Group proposes reforms to global audit standard setting
The Monitoring Group, consisting of public authorities responsible for monitoring the international audit standard-setting process, has issued a consultation paper setting out options to enhance the independence, relevance and transparency of international audit standard setting in the public interest. 
EFRAG: IFRS 17 case study
EFRAG is calling for expressions of interest from European insurance companies in participating in a case study in connection with EFRAG’s endorsement advice on IFRS 17 Insurance Contracts. 
IASB: What investors ask about IFRS 17
Six months ago, the IASB issued IFRS 17 Insurance Contracts. This new IFRS Standard replaces the requirements for accounting for insurance contracts in IFRS 4 Insurance Contracts from 1 January 2021. 
ACCA´s report on IPSAS implementation
The ACCA´s examination of different countries suggests IPSAS adoption has started to provide significant and common advantages across the public sector, yet important challenges remain in the roadmap to full adoption. 
Accountancy Europe: Member State implementation of EU non-financial information directive
A CSR Europe and GRI published in collaboration with Accountancy Europe a comprehensive overview of how Member States are implementing the EU Directive on Non-financial and Diversity Information. 
FRC announces 2018/19 thematic reviews to stimulate improvement in corporate reporting and auditing
The FRC will, in 2018/19, supplement its routine monitoring programme with a series of thematic reviews of certain aspects of corporate reports and audits where there is particular shareholder interest, and scope for improvement and learning from good practice. 

Market Abuse

ESMA updates Q&A on MAR
ESMA updated its Questions & Answers document regarding the implementation of the Market Abuse Regulation. 

Grahams Articles, Comments & Speeches

Likelihood of a no-deal on the rise: The no-Brexit option finds its way back to the table - 135th Brussels for Breakfast – CPD Notes
The downs-and-downs of the Article 50 negotiations so far have put into focus the harsh reality of Brexit: there is no alternative to EU membership that is even better than being a member state, but rather a binary choice: to be ‘in’ or ‘out’ of the largest economic market in the world. 

Economic

Annual inflation down to 1.4% in the euro area
Euro area annual inflation was 1.4% in October 2017, down from 1.5% in September. European Union annual inflation was 1.7% in October 2017, down from 1.8% in September.  

Brexit & UK

The Guardian: Rule of law in UK at risk after Brexit, says former supreme court president
Top legal figures point to a ‘very real problem’ of UK judges facing political pressure when interpreting ECJ decisions after Brexit. 
Bloomberg: Brexit-hit banks to start moving staff abroad in early 2018
Barring some major breakthrough, global banks will implement their relocation plans early next year to guarantee they’re able to have new offices inside the European Union running by the time the UK exits, people with knowledge of the matter told Bloomberg.  
Financial Times: EU and UK aim to strike Brexit divorce deal within 3 weeks
Britain and the EU are targeting a Brexit divorce deal within three weeks, with negotiators drawing up a political roadmap that seeks to overcome the toughest unresolved issues on a financial settlement and Northern Ireland. 
BBC: German business grouping calls for UK to remain in EU
A group of influential German business figures have launched a campaign to keep the UK in the European Union. 
Main results - General Affairs Council (Art. 50)
EU27 ministers discussed the state of play of the Brexit negotiations and selected new seats for the two EU agencies currently based in the UK. 
David Davis' update to the House of Commons on EU negotiations
David Davis updated the House on negotiations with the European Union. 
European Union (Withdrawal) Bill report released
The report on the European Union (Withdrawal) Bill follows a short inquiry to examine aspects of the Bill in order to inform the Committee and Report Stage. 
Ian Blackford: Scots ‘will not be dragged out of EU’
The SNP’s leader in Westminster has warned that Scotland would join the EU “as a full independent nation” if the UK government rejects demands for continued single market membership after Brexit. 
Remarks by President Donald Tusk after the informal meeting of EU heads of State or government in Gothenburg
The European Council President said that, in order to move-on to the second phase of Brexit talks, EU negotiators "need to see much more progress on Ireland and on a financial settlement." 
Die Presse: In search of an exit without a compass
Die Presse comments how the current mess amidst the Tory Party is just a symptom of a much deeper 'malaise' in the country, highlighting even more that the country doesn't seem to know in which direction it is heading. 
The Telegraph: JP Morgan begins telling UK staff being relocated to the EU
JP Morgan has begun telling staff whether or not they will be relocating to the European Union ahead of Brexit, a senior boss at the US investment bank has said. 
The Guardian: Netherlands told to prepare for a no-deal 'chaos scenario'
The Netherlands must prepare for a chaotic, no-deal Brexit, the Dutch parliament’s European affairs committee has said, in a strongly worded report blaming the stalled exit talks on Britain’s “unrealistic expectations” and “inconsistency”. 
ComRes Pre-Budget survey: Almost seven in ten (69%) of people expect taxes to rise as Britain exits the EU
A survey of UK adults, on behalf of MHP, on attitudes towards the economy.  
The Guardian: IoD ups pressure on May with call for transition deal by March
Business group warns that failure to secure deal by end of financial year would force firms to trigger contingency plans. 
Taxation (Cross-border Trade) Bill introduced in Parliament
The Bill will lay the foundations for the UK’s standalone customs regime. 
Financial Times: Theresa May wins support for bigger bill to break Brexit deadlock
Theresa May won ministerial backing for her plan to break the deadlock in Brexit talks next month, but Eurosceptic colleagues warned that any increase in the UK’s “divorce bill” offer to at least €40bn must be conditional on it securing a transition deal and a good trade agreement with the EU. 
VoxEU: The consequences of the Brexit vote for UK inflation and living standards: First evidence
This column asks how much of the rise in inflation is due to the referendum. It finds that the referendum result pushed up UK inflation by 1.7 percentage points, which amounts to an annual (and potentially permanent) cost of £404 for the average British household. 
The Guardian: Barnier says EU will not compromise standards in future UK trade deal
The EU’s chief Brexit negotiator, Michel Barnier, has said that any move by a British government to abandon European-style policies will complicate the agreement of a post-Brexit trade deal in national and regional parliaments across the bloc. 
Bank of England: Monetary policy from end to end: Define, decide, deliver
The Deputy Governor for Markets and Banking, Sir Dave Ramsden, outlines his assessment of the UK economy and examines how it has responded since last year’s referendum on European Union membership.  
The Guardian: Hard Brexit highly damaging, says former top civil servant
There is no trade deal on offer from the European Union that will stop Britain taking a major economic hit after Brexit, the government’s former top trade official has warned. 
De Volkskrant: Rutte to make the Netherlands a tax haven after Brexit
According to Prime Minister Rutte, a zero percent dividend withholding tax would be a competitive advantage and make it attractive for multinationals from the UK to move to the Netherlands. 
Jean-Claude Piris: Britain is deluding itself over single market access
The best the UK can hope for is a post-Brexit free-trade deal like Canada’s, writes the former director-general of the Council of the European Union’s Legal Service. 
Bloomberg: UK seeks help from German business for Brexit trade deal
UK Brexit Secretary David Davis appealed directly to German businesses to help break the deadlock in the divorce talks as he warned the European Union not to put short-term politics before the prosperity of its people. 
Financial Times: Britain prepares case to cut Brexit divorce bill
The haggling over the UK’s Brexit bill is about to begin. After months of legal jostling, British negotiators have signalled their readiness to discuss specifics of the EU’s demands for a financial settlement. 
Financial Times: EBA shift expected to weaken UK role in regulation
The planned move of the European Banking Authority’s headquarters from London to Paris will reduce the UK’s influence over the rules governing European finance, experts said. 
Commercial Risk Europe: UK risk managers warned to comply with GDPR despite Brexit
UK risk managers and their bosses need to forget the idea that Brexit will somehow let them off the hook when it comes to the EU’s forthcoming General Data Protection Regulations (GDPR). The UK will have to apply the tough new rules for at least ten months and probably beyond if its companies want to continue receiving personal data from EU territories. 
Financial Times: Deutsche Börse eyes City of London’s euro clearing crown
More than 20 investment banks and market makers have signed up for Deutsche Börse’s attempt to draw London’s prized swaps clearing business from its City home. 


Graham's tweets



© Graham Bishop

< Next Previous >
Key
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information


Add new comment





 


www.grahambishop.com
// Business Applications by Denaploy 		Web Master Information
Terms & Conditions
Privacy Policy