This week in "Brussels"
23 February 2017
TLTROs, NPLs, European Capital Markets, MiFID II, CCPs, euro clearing, credit rating agencies, FTT, UK Corporate Governance Code, money laundering and terrorist financing, Blockchain, Brexit and more.
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Articles from 16 February 2017 - 23 February 2017 |
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Banking |
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Bloomberg: ECB can renew free loans to banks if needed, Council member says
The European Central Bank could consider renewing its offer of free long-term liquidity to lenders though it shouldn’t turn it into a permanent measure, the Bank of Lithuania Governor Vitas Vasiliauskas said. View Article |
VOX: In search of a European solution for banks’ non-performing loans
European banks have not recovered from the Global Crisis, in part due to heavy provisions for non-performing loans. This column argues that a comprehensive approach to the issue in Europe could address market inefficiencies and reduce bad loans to bearable levels. View Article |
EBA consults on procedures for complaints of alleged infringements of the PSD2
The EBA launched a public consultation on its draft Guidelines on the complaints procedures to be taken into consideration by competent authorities to ensure and monitor effective compliance by payment service providers of the revised Payment Services Directive. View Article |
EBA expresses dissent over the EU Commission proposed amendments to technical standards under the IFR
The EBA issued an Opinion to the European Commission, expressing dissent over some of the proposed amendments to its final draft Regulatory Technical Standard on the separation of payment card schemes and processing entities under the Interchange Fee Regulation. View Article |
ECB: STAMP€: Stress-Test Analytics for Macroprudential Purposes in the euro area
Financial sector stress tests have proved to be an important tool for assessing the robustness of the financial system and gauging risks arising at system-wide level from a macroprudential perspective. This guide offers a suite of analytical tools for those interested in stress-testing frameworks. View Article |
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Securities |
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CEPS: Recent developments in European Capital Markets – Key findings from the 2016 ECMI Statistical Package
This paper presents the key findings reported in the 2016 ECMI Statistical Package, a comprehensive and up-to-date database compiled annually on the dynamics of European and global capital markets. View Article |
Financial Times: Regulators urged to close European share trading loophole
European markets regulators are examining a potential loophole in MiFID II rules, which they fear promotes lightly regulated, private networks rather than placing curbs on trade away from public exchanges. View Article |
IRSG Paper on CCPs post-Brexit
This paper discusses the implications for banks and end-users of financial markets, if the current legal and regulatory framework for Central Counterparties continued unchanged after Brexit. View Article |
Financial Times: Clearinghouses saddled with ‘too-big-to-fail’ tag
The flurry of proposals from regulators is partly an acknowledgment that clearinghouses do not fit the templates applied to “too-big-to-fail” banks following the crisis. View Article |
Financial Times: BoE deputy hits back at EU threats over euro clearing
Sir Jon Cunliffe hit back against claims from senior European politicians over stripping the City of London of its role as a hub for eurozone clearing after the Brexit vote. View Article |
Financial Times: Brexit casts doubt over rating agencies’ future in London
Credit rating agencies’ activities in London have been thrown into doubt by Brexit, as the UK government faces the prospect of cobbling together a new regulatory regime for institutions often blamed for exacerbating the financial crisis. View Article |
PIIE: To make the best of Brexit, the European Union needs to beef up ESMA
With Britain’s departure from the EU single market nearly certain to occur before mid-2019, the EU-27 should not wait to adapt its financial regulatory structure to successfully manage the resulting shifts, argue Nicolas Véron and Dirk Schoenmaker. View Article |
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Insurance |
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EIOPA reinforces supervisory cooperation in cross-border activities
The EIOPA published a Decision on the Collaboration of the Insurance Supervisory Authorities from all the European Union Member States in line with the requirements laid down in the Solvency II Directive. View Article |
Financial Times: Insurers warned of risks to not completing Brexit plans
One of London’s most senior insurance executives has warned that the industry may struggle to complete its Brexit preparations before the UK leaves the EU. View Article |
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Asset Management |
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New City Initiative: A new regime for Asset Management
The financial infrastructure and regulation of the UK is so intertwined with Europe that Brexit will require time and patience to implement effectively. This paper provides one solution which could be implemented with relative ease, according to New City Initiative think tank. View Article |
Hedgeweek: AIFMD passport no longer seen as the ‘silver lining’
Securing a third-country passport to access European investors is no longer viewed as the go-to solution it once was by the UK investment fund sector, according to Tim Hames, the Director General of the British Private Equity & Venture Capital Association (BVCA). View Article |
CEPS: Brexit and the Asset Management Industry
In this ECMI Policy Brief, Karel Lannoo observes that Brexit will have a big impact on the asset management industry and he express 3 main reasons. View Article |
Investment & Pensions Europe: EU finance ministers consider FTT exemption for pension funds
The 10 EU member states negotiating the possible introduction of a financial transactions tax (FTT) are to carry out further technical analysis of its effects on pension funds and the real economy. View Article |
ALFI: Luxembourg reaches new record in assets under management
With 3,741.33 billion EUR of assets under management as at 31 December 2016, an annual growth of 6.7%, Luxembourg reports another new record of assets under management in investment funds domiciled in Luxembourg. The country is well-known as a UCITS fund hub. View Article |
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Corporate Governance/Accounting |
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FRC to review the UK Corporate Governance Code
The FRC has announced plans for a fundamental review of the UK Corporate Governance Code. This will take account of work done by the FRC on corporate culture and succession planning, and the issues raised in the Government’s Green Paper and the BEIS Select Committee inquiry. View Article |
BBA response to BEIS Green Paper on Corporate Governance Reform
As the Green Paper outlines, the UK has a highly developed framework for corporate governance. This has been enhanced on several occasions in recent years and the BBA thought it right that in considering further improvements the Government aims to build on the solid foundation that already exists. View Article |
FRC responds to Green paper on Corporate Governance reforms
The interests of stakeholders, executive remuneration, the accountability of large private companies and effective enforcement are key themes in the FRC’s response to the Government’s Green paper on Corporate Governance reforms. View Article |
Evening Standard: Pension funds call for tougher curbs on mega pay deals for FTSE executives
Britain's biggest pension funds are demanding “super-majority” votes on executive pay to stop companies shrugging off shareholder rebellions. View Article |
ECB launches public consultation on draft amendments to the ECB regulation on reporting of supervisory financial information
The amendments update the regulation mainly to reflect changes in the International Financial Reporting Standards (IFRS). View Article |
EFRAG requests comments on its draft endorsement advice on Transfers of Investment Property
EFRAG is consulting on both its assessment of Transfers of Investment Property (Amendments to IAS 40) against the technical criteria in the EU and on its assessment of whether Transfers of Investment Property (Amendments to IAS 40) is conducive to the European public good. View Article |
EFRAG requests comments on its draft endorsement advice on IFRIC 22 Foreign Currency Transactions and Advance Consideration
EFRAG is consulting on its assessment of IFRIC Interpretation 22 Foreign Currency Transactions and Advance Consideration against the endorsement criteria in the IAS Regulation, including the technical criteria and whether IFRIC 22 is conducive to the European public good. View Article |
ACCA: Accountants will be in demand during Brexit process
According to a new study commissioned by AAT and the ACCA, members of Parliament believe accountants will be increasingly in demand during the Brexit process. View Article |
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Financial Services Policy |
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ESAs warn on money laundering and terrorist financing risks affecting the EU financial sector
The three ESAs published a joint Opinion addressed to the European Commission on the risks of ML/TF affecting the European Union's financial sector. In particular, this Joint Opinion finds that problems exist in relation to firms' understanding and management of the ML/TF risk they are exposed to. View Article |
City A.M.: How Blockchain technology will change the financial services industry
Blockchain technology has been hailed as a potential “second generation of the Internet.” A whole vocabulary has sprung up around it, with an emphasis on keywords like distributed ledger, cryptography, and trust. View Article |
Insurance Europe: European Platform for Financial Education launched
A new European Platform for Financial Education has been launched. The initiative aims to promote the need for financial education and to boost financial literacy in Europe, particularly among young people and entrepreneurs. It also seeks to encourage EU-level leadership in this field. View Article |
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Grahams Articles, Comments & Speeches |
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PM May’s Brexit “Battle Plan”
The truth of the pithy statement by 19th century German General von Moltke must already be ringing in Prime Minister Theresa May's ears: “no plan of operations extends with any certainty beyond the first contact with the main hostile force.” (With translation into Japanese) View Article |
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Structured CPD: Workbook Brussels4Brunch |
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19th Brussels for Brunch: Workbook February 2017
This is the monthly Roundup that accompanies the February 2017 Webinar View Article |
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Graham's tweets |
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© Graham Bishop
Banking