This week in "Brussels"
25 September 2014
Headlines include: Bank for International Settlements: Re-thinking the lender of last resort (LOLR; European Banking Authority consults on the implementation of resolution tools; EIOPA: Solvency II: a revolution in risk culture? IFAC: IPSASB approves public sector conceptual framework.
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Articles from 18 September 2014 - 25 September 2014 |
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Banking |
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Bank for International Settlements: Re-thinking the lender of last resort (LOLR)
LOLR is perhaps a central bank’s most controversial role. This BIS workshop explored fundamental questions about the design of LOLR frameworks and the execution of LOLR policies, with a view to providing input into the discussions among central banks, and the public debate more generally. View Article |
European Court of Justice and VAT
A ruling from the CJEU holds that services between a group’s headquarters and other branches should be subject to VAT- which could substantially increase the tax bills of financial services firms. View Article |
European Banking Authority consults on the implementation of resolution tools
The documents aim at facilitating the implementation of resolution tools in the EU banking sector, and in particular at regulating the sale of business tool and the asset separation tool, as well as the transfer of an institution or its assets under any of the resolution tools. View Article |
European Banking Authority consults on triggers for early intervention and resolution
The EBA launched a consultation on two draft Guidelines on triggers for early intervention and triggers for resolution. View Article |
European Banking Authority publishes Guidelines on recovery and resolution
The EBA published its final Guidelines specifying the type of tests, review or exercises that may lead to extraordinary public support measures for institutions in the banking sector. These Guidelines aim at promoting a consistent and coherent approach to bank resolution across the European Union. View Article |
Reuters: Germany says won't delay plans to isolate risky bank business
The German government will not delay its plans to isolate risky hedge fund activities from banks' normal retail business but will consider aligning its law with European rules to keep costs down for German banks, the finance ministry said on Friday 19 September. View Article |
BoE: Consultation on CRD IV: data collection on remuneration practices
This joint PRA and Financial Conduct Authority (FCA) consultation paper sets out proposed changes to remuneration data reporting requirements for banks, building societies, PRA-designated investment firms and IFPRU investment firms. View Article |
BoE: Consultation on CRD IV: compliance with EBA on disclosure of encumbered and unencumbered assets
This consultation paper seeks views on the PRA's draft supervisory statement on the European Banking Authority’s Guidelines on disclosure of encumbered and unencumbered assets published on 27 June 2014. View Article |
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Securities |
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Risk.net: EC considers six-month pause for CME's doomsday clock
The European Commission is considering giving ESMA a further six months to assess clearing house rules in foreign jurisdictions, postponing a potential hit for banks that use non-approved central counterparties. Differences between the EC and the CFTC now rest on one major issue: margin rules. View Article |
Reuters: Derivatives industry calls global reporting plan a dream
Plans for a global snapshot of risks in the financial derivatives market are a "dream" that must not detract regulators from tackling discrepancies in trade reporting. View Article |
FSB: Jurisdictions' ability to defer to each other's OTC derivatives market regulatory regimes
As jurisdictions move forward in implementing regulatory reforms to meet this commitment, authorities, along with market participants and infrastructure providers, have noted that issues of actual or potential overlap, duplication, conflicts or gaps in regulatory requirements remain a concern. View Article |
ICMA-ERC Briefing Note: CSDR Mandatory Buy-ins and the treatment of SFTs
This briefing note covers existing remedies for failing SFTs; SFTs and secondary market liquidity; collateral fluidity; CSDR mandatory buy-ins and SFTs; and the ICMA ERC position on mandatory buy-ins and SFTs. View Article |
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Insurance |
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Risk.net: Solvency II: insurers study hedging options for volatility adjustment
The volatility adjustment should help insurers by smoothing the impact of market swings on the balance sheet. But firms are struggling to understand how it will work in practice. Hedging the discount rate for liabilities under the directive is challenging to begin with. View Article |
EIOPA: Solvency II: a revolution in risk culture?
European Insurace and Occupational Pensions Authority: Speech by Carlos Montalvo Rebuelta, Executive Director, on Solvency II and risk management in insurance. View Article |
EIOPA: conference on global insurance supervision
EIOPA in cooperation with the International Centre for Insurance Regulation (ICIR), the World Bank and the Centre for the Study of Insurance Regulation at St. John’s University organised a third annual Conference on Global Insurance Supervision (GIS Conference). View Article |
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Asset Management |
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IPE: European Commission's Lueder sets out strategy for asset management
Mr Lueder, head of the European Commission’s asset management division overseeing EU rules on collective investment schemes and AIFMs, has set out a strategy for taking European investment vehicles to Chinese institutional investors. View Article |
Hedgeweek: Border controls imposed by domestic regulators inhibit cross-border fund marketing
Domestic regulations in Europe are inhibiting the cross-border benefits of the European Commission’s Alternative Investment Fund Managers Directive (AIFMD), according to analysis by law firm CMS. View Article |
Statement by Gabriel Bernardino, Chairman of EIOPA, at the Hearing at the Economic and Monetary Affairs Committee of the European Parliament
Mr Bernardino spoke about the achievements of EIOPA in the last 12 months and detailed some challenges that lie ahead for the regulatory body. View Article |
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Corporate Governance/Accounting |
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IFAC: IPSASB approves public sector conceptual framework
The IPSASB has approved its Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (the Conceptual Framework). View Article |
ECIIA: Promoting internal audit in European corporate governance
The ECIIA promotes the value of internal audit in European corporate governance, as detailed in its Activity report 2014. View Article |
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Financial Services Policy |
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ECB President Draghi at ECON (September 22): A moment of change for the ECB
'This hearing today takes place at a moment of change for the ECB. On 4 November, the ECB will become the banking supervisor for the euro area, including the direct supervision of 120 large banks. This marks the biggest step of European economic integration since the inception of the euro." View Article |
FT: Capital shortfalls likely to emerge from unprecedented ECB probe
The probe of the euro area banking sector being led by the European Central Bank has been billed as a once-and-for-all opportunity to kill the lingering crisis of confidence that is hampering lending in the region. View Article |
ECB allots €82.6 billion in first targeted longer-term refinancing operation
The European Central Bank allotted €82.6 billion to 255 counterparties in the first of eight targeted longer-term refinancing operations (TLTROs) to be conducted between September 2014 and June 2016. View Article |
The Joint Committee of the ESAs update on risks in EU financial system
The Joint Committee of the ESAs published its bi-annual report on risks and vulnerabilities. Risks include prolonged weak economic growth in a state of high indebtedness, an intensified search for yield in a protracted low interest rate world and uncertainties in global emerging market economies. View Article |
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International/G20 |
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G20: Europe must boost demand
European Voice reports from G20 finance ministers calling for Europe to boost domestic demand. View Article |
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© Graham Bishop
Banking