Graham Bishop.com

Ernst & Young: At least 22 European banks expect to raise capital following the AQR
Most European banks believe they’ve raised enough capital to weather the Asset Quality Review (AQR) and stress test, but, in an anonymous poll of 294 banks across Europe, 22 said they expect to have to raise capital following the exercise and 43 said they may need to. View Article

EC: Material Risk-Takers' rules come into force
New rules to strengthen regulation and transparency of remuneration in banks and investment firms in the EU entered into force on June 26th. View Article

Bloomberg News/ Reuters: IMF urges ECB to fight low inflation with asset purchases; and banking union needs strengthening
The IMF commented on ECB policy- it should move to full-scale quantitative easing if inflation in the euro zone remains in the doldrums; and banking union may need strengthening. View Article

Reuters: EU to consider financial industry tax to fund watchdogs
The EU's markets, banking and insurance watchdogs could be funded by a levy on the organisations they supervise, in an attempt by the bloc's executive body to save taxpayers' money. View Article

EC: Public consultation on the contributions of credit institutions to resolution financing arrangements
The European Commission has launched a consultation on the contributions of credit institutions to resolution financing arrangements under the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism (the Single Resolution Fund (SRF) for the Banking Union). View Article

EBA analyses impact of pension plans in capital
The Authority published a report analysing the impact on institutions' own funds of revised IAS 19 Employee Benefits, deduction of net pension assets under the Capital Requirements Regulation (CRR) and changes in net pension liabilities. View Article

EBA publishes final standards on professional indemnity insurance
The European Banking Authority (EBA) published its final draft Regulatory Technical Standards (RTS) on the minimum monetary amount of the professional indemnity insurance or comparable guarantee for mortgage credit intermediaries. View Article

BCBS: Consultation on the Pillar 3 disclosure requirements
The Basel Committee on Banking Supervision has launched a consultation on the Pillar 3 disclosure requirements. The Committee has long recognised the importance of effective disclosure. However, the existing requirements have proven inadequate in a number of respects. View Article

European Voice/Visa Europe: Principles of intelligent payments regulation
Visa Europe, writing in EV , supported efforts to develop an integrated European payment market which fosters competition, innovation and security to the benefit of society. Visa drew attention to PSD II and Interchange Fees regulation (IFR) and unfinished business in this area. View Article

ESAs: Joint Consumer Protection Day
Consumer and investor protection is a common statutory objective of the three European Supervisory Authorities (ESAs). As part of this objective, the ESAs organised the second Joint ESAs Consumer Protection Day in London. View Article

IFR: EC delay on liquidity buffers could boost securitisation
The European Commission is postponing a decision on new bank liquidity regulations, a delay that could give Europe’s securitisation sector a badly needed shot in the arm. View Article

ESMA publishes transparency requirements
ESMA published its Final Report on draft Regulatory Technical Standards (RTS) required under the Credit Rating Agencies (CRA3) Regulation regarding: information on transparency of structured finance instruments, ESMA's new European Rating Platform and periodic reporting of fees charged by CRAs. View Article

Trade Repositories fines enter into force
A Delegated Regulation supplementing article 64(7) of EMIR – stipulating ESMA’s powers to impose fines on Trade Repositories (TRs), entered into force. View Article

Risk.net: Fixing swaps privacy clash needs time
Countries must be given time to change privacy laws that clash with over-the-counter derivatives reporting rules, according to Marc Stephens, an analyst responsible for derivatives oversight at Québec's Autorité des Marchés Financiers. View Article

Risk.net: Dealers rail at 'absurd' EU margin rules
European banks have reacted with dismay after regulators confirmed they would be expected to collect margin from non-EU corporates when executing trades – a requirement that does not apply to their rivals, and would also not affect trades with European corporates. View Article

Reuters: US House votes to loosen derivatives' regulations with CFTC bill
The U.S. House of Representatives voted to weaken the Commodity Futures Trading Commission's power to regulate swaps overseas and take other steps likely to loosen regulation in derivatives markets, a shift critics say could weaken market stability. View Article

Reuters: Big insurers may escape regulators' "systemic" list
Global insurers deemed likely to destabilise the financial system could remove themselves from the list, German watchdog BaFin argues. View Article

Risk.net: Insurers prepare for diversification benefit under Solvency II
The recognition of diversification benefits in Solvency II is prompting a transformation in the way insurers manage risk. Firms are reconsidering their product mix and looking at innovative risk-sharing arrangements to maximise capital efficiency. View Article

Risk.net: Firms review data governance ahead of Solvency II
Thanks to onerous Solvency II reporting requirements, insurers are being forced to analyse their data requirements and reorganise. This article reports on the approaches firms are taking to meet the challenge. View Article

Risk.net: Unanswered questions remain on model change policies
European insurers are unclear whether small changes to their internal models will have to be reported and approved by regulators, despite the publication of new guidelines issued earlier this month. View Article

Risk.net: ESMA board to decide on AIFMD prime broker segregation
The regulator is close to a decision under AIFMD on how prime brokers should segregate assets posted as collateral by hedge funds. View Article

FT: Fears mount over asset managers’ shadow banking operations
The shrinking banking sector is creating a major opportunity for asset managers to step into the lending breach; but concern is mounting over their “shadow bank” operations and rising systemic importance. View Article

AIMA-Barclays survey: Increased partnership between investors and hedge funds
Investors increasingly strike partnerships with hedge funds, underlining the closer collaboration taking place between the hedge fund industry and its investor base, according to a new survey by the Alternative Investment Management Association (AIMA) and Barclays. View Article

AIMA Japan and Eurekahedge survey: Japanese investors planning to maintain hedge fund allocations
Japanese investors plan to maintain the size of their hedge fund allocations this year, according to a major new survey by AIMA Japan, the Japanese branch of AIMA, the global hedge fund industry association, and Eurekahedge, the Singapore–based data provider and research house. View Article

IPE: Austrian pension situation shows 'limits' of IORP Directive
Less than half of the almost €7.6bn in defined benefit obligations reported by the 37 companies listed in the prime segment of the Austrian stock exchange (ATX) are funded via a Pensionskasse or insurance-based Betriebliche Kollektivversicherung (BKV), data collected by arithmetica shows. View Article

IASB/Ian Mackintosh: 'Turning back the clock?'
Ian Mackintosh, Vice-Chairman of the IASB, reported that more than 100 countries are now mandating the use of IFRS. He called for these hard-fought gains to be protected and outlined the dangers of returning to previously failed models of international cooperation in accounting standard-setting. View Article

FEE: Cross-border audit oversight
FEE has published its factsheet on the EC´s decisions regarding the equivalence of systems of public oversight, quality assurance, investigation and penalties for the audit profession- plus some background on current EU legislation. View Article

IASB: Establishment of group to look at impairment of financial instruments
The IASB announced its intention to create a transition resource group that will focus on the upcoming new requirements for impairment of financial instruments. View Article

EFRAG published a letter to IASB and a statement on the Post-implementation Review of IFRS 3 Business Combinations
EFRAG has issued a letter to the IASB in response to the Request for Information on IFRS 3 Business Combinations and a feedback statement that summarises the views expressed by European preparers during the outreach activities organised jointly with European National Standard Setters. View Article

Juncker to be anointed as Commission President - to "reform" the EU
The leaders of the EU’s Centre-Left parties met in Paris on Saturday and gave their crucial support to Jean-Claude Juncker. With that full support, the deal should now be done. View Article

Brussels for Breakfast (100) with Graham Bishop and David Harley (Burson-Marsteller) and Mats Persson (Open Europe)
The June B4B meeting was dominated by discussion of the EP election results and the process of appointing the next Commission President. In banking, the drive towards a capital markets union was highlighted. View Article

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This week in "Brussels"

26 June 2014

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