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08 January 2015

This week in "Brussels"



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  Articles from 18 December 2014 - 08 January 2015

  Banking
 
 
Reuters: EU lawmaker seeks to dilute bank trading reform
Draft European Union rules forcing banks to isolate their risky trading activities should be eased to take national measures into account and avoid harming markets, an EU document written by a senior lawmaker has proposed.  View Article
European Commission: A single rulebook for the resolution of failing banks
The single rulebook entered into force January 1 2015. The rules will harmonise and improve the tools for dealing with bank crises across the EU.  View Article
Bank resolution: Council adopts regulation on fund contributions and appoints members of the single resolution board
The Council adopted two implementing acts to supplement the single resolution mechanism, one of the main elements of Europe's banking union.  View Article
Joint Committee of the ESAs published final draft technical standards on risk concentration and intra-group transactions
These standards clarify which risk concentration and intra-group transactions shall be considered as significant at the level of a financial conglomerate, and aim to ensure consistent application across the EU of the FICOD's requirements.  View Article
ESAs seek views on guidelines aimed at reducing reliance on credit ratings
The guidelines are also addressed to national supervisors.  View Article
EBA published its sixth semi-annual report on risks and vulnerabilities of the EU banking sector
Throughout 2014 European banks continued to take advantage of favourable market conditions to raise capital in preparation for the asset quality reviews and the 2014 EU-wide stress test.   View Article
EBA published final Guidelines on disclosure requirements for the EU banking sector
These Guidelines cover how institutions should apply the concepts of materiality, proprietary nature and confidentiality in relation to the disclosure requirements.  View Article
EBA updated list of Common Equity Tier 1 capital instruments
Three CET1 new instruments have been assessed and evaluated as compliant with the CRR, and two instruments have been deleted.  View Article
Repeal of the EBA transitional capital preservation recommendation
The EBA will keep on monitoring the overall capital position and Common Equity Tier 1 capital of EU credit institutions under the CRDIV/CRR regulatory framework in order to ensure that EU banks are adequately capitalised.  View Article
EBA published final draft technical standards on countercyclical buffer disclosure
These RTS will be part of the EU Single Rulebook aimed at enhancing regulatory harmonisation in the EU banking sector.   View Article
EBA published draft technical standards on data waiver
The document outlines the conditions for competent authorities to grant permission for institutions to use relevant data covering shorter time series (data waiver permission), when estimating risk parameters.   View Article
EBA called for improving the well-functioning of the securitisation market
The Opinion is based on a detailed report, which assesses compliance by Competent Authorities with securitisation risk retention, due diligence and disclosure requirements.   View Article
EBA published technical standards and guidelines on resolution planning
The RTS and guidelines promote a consistent and coherent approach to bank resolution across the EU and specify contents of resolution plans for EU institutions.   View Article
EBA issued guidelines to strengthen requirements for the security of internet payments across the EU
The guidelines set the minimum security requirements that Payment Services Providers in the EU will be expected to implement by 1 August 2015.  View Article
EBA published final guidelines on SREP methodologies and processes
These guidelines provide a common framework for the work of supervisors in the assessment of risks to banks' business models, their solvency and liquidity.  View Article
EBA published final draft technical standards on supervisory colleges
The document details the conditions for the establishment and functioning of colleges of supervisors, and tackles the interaction and cooperation between the consolidating supervisor and the relevant competent authorities.   View Article
EBA consults on the functioning of resolution colleges
The document is based on specific requirements laid down in the Bank Recovery and Resolution Directive.  View Article
EBA consults on procedures and contents of notifications under the recovery and resolution regime
These RTS aim at harmonising the process and content of notifications and notice of suspension arising from a determination that a firm is failing, or likely to fail, and the subsequent resolution actions.  View Article
EBA published final draft technical standards on joint decisions for approval of internal models
These technical standards will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector at EU level.  View Article
Bank of England: Compliance with the EBA’s Guidelines on disclosure of encumbered and unencumbered assets
EBA Guidelines allow competent authorities to waive the requirement to disclose collateral received by an institution, by broad categories of product type. This supervisory statement explains the waiver and the PRA’s expectations.  View Article
Bank of England: Strengthening personal accountability in banking - forms, consequential and transitional aspects
This paper proposes a new accountability framework for individuals working for UK banks, building societies, credit unions and PRA-designated investment firms   View Article
Basel Committee on Banking Supervision: Fundamental review of the trading book
The BCBS has issued a consultative paper on outstanding issues. The Committee's goal is to improve trading book capital requirements and to promote consistent implementation of the rules.   View Article
Basel Committee on Banking Supervision: Capital floors - the design of a framework based on standardised approaches
The proposed floor would replace the existing transitional capital floor based on the Basel I framework.   View Article
Basel Committee on Banking Supervision: Revisions to the standardised approach for credit risk
The proposed Revisions seek to strengthen the regulatory capital standard.  View Article
 
  Securities
 
 
ESMA publishes draft Implementing Technical Standards under the Capital Requirements Regulation
The European Commission now has 3 months to endorse the ITS.  View Article
ESMA provides implementing rules for MiFID II
The new regulatory framework aims at ensuring that secondary markets are fair, transparent and safe and that investors’ interests are safeguarded when being sold investment products.  View Article
ESMA: Consultation on MiFID II/MiFIR
The MiFID II and MiFIR requirements seek to implement enhanced provisions to ensure investor protection and the transparency and orderly running of financial markets.  View Article
ESMA published initial cost-benefit-analysis on MiFID II proposals
The purpose of this document is to provide an interim cost-benefit analysis of the incremental obligations arising from the proposed RTS against the MiFID/MiFIR baseline.   View Article
ESMA: Technical Advice to the Commission on MiFID II and MiFIR
ESMA was required to provide technical advice by no later than six months after the entry into force of MiFID II and MiFIR. The mandate focuses on technical issues which follow from the directives.  View Article
IMA responds to ESMA's advice on MiFID II
The Investment Management Association urges the European Commission to re-consider ESMA's advice on market data costs.  View Article
ESMA: CRAs’ 2014 market share calculations
ESMA provides the list of all registered CRAs indicating their total market shares and the types of credit ratings issued.   View Article
CPMI and IOSCO issue an assessment methodology for the oversight expectations applicable to critical service providers
The document provides guidance for authorities in assessing an FMI’s critical service providers against oversight expectations.  View Article
AFME comments on likely impact on fixed income markets of ESMA’s MiFID II consultation proposals
The introduction of transparency requirements needs to be carefully tailored to the specifics of those markets to avoid disruption and broader impacts on investors and issuers.  View Article
CSDR: ESMA consults on implementing measures for new settlement regime
The aim of the Central Securities Depositories Regulation is to harmonise certain aspects of the settlement cycle and settlement discipline and to provide a set of common requirements for CSDs operating securities settlement systems across the EU.   View Article
Tabb Forum: Assessing regulation, technology and risk
The two major regulatory stories of 2015 will be the implementation of many aspects of the Volcker Rule in the US and the start of mandatory clearing in Europe. Neither of these will be a surprise, of course, but there is a lot of uncertainty about how both events will work out.  View Article
 
  Insurance
 
 
EIOPA consults on the Solvency II equivalence of Bermuda, Japan and Switzerland
EIOPA's Advice will allow the European Commission to take informed decisions on whether solvency and prudential regimes in these countries are equivalent to the Solvency II framework.  View Article
EIOPA published update on Data Point Model and XBRL taxonomy design
The list of changes that EIOPA made based on the technical feedback from its stakeholders is included in “Versioning worksheets” of the DPM Dictionary and the Annotated Templates.  View Article
EIOPA consults on the draft ITS related to the equity index for the equity capital charge
This Consultation Paper presents the draft Technical Standard and an analysis of the expected impact of the proposed policy.  View Article
EIOPA Risk Dashboard December 2014
Insurance risks are not a major concern and are mainly driven by low premium growth in some countries.  View Article
Insurance Europe: Europe’s insurers paid out €2.6bn a day during 2013
Director General of Insurance Europe: “The constant and high volume of claims and benefits paid out by insurers to their customers demonstrates the important contribution which insurers make to our society."  View Article
Insurance Europe: Views shared on numerical haircut floors for SFTs
The proposed measures will help reduce the risk of regulatory arbitrage.  View Article
 
  Asset Management
 
 
IPE: European parliamentarians decide on IORP Directive rapporteur
MEPs have named a former Irish government minister to lead efforts.  View Article
ESMA consults on different share classes of UCITS
The UCITS Directive recognises the possibility for UCITS to offer different share classes to investors but it does not prescribe whether, and to what extent, share classes of a given UCITS can differ from each other.   View Article
Alfi: New legislation of the EP and of the Council on specific requirements regarding statutory audit of public interest entities
Alfi provides its views and recommendations with regard to the EU audit legislation adopted in April 2014.   View Article
IPE: Foundations criticise dropping of proposed statute from EU work agenda
The EFS proposal establishes a constitution for a pan-European foundation operating across borders to support general interest causes  View Article
IPE: Markets and pensions
During 2014, Hungary, Poland and the Czech Republic all carried out plans to nationalise private pension assets and transfer them onto the state’s balance sheet.  View Article
 
  Corporate Governance/Accounting
 
 
ACCA: Opportunity for a radical overhaul of the OECD corporate governance principles
More needs to be done to make corporate governance principles simpler and globally relevant.  View Article
IIA: Feedback on OECD Principles of Corporate Governance
The IIA supports the OECD’s efforts, which are intended to help governments and regulators evaluate and improve the legal, regulatory and institutional framework for corporate governance.   View Article
ECIIA: Audit bodies deepen cooperation
ECIIA Board Member: “We are aiming to help auditors in the two bodies provide better assurance at a lower cost to their organisations.”  View Article
IFAC: IAASB focuses on audit quality and strengthening public confidence in financial reporting
The IAASB released its strategy for 2015-2019 and a Work Plan for 2015-2016.  View Article
EFRAG: Final Endorsement Advice on "IAS 27 Equity Method in Separate Financial Statements"
EFRAG supports the Amendments and has concluded that they meet the requirements of the Regulation.  View Article
 
  Financial Services Policy
 
 
ESAs tackle cross-selling practices in the financial sector
The guidelines establish a coherent and effective approach in supervising firms that offer cross-selling options, so as to enhancing protection of EU customers.   View Article
ESA publish final Guidelines on consistency of supervisory practices for financial conglomerates
The guidelines aim to clarify and enhance cooperation between national competent authorities on cross-border groups that have been identified as financial conglomerates.  View Article
FSB: Annual update on global adherence to regulatory and supervisory standards on international cooperation and information exchange
Of the approximately 60 jurisdictions evaluated by the FSB, 46 have demonstrated sufficiently strong adherence to the relevant standards.   View Article
 
  Grahams Articles, Comments & Speeches
 
 
Spot the difference between Brown and Osborne: Rivers of national tears to flow abroad
A classic `time to bury bad news’: just ahead of the Christmas holidays. Suddenly, there it was: the biggest deficit in the UK became the current account of the balance of payments at £100 billion.  View Article
December 18th European Council: Where was the financial/economic content?
Perhaps not much should have been expected from this Summit as the economic crisis is not extreme at the moment and the shadow of Russian activities in Ukraine was hanging over the meeting.   View Article
 

 


© Graham Bishop


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