This week in "Brussels"

28 April 2011



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Banking Securities Asset Management
Corporate Governance/Accounting Financial Services Policy Financial Stability - Policy Analysis
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Articles from 21 April 2011 - 28 April 2011

Banking

IMF published working paper on balance sheet stress testing
The IMF published a working paper offering a “second generation” solvency stress testing framework that seeks to enrich stress tests in terms of risk-sensitivity, while keeping them "flexible, transparent and user-friendly".   View Article
FSA published proposed guidance on remuneration code
The revised Code covers a wide variety of firms, including investment banks, retail banks, building societies, asset management firms, stockbrokers, corporate finance firms and multi-lateral trading facilities.   View Article
FINMA published circular on capital buffers and capital planning
The Swiss Financial Market Supervisory Authority (FINMA) published a circular that redefines the capital adequacy requirements for banks under Pillar 2 of the Basel Capital Accord.   View Article

Securities

FN: European Commission to push ahead with settlement shake-up
The EC's proposals to harmonise settlement systems across Europe have been met with cautious optimism after years of failed attempts to reform this last leg of the trading cycle. But debate is growing as to how to define settlement functions.   View Article
Lexology: The impact of MiFID II on OTC derivatives and commodities trading
It is expected that MiFID II will extend powers to regulators to impose hard position limits for both derivative contracts traded on exchange and OTC, and to require parties to explain and/or reduce their positions.  View Article
Europeanissuers published comments on the regulation of central securities depositories
Europeanissuers support the preservation of national company law systems, rather than harmonisation at EU level, as securities law. Europeanissuers do not support harmonisation of the requirements for ownership.  View Article
AFME published comments on ESMA consultation on Article 4(3) of the Credit Rating Regulation
AFME and its members are extremely concerned by the approach proposed in the ESMA Consultation Paper which is not required by the Regulation and which has the very real potential to prohibit the use of credit ratings for regulatory purposes from major non-EU jurisdictions, including the US.   View Article
FT: Shareholder urges NYSE to consider rival bid
A large institutional shareholder urged NYSE Euronext’s board to consider a counter-bid to its agreed deal with Deutsche Börse – a cash-and-shares bid by Nasdaq OMX and the IntercontinentalExchange.  View Article
FT: Getting swap definition right
Jeremy Grant writes in the FT that the Securities and Exchange Commission and the Commodity Futures Trading Commission are close to resolving their differences on a key issue: how to define OT swaps.   View Article

Asset Management

IPE: EIOPA committee starts work on harmonisation of IORPs
Work on advancing the harmonisation of workplace pensions (IORPs) is already moving ahead in the Occupational Retirement Stakeholder Committee, a body attached to the European Insurance and Occupational Pensions Authority (EIOPA).  View Article

Corporate Governance/Accounting

IASB: Joint Statement by the Monitoring Board and the Trustees of the IFRS Foundation
The Monitoring Board and the Trustees of the IFRS Foundation reaffirmed their commitment to seeking close co-ordination in taking forward their respective efforts in reviewing the Foundation’s governance and strategy.  View Article
EBA commented on IASB´s ED on offsetting financial assets and financial liabilities
The EBA welcomed the opportunity to comment on the IASB’s Exposure Draft (ED) on offsetting financial assets and financial liabilities. The EBA is supportive of the proposed requirements in the ED.  View Article
IASB and FASB: Completion of Convergence Programme
The IASB and the FASB published a progress report on their joint work to improve IFRSs and US GAAP, and to bring about their convergence.  View Article
FASB prepared update on testing goodwill for impairment
The FASB issued an Exposure Draft of a proposed Accounting Standards Update intended to simplify how an entity is required to test goodwill for impairment. The comment period for the proposed Update extends through June 6, 2011.  View Article
EFRAG appreciates extension of the convergence timetable
EFRAG´s press release highly welcomes the agreement reached on the extension of the convergence deadline to the end of 2011, as well as the supplementary consultation steps the IASB and FASB have decided to undertake to ensure that the final standards can result in improved financial reporting.   View Article
Leaseurope welcomes extended time for completion of new lease accounting standard by IASB/FASB
Leaseurope welcomed the recent announcement from the IASB and the FASB that the standard setters will be taking more time to develop the new international lease accounting standard.  View Article
EFRAG's draft comment letter on the 2nd batch of IFRS for SMEs draft Q&As
EFRAG published its draft comment letter in response to the second batch of draft Q&As to the IFRS for SMEs. Comments on the letter are expected by 5 June 2011.  View Article

Financial Services Policy

Economic governance: MEPs demand tougher sanctions for excessive deficits
The approved texts give a stronger legal backing to the European economic semester, some elements of the Euro Pact, and the National Reform Programme (NRP) procedures.  View Article
ALFI published response to the Commission consultation on financial sector taxation
ALFI believes that the asset management industry should be excluded from the scope of financial sector taxation because the financial crisis was not caused by this industry.  View Article
ABBL position paper discusses EU initiative on additional tax for financial sector
The many different ideas put forward at G20 and European Union (EU) level blur the real aim of the proposed introduction of a financial sector tax. The Luxembourg Bankers' Association position paper discusses the issues raised in recent EU consultations, as well as the alternatives.  View Article
ABI: Product intervention - FSA does not need further regulatory powers
The ABI has called for a balanced approach by the FSA on product regulation that reflects the diversity of retail financial services markets in the UK.   View Article

Financial Stability - Policy Analysis

Commission published the European Financial Stability and Integration Report 2010
The report looks into the close links between stability and integration of the financial sector that have become apparent in this new phase of the crisis. It also takes a forward-looking approach in an attempt to cast a glimpse into the future shape of the European financial sector once the crisis is overcome.  View Article

Economic Crisis

Graham Bishop: More Europe is needed, not less - lessons learnt from the financial crisis
Graham Bishop closely monitors the impact of the financial crisis on the Economic and Monetary Union of the European Union (EU).  View Article

International/G20

FDIC published report on Lehman failure under Dodd-Frank
The report examines how the FDIC could have structured an orderly resolution of Lehman Brothers under the orderly liquidation authority of Title II of the Dodd-Frank Act, had that law been in effect in advance of Lehman's failure.   View Article
Kiyohiko G Nishimura: Bank of Japan’s response after the earthquake
Mr Nishimura, Deputy Governor of the Bank of Japan, said that in order to ensure financial market stability, the Bank has been providing liquidity after the earthquake. When the economy is faced with a major crisis, participants in the financial markets attempt to retain a large amount of funds.   View Article

Commentaries

Wolfgang Münchau: The eurozone’s quack solutions will be no cure
In his FT column, Wolfgang Münchau says the leaders of the EU are mostly incompetent when it comes to the management of this crisis, as are their European advisers, who have no idea what they are dealing with here.   View Article



© Graham Bishop