This week in "Brussels"
26 November 2015
Banking Union and European Deposit Insurance Scheme, ECB's Financial Stability Review, EBA, EBF, BCBS, financial benchmarks, CMU, CPMI, IOSCO, MiFID II, ESMA, EMIR and more.
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Articles from 19 November 2015 - 26 November 2015 |
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Banking |
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European Commission: A stronger Banking Union - New measures to reinforce deposit protection and further reduce banking risks
The Commission has proposed a euro-area wide insurance scheme for bank deposits and has set out further measures to reduce remaining risks in the banking sector in parallel. View Article |
EBF statement on European Deposit Insurance Scheme proposal
The EBF supports the completion of the Banking Union with the creation of a single European deposit insurance scheme as its third and final pillar, but wants to ensure that the EDIS will not lead to increases in overall contributions that banks make to deposit guarantee systems. View Article |
ECB: Risks from outside euro area rise according to latest ECB Financial Stability Review
The euro area financial system has been resilient through occasional bouts of financial market volatility in the second half of the year. ECB's report highlights that the likelihood of an abrupt rise in global risk premia has become more pronounced as concern shifts to emerging market economies. View Article |
EBA: EU banks better capitalised in 2015, but NPLs remain of concern
The EBA published the outcome of its 2015 EU-wide transparency exercise and provided detailed bank-by-bank data on capital positions, risk exposure amounts and asset quality on 105 banks from 21 countries of the European Economic Area (EEA). View Article |
CPMI report on digital currencies
The report considers the possible implications of interest to central banks arising from innovations in some digital currency schemes, which underlying technology may have potential to improve some aspects of the efficiency of payment services and financial market infrastructures (FMIs) in general. View Article |
ECB publishes two Guidelines relating to changes in the General Documentation
The ECB has published a new Guideline amending the General Documentation Guideline on the implementation of the Eurosystem’s monetary policy and a new Guideline on the Eurosystem’s valuation haircuts. View Article |
EBF Board commends Financial Stability Board for providing clarity
The EBF Board discussed developments in the European banking sector, as well as the federation’s long-term vision for the banking sector and the role of banks in society. View Article |
BCBS: Making supervisory stress tests more macroprudential - Considering liquidity and solvency interactions and systemic risk
The paper’s key messages are that integrated liquidity and solvency stress tests are desirable, as liquidity and solvency interactions can be material. Approaches exist for capturing these interactions and, in some instances, have already been implemented by supervisors. View Article |
Bank of England: Publication of the PRA and FCA review into the failure of HBOS
The PRA and the FCA published their Review into the failure of HBOS Group. Its purpose is to analyse the causes of the firm’s failure, and to draw out lessons for the future, for both the industry and the regulatory system as a whole. View Article |
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Securities |
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Financial benchmarks: Commission welcomes agreement on new rules to prevent manipulation
The new rules will reduce the risk of manipulation by ensuring that benchmark providers in the EU have prior authorisation and are subject to proper supervision. View Article |
FEE/ESBG/UEAPME: EU associations trio strongly involved with SMEs forge common CMU position
FEE, ESBG and UEAPME provide a set of ideas to improve access to finance for SMEs under the Capital Markets Union. The trio says to be deeply committed to supporting Commission CMU work and calls on policymakers to recognise that typical SMEs won’t get financing they need from capital markets. View Article |
CPMI-IOSCO consultative paper Guidance on cyber resilience for financial market infrastructures
The Cyber Guidance aims to add momentum to and instil international consistency in the industry’s ongoing efforts to enhance FMIs’ ability to preempt cyber attacks, respond rapidly and effectively to them, and achieve faster and safer target recovery objectives if they succeed. View Article |
Tabb Forum: MiFID II - Industry-wide sigh of relief may be premature
ESMA has called for delays to the MiFID II implementation deadline. While some commentators have suggested this puts an end to the punishing timeline that the industry is currently wrestling with, things are rather more complicated, and an industry-wide sigh of relief may be premature. View Article |
SEC proposes rules to enhance transparency and oversight of alternative trading systems
The SEC announced it has voted to propose rules to enhance operational transparency and regulatory oversight of alternative trading systems that trade stocks listed on a national securities exchange (NMS stocks), including “dark pools.” View Article |
ESMA will not exempt the collateralisation of bank guarantees for energy derivatives under EMIR
ESMA decided not to further extend the existing grace period of three years for the non-financial firms’ use of non-collateralised bank guarantees to cover transactions in energy derivatives cleared by European central counterparties. View Article |
EC refers Luxembourg to the EU Court of Justice over its failure to transpose EU legislation on reducing over-reliance on credit ratings
The Commission asked the Court to impose a penalty on Luxembourg until the law is fully transposed into national legislation. View Article |
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Insurance |
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EIOPA seeks evidence on the treatment of infrastructure corporates
This paper describes the evidence that EIOPA is aware of based on the previous call for advice on infrastructure, and sets out the specific areas where EIOPA would be interested to know if additional evidence or data is available. View Article |
Bank of England: Solvency II - external audit of the public disclosure requirement
This consultation paper sets out the PRA’s proposal for a policy to require the external audit of elements of Pillar 3 disclosure under Solvency II and seeks feedback on the proposal, draft rules and draft supervisory statement. View Article |
EIOPA: EU-U.S. Insurance Project presents two reports
The Steering Committee of the EU-U.S. Insurance Project hosted a Public Forum in which it presented the overview of its 2015 activities involving the topic of group supervision and a report on the key elements of regulations and supervisory practices in respect of Group ORSA. View Article |
Bank of England: Capital extractions by run-off firms within the general insurance sector
The Prudential Regulation Authority proposes a supervisory statement that sets out the PRA’s expectation of compliance with prudential provisions in its rulebook for run-off firms in the general insurance sector. View Article |
Bank of England: The prudential regime, and implementation of the Senior Insurance Managers Regime, for non-Solvency II firms
This policy statement provides feedback on responses to the Consultation Paper ‘Senior Insurance Managers Regime: implementation proposals for non-Solvency II firms’, together with ‘The prudential regime for non-Solvency II insurance firms and consequential amendments’. View Article |
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Asset Management |
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TheCityUK: UK funds under management at record £6.8trillion
The UK has also consolidated its position as the leading global centre for the management of funds on behalf of international clients. View Article |
New report from EFAMA and SWIFT confirms total industry standardisation and automation rates continue to progress
EFAMA published in cooperation with SWIFT a new report on the evolution of automation and standardisation rates of fund orders received by transfer agents in the cross-border fund centres of Luxembourg and Ireland in the first half of 2015. View Article |
IPE: Regulators seen tightening focus on pension fund liquidity
Pensions watchdogs are likely to increase their focus on the issue of liquidity within pension fund investment, taking steps to force the funds to demonstrate they are considering the implications of moves to less liquid instruments. View Article |
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Corporate Governance/Accounting |
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EBA, ESMA, FEE, FRC, IFAC: Comment letters on the IASB Conceptual Framework for Financial Reporting
EBA, ESMA, FEE, FRC and IFAC have published their comment letters on the IASB's EDs ED/2015/3 'Conceptual Framework for Financial Reporting' and ED/2015/4 'Updating References to the Conceptual Framework'. In general they support the IASB’s efforts to revise the Conceptual Framework. View Article |
FEE: Call for an international solution for aligning the effective dates for IFRS 9 and IFRS 4
FEE has provided input to EFRAG’s draft letter to further inform the EC on the endorsement of the International Financial Reporting Standard for financial instruments (IFRS 9) in the EU. View Article |
ESMA: A proper implementation of IFRS 9 requires significant resources
ESMA has published its comment letter on Draft Letter from EFRAG to the EC supplementing its endorsement advice on adoption of IFRS 9 Financial Instruments. View Article |
IASB: China to explore further use of IFRS
The IFRS Foundation and the Chinese Ministry of Finance today announced the formation of a joint working group to explore ways and steps to advance the use of IFRS Standards within China, especially for internationally oriented Chinese companies. View Article |
FEE: Comment letter to EFRAG on conceptual framework
FEE has responded to the EFRAG’s public consultation on the matter of the IASB´s EDs dealing with Conceptual Framework for Financial Reporting. In its comment letter FEE lists some areas where it does not agree with EFRAG. View Article |
EFRAG: Feedback statement on the IASB's ED/2015/5 counting proposed amendments to IAS 19 and IFRIC 14
EFRAG published its feedback statement to constituents following the publication of the final comment letter on the IASB´s ED Remeasurement on a Plan Amendment, Curtailment or Settlement / Availability of a Refund from a Defined Benefit Plan (Proposed amendments to IAS 19 and IFRIC 14). View Article |
IASB: Proposed amendment to IAS 40 and proposed annual improvements
The IASB published for public comment two EDs covering a proposed narrow-scope amendment to the investment property Standard, and proposed amendments to three other IFRSs as part of the IASB’s annual improvements process. View Article |
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International/G20 |
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G20/OECD high level principles on SME financing
These high level principles are addressed to G20 and OECD members and other interested economies, to support their efforts to enhance access to a diverse range of financing instruments by SMEs, including micro-enterprises, and entrepreneurs. View Article |
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Grahams Articles, Comments & Speeches |
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Introductory remarks to the House of Lords EU Committee
Graham Bishop gave evidence on the subject of the Five Presidents Report and the Communication on Completing EMU. View Article |
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Graham's tweets |
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© Graham Bishop
Banking