Graham Bishop.com

Plenary Session: Parliament sets out priorities for overhauling EU banks
Bank board members must be personally liable for mistakes, and banks' riskier trading activities must be clearly separated from their more conservative lending ones, said MEPs in a resolution setting out Parliament's priorities for a broad overhaul of EU banks. View Article

EPP Group wants to preserve the European universal banking model
"The universal banking model, in which a bank offers a wide range of services to depositors, SMEs and businesses, should be preserved in Europe", said EPP Group Vice-Chairwoman Corien Wortmann-Kool MEP following a vote on an own-initiative Report on the banking sector. View Article

Socialists and Democrats call for fundamental shake-up of bank structure
S&D Euro MPs today backed calls for a fundamental shake-up of the structure of the EU's banking sector. Arlene McCarthy said: "Today's vote is a green light to the Commission to produce a strong legislative proposal for banking reform in October". View Article

Statement by Commissioner Barnier following agreement in ECOFIN on bank recovery and resolution
"The EU has made a big step towards putting in place the most comprehensive framework for dealing with bank crises in the world." View Article

EBF: Banks welcome last-minute agreement in Council on BRRD, but express concerns
"The EBF remains concerned to see the Council again backing away from the principle of the Single Market by allowing flexibility to Member States with respect to excluding certain classes of creditors and depositors from the bail-in tool within a bank failure." View Article

The German draft Act on Ring-Fencing and on Recovery and Resolution Planning for Credit Institutions
On 6th February, the German Finance Ministry released a first draft Act on Ring-Fencing and on Recovery and Resolution Planning for Credit Institutions. On 5 March, the Draft was introduced as a bill in the German Parliament. Clifford Chance's report explains the scope. View Article

President Barroso, in agreement with VP Rehn, launches Expert Group on debt redemption fund and eurobills - Graham Bishop member
The Commission is setting up an Expert Group to look into the merits and risks, legal requirements and financial consequences of initiatives for the joint issuance of debt in the form of a redemption fund and eurobills. Graham Bishop has already proposed and crafted the 'Temporary Eurobill Fund'. View Article

ALDE: Expert Group on EU redemption fund established
According to the Commission's declaration, this Expert Group must present its final report no later than March 2014 for the Commission's assessment and commitment to act before the end of its mandate. View Article

Basel Committee updates its assessment methodology for G-SIBs and issues disclosure requirements
BCBS issued its latest publication, 'Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement', including certain refinements to the assessment methodology of the November 2011 publication. View Article

EBA: Consultation on guidelines on technical aspects of the management of interest rate risk arising from non-trading activities (IRRBB)
EBA launched a consultation on amendments and additions to CEBS Guidelines on interest rate risk from non-trading activities (IRRBB) published on 3 October, 2006. The consultation runs until 27 September, 2013. View Article

Reuters: EU leaders push banking union despite German reluctance
EU leaders said they want agreement by the end of the year on a way to resolve failed banks at European rather than national level, signalling work should go on despite German objections ahead of elections in September. View Article

Bruegel/Véron: A realistic bridge towards European banking union
Véron specifies the challenges of the transition towards a European Banking Union, updated on the basis of recent developments. His paper puts specific emphasis on adequately preparing the handover of supervisory authority from national supervisors to the ECB. View Article

Peterson Institute/Funk Kirkegaard: The road to a European Banking Union - Parts I, II & III
The first posting discusses the ESM direct bank recapitalisation; the second posting discusses bank resolution and the next steps in the banking union; and the third posting discusses the challenges that lie ahead. View Article

CEPS/Micossi: Tough love for sinners in the eurozone banking union
The text that has come out of the frantic late-night ECOFIN Council negotiations on the ESM instrument seems to leave unwelcome uncertainty as to the real scope of the new rules in the different national jurisdictions, while the lack of depositor preference in the bail-in pecking order may result in destabilisation. View Article

Clifford Chance/Gleeson: Deposits, Deposit Guarantee Schemes and Bank Resolution
This paper considers the techniques which are – or should be – available for the resolution of banks which are primarily funded through retail deposits. View Article

Bundesbank/Dombret: Europe's way forward
"When it comes to supervision – and particularly resolution – of large international banks, it will not be enough to have a European framework. Global financial markets call for global regulations." View Article

Bank of Finland/Liikanen: Reforming the structure of the EU banking sector
Liikanen's speech covered i.a. lessons learned from the crisis, how the EU and EMU had been changed, what the ECB had done and why, and ways in which more growth could be achieved. View Article

ESBG response to the Green Paper on the long-term financing of the European economy
The European Savings Banks Group welcomes the opportunity to make comments on the European Commission's Green Paper on the Long-Term Financing of the European Economy. View Article

ESBG response to the BCBS consultative document "Supervisory framework for measuring and controlling large exposures"
ESBG urges that the stricter large exposure limit between G-SIBs be eliminated from this proposal. Further sanctioning G-SIB transactions may give an incentive to increase exposures to institutions that are not subject to such stringent rules or more opaque counterparties, ultimately jeopardising financial stability. View Article

European Payments Council publishes new mobile wallet payments White Paper and invites comments by 30 September, 2013
EPC, working together with all stakeholders active in the mobile payments ecosystem, is willing to contribute to the development of a reliable and secure ecosystem for the initiation and receipt of SEPA payments by mobile phone. Deadline for comments on the White Paper is 30 September, 2013. View Article

EPC survey on electronic mandate solutions in SEPA
The option to issue an electronic mandate (e-mandate) included in the SEPA Direct Debit (SDD) Core Scheme and the SDD Business to Business (B2B) Scheme provides an additional means of authorising direct debit collections. View Article

EACB leaders' declaration highlights merits of their members-owned banking model and warns on current regulatory reforms
The top leaders of co-operative banks have endorsed and issued an official Paris declaration that takes a stance vis-à-vis European and international regulators. The declaration follows the meeting of the European Association of Co-operative banks' Executive Committee. View Article

Commission sends statement of objections to 13 investment banks, ISDA and Markit in CDS investigation
The Commission has informed some of the world's largest investment banks of its preliminary conclusion that they infringed EU antitrust rules that prohibit anti-competitive agreements by colluding to prevent exchanges from entering the credit derivatives business between 2006 and 2009. View Article

FT: Europe steps up regulatory assault on CDS
The charge sheet against banks is the latest front in a transatlantic regulatory assault against "over-the-counter" derivatives markets such as CDS, where banks build customised insurance-like products for clients, generating big revenue streams. View Article

Basel Committee consults on derivatives-related reforms to capital adequacy framework
The Basel Committee released two consultative papers on the treatment of derivatives-related transactions under the capital adequacy framework. Deadline for comments is 27 September, 2013. View Article

ESMA/Maijoor: Keynote speech at FESE Convention 2013 - Making markets safe
"Making markets safe cannot be viewed in isolation, it goes hand in hand with the goal of promoting markets' efficiency, in order to maximise the efficient funding of the real economy and to provide investment opportunities." View Article

ESMA review finds good compliance with EU market abuse rules
ESMA published a peer review of the supervisory practices EEA NCAs apply in enforcing the requirements of the Market Abuse Directive. The Directive deals with the prevention of the dissemination of misleading information, the breach of reporting obligations and market abuse. View Article

DG Markt/ESMA: Letter to CFTC chairman Gensler re comparative analysis
The European Commission and ESMA have informed the US Commodity Futures Trading Commission (CFTC) that a comparative analysis in respect of its entity and transaction level requirements will be sent by 5 July 2013 on behalf of the European Union. View Article

LCH expands OIS to 30 years
LCH.Clearnet will begin clearing overnight indexed swaps out to 30 years in an example of the market leader for over-the-counter swaps clearing playing catch-up with smaller rivals that have expanded their product offerings in an attempt to steal a march on the incumbent. View Article

ICE Clear Europe completes clearing transition of NYSE Liffe derivatives contracts
ICE Clear Europe, a wholly-owned subsidiary of IntercontinentalExchange, and NYSE Liffe, the derivatives division of NYSE Euronext, announced the completion of the clearing transition for the London-based derivatives market of NYSE Liffe to ICE Clear Europe. View Article

EDHEC welcomes IOSCO's ETF principles, calls on regulators and industry to adopt high standards of transparency
EDHEC-Risk Institute welcomes IOSCO's 'Principles for the Regulation of Exchange Traded Funds' but says it deplores the timidity of the organisation's proposals on index transparency, and calls on regulators and index providers to adopt standards on par with those recently defined for European UCITS. View Article

FN: HFTs are no longer just about the need for speed
While the polarised debate surrounding high-frequency trading continues apace, the world's HFTs are getting on with their daily business and are quietly being forced to adapt and evolve. View Article

IOSCO meets with stakeholders on the global financial regulatory reform agenda
The discussions during the meeting underscored IOSCO's determination to engage with industry and stakeholders in developing early and forward-looking responses to the challenges that securities markets face in a rapidly evolving environment. View Article

Bank of Canada/Lane: Shedding light on shadow banking
Lane stressed that shadow banking delivered important benefits to the economy, but said that at the same time, reforms were needed to make shadow banking less susceptible to run-like behaviour and contagion. View Article

EIOPA launches public consultation on two Good Practices Reports in the area of consumer protection
EIOPA launched a public consultation on two Good Practices Reports: 1) comparison websites; and 2) knowledge and ability of distributors of insurance products. The public consultation on the two Good Practices Reports will end on 23 September, 2013. View Article

EIOPA issues opinion on consumer protection issues in Payment Protection Insurance
With this Opinion in the field of consumer protection, EIOPA recommends that national competent authorities (NCAs) analyse their national Payment Protection Insurance (PPI) markets based on the findings of this opinion. View Article

Reuters: French and German insurers seek capital rule changes
France and Germany's insurance industry lobbies fired a further salvo at EU regulators' proposals for setting the capital needed to back savings products with long-term guarantees, saying the plans could hurt the economy. View Article

Airmic: Losing claims through innocent non-disclosure is the top concern for corporate insurance buyers
The possibility that claims will not be paid because of innocent non-disclosure of information when buying a policy is the top concern of corporate insurance buyers, according to a membership survey by Airmic. View Article

IAIS participates in 4th Responsible Finance Forum to discuss consumer protection in emerging insurance markets
At the fourth Responsible Finance Forum, representatives of supervisory authorities, industry representatives and development organisations discussed consumer protection in emerging insurance markets. View Article

BIBA launches strategic review consultation
The British Insurance Brokers' Association has launched a member consultation following their strategic review which concluded earlier in the year. Closing date for responses is 31 August, 2013. View Article

New GIAJ chairman, Masaya Futamiya
Masaya Futamiya, the newly-appointed Chairman of the General Insurance Association of Japan, expressed his opinion on the various different areas of insurance. View Article

Plenary Session: Small investors to be shielded against reckless risk-taking by investment funds
Small investors should be better protected against investment funds that take excessive or unnecessary risks with their money, thanks to a draft law approved by a show of hands on Wednesday. View Article

Investment fund rules (UCITS): Conservatives and Liberals block stronger investor protection
The EP voted to revise draft EU legislation on investment funds (the UCITS Directive), a sector that is valued at almost €6.3 trillion. Rapporteur Giegold called it "a black day for investor protection in Europe". View Article

ESMA publishes research on the sale of complex products to retail financial consumers
ESMA published a research report on retailisation in the EU, which examines the growth in the sale of complex financial products to retail financial consumers in the European Union. View Article

EFAMA: Long-term funds attract highest ever net inflows of during Q1 2013
EFAMA has released its latest international statistical release containing worldwide investment fund industry results for the first quarter of 2013. View Article

FCA publishes final AIFMD rules
The Financial Conduct Authority published its Policy Statement setting out its rules for implementing the Alternative Investment Fund Managers Directive (AIFMD). The new rules will take effect on July 22, 2013. View Article

JPMAM dismisses reintroduction of capital requirements for pension funds
According to JP Morgan Asset Management, the European Commission's plans to introduce Europe-wide solvency requirements for pension funds at an unspecified "later date" are still unlikely ever to get past a vote by the EU's Council of Ministers. View Article

Money Marketing: NAPF warns Solvency II for pensions is far from dead
The National Association of Pension Funds has warned controversial EU proposals to impose Solvency II-style funding requirements on UK pension schemes are "not dead", with European regulators keen to resurrect them. View Article

IPE: Denmark to create standard methodology for solvency requirements
The Danish financial regulator Finanstilsynet is in talks with industry association Forsikring & Pension (F&P) to create a standard methodology for solvency requirements for insurance and pension companies. View Article

IPE: Irish employers critical of appalling failure of pensions policy
Employer organisation IBEC has criticised the "mess" successive Irish governments have made of pensions policy, arguing that the current administration's inaction on the 'priority order' was hard to fathom in the wake of a European ruling on pension protection. View Article

WSJ: Poland to shrink private pension funds
The Polish government, looking to shore up public finances, said it plans to reduce the role private funds play in the country's mandatory pension system, in a move that may put large stockholdings of listed companies in the state's hands. View Article

Hedgeweek: Why private equity keeps on choosing Guernsey
Experience, expertise, 'fast track' regulatory routes, listing capabilities and a dual regime for AIFMD are just some of the reasons why leading global private equity houses are continuing to choose Guernsey as their fund domicile. View Article

FASB: Improvements to accounting for insurance contracts
The FASB issued for public comment a proposal to improve financial reporting of insurance contracts, including measurement of insurance liabilities and the related effect on the statement of comprehensive income. Comments are requested by October 25, 2013. View Article

IAIS: Response to IASB on financial instruments (Expected Credit Losses)
The IAIS published its comment letter on the IASB's ED Financial Instruments: Expected Credit Losses (the ED). These comments are made in light of the current stage of the Insurance Contracts project (IFRS 4 phase II). View Article

FASB: Three private company council proposals
The FASB issued for public comment three proposals that address private company stakeholder concerns raised about the relevance and complexity of three aspects of US GAAP. Stakeholders are asked to provide comments on the three Exposure Drafts by August 23, 2013. View Article

IASB/Hoogervorst: 'Breaking the boilerplate'
In a speech to the IFRS Conference in Amsterdam, the IASB chairman set out a 10-point plan to tackle the use of boilerplate text in financial reporting disclosures. View Article

IFAC: IAESB's new strategy to support revised international education standards
The IAESB has published for comment an exposure draft of its proposed 2014-2016 IAESB Strategy and Work Plan. Comments are requested by October 4, 2013. View Article

IVSC: Consultation on valuation of derivatives
The IVSC has recognised that the lack of globally-accepted and recognised standards for the valuation of derivatives has led to a lack of trust in the valuations, and has embarked on a project to rectify this. Comments are due by September 30, 2013. View Article

FRC: New disciplinary arrangements for accountants
The FRC has published 'The Accountancy Scheme' which updates the independent disciplinary arrangements applying to members and member firms of the participating bodies. The Scheme for the accountancy profession, as further amended by the FRC, takes effect on 1 July, 2013. View Article

ACCA: Strengthening relationships among accountancy bodies
ACCA, CGA Ontario and CGA Manitoba announced that they are currently exploring how relationships among the three accountancy bodies might be further strengthened to help develop the profession, as well as benefit their members and students. View Article

ACCA: Global forums look to the future
ACCA's global forums identified three key future concerns: corporate governance, business standards and trust. The symposium's discussions are presented in a new report, called 'A Changing World'. View Article

Plenary Session: Financial Transaction Tax - Wide scope and attention to pension funds and SMEs
Parliament kept up the pressure on Wednesday for a comprehensive financial transaction tax in 11 EU countries with a wide scope and rates of 0.1 per cent for trades in stocks and bonds and 0.01 per cent for those in derivatives. (Includes statement from Commissioner Šemeta.) View Article

BUDG Committee: How to make sure a tax on financial transactions pays off
Could a tax on financial transactions help to discourage reckless financial speculation and ensure banks contribute more towards the cost of the crisis? 11 EU countries believe it could and Parliament will debate and vote on the rules governing this tax on 2/3 July, respectively. View Article

EPP: Financial Transaction Tax - EU Parliament calls for uniform tax rates
"We are resolutely against any national add-on tax rates. We don't want tax rates mushrooming, as certain governments have already announced", said EP VP Othmar Karas. View Article

S&D MEPs secure final vote on Tobin tax in European Parliament
Greek S&D MEP and negotiator for the EP Anni Podimata said: "Today is a good day for European citizens; contrary to many predictions, the 'Tobin tax' is now on track". View Article

EuropeanIssuers position paper on FTT
EuropeanIssuers strongly opposes the draft Directive proposing the introduction of a FTT in a part of the eurozone, and is very concerned about the potentially damaging impact that the FTT could have on the ability of companies to raise finance from the markets and hedge their risk exposures. View Article

Reuters: EU's Šemeta says willing to scale down transactions tax
Europe could scale down a proposed tax on financial transactions, said Commissioner Šemeta, the EU's commissioner in charge of tax policy, signalling for the first time readiness to soften a scheme which some fear could backfire. View Article

Joint Committee of ESAs holds its first Consumer Protection Day
The Joint Committee of the European Supervisory Authorities (EBA, ESMA, EIOPA) held its first Consumer Protection Day on 25 June 2013 in Paris. The aim of the event was to provide a forum for exchange and discussion on important and current cross-sectoral consumer issues. View Article

EIOPA/Bernardino: European Supervisory Authorities - Our joint effort in enhancing consumer protection in Europe
Consumer protection is a high priority for all three institutions. The ESAs consider it very important to have a platform where organisations and experts dealing with protection of financial services' consumers can meet, exchange their views and share expertise. View Article

EY Eurozone Forecast: Summer 2013: Outlook for financial services
With the eurozone economy expected to contract this year and unemployment forecast to reach a 12.7 per cent peak in 2014, there are clear challenges ahead for financial services. While NPLs were expected to peak this year, the ECB's AQR could push the peak out to 2015 in some markets. View Article

Lithuania moves to EU helm as agreement found on seven-year budget
Credibility, growth and openness are Lithuania's priorities as it takes over the six-month EU presidency on 1 July. Progress on each will be easier now national leaders have agreed on a budget for 2014-20. View Article

European Council: Lithuania to focus on economic growth, financial stability and cooperation during EU presidency
Revealing the Presidency's plans, Lithuanian president Dalia Grybauskaitė said: "Only by ensuring Europe's financial resilience, improving its competitiveness and boosting growth can we create jobs and restore public trust in the European project". (Includes various links / ALDE statement.) View Article

President Barroso's statement in Plenary on the Lithuanian Presidency
Barroso outlined a number of important files that needed to be finalised and said there was no time to waste. A proposal for a Single Resolution Mechanism is to be presented next week, for adoption before the end of this mandate. View Article

Plenary Session: EU budget - Parliament accepts negotiated MFF 2014-2020 package
Parliament endorsed the outcome of its negotiations with the Council on the EU's long-run budget, the Multiannual Financial Framework (MFF) for 2014-2020. (Includes statements from EP President Schulz and Commissioner Lewandowski.) View Article

Plenary Session: Summit conclusions, EU long-term budget and PRISM top debate with EU leaders
The outcome of the latest European Council and the political agreement on the EU's long-term budget of 27 June received a lukewarm welcome from lead MEPs of the different political groups. (Includes link to President Van Rompuy's speech.) View Article

EP President Schulz to European Council: EU institutions face a test of their credibility by failing to act on promised reforms
"Ordinary people are increasingly losing faith in the ability and the willingness of democratic institutions to take action", said Schulz, laying down the gauntlet for Member States to agree finally on concrete measures. View Article

European Council conclusions on completing EMU
Since the presentation last December of the report "Towards a genuine EMU", work has been advancing on the four key building blocks to strengthen the architecture of the EMU. (Includes links to remarks by Presidents Van Rompuy and Barroso after the Council.) View Article

European Council conclusions, 27 June 2013: Youth Employment / Growth, Competitiveness and Jobs
Financial stability is improving, but further actions by the EU and its Member States are needed to put Europe firmly back on the track of sustained growth and jobs. (Includes link to remarks by Presidents Van Rompuy and Barroso.) View Article

Council approves MFF agreement
The Permanent Representatives Committee approved, on behalf of the Council, an agreement reached with the EP on the draft regulation laying down the EU's multiannual financial framework for 2014-2020 and the inter-institutional agreement on budgetary discipline and sound financial management. View Article

Fed/Powell: International financial regulatory reform
Powell talked about fiscal and monetary policy in the United States, before turning to financial regulatory issues. View Article

Graham Bishop: Temporary Eurobill Fund (TEF) – Summary of the Proposal and some Implications
Over the past two years, Graham has been working on developing a plan for a Temporary Eurobill Fund. He is now looking forward to taking his place on the Commission's Expert Group (on the joint issuance of debt in the form of a redemption fund and eurobills) to help move the debate along. View Article

Graham Bishop: June 2013 European Council: Unambitious steps along the road to GEMU - But a fork towards "German Europe" may lie ahead
The euro area seems to have suddenly (and perhaps inadvertently) plunged into deep and dangerous constitutional waters. View Article

Financial World: Brrrr for the BRRD (Graham Bishop article)
As European integration moves deeper into territory that is normally the preserve of sovereign states, the Bank Resolution and Recovery Directive is meeting opposition, writes Graham Bishop. View Article

June 2013 Financial Services Month in Brussels - Graham Bishop's personal overview
Following fireworks with direct bank recapitalisation and the BRRD, the European Council's June meeting was relatively uneventful. Only the most formal details of the SRM remain to be settled. Muddling through to Banking Union may now be inevitable. View Article

Banking	Securities	Insurance
Asset Management	Corporate Governance/Accounting	Financial Services Policy
European Council/Parliament	International/G20	Graham Bishop’s Articles and Speeches
Financial Services Month in Brussels - Report		About this email

This week in "Brussels"

04 July 2013

© Graham Bishop