This week in "Brussels"
17 November 2016
IFRS 9, supervisory reporting, Germany's banking sector, central securities depositories, securitisation, OTC interest rate derivatives markets, CCPs, MiFID II, PRIIPs, AIFMD, financial benchmarks and more.
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Articles from 10 November 2016 - 17 November 2016 |
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Banking |
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EBA provides its views on the implementation of IFRS 9 and its impact on banks across the EU
The report includes some qualitative and quantitative observations of EBA's first impact assessment of IFRS 9. This exercise also contains some recommendations relevant to the observations as well as some future actions, including the interaction of IFRS 9 with existing prudential requirements. View Article |
EBA consults on revised standards on supervisory reporting
The EBA published for consultation revised Implementing Technical Standards (ITS) on supervisory reporting. The proposed amendments concern new requirements for the reporting of information on sovereign exposures and changed requirements for the reporting of operational risk data. View Article |
EBA consults on guidelines for the application of the IRB approach
These draft Guidelines are part of the EBA's broader work on the review of the IRB approach aimed at reducing the unjustified variability in the outcomes of internal models, while preserving the risk sensitivity of capital requirements. View Article |
EBF presents vision for banking in the digital single market
The paper identifies nine key issues that need to be addressed in the near future in order to let financial technology companies develop innovative banking services in the European Union. View Article |
BIS: Dollar replaces VIX as gauge of banks' appetite for leverage
The dollar has ousted the VIX index as a barometer of the banking sector's appetite for leverage, with bank lending coming under pressure when the dollar appreciates, Bank for International Settlements Economic Adviser and Head of Research Hyun Song Shin said. View Article |
Valdis Dombrovskis: What next for Europe’s banking system?
Vice-President Dombrovskis set out his approach to regulating Europe’s banking sector against a backdrop of increased uncertainty represented by the subdued global growth, Britain’s referendum result and last week’s American election. View Article |
ECB: The European banking sector – a quick pulse check
Sabine Lautenschläger, Member of the Executive Board of the European Central Bank (ECB) and Vice-Chair of the Supervisory Board of the ECB, give an account of the European banks' situation. View Article |
Deutsche Bundesbank's Dombret: What's the state of play in Germany's banking sector?
Andreas Dombret unveiled the Financial Stability Review 2016 and warned that persistently low interest rates are encouraging the build-up of risks that could threaten financial stability. View Article |
Financial Times: Negative rates add to list of pressures on German bankers
The biggest institutions are restructuring and now savings banks are set to follow. View Article |
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Securities |
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Commission adopts measures to implement rules on central securities depositories
The five regulatory and implementing technical standards were developed by the ESAs and have been endorsed by the European Commission without modification. The Commission developed the delegated act based on ESMA’s technical advice. View Article |
European Banking Federation: New joint paper highlights importance of securitisation for jobs and growth in Europe
Eight leading European trade associations have released a paper highlighting the importance of securitisation for jobs and growth in Europe, and underlining their commitment to supporting a safe and sustainable market that serves the real economy. View Article |
BIS: Central clearing predominates in OTC interest rate derivatives markets
Central clearing predominates in the OTC interest rate derivatives markets but is less prevalent for other OTC derivatives, as the combined results of the BIS semiannual and Triennial surveys of outstanding OTC derivatives positions show. View Article |
ESMA defines common supervisory approach for CCPs’ service extensions and change of risk models
ESMA issued an opinion defining a common supervisory approach for supervisors dealing with central counterparties wishing to extend their existing authorisation or change their risk models under EMIR. View Article |
ESMA asks Commission to delay central clearing for small financial counterparties
ESMA published its final report regarding the amended application of the clearing obligation that financial counterparties with a limited volume of activity in OTC derivatives need to comply with under EMIR. View Article |
ESMA consults on transparency rules for package orders under MiFID II
ESMA opened a public consultation on draft RTS regarding the treatment of package orders under the amended MiFID II and MiFIR. Overall, MiFID II aims at increasing market integrity, transparency and efficiency. View Article |
ESMA updates MAR guidelines on market soundings
ESMA re-issued the official translations of its final guidelines clarifying the implementation of the Market Abuse Regulation for persons receiving market soundings. View Article |
ESMA finalises Guidelines on the validation and review of CRAs’ methodologies
ESMA published its Final Report on Guidelines on the validation and review of Credit Rating Agencies’ (CRAs) methodologies. View Article |
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Insurance |
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Bank of England: Cyber insurance underwriting risk
The PRA proposes a new supervisory statement setting out its expectations for the prudent management of cyber underwriting risk, which is defined as the set of prudential risks emanating from underwriting insurance contracts that are exposed to losses resulting from a cyber-attack. View Article |
European Commission invites European Supervisory Authorities to amend PRIIPs rules and develop guidance
The ESAs have received a letter from the European Commission setting out the amendments it proposes to make to the draft RTS on key information documents for packaged retail and insurance-based investment products, accompanied by draft amended RTS. View Article |
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Asset Management |
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Money market funds: Presidency and European Parliament reach agreement
The presidency reached a provisional agreement with representatives of the European Parliament on a draft regulation on money market funds (MMFs), aimed at making such products more robust. View Article |
ESMA publishes updated AIFMD Q&A
ESMA published an updated questions and answers document on the application of the Alternative Investment Fund Managers Directive. View Article |
Financial Times: Asset managers face corporate governance crackdown
Investment groups are facing a corporate governance crackdown as pressure mounts on the way asset managers vote on pay and monitor issues such as board independence and company strategy. View Article |
ESMA responds to Commission’s consultation on potential EU personal pension framework
ESMA published its response to the European Commission’s consultation on a potential EU personal pension framework as part of ESMA’s ongoing work in relation to the Capital Markets Union initiative. View Article |
Investment & Pensions Europe: Belgian pension fund association decries government's workplace plan
Belgium’s pension fund association has added its voice to concerns over a government proposal for personal workplace pensions, calling for the “specificity” of the different pension pillars to be respected. View Article |
Investment & Pensions Europe: Company pension funds show support for German reform proposal
Germany’s corporate pension funds have given the thumbs-up to government plans to strengthen occupational pensions in the country. View Article |
Hedgeweek: Quant hedge funds at forefront of creating alpha from alternative data, says TABB
Quantitative hedge funds have been at the forefront of creating alpha from alternative data, according to a report from TABB Group – “Capturing Alternative Alpha: The Rise of Alternative Data Sets”. View Article |
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Corporate Governance/Accounting |
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ESMA prepares for new IFRS 9
ESMA has published a Public Statement on Issues for consideration in implementing IFRS 9: Financial Instruments which highlights both the need for consistent, high-quality implementation of IFRS 9 and the need for transparency on its impact to users of financial statements. View Article |
EFRAG requests comments on its draft endorsement advice on Applying IFRS 9 with IFRS 4
EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of Amendments to IFRS 4: Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts (the 'Amendments'). View Article |
EFRAG's final comment letter on the definition of a business and accounting for previously held interests
The exposure draft proposes guidance on the accounting for previously held interests in the assets and liabilities of a joint operation that meets the definition of a business. View Article |
FEE: Comment letter to the EC on public Country-by-Country Reporting
The FEE responded to the EC’s proposed introduction of a public Country-by-Country Reporting (CbCR) requirement applicable to Multinational Enterprises (MNEs) into the Accounting Directive 2013/34/EU. The FEE supports transparency and restoring trust in tax systems. View Article |
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Financial Services Policy |
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ESMA finalises advice on future rules for financial benchmarks
ESMA has finalised its technical advice to the European Commission on important aspects of future rules for benchmarks. View Article |
Comments by ECB's Mersch at Financial Services summit
Yves Mersch said the prospect of the UK’s exit from the EU creates uncertainty regarding the future of the supervision of non-euro area CCPs that clear significant amounts of euro currency. View Article |
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Structured CPD: Workbook Brussels4Brunch |
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Brussels for Brunch Monthly Roundup October 2016
This is the monthly Roundup that accompanies the October 2016 Webinar View Article |
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Graham's tweets |
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© Graham Bishop
Banking