Graham Bishop.com

Commissioner Barnier: Towards a European financial union and a more solid European banking sector
In his speech, Commissioner Barnier said that looking at the situation in Europe he knew that the sentiment in the US had sometimes been that Europe had done 'too little, too late', but stressed that it shouldn't be forgotten that the European Union is not a Federal State. View Article

The EBF's answer to the Consultation by the Liikanen High-level Expert Group on possible reforms to the structure of the EU banking sector
The European Banking Federation (EBF) gave its view on the consultation issued by the High Level Expert Group (HLEG), chaired by Mr Erkki Liikanen, reviewing the potential need to reform the structure of the EU banking sector. View Article

French Finance Ministry launches banking reform
France's Finance Ministry has said it will start consultations on a planned overhaul of the finance industry that would separate some of the 'riskier' banking activities. View Article

Bloomberg: French bank legislation seen by December keeping universal model
French President François Hollande's legislative proposal to overhaul the finance industry will aim to keep lenders' retail and investment bank operations under the same roof, while isolating the riskiest businesses, said an official working on the plan. View Article

Christian Noyer: "A Europe that is based on money is simply not enough"
In an interview with Handelsblatt, French Central Bank Governor Christian Noyer said that if a concept for a full range of banking supervision in the eurozone could be agreed upon, the ECB could start acting as supervisor straight away. View Article

FT: EBA chief plots path to banking union
Andrea Enria, head of the European Banking Authority, sees two key routes to a workable banking union supervisory structure, but both would give more power to the ECB. View Article

Final Version of an EBF Positioning on the EBA consultation on draft regulatory standards on Own Funds – Part one
The European Banking Federation (EBF) provides comments on the European Banking Authority (EBA) consultation on draft regulatory standards on Own Funds. View Article

EBA Report on risks and vulnerabilities of the European banking system
This annual report issued by the European Banking Authority describes the main developments and trends that affected the EU banking sector in the previous year, and provides the EBA's outlook on the main micro-prudential risks and vulnerabilities looking ahead. View Article

EBA Consultation paper on draft ITS on supervisory reporting requirements for institutions (CP 50)
The industry fully supports the European Commission's intention to achieve a single rulebook, and therefore strongly welcomes the Consultation Paper. However, it has grave concerns about the magnitude of the changes that are being proposed. View Article

EBA consults on technical standards on the calculation of credit risk adjustments
The European Banking Authority launched a consultation on Draft Regulatory Technical Standards (RTS) on the specification of the calculation of specific and general credit risk adjustments. These RTS will be part of the single rulebook aimed at enhancing regulatory harmonisation in Europe. View Article

EBA consults on technical standards in relation to credit valuation adjustment risk
The European Banking Authority has launched a consultation on Draft Regulatory Technical Standards (RTS) for credit valuation adjustment risk on the determination of a proxy spread and the specification of a limited number of smaller portfolios. View Article

Parliamentary Commission on Banking Standards appointed [UK]
The Parliamentary Commission on Banking Standards is a joint Committee appointed by the House of Commons and the House of Lords to consider and report i.a. on the professional standards and culture of the UK banking sector. View Article

Bank of England and HM Treasury announce launch of Funding for Lending Scheme
The Bank of England and HM Treasury have announced the launch of the Funding for Lending Scheme (FLS). The FLS is designed to boost lending to the real economy. View Article

Bank of England correspondence with FED and BBA in relation to Libor
The Bank of England published correspondence with the Federal Reserve Bank of New York and British Bankers' Association in relation to Libor. View Article

S&D/McCarthy: "Europe needs to draw the lessons from the Libor scandal"
S&D Euro MP Arlene McCarthy, who is leading the EU's review of the market abuse rules, today called for a full hearing in the European Parliament's economic and monetary committee on the interest rate rigging scandal. View Article

State aid: Commission temporarily approves recapitalisation of Caixa Geral de Depósitos (CGD), the biggest Portuguese banking group
The European Commission has temporarily approved, under EU State aid rules, an injection of €1,650 million of core Tier 1 capital into Caixa Geral de Depósitos SA for reasons of financial stability. View Article

State aid: Commission consults on reform of procedures
In the context of the State Aid Modernisation (SAM) initiative, the Commission is inviting comments on the application of procedural rules in state aid investigations. Comments are requested by 5 October, 2012. View Article

Commission closes infringement procedure on the independence of the Hungarian central bank
The European Commission has formally closed the infringement procedure launched against Hungary on 17 January 2012 over the independence of its central bank, Magyar Nemzeti Bank (MNB). View Article

EurActiv: UK: Banks urged to study eurozone departures
Britain's banks have been told to test how they would cope if several eurozone countries exited the single currency, the UK's Financial Services Authority watchdog said. View Article

Gillian Tett: America’s lessons in killing off toxic banks
As European regulators and policy-makers thrash out their ideas about how to rebuild confidence, they might do well to take a look at how "union" has worked in America, and how this has helped quell the 2008 US banking shock, writes Tett in her FT column. View Article

EBF's comments on the Commission's proposal for a regulation on improving securities in the EU and on CSDs
The EBF believes that central securities depositories should be authorised and supervised by the competent authority of the Member State where they are established. View Article

AMF publishes 2012 edition of Risk and Trend Mapping for Financial Markets and Savings
The AMF has reviewed key market trends, changes to market organisation and structure, and developments in saving and collective investment, as well as the potential consequences for business financing and investor protection. View Article

AMF publishes its 2011 annual report
During his speech, AMF chairman Jean-Pierre Jouyet set out three priority areas of focus hinging on the following: corporate governance; marketing of investment products to retail investors; and financing the economy - market regulation and consistent public policy. View Article

AFG's response to the IOSCO’s consultation report on Principles for the Regulation of Exchange Traded Funds
Most of the issues listed in this report by the Association Française de la Gestion financière (AFG) are not specific to ETFs but also concern other funds or CIS (Collective Investment Schemes), including other ETPs (Exchanged Traded Products). View Article

IPE: Inconsistency in derivatives rules to increase costs
Reforms of OTC derivatives markets around the globe are having a profound impact on how derivatives are used, and will raise particularly challenging questions for sovereign institutions due to their inconsistency. View Article

EIOPA publishes the outcome of the Public Consultation on the ORSA
The European Insurance and Occupational Pensions Authority (EIOPA) published its Final Report on draft Guidelines for Own Risk and Solvency Assessment (ORSA). View Article

Risk.net: EIOPA resists calls to ease ORSA risk quantification requirements
This article summarises EIOPA's recently published ORSA guidelines. Insurers will need to quantify all risks for their ORSA but they will no longer need to project their solvency requirements for each separate year of the ORSA projection period. View Article

Risk.net: Breakdown of Omnibus II negotiations piles pressure on Solvency II timetable
Negotiations are to resume in September, but there are fears that the deadlock will continue. The Solvency II implementation timetable came under further pressure after European policy-makers failed to agree a final version of the Omnibus II Directive at the end of last week. View Article

MoneyMarketing: Solvency II faces further delays after talks deadlock
The Association of British Insurers has warned Solvency II could face further delays after European politicians failed to reach agreement on the final rules. (Includes statement from ECON chair, Sharon Bowles.) View Article

Inappropriate regulation and economic crisis top Geneva Association CEOs’ concerns
Leaders of the insurance industry have significant concerns about the effects of inappropriate regulation and the effects of the current economic crisis, according to a survey conducted by leading insurance economics think tank, The Geneva Association. View Article

MoneyMarketing: Are regulatory hurdles stopping new protection entrants?
Intrinsic's legal and governance director, Wallace Dobbin, is concerned that economic and regulatory barriers are putting off new distributors and providers from entering the protection market. View Article

Equality Act 2010 - An ABI good practice guide for insurers
The Association of British Insurers' guide is intended to ensure that insurers understand their obligations under the Equality Act 2010. In particular, ABI hopes insurers will re-examine their processes and procedures, to ensure they are taking all reasonable steps towards this. View Article

PwC: Prospering in an era of uncertainty – The case for resilience
In today's climate of financial uncertainty, business and risk managers must focus on building resilience in order to bounce back from setbacks, rather than employing older risk management techniques that simply attempt to predict and reduce threats. View Article

IPE: Asset managers worldwide facing 'avalanche' of regulation
According to a report by KMPG, differences between the changing regulatory regimes around the world are still causing big problems for investment managers. View Article

IPE: EIOPA consultation on QIS not doing its job
Consultancy Punter Southall has warned that the consultation paper on the IORP Directive's quantitative impact study (QIS) will shed little light on the Directive's true impact on pension funds because it fails to specify what its calculations would be used for. View Article

Pensions and youth employment: EESC seeks a delicate balance
The European Economic and Social Committee adopted two opinions on the future of the pension systems and employment for young people. In both cases, the Committee reached a compromise solution and thus established its position for the future debate on these two issues. View Article

Yet more irresponsible scaremongering on pensions – this time from the politicians
Richard Saunders, IMA CEO, said that "it is irresponsible to undermine this reform through damaging and highly misleading statements about pensions". View Article

IPE: Pension funds urged to consider 'mortality buffer'
Pension trustees in the UK should consider introducing a mortality buffer to prepare for margins of error in longevity assumptions, according to a report by UBS Global Asset Management. View Article

IPE: Spanish government in talks with pensions industry on bond rules
An informal consultation process led by the Spanish government could see the introduction of a proposal allowing local pension funds to value parts of their sovereign bond portfolios at market maturity instead of mark-to-market. View Article

AIMA supports removal of ban on general solicitation and advertising by US hedge fund managers
The Alternative Investment Management Association has expressed support for the elimination of the ban on general solicitation and advertising by hedge fund managers in the US, but has said that only accredited investors should continue to be allowed to invest in hedge funds. View Article

EDHEC-Risk Institute proposes a robust new method for assessing hedge fund performance
In a newly-released research publication produced as part of the Newedge research chair on "Advanced Modelling for Alternative Investments", EDHEC-Risk Institute has evaluated the performance of hedge funds through a non-linear risk adjustment of returns. View Article

EFRAG and the ASB: Position Paper and Feedback Statement for proactive project, 'Considering the Effects of Accounting Standards'
The EFRAG and the ASB of the FRC published the Position Paper, 'Considering the Effects of Accounting Standards', together with the related Feedback Statement. View Article

EFRAG, ANC and FRC: Discussion Paper "Towards a Disclosure Framework for the Notes"
The EFRAG, ANC in France, and the FRC in the United Kingdom issued a Discussion Paper, 'Towards a Disclosure Framework for the Notes'. Their principal focus is on improving the quality of information disclosed in the notes. The Discussion Paper is open for comment until 31 December, 2012. View Article

FEE commented on EBA guidelines for assessing suitability of members of management body and key function holders of a credit institution
FEE published its comment letter on the EBA Consultation Paper on draft Guidelines for assessing the suitability of members of the management body and key function holders of a credit institution. View Article

FEE's four Policy Statements on Audit Policy
FEE has prepared four Policy Statements on a number of topics directly relevant to audit policy. These Policy Statements are not meant to be detailed technical papers, they are meant to be brief and readable for non-professionals. View Article

IASB and EFRAG meeting to review current projects
The IASB and the EFRAG met on 16 July 2012 to discuss a number of ongoing projects and other topics, i.a. convergence projects, post-implementation reviews of IFRS 8 'Operating Segments' and IFRS 3 'Business Combinations', as well as revisions to the IASB's Due Process Handbook. View Article

IASB: Response to US SEC publication of staff report on IFRS
The Trustees of the IFRS Foundation note the publication of a staff report representing the final element of a Work Plan developed by the staff of the SEC. The Work Plan is intended to assist the Commission in determining whether and how to incorporate IFRSs into the US financial reporting regime. View Article

FT: IASB hits out at SEC stance on rules
The chairman of the IASB's oversight body has rebuked the US SEC over its apparent loss of enthusiasm for global accounting rules. View Article

FRC: Report on Independent Oversight of Regulation of the Audit, Accountancy and Actuarial Professions
The FRC published the Report from the POB to the Secretary of State for Business, Innovation and Skills on its oversight of the regulation of the audit, accountancy and actuarial professions, for the year to 31 March, 2012. View Article

FASB's invitation to comment "Disclosure Framework"
The FASB issued the Invitation to Comment, Disclosure Framework, to ask for stakeholder input on ways to improve effectiveness of disclosures in notes to financial statements of public, private and not-for-profit organisations. The Discussion Paper is open for comment until November 16, 2012. View Article

Oxford professor advises Japan against wholesale adoption of IFRS
The FSA of the Japanese Government announced on 14 June that it will develop its international financial reporting policy in line with recommendations made in a new report by Tomo Suzuki, Professor of Accounting at Saïd Business School, University of Oxford. View Article

European Commission: 2012 Report on Public Finances in EMU – Ongoing consolidation and reforms of the EU's fiscal governance
The report presents recent budgetary developments and developments in budgetary surveillance, proposes an analysis of the effect of fiscal multipliers on the possibility of self-defeating fiscal consolidations, and shows relevance of fiscal frameworks for budgetary outcomes at sub-national level. View Article

Review of the Balance of Competences between the United Kingdom and the European Union
The Foreign Secretary announced a Government Review into the Balance of Competences between the UK and the EU. This Review aims to provide a constructive, British-led contribution to the wider European debate about modernising, reforming and improving the EU. View Article

Federal Financial Supervisory Authority publishes BaFin Quarterly
German Finance Minister Schäuble writes that more steps must be taken to strengthen the supervisory and regulatory framework in Europe. BaFin President, Dr Elke König, talks i.a. about the German banking system, the prolonged period of low interest rates and the regulation of CCPs. View Article

FT: Grumbles over PRIPs, despite thumbs up
There are already grumbles about lack of scope under the packaged retail investment products regulations (PRIPs). And also about the failure by the Commission to set out clearly in its accompanying impact assessment report how different financial sectors will be affected. View Article

Cypriot Presidency priorities as presented in EP committees
"Intergovernmental agreements are not the right way to deepen economic governance", said Cypriot finance minister Vassos Shiarly, presenting the Presidency's priorities to the Economic and Monetary Affairs Committee. View Article

Banking	Securities	Insurance
Asset Management	Corporate Governance/Accounting	Financial Services Policy
European Council/Parliament		About this email

This week in "Brussels"

19 July 2012

© Graham Bishop