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DG ECFIN: Steering Committee of Vienna 2 delivers observations on cross-border bank resolution to European authorities
The aim is to provide input for the ongoing discussions on the design of the European financial stability framework, and to communicate general concerns of host as well as of home countries. View Article

EBA recommends major EU cross-border banking groups to develop recovery plans
The EBA adopted a formal Recommendation to ensure that major EU cross-border banks develop group recovery plans by the end of 2013. The aim of the Recommendation is to spur the development of recovery plans and to foster convergence on the highest standards across the Union. View Article

EBA: Report on the Risk Assessment of the European Banking System
This report provides an update on risks and vulnerabilities in the EU banking sector. View Article

BIS: Locational and Consolidated banking statistics
The Bank for International Settlements published its Locational and Consolidated banking statistics. View Article

Bundesbank/Weidmann: Pressing ahead - Priorities for 2013.
Weidmann discussed i.a. the framework of monetary and banking union, and the risk to central bank independence. "The processes of adjustment will take time. But decisive steps can be taken in 2013 to overcome the crisis on a lasting basis." View Article

AGB: German business sector backs universal banking system
The German business and banking sectors advocate maintaining the universal banking system in Germany and the EU, as they say that the introduction of dual banking systems does not help to reduce risk. View Article

EACT/Raeburn: Is the European Parliament really challenging EMIR?
Raeburn writes that it would have been so much better if the EU institutions as a whole had been sensitive to the interests of the real economy when they started to develop the original EMIR proposals. View Article

FT: Window for ECB loan repayments nears
On Friday, the ECB receives its first indication of how much of the roughly €1 trillion of three-year loans taken out by hundreds of eurozone banks just more than a year ago will be repaid early. View Article

FT: Call to toughen bank bonus rules
Bank bonuses should be deferred for five to 10 years to help recapture the "old partnership model" that forces bankers to prioritise the long-term health of their institutions, Andy Haldane, the Bank of England's financial stability director, has proposed. View Article

BBA: Britain's banks should hit the gold standard for professionalism
To get back on its front feet, London needs to reclaim the moral high ground, writes Anthony Browne on the BBA blog. There is a need to raise – and be seen to raise - professional and ethical standards in banking so they are world class. View Article

ESMA sets out its 2013 CRA work programme
ESMA sets out the key elements of its supervisory programme for the 19-registered and 1 certified credit rating agencies in the EU. The annual work plan is approved by ESMA's Board of Supervisors, which is composed of the relevant authorities from the EU's 27 Member States. View Article

FESE/Hardt: The impact of MAD, MiFID and EMIR on the integrity of financial markets
Ms Hardt said that an adequate market structure allows for financial instruments to be fairly priced, accessible to all investors, monitored for market integrity and having their risk managed. It also determines which kind of activities are subject to what kind of rules. View Article

IOSCO publishes Suitability Requirements for Distribution of Complex Financial Products
The report sets out principles relating to the distribution by intermediaries of complex financial products to retail and non-retail customers. View Article

IOSCO publishes comments on its Consultative Report on Recovery and resolution of FMIs
The purpose of the report was to outline the issues that should be taken into account for different types of FMIs when putting in place effective recovery plans and resolution regimes that are consistent with the Principles and Key Attributes. View Article

CME Group: Lack of regulatory clarity driving uncertainty
CME Group executive chairman Terry Duffy said that lack of market volume and historically low levels of volatility in financial markets over the last year in equities and derivatives trading are being driven in large part by the lack of clarity in federal rulemaking. View Article

FN: ICE plays it cool on Euronext
While uncertainty remains over how the IntercontinentalExchange defines Euronext, its rationale for the move is clear. A successful spin-out of Euronext would reduce the level of regulatory oversight, reduce leverage, and operationally streamline what would be a very complicated group. View Article

EIOPA: Multi-Annual Work Programme 2012-2014
The Work Programme 2012-2014 provides a general overview of EIOPA activities in 2012 and of the Authority's plans for 2013-2014. View Article

Insurance Insight: EC probes impact of insurance contract law on cross-border trade
The European Commission has launched an expert group to consider the creation of a pan-European insurance contract law. View Article

Insurance Insight: UK exit could impact insurance regulation
A change in the UK's relationship with the European Union would most likely affect insurers in the area of regulation, according to PwC. View Article

FT: Guarantees at heart of Solvency II delays
A debate about how much capital insurers should hold to meet life insurance policy guarantees is a main reason why Europe's planned regulatory overhaul for the sector is being continually delayed, writes Alistair Gray. View Article

CRE: Insurers slow to adopt risk technology, say risk managers
Risk managers are steadily increasing their adoption of risk management information systems (RMIS) but there is a concern among some that there is not the same level of system sophistication at their insurers. View Article

Bloomberg: Bank funding threatened by Basel III and Solvency II, Thiam says
Banks may struggle to raise funds from insurers due to a conflict between Basel III rules for lenders and Solvency II regulation for insurers, said Prudential CEO, Tidjane Thiam. View Article

CRE: Potential troubles ahead for global multiline insurers as negativity creeps in
Global multiline insurers' (GMIs) credit quality remains 'generally sound' according to S&P, but with negative rating action bubbling beneath the surface the firm expects pressure to mount on the world's largest insurers over the next two years. View Article

Commissioner Andor: The role of pension funds in active ageing and solidarity between generations
Andor said that the crisis had triggered a wave of pension reform across Europe. This, he acknowledged, was a "necessary part of efforts to consolidate public finances in the short term and make our pension systems sustainable in the longer term". View Article

Pension funds hope OFT study sheds more light on DC pensions market
The National Association of Pension Funds (NAPF) commented on the announcement today by the Office of Fair Trading (OFT) that it will undertake a market study on defined contribution workplace pension schemes. View Article

EDHEC: Infrastructure construction risk does not need public sector guarantees but scientific portfolio construction
Recent research by EDHEC-Risk Institute in the context of the NATIXIS Research Chair on infrastructure debt investment argues that construction risk guarantees are simply not necessary if scientific portfolio construction methodologies are applied to infrastructure investing. View Article

ESMA: Call for improvements in disclosures related to goodwill impairment
ESMA published a review of 2011 IFRS financial statements related to impairment testing of goodwill - the value of intangible assets which has a quantifiable value - and other intangible assets. View Article

FT: Goodwill impairment - Getting real
The ESMA report released on Monday urges European companies to adopt more realism, rigour and transparency in assessing the economic climate and its impact on the future returns of expensively acquired assets. View Article

FT: EU groups face questions over goodwill
EU companies are under pressure to come clean about overpriced acquisitions, after regulators found that losses taken on past deals were suspiciously low. According to the release of 2012 results by many companies, ESMA questioned why weak economic conditions had not caused heavier writedowns. View Article

IASB publishes Exposure Draft: Recoverable Amount Disclosures for Non-Financial Assets
The IASB published for public comment an Exposure Draft of proposed modifications to the disclosures in IAS 36 Impairment of Assets for the measurement of the recoverable amount of impaired assets. The IASB requests comments on these proposals by 19 March, 2013. View Article

IFAC: New guidance on improving business reporting processes
The PAIB Committee of the IFAC issued new International Good Practice Guidance, Principles for Effective Business Reporting Processes. This principles-based guidance establishes a benchmark for professional accountants in business to establish more effective business processes in the organisations. View Article

EFRAG consults on the transition from IAS 39 to IFRS 9 for macro-hedging practices
EFRAG has analysed the impact on current macro hedging practices of the transition between IAS 39 and the Review Draft, and submits this analysis for public consultation. Comments are requested by 21 February, 2013. View Article

EFRAG commented on the IASB's Review Draft IFRS 9 Hedge Accounting
EFRAG's comments reflect the results of the field test carried out by EFRAG in partnership with the ANC, ASCG, FRC and OIC. View Article

EFRAG comments on negative interest rates: implications for presentation
EFRAG published its final comment letter on the IFRS Interpretations Committee's tentative rejection notice on IAS 39 'Financial Instruments: Recognition and Measurement, Negative interest rates: implications for presentation in the statement of comprehensive income'. View Article

FT: Accounting rules body faces UK backlash
The IASB tried to head off a UK backlash, telling politicians that it had not encouraged banks and other companies to be more aggressive in their accounting. View Article

FT: UK Court refuses legal privilege to accountants
The Supreme Court has refused to extend legal privilege to accountants offering tax advice, in a landmark ruling that means the long-standing principle of confidentiality will remain the preserve of solicitors and barristers. View Article

ACCA welcomes committee's call for rethink of public sector audit plans
ACCA welcomes the report by the Local Audit Bill Ad Hoc Committee which has highlighted potential risks and gaps in the draft legislation which would result in the abolition of the Audit Commission. View Article

ECB: Continued decline in 2012 in the number of euro area/EU MFIs
On 1 January 2013, the total number of monetary financial institutions (MFIs) in the euro area stood at 7,059. This is a net decrease of 474 units (-6 per cent) in comparison with the situation a year ago. With a few small exceptions, declines occurred across the whole of the euro area. View Article

CEP Policy Brief: Proposal for EP/EC Regulation on KIDs for investment products
Uniform key information documents can strengthen investor protection and help prevent distortion of competition. However, they should be prescribed for non-packaged investment products as well. View Article

FT: Brussels aims to reward investor loyalty
Loyal shareholders in European companies would gain extra voting rights and a bigger slice of dividends under a proposal being floated by Brussels to spur long-term investment. View Article

FSA consults further on FSCS Funding
The FSA has confirmed new rules designed to secure funding for the Financial Services Compensation Scheme (FSCS) in a way which is affordable for firms. Comments on the proposal are requested by 18 February, 2013. View Article

EP: Getting things moving for professionals looking to work abroad
Making it easier to find work elsewhere in the EU by simplifying and speeding up the recognition of professional qualifications is the aim of a proposed update of the current Directive. View Article

ECOFIN: Main results of the Council
The Council looked at the Presidency work programme, adopted a decision on the FTT through enhanced cooperation, and discussed i.a. the Commission's annual growth survey. View Article

Financial transaction tax: ECOFIN Council agrees to enhanced cooperation
The ECOFIN Council today adopted a decision authorising 11 Member States to proceed with the introduction of a financial transaction tax (FTT) through "enhanced cooperation". View Article

New Eurogroup President Jeroen Dijsselbloem: Work Programme
Dijsselbloem set out his views on the direction and priorities for the Eurogroup in the coming years. (Includes election statements.) View Article

ECON Committee: Irish Presidency priorities on the economy and finance
Ireland's finance minister Michael Noonan set out Ireland's EU Presidency's economic and financial priorities to the ECON Committee on Tuesday. He pledged to address all aspects of the banking union proposals, but insisted that sequencing them was crucial. View Article

Graham Bishop's Blog: Cameron rolls the dice with history - Will he take the UK with the Tory party to mere disaster or oblivion?
Graham Bishop's first thoughts on Cameron's long-awaited speech. View Article

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This week in "Brussels"

24 January 2013

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