Follow Us

Follow us on Twitter  Follow us on LinkedIn
 
Home>Weekly Email - Lite
Print Page Save to My Library <Next Article  Previous Article>
19 September 2013

This week in "Brussels"
Jump directly to
BankingSecuritiesInsurance
Asset ManagementCorporate Governance/AccountingFinancial Services Policy
European Council/ParliamentInternational/G20Graham Bishop’s Articles and Speeches
Articles & SpeechesBlogs About this email

Articles from 12 September 2013 - 19 September 2013

Banking

Bloomberg: ECB policy-makers say stress tests risk market confusion
The ECB is concerned that investors could be spooked by next year's bank balance sheet reviews and stress tests unless their results are carefully timed. 
CEPR/Sibert: The various roles of the ECB in the new financial architecture
This essay for ECON's Monetary Dialogue considers where the new roles leave conventional monetary policy and what institutional changes to the ECB and the Eurosystem might enhance the new financial architecture. 
Karl Whelan: New roles and challenges for the ECB
In a Briefing Paper for ECON's Monetary Dialogue, Whelan observes that the ECB's new role of banking supervisor for the euro area greatly complicates the work of the organisation, both in terms of its internal structures and its relationships with various other organisations. 
Bruegel/Darvas & Merler: The ECB at the age of Banking Union - Old and new roles in the EMU architecture
After gaining strong reputation as the guardian of price stability in the euro area, during the crisis the ECB's roles have been extended remarkably, both in the remit of monetary policy and beyond. 
Börsen-Zeitung interview with ECB/Cœuré and Bundesbank/Nagel
The interview focused i.a. on shadow banking, the OMT programme and the potential risks of another financial crisis. 
EBF: Positioning on the principles underlying the Single Resolution Mechanism
A precondition for the creation of the SRM is that it should not be burdened with legacy costs. Banks should therefore be given a financial health check by the ECB prior to their admission. 
Reuters: Austria's Fekter backs Schäuble on Banking Union
Germany's approach towards completing a eurozone Banking Union has won the backing of Austrian Finance Minister Maria Fekter, who said she would like to change EU law eventually.  
Commissioner Barnier vows to MEPs to press ahead with Banking Union
The SRM for banks can be set up without a treaty change, Barnier told lawmakers on Monday, adding that he was open to improving the mechanism through treaty changes at a later stage.  
Bundesbank says ECB bank oversight may need primary law change
EU lawmakers will probably have to amend the rules governing the ECB as it embarks on the complex task of regulating banks, said Bundesbank VP Sabine Lautenschläger. 
ESFRC: Preparing for a European Banking Union
This new statement emphasises the need for having procedures for resolution of distressed banks in place at the time the Asset Quality Review of European banks is completed.  
Bruegel/Sapir & Wolff: The neglected side of Banking Union - Reshaping Europe's financial system
This policy contribution, presented at the informal ECOFIN in Vilnius, discusses how Europe's financial system could and should be reshaped. (Includes link to comment from P. Goldschmidt.) 
Berlin mulls way to Banking Union without Treaty change
Germany is working on a plan that would allow the completion of a eurozone Banking Union without changing existing EU law, potentially removing a major hurdle to completing the most ambitious EU project since the start of the euro. 
CEPS/Lannoo: Banking Union in sight five years on
Lannoo looks at the regulatory steps that have been taken to date, and argues that the EU should apply the same logic of reinforced integration at the federal level that informed the SSM to the bank resolution systems and deposit guarantee schemes. 
EBF: Banks reiterate support for Banking Union
EBF reiterated its support for the Banking Union and stressed that the project should aim first and foremost at an efficient structure of financial services, in a stable environment. 
Statement by President Barroso and Commissioner Barnier following the EP's vote on the creation of the SSM
Commissioner Barnier said: "With this key piece of legislation, we are not only strengthening our banks and the financial stability of the eurozone, we are also strengthening economic integration". 
GFMA: Letter to BCBS on financial institution deduction
GFMA believes that the current Basel III wording will unintentionally restrict banks' ability to provide liquidity and carry out market-making activities 

Securities

FN: Industry calls for European regulatory impact assessment
The European Commission must undertake a full assessment of how different rules in Europe work together to avoid potential mismatches and clashes, according to some of the region's biggest operators. 
ICMA: European repo market recovers as banks return to the market for funding
ICMA's European Repo Council released the results of its 25th semi-annual survey of the European repo market. 
European Commission: New measures to restore confidence in benchmarks following Libor and Euribor scandals [Proposal]
The Commission has proposed draft legislation to help restore confidence in the integrity of benchmarks. The new rules will facilitate the prevention and detection of benchmark manipulation, and clarify authorities' roles of responsibility and supervision. 
Greens/Giegold: Financial market manipulation
"This proposal was intended to address the legislative flaws which allowed the Libor and Euribor manipulation scandals to occur, but the Commission has instead bowed to pressure from 'The City' and failed to deliver robust regulation", said Giegold. 
IOSCO confirmed as the key global reference point for securities regulation
IOSCO members met during their Annual Conference to discuss how to advance work on global regulatory reform and the identification of emerging risks in securities market. 
FN: 'Vital' EU rule boosts T2S
New EU regulation aimed at standardising CSDs has given new impetus to Target2-Securities, the ECB's long-held initiative to centralise the settlement of cross-border bond and equities trades. 
ESMA: Trade Repository registration approval not expected before 7 November, reporting to begin February 2014
ESMA has published an updated version of its EMIR implementation timetable. 
Euroclear: OTC watchdogs pledge to work together on transnational trading
Financial market regulators from the US, Europe and a number of other core markets from around the world have drawn up a joint report in which they pledged to combine their efforts in setting the rules for cross-border trade in OTC derivative instruments. 
Fed/Dudley: Remarks at panel discussion on OTC derivatives reform and broader financial reforms agenda
Dudley expressed concern that trades may not be standardised to their fullest potential and that the profit incentive of central clearing counterparties may result in a "race to the bottom" in terms of risk controls. 
Responses to ESMA consultation on clearing obligation under EMIR: ABBL, ABI, AIMA, EBF, EFAMA, GFMA, Insurance Europe, ISDA/BBA, NAPF et al
Responses to ESMA's consultation on draft RTS aimed at implementing the provisions of EMIR related to OTC derivative transactions by non-EU CCPs in certain cases, and aimed at preventing attempts by non-EU CCPs to evade EMIR's provisions. 
UK cheers double win on Libor and short-selling
Britain has secured an important legal breakthrough in its campaign to check over-reach from Brussels, as a senior adviser to Europe's highest court recommended clipping the powers of EU market watchdog ESMA. 

Insurance

Risk.Net: EU Council accused of bulldozing over LTG proposals
The Council of the EU is steamrolling over EIOPA proposals for the treatment of products with long-term guarantees during the latest Omnibus II trilogue negotiations, ECON Committee Member Sven Giegold has said. 
CRE: Reinsurers expect stable renewal with limited impact from alternative capital
Despite excess capacity and new capital inflows, Europe's four largest reinsurers continue to expect overall price stability in 2014. All four have downplayed the impact of the new capital, saying capital markets continue to play in a very small part of the insurance market. 
EIOPA publishes response to IOPS consultation on pension supervisory authorities
EIOPA submitted its response to the International Organisation of Pension Supervisors' consultation on draft good practices for the governance of pension supervisory authorities. 
EIOPA/Montalvo & Bernardino: Contributions to the Eurofi newsletter
Following the annual Eurofi Forum, the Chairman and Executive Director of EIOPA shared their views on EU insurance regulation in the Eurofi newsletter. 
EIOPA: Summary of the second EIOPA/ICIR Conference on Global Insurance Supervision
The objective of the conference was to provide a platform for the exchange of ideas and for discussions between supervisors, leading professionals and academics on strategic regulatory issues in the insurance sector. 

Asset Management

CEPS/de Manuel: Saving for retirement and investing for growth
This report considers the potential to steer household financial wealth – accounting for over 60 per cent of total financial wealth in Europe – towards long-term investing, which would achieve two goals at once: higher growth and higher pensions.  
AIFMD will help ensure UCITS remains simple, says Schroders
AIFMD will help preserve the simplicity of UCITS, according to the chief executive of Schroders Investment Management in London, who was speaking at the ALFI Global Distribution Conference in Luxembourg. 
Risk.net: Appetite still strong for UCITS hedge funds
Despite the introduction of the AIFMD, alternative UCITS vehicles are still attractive to investors, particularly those who like the combination of brand awareness and risk framework offered. 
FT: London hedge funds secure victory over pay
Hedge funds are set to benefit from more lenient rules governing pay than originally expected under new draft proposals from the UK regulator. National authorities across Europe could well follow the FCA's lead in how it applies the AIFM rules. 
OFT agrees reforms to UK defined contribution pensions market
The Office of Fair Trading has reached agreement with The Pensions Regulator on a set of reforms to the £275 billion UK market for DC workplace pensions. (Includes initial response from NAPF.) 

Corporate Governance/Accounting

IOSCO and IFRS Foundation: Joint protocols to enhance consistency in the implementation of IFRS globally
IOSCO and the IFRS Foundation announced that they have agreed on a set of protocols under which the two organisations will deepen their cooperation in support of their shared commitment to the highest standards of financial reporting globally. 
ACCA calls for IASB to abandon planned new standard on leasing
The Global Forum for Corporate Reporting at ACCA concluded that additional complexities for accountants who deal with a large number of operating leases will arise from the IASB's proposals. 
Responses to the joint IASB-FASB ED on leases: Deloitte, EBA
The ED on leases deals with the right-of-use (ROU) asset approach that appropriately depicts the rights and obligations for lessees and should serve as the foundation for changes to the recognition and measurement requirements in the current lease standards.  
EFRAG/National Standard-Setters publish two new Bulletins in relation to the review of the IFRS Conceptual Framework
EFRAG and the National Standard-Setters of France, Germany, Italy and the UK have published two further Bulletins to promote discussion, and to help form European views that are influential in the debate on the IFRS Conceptual Framework. Comments are invited by 15 November, 2013. 
EFRAG: Final endorsement advice and effects study report on IFRIC 21 Levies
EFRAG has completed its due process regarding IFRIC 21 Levies and has submitted its Endorsement Advice Letter and Effects Study Report to the EC. 
FEE: Factsheet on cross-border audit oversight
This factsheet summarises the Commission's recent decisions regarding the equivalence of systems of public oversight, quality assurance, investigation and penalties for the audit profession in EU and non-EU countries. 
EBA consults on draft XBRL Taxonomy for secondary reporting
This consultation aims to ensure that data collected by NCAs from credit institutions and investment firms is transmitted to the EBA in a uniform and consistent manner. The consultation runs until 9 October, 2013. 
EBF comment letter on the EFRAG Bulletin, 'The Role of the Business Model in Financial Reporting'
According to the EBF, the business model approach is the most useful way of presenting financial information in a way that is relevant to a particular entity and the environment in which it operates. 
Responses to Commission's proposal on disclosure of non-financial and diversity information: EuropeanIssuers, Insurance Europe
Responses to the EC's proposal to amend the Fourth and Seventh Accounting Directives regarding disclosures of non-financial and diversity information by certain large companies and groups. 

Financial Services Policy

Work on financial transaction tax will continue - All eyes on the German election
Europe's trading industry is eagerly awaiting the results of Sunday's German election, which is widely expected to shape the European Commission's controversial plans for a financial transaction tax. 
The Eurofi Forum 2013 – Improving the resilience of the financial sector to foster EU economic recovery
This article comprises a collection of papers, speeches and contributions from the Eurofi Financial Forum 2013 which took place in Vilnius on 12-13 September.  
Deutsche Bank: Savings tax, administrative cooperation & co.
This research paper shows how the exchange of tax information is taking root and gives an in-depth review of current tabled legislation. 
BFM: Q&A with the German Parliamentary State Secretary Hartmut Koschyk on financial regulation
Koschyk explained why we are in a better position to handle a bank failure today, and outlined the new regulatory framework for financial markets. 

European Council/Parliament

Commissioner Barnier: We are on track
In his speech at the ECON Committee, Barnier praised the work achieved in the last three years but pointed out that there was still a long way to go. (Includes link to Les Echos article, 'Michel Barnier, the great regulator'.) 
Lithuanian Presidency: EU and OECD agree to foster progress in developing global standard of automatic exchange of tax information
The second day of the Informal ECOFIN meeting saw discussion on the vision of the future shape of the financial system, with particular attention on crisis prevention and the fight against tax fraud and evasion. 
EU Finance Ministers had their first ECOFIN level discussion on the SRM
The first day of the informal ECOFIN meeting focused on Banking Union, SME financing and the EU's economic outlook. (Includes link to VP Rehn comments on SME financing.) 

International/G20

Commissioner Barnier: The G20 must remain committed to global implementation of financial reforms
Speaking at the Eurofi Financial Forum, Barnier said: "We must go beyond a single agreement for a single area. That's why I believe that including financial services in the TTIP would be useful." 
NYT: US trade officials try to curb Europe's expectations
American trade officials said in interviews this week that transatlantic trade talks should not be seen as a panacea for Europe's economic ills, and they continue to resist the idea of including financial service regulations in the discussions. 

Graham Bishop’s Articles and Speeches

Graham Bishop: Vilnius Informal ECOFIN meeting - What did it achieve?
The "informal" meetings of the European Council's legislative bodies such as that of the finance ministers' ECOFIN were a good idea in their day, but is that day drawing to a close?  
Graham Bishop's Blog: LibDem Conference in Glasgow has just voted unanimously for a policy on Europe that sets it as the only 'Party of IN'
The fringe events on Europe at this conference have been packed with enthusiastic supporters of the EU.  





© 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