This week in "Brussels"
08 October 2015
CMU, 29th regime, BCBS, CPMI, EBA, ECB, EBF, EPC, FCA, PCS's commentary on the Commission's securitisation proposal, AFME, EFAMA, FESE, TheCityUK, ESMA, Solvency II amendments, a standardised Pan-European Personal Pension product and more.
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Articles from 01 October 2015 - 08 October 2015 |
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Banking |
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Report on the regulatory consistency of risk-weighted assets for counterparty credit risk issued by the Basel Committee
The BCBS has published a report on the regulatory consistency of risk-weighted assets (RWAs) for counterparty credit risk. This study is a part of its wider Regulatory Consistency Assessment Programme (RCAP), which is intended to ensure consistent implementation of the Basel III framework. View Article |
Consultative report on correspondent banking issued by CPMI
The CPMI issued a consultative report on Correspondent Banking. The CPMI consultative report provides some basic definitions, outlines the main types of correspondent banking arrangement, summarises recent developments and touches on the underlying drivers. View Article |
EBA seeks legislative clarifications on mortgage lending value
In EBA’s Opinion, the Authority raises concerns about the possible unintended consequence that a harmonised definition of MLV across the CRR might have on the EU covered bonds market. View Article |
Financial Times: Banks chiefs claim tougher ECB rules give advantage to US rivals
The heads of Deutsche Bank, BNP Paribas and the seven other biggest lenders in the euro area have mounted a joint push against European Central Bank plans to hit them with tougher rules, warning that the measures would hand an advantage to US rivals. View Article |
EBF draft response to the EBA discussion paper on the SME supporting factor
The EBA assessment paper presumes that the volume of write-offs and bad assets sold are lower in the SME segment as in large corporates. The question is not so much to demonstrate that SME lending has increased thanks to the SF, but to figure out how much SME lending would have shrunk without it. View Article |
EBA launches call for expression of interest for new members of its stakeholders group
The EBA launched a call for expression of interest for membership to its Banking Stakeholder Group (BSG), as the mandate for the majority of its members will expire in April 2016. View Article |
EPC launches a public consultation on draft revised scheme management internal rules
The EPC proposes several major amendments to chapters 4 and 5 describing the maintenance and evolution process of the EPC SEPA Schemes. View Article |
FCA introduces new rules on whistleblowing
These changes follow recommendations in 2013 by the Parliamentary Commission on Banking Standards (PCBS) that banks put in place mechanisms to allow their employees to raise concerns internally and that they appoint a senior person to take responsibility for the effectiveness of these arrangements. View Article |
Bank of England: Strengthening accountability in banking and insurance: regulatory references
This consultation forms part of the wider package of reforms that aim to improve accountability in relevant authorised persons (RAPs) and insurers. View Article |
Financial Times: Watchdog calls for concerns to be voiced over UK mortgage market
The shortcomings of the UK’s mortgage market have been highlighted by the financial watchdog as it asked lenders, brokers and the public to come forward with any concerns about the £200bn-a-year sector. View Article |
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Securities |
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PCS: Commission’s securitisation proposal is out
There is much to commend the Commission’s approach, some items to keep an eye on and some issues which were serious enough to have the potential to derail the chances of market recovery altogether. View Article |
AFME welcomes the Commission’s action plan for securitisation
The development of a simple, transparent and standardised securitisation market is a key building block of the European Commission’s Capital Markets Union. AFME is a committed supporter of the CMU project and STS within it. View Article |
EFAMA reiterates support to a capital markets union which will deepen the single market and investor protection
Following the European Commission’s publication of its Action Plan for a Capital Markets Union, EFAMA voices again its continued backing to the Commission’s plan to promote further the financing of the European economy through a well-functioning CMU. View Article |
FESE welcomes CMU Action Plan as vital step to more equity capital financing
FESE welcomes the publication of the European Commission's 'Action Plan on Building a Capital Markets Union' which is a thoughtful, well-structured package, giving priority to strengthening the European economy and stimulating investment to create jobs and growth. View Article |
TheCityUK responds to the European Commission’s Action Plan on Capital Markets Union
Chris Cummings, TheCityUK's Chief Executive, said that the CMU "is a positive step in realising the ambition to strengthen Europe’s capital markets and make it quicker, easier and cheaper for businesses – in particular for Europe’s higher growth companies – to access funding." View Article |
AIMA welcomes Capital Markets Union proposals
AIMA said the CMU Action Plan is an important step towards the creation of a fully-functioning capital markets union in Europe. View Article |
EVCA:Venture capital to play central role in Capital Markets Union
EVCA welcomes the European Commission’s ‘Action Plan on Building a Capital Markets Union, which places venture capital at the heart of its proposals to unlock trillions of euros of financing for Europe’s economy. View Article |
FEE: European accountants for more integrated EU Capital markets
FEE strongly supports the EC’s efforts to create deeper and stronger capital markets. Professional accountants, in their diverse capacities, bring the indispensable trust, transparency and comparability that capital markets need and they advise SMEs on financing opportunities. View Article |
ESMA informs European Commission of delay in submitting the RTS on indirect clearing under MiFIR
ESMA believes that in order to ensure the orderly functioning of markets amendments need to be made to the EMIR RTS and will launch a consultation shortly on these changes. View Article |
ESMA publishes responses to the Consultation on Review of EMIR Article 26 of RTS 153/2013
The European Securities and Markets Authority has published the responses received to the Consultation on Review of EMIR Article 26 of RTS 153/2013. View Article |
FSB releases progress report on FX benchmark reforms
The report draws on assessments of market participants’ progress which were undertaken by the main foreign exchange committees as well as by central banks in other large FX centres. View Article |
BIS: The impact of CCPs' margin policies on repo markets
This paper quantifies the impact on the cost of funding in repo markets of the initial margins applied by central clearing counterparties. View Article |
ESMA adds Index CDS to central clearing obligation
The new rule on Index CDS mirrors the overall approach of the first RTS, in particular with regards to the categorisation of counterparties, the scope for frontloading and the treatment of intragroup transactions. View Article |
ESMA publishes final guidelines on Alternative Performance Measures
The guidelines apply to APMs disclosed by issuers or persons responsible for drawing up a prospectus on or after 3 July 2016. View Article |
ESMA sees progress in reform of EU credit rating industry
ESMA finds that the EU CRA Regulation has improved the governance and operation of CRAs but that it is too soon to comprehensively assess the impact of measures regarding competition and conflicts of interest included in the CRA Regulation of 2013. View Article |
ESMA sets out its priorities for 2016
ESMA’s priorities for 2016, in line with the recently published ESMA Strategic Orientation 2016-2020, signals a shift from rulemaking towards implementation and promoting the convergence of supervisory practices. View Article |
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Insurance |
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European Commission: Solvency II (including “Omnibus II”)
As part of the Capital Markets Union Initiative, the European Commission adopted a number of amendments to the Solvency II Delegated Act, concerning infrastructure investments, European Long-Term Investment Funds, the equity transitional measure, and Multilateral Trading Platforms. View Article |
Fitch: Solvency II infrastructure class will attract insurers
Plans to create a new infrastructure asset class with lower capital requirements under the Solvency II regime should encourage investment in the sector by insurers, which see infrastructure assets as a good match for their long-term liabilities, Fitch Ratings says. View Article |
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Asset Management |
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PensionsEurope response to EIOPA consultation on the creation of a standardised Pan-European Personal Pension product
PensionsEurope comments that the organisation of the pension system is a matter of national competence, thus falling under the subsidiarity principle. View Article |
IPE: Dutch, German associations criticise pan-European pension proposal
Responding to EIOPA’s consultation on the introduction of a standard, cross-border, third-pillar product, the industry organisations argued that demand for such plans would come only from the “happy few”, and fail to encourage workers to save more for pensions. View Article |
Financial Times: FCA to curb risky pension investments
The City watchdog is taking action to stop people draining their pension pots to fund risky investments intended for “sophisticated”, wealthier investors. View Article |
EUbusiness: 2015 Pension Adequacy Report
The report shows that EU’s pension systems can be expected to deliver adequate pensions to future generations of retirees provided strong policies to enable workers to stay in jobs until they reach the statutory pension age are pursued. View Article |
ESMA clarifies AIFMD provisions on depositaries and CSDs
This Q&A now clarifies that when an Alternative Investment Fund’s depositary sub-delegates custody of the AIF’s assets to either an EU or third-country central securities depositary, that CSD must comply with the provisions on delegation under Article 21 of the AIFMD. View Article |
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Corporate Governance/Accounting |
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EFRAG: Draft comment letter on the 2015 IASB Agenda Consultation
EFRAG has published its draft comment letter in response to the Request for Views of August 2015 IASB Agenda Consultation discussing the main priorities for the IASB’s work plan. EFRAG is seeking constituents’ views on its draft comment letter by 30 November 2015. View Article |
EFRAG: Draft response to the Trustees’ Review of Structure and Effectiveness
EFRAG has published its draft response to the Request for Views Trustees’ Review of Structure and Effectiveness: Issues for the Review of July 2015 and seeks constituents’ views. Comments on the draft letter are requested by 30 November 2015. View Article |
ACCA: Small and medium sized practices diversifying for success
The new survey completed by the ACCA, named The Global SMP business model: understanding a changing profession, provides a unique insight into how the SMP business model is changing to adapt to a new reality. View Article |
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Financial Services Policy |
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ESAs set out joint work plan for 2016
The Joint Committee of the European Supervisory Authorities (EBA, ESMA and EIOPA) published its Work Programme for the upcoming year. Throughout 2016, the Joint Committee will continue to give high priority to Consumer Protection and Cross-Sectoral Risk Analysis. View Article |
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Grahams Articles, Comments & Speeches |
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Deepening EMU – Round-up of Key Events – September 2015
The presentation of the Action Plan for building a Capital Markets Union and the State of the Union debate were the main events in the European Parliament. The ECB's efforts as the single supervisor clash with national laws: Draghi called for a common approach in the EU to writing off bank debt. View Article |
What is CMU?
What is CMU and what is it intended to achieve? View Article |
It’s time for a 29th regime
The 28 member states should set up a new EU-wide regime operating in parallel with national ones as a way of removing obstacles to CMU. View Article |
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Friends Services |
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Finance on Friday - 2nd October
A five minute's conversation between Graham Bishop and Nick Crosby about what's going on in the financial world. View Article |
Finance on Friday - 18th September
A five minute's conversation between Graham Bishop and Nick Crosby about what's going on in the financial world. View Article |
Finance on Friday - 11th September
A five minute's conversation between Graham Bishop and Nick Crosby about what's going on in the financial world. View Article |
Deepening EMU – Round-up of Key Events – September 2015
The presentation of the Action Plan for building a Capital Markets Union and the State of the Union debate were the main events in the European Parliament. The ECB's efforts as the single supervisor clash with national laws: Draghi called for a common approach in the EU to writing off bank debt. View Article |
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Graham's tweets |
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© Graham Bishop
Banking