Articles from 29 January - 4 February 2020
General Financial Policy
IRSG: Financial services priorities for the UK’s G7 presidency : The International Regulatory Strategy Group (IRSG) has set out its key areas of focus in financial services for the UK’s presidency of the G7 this year. The recovery from the COVID-19 pandemic, climate change and digital agenda will all be central to the UK’s presidency.
Oliver Wyman: US Financial Regulation Post-Inauguration : Prospects for legislation related to financial regulation remain slim, despite Democrats controlling both houses of Congress... partisan differences on financial regulation are strong and not easily bridged. This matters, since very little in financial regulation would be exempt from filibuster.
Banking Union
CEPS: Anti-Money Laundering in the EU -- Time to get serious : Between 2 and 5% of global GDP is thought to be laundered every year, whereas only 1.1% is recovered. Anti-money laundering encompasses combating tax avoidance, the financing of terrorism, human (and human organ) trafficking, state-sponsored and corporate bribery, and the proceeds from drug-trafficking and other illegal activities.
Capital Markets Union
Insurance Europe: Why ESA’s proposed changes to PRIIPs RTS won’t work : Insurance Europe has today issued a paper outlining the reasons why changes proposed by the European Supervisory Authorities (ESAs) to the regulatory technical standards (RTS) of the Packaged Retail and Insurance based Investment Products (PRIIPs) Regulation will not work or deliver benefits for consumers.
EFAMA: PRIIPs – a further extension of the UCITS exemption has now become essential : A flawed review process not tackling the heart of the issue. EFAMA has always made it clear that a revision of the PRIIPs RTS falls short of conducting a proper Level 1 review. A review that is explicitly required by the Level 1 Regulation and is overdue for more than one year.
Insurance Europe: IDD working well; improvements needed to reduce information overload and to reflect increased online sales : Insurance Europe has today published its response to a questionnaire by the European Insurance and Occupational Pensions Authority on the application of the Insurance Distribution Directive (IDD). Since the IDD entered into force in October 2018, the overall impact of the Directive has been positive for two main reasons.
EFAMA’s response to the European Commission consultation for an AIFMD review : EFAMA members believe that the AIFMD is an effective and balanced regime for the regulation of AIF Managers. The framework has improved the monitoring of risk to the financial system and the cross-border raising of capital for investments in alternative assets.
ICMA AMIC responds to EC consultation on the review of the alternative investment fund managers directive (AIFMD) : ICMA's Asset Management and Investors Council has responded to the EC's consultation on the review of the Alternative Investment Fund Managers Directive (AIFMD).
EFAMA's reply to EC's consultation on the Review of CSDR : The volume of failed trades has decreased substantially in recent years and therefore parts of the proposed disciplinary sanctions set in the regulation and implementing texts are no longer proportionate to the remaining risks,
ICMA submits its response to the Targeted consultation on the review of CSDR : ICMA’s response focuses exclusively on the section relating to Settlement Discipline, in particular the provisions relating to mandatory buy-ins, which ICMA points out is market regulation, not post-trade regulation.
Financial benchmarks: Council adopts new rules addressing LIBOR cessation : The Council today adopted amendments to the so-called Benchmark Regulation addressing the termination of financial benchmarks. The amendments have been made against the background of an expected phasing-out of the London Inter-Bank Offered Rate (LIBOR) by the end of 2021.
Environmental, Social, Governance (ESG)
IFRS Foundation Trustees announce next steps in response to broad demand for global sustainability standards: The Trustees have agreed to undertake further detailed analysis of feedback on the requirements for success and other conditions to be satisfied prior to consideration of whether to establish a new board.
IPE: Possible IFRS sustainability standards board announcement at COP26 : The trustees of the IFRS Foundation have indicated a possible announcement on the establishment of a sustainability standards board on the occasion of the UN climate change conference later this year.
IFAC Supports IFRS Trustees’ Action Toward an International Sustainability Standards Board : IFAC welcomes today’s announcement from the IFRS Foundation Trustees to take further, timely steps to assess the possibility of establishing a new Sustainability Standards Board (SSB). We concur that there is “broad demand for the IFRS Foundation to play a role.”
ESMA calls for legislative action on ESG ratings and assessment tools : ESMA has written to the European Commission (EC) sharing its views on the main challenges in the area of ESG ratings and assessment tools. ESMA highlights the need to match the growth in demand for these products with appropriate regulatory requirements to ensure their quality and reliability.
Accountancy Europe: IAASB’s discussion paper on fraud and going concern : Recent fraud cases and corporate failures, as well as the potential impact of the ongoing COVID-19 pandemic indicate the need for reconsidering the functioning of today’s financial reporting ecosystem.
Fin Tech Regulation
BIS: Fintech regulation: how to achieve a level playing field : How regulation should evolve to encourage fair competition between traditional banks and new fintech and big tech players is now being debated. Some advocate moving from an entity-based to an activity-based regulatory approach under the principle "same activity, same regulation".
European Commission: Request to EBA, EIOPA and ESMA for technical advice on digital finance and related issues : Digitalisation is transforming society, the economy and the financial sector. This transformation, and the application of innovative technologies in the EU financial sector, has the potential to benefit people and companies
Vox:Central bank digital currencies risk becoming a gigantic flop : Central bank digital currencies are increasingly being discussed in relation to monetary policy and financial stability, but with less focus on their fundamentals.
Economic Policies Impacting EU Finance
ECON: EU tax haven blacklist is not catching the worst offenders : Criterion to judge if a country’s tax system is fair or not needs to be widened; Countries should not be removed from the blacklist if they only make symbolic tweaks; A 0% tax rate policy should automatically lead to being placed on the blacklist...
Broadening the International Role of the Euro
EPC: Money talks: EU strategic autonomy requires a strong euro : The EU’s recent proposals to strengthen its economic sovereignty and the international role of the euro are a step in the right direction but must be followed up by concerted action from member states to expand the eurozone economy as a whole, and its trading reach.
Brexit
EU-UK deal: next steps in Parliament’s scrutiny : The Foreign Affairs and International Trade committees will be assessing the EU-UK Trade and Cooperation Agreement on Thursday.
Bloomberg: The City of London Is Now at the Mercy of Brexit’s Tug of War : Britain’s divorce deal barely touches banking and trading, and Europe is eager to develop its own financial center.In the beginning was the Big Bang. It was 1986, and the moribund British economy appeared stuck in an unbreakable cycle of postindustrial decline. Then came the jolt that opened up U.K. financial markets to the world and turned the City of London into the nation’s dynamo.
City AM: City of London lobby urges EU to grant UK financial services firms widespread access to its markets : The UK-EU Brexit trade deal does not include an EU-wide arrangement for financial services, with UK firms instead having to negotiate a patchwork of individual EU nations’ regulations. FT: An equivalence ‘deal’ for the City and EU is doomed to fail : A binding treaty on financial services is needed instead if Europe and the UK are to prosper post-Brexit