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12 October 2017

This week in "Brussels"



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  Articles from 05 October 2017 - 12 October 2017

  Banking Union
 
 
Commission calls for the completion of all parts of the Banking Union by 2018
European Commission plans to accelerate with the completion of the missing parts of the Banking Union in order to make European citizens and businesses benefit from deeper financial integration and a more stable financial system.  View Article
EBA updated Risk Dashboard shows slight improvement of EU banks capital level but NPLs still affect their profitability
The European Banking Authority summarised the main risks and vulnerabilities in the EU banking sector. It signalled that the progress is positive, but risks remain heightened on asset quality and sustainable profitability.  View Article
BIS: Resolution of non-performing loans - policy options
This paper reviews NPL resolutions in several countries, and offers insights into the prerequisites for successful resolution strategies. Based on several country cases, the paper shows that the resolution toolkit has remained broadly unchanged for several decades.  View Article
EBA consults on reporting for resolution plans
This review aims to update the framework taking into account the latest experience available in the areas of resolution planning and supervisory reporting.  View Article
ECB finds interest rate risk is well managed in most European banks
ECB publishes findings of a supervisory exercise in which it assumed various hypothetical interest rate changes. Higher interest rates would lead to higher net interest income in the next three years for a majority of banks, but lower economic value of equity. Supervisors will follow up on the results in supervisory dialogues with the individual banks.  View Article
BIS: Implementation of net stable funding ratio and treatment of derivative liabilities
The Basel Committee on Banking Supervision discussed the net stable funding ratio (NSFR) standard and agreed to allow national discretion for the NSFR's treatment of derivative liabilities.   View Article
ECB: Do we want these two to tango? On zombie firms and stressed banks in Europe
This paper investigates the impact of bank stress on the deleveraging process of non-financial small and medium-sized enterprises, with a focus on euro area periphery countries. In particular, authors test whether banks in distress delay the deleveraging of non-viable firms, the so-called zombie firms.  View Article
City A. M.: HSBC, ING, BNY Mellon and other banks are working together to create a platform for syndicated loans using blockchain technology
BNP Paribas and State Street are also among the financial institutions who have been named as involved in the project. Well-known blockchain consortium R3 and Finastra - the UK financial software company formerly known as Misys combined with Canada's DH Corp - will provide the technology side of things.  View Article
EBA publishes work programme for 2018
The European Banking Authority published its detailed annual work programme for 2018, describing the specific activities and tasks of the Authority for the coming year, as well as a multiannual work programme, highlighting the key strategic areas of work from 2018 to 2021.  View Article
 
  Capital Markets Union
 
 
Capital markets union: New venture capital rules adopted
The Council adopted new venture capital rules aimed at boosting investment in startups and innovation.  View Article
EurActiv: EU lawmakers tentatively back Brexit clearing law that could clobber Britain
European Union lawmakers gave broad support to a law that could end the City of London’s global dominance in clearing euro-denominated financial contracts after Brexit.  View Article
ESMA highlights preparations for MiFID II and Brexit as key issues at ECON hearing
Steven Maijoor, Chair of ESMA, delivered a statement to the Economic & Monetary Affairs Committee (ECON) at the European Parliament as part of the annual hearing of the chairs of the ESAs.  View Article
ESMA highlights importance of LEI for MiFID II/MiFIR compliance
ESMA published a Briefing on the Legal Entity Identifier as part of its efforts to raise industry awareness and facilitate compliance with the LEI requirements under MiFID II ahead of its 3 January 2018 launch.  View Article
ESMA issues Q&As on MiFID II implementation for post-trading issues
ESMA issued Question and Answers on post-trading issues regarding the implementation of the Markets in Financial Instruments Directive and Regulation.  View Article
Bloomberg: Deutsche Bank has a plan to ease fund managers’ MiFID II start
Deutsche Bank and UBS each have plans to win trading business by trying to ease clients’ transition to the European Union’s sweeping new MiFID II law.  View Article
Financial Times: MiFID II causes brisk research market to spring up
The MiFID II rules, which come into force in January will, among other things, require fund managers to pay investment banks and brokers directly for analyst research, instead of combining the cost with trading commission. In some cases, they will also have to justify this cost to investors.  View Article
ESMA updates list of recognised third-country CCPs
ESMA updated its list of recognised central counterparties based in third countries.  View Article
IOSCO analyses other CRA products used to make investment and credit-related decisions
IOSCO published a report titled Other CRA Products (OCPs), which provides market participants with a better understanding of certain non-traditional products and services offered by credit rating agencies.   View Article
ESMA maintains focus on supervisory convergence and risk assessment in 2018
ESMA published its 2018 Work Programme, which sets out its priorities and areas of focus for 2018 in support of its mission to enhance investor protection and promote stable and orderly financial markets.  View Article
 
  Insurance
 
 
Commercial Risk Europe: EIOPA calls for stronger mandate to intervene
An even stronger European regulatory approach is needed as far as cross-border activities are concerned, and the EIOPA’s Regulation should be strengthened with a mandate to act more intrusively when it detects signals of risks of cross-border failures, the chairman of EIOPA has told the European parliament.  View Article
EIOPA publishes Guidelines on “execution-only” sales
The European Insurance and Occupational Pensions Authority published its guidelines on Insurance-Based Investment Products (IBIPs), where the associated risks are difficult for the customer to understand.   View Article
Commercial Risk Europe: NAIC calls for re-evaluation of Financial Stability Board’s G-SII process
The US National Association of Insurance Commissioners (NAIC) has said the decision to de-designate AIG as a Systemically Important Financial Institution (SIFI) means the International Association of Insurance Supervisors and the Financial Stability Board should look again at the process of identifying global systemically important insurers (G-SIIs).  View Article
Insurance Europe: Examples of cyber risk-related initiatives & template for cyber breaches published
Insurance Europe has published a special online resource dedicated to cyber risk insurance. This includes a series of examples of insurance industry initiatives that aim to help strengthen cyber resilience, for example through awareness raising or by providing SMEs with advice.   View Article
 
  Asset Management
 
 
ESMA updates AIFMD and UCITS Q&AS
The European Securities and Markets Authority has published updated questions and answers documents on the application of the Undertakings for the Collective Investment in Transferable Securities Directive and the Alternative Investment Fund Managers Directive.  View Article
Investment & Pensions Europe: Pension funds should appoint data protection officers: regulator
Pension funds should appoint a dedicated officer for the protection of personal data, according to the chair of the Netherlands’ Personal Data Authority (AP).  View Article
Investment & Pensions Europe: Pensions industry weighs in on ECB data reporting plan
Proposed new data reporting rules affecting pension funds should be delayed by up to a year to aid understanding and compliance, according to German pension fund trade bodies.  View Article
 
  Corporate Governance/Accounting
 
 
EFRAG's feedback statement on the IASB's ED/2017/2 Improvements to IFRS 8 Operating Segments
EFRAG has published a feedback statement following the publication of its final comment letter on the IASB's ED/2017/2 Improvements to IFRS 8 Operating Segments (Proposed amendments to IFRS 8 and IAS 34).  View Article
FRC: Advice for preparing 2017/18 annual reports
The FRC has written to companies to highlight changes to reporting requirements and key areas where improvements can be made when preparing annual reports for the 2017/18 reporting season.  View Article
Accountancy Europe comments on PANA Committee amendments
Accountancy Europe provided its comments to certain amendments tabled for the Committee of Inquiry into Money Laundering, Tax Avoidance and Tax Evasion (PANA) draft report and recommendations.  View Article
Accountancy Europe: How to respond to assurance needs on non-financial information
This discussion paper sets out the context of non-financial information reporting and assurance, regarding market demand, regulation, and the role of the accountancy profession.  View Article
ICSA: UK governance reforms are balanced and comprehensive
ICSAs Peter Swabey writes about the UK government's set of proposals to address issues with executive pay, stakeholder engagement and private companies.  View Article
 
  Market Structure
 
 
Bloomberg: Deutsche Boerse plans revenue-share deal to lure Brexit clearing
Deutsche Boerse’s clearing house plans to start a revenue-sharing plan with its biggest members in a bid to lure business from London after Brexit.  View Article
 
  Financial Services Policy
 
 
The Bank of England’s FinTech Accelerator: what have we done and what have we learned? - remarks by Andrew Hauser
In the remarks made to Fintech firms in Cambridge, Andrew Hauser, Executive Director for Banking, Payments and Financial Resilience, reflected on the work of the Bank of England’s FinTech Accelerator since its launch in June 2016.  View Article
 
  Political
 
 
Address by President Donald Tusk to the European Committee of the Regions
The Council President addressed UK PM Theresa May to warn her that "the EU is not working on such a scenario" as a "no deal" and that they hope that "sufficient progress" is achieved by December. Tusk also addressed Catalonia President and asked him not to declare unilateral independence from Spain.  View Article
Tony Barber: The Catalan crisis poses a threat to the European order
Just as the eurozone’s sovereign debt and bank crises came close to unravelling decades of European construction, so the Catalan nationalists’ push for independence risks opening a Pandora’s box of problems.   View Article
 
  Economic
 
 
Remarks by Vice-President Dombrovskis at the ECOFIN press conference in Luxembourg
Mr Dombrovskis talked about the EU pledge to lead the way in implementation the Paris Climate agreement and transition to a low-carbon economy and its need for more capital for green and sustainable projects  View Article
Eurogroup main results of 9 October
Ministers discussed possible future roles of the European Stability Mechanism and shared national best practices in financing labour tax cuts. They were also informed about the results of the sixth post-programme surveillance mission to Portugal.   View Article
Double taxation: Council approves new dispute resolution system
The directive strengthens the mechanisms used to resolve disputes that arise from the interpretation of agreements on the elimination of double taxation.   View Article
 

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© Graham Bishop


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