This week in "Brussels"
15 June 2017
Euro-derivatives clearing, CMU, EBA 2018 EU-wide stress test, LCR, bank capital rules, Dodd-Frank, Solvency II, PEPP, IORP, IFRS 9 and more.
|
|
Jump directly to |
 |
 |
|
|
Articles from 08 June 2017 - 15 June 2017 |
|
|
Banking |
|
|
|
|
|
|
EBA issues 2018 EU-wide stress test methodology for discussion
The EBA published its 2018 EU-wide stress test draft methodology and templates for discussion with the industry. The exercise will cover 70% of the EU banking sector and will assess EU banks' ability to meet relevant supervisory capital ratios during an adverse economic shock. View Article |
BIS: Second set of FAQs on the Liquidity Coverage Ratio issued by the Basel Committee
The BCBS has issued a second set of frequently asked questions and answers on Basel III's Liquidity Coverage Ratio (LCR). These respond to a number of interpretation questions received by the Basel Committee related to the January 2013 publication of the LCR standard. View Article |
Reuters: France leads opposition to deal on bank capital rules
Europe, led by France, is set to scupper attempts to reach a compromise deal on bank capital rules, arguing that the levels being set to avoid future taxpayer bailouts are too high, people familiar with the talks said. View Article |
BBC: Republicans take aim at Dodd-Frank financial rules
A Republican push to overhaul US banking rules put in place after the 2008 financial crisis may be gaining momentum. View Article |
ECB's Constâncio: Challenges faced by the European banking sector
Constâncio said that, while profitability headwinds stemming from cyclical factors should abate as the economic recovery progresses, structural challenges remain and need to be tackled. These include the large stock of NPLs, cost inefficiency and excess capacity. View Article |
EPC: 18 months on – Impact of the Interchange Fee Regulation on the European Union cards market
IFR covered a good deal more than the interchange fee caps and included substantial changes to the business rules for cards acceptance and processing frameworks. EPC's Peter Jones asks whether implementation been effective and more importantly, have there been unintended consequences? View Article |
Bloomberg: Morgan Stanley says Bitcoin needs regulation to keep rising
While Morgan Stanley is high on the blockchain technology that underpins bitcoin, analysts at the investment bank are a bit more cautious when it comes to the surge in the price of the virtual currency. View Article |
|
|
|
|
|
Securities |
|
|
|
|
|
|
Commission proposes more robust supervision of central counterparties
The European Commission is proposing targeted reforms to further improve the financial stability of the European Union. View Article |
AFME comments on EMIR Amendment
Simon Lewis, Chief Executive at the Association for Financial Markets in Europe commented on the European Commission’s proposed amendments to the supervisory arrangements for EU and third-country CCPs under the European Market Infrastructure Regulation. View Article |
EBF: Supporting CMU, committed to diversifying finance
Noting this publication of the European Commission’s mid-term review of the Capital Markets Union (CMU) project, the European Banking Federation wishes to reiterate its support for the CMU initiative while underlining its commitment to enhancing the diversity of financing channels across the EU. View Article |
ESMA issues risk dashboard for first quarter of 2017
ESMA issued its most recent iteration of its Risk Dashboard, covering risks in the EU’s securities markets for 1Q2017. ESMA’s overall risk assessment remains unchanged from 4Q16 at high levels. View Article |
Capital Markets Union Mid-Term Review - Invest Europe's response
Invest Europe – the association for European private equity, venture capital, infrastructure and their investors – is issued a statement following the publication of the CMU review View Article |
Insurance Europe: Response to the Capital Markets Union mid-term review
Michaela Koller, director general of Insurance Europe, commented on the publication of the European Commission’s mid-term review of its Capital Markets Union project to unlock funding for growth in Europe. View Article |
EFAMA welcomes the European Commission's CMU mid-term review
EFAMA acknowledges that this report comes at a particularly challenging time and agrees that the CMU project is more important than ever. View Article |
Accountancy Europe presents concrete steps to improve SMEs’ access to capital markets under CMU
Accountancy Europe CEO Olivier Boutellis-Taft said the "capital markets union mid-term review stays on course to make it easier for small and medium-sized enterprises to raise funding on capital markets.” View Article |
EuropeanIssuers: EU quoted companies' views on CMU Mid-Term review
EuropeanIssuers, representing the interests of publicly quoted companies across Europe, welcomes the Commission’s renewed commitment to the Capital Markets Union Action Plan contained in its Communication on the Mid-Term Review published. View Article |
EUbusiness: Brexit spurs reboot of EU's capital markets union
As Europe faces up to the departure of its biggest financial centre, the European Commission moved to strengthen its Capital Markets Union project to unlock funding for growth in Europe. View Article |
Accountancy Europe: Model simplified SME Prospectus
This model prospectus is the result of applying the proposals in Accountancy Europe´s briefing paper Simplified prospectus for SMEs from May 2016 to the original prospectus of a Swedish company, Gränges. View Article |
EBA to hold public hearing to update on progress over investment firms new prudential regime
The EBA will hold a public hearing to update all relevant stakeholders on the progress made so far on the possibility of developing a new prudential regime for MiFID investment firms. View Article |
|
|
|
|
|
Insurance |
|
|
|
|
|
|
Investment & PensionsEurope: Commission calls for Solvency II rule change to boost infra spending
Insurers may have to hold less capital against infrastructure companies as part of a bid by the European Commission to secure more funding for the asset class. View Article |
Commercial Risk Europe: Market tries to allay buyers’ fears it won’t be ready for Brexit
A clear majority of UK risk managers are worried that the insurance market is not prepared for Brexit and that they will face problems as a result, according to a snap poll carried out during the main panel debate at the Airmic annual conference. View Article |
Commercial Risk Europe: No Brexit boost for risk managers
Risk managers are helping their companies manage risks associated with the UK leaving the EU, but Brexit is not proving a springboard to board recognition. View Article |
Hedgeweek: Open Protocol (OP) Insurance Working Group publishes template for insurance funds
The Open Protocol (OP) Insurance Working Group has published the final version of the Open Protocol Template and Manual for Insurance Funds, following a public consultation launched in November 2016. View Article |
Commercial Risk Europe: Large claims still a battle despite Insurance Act
Despite the implementation of the Insurance Act in the UK and Airmic’s lobbying efforts, many buyers continue to be disappointed by their insurers when it comes to large, complex claims. View Article |
|
|
|
|
|
Asset Management |
|
|
|
|
|
|
Investment & PensionsEurope: Commission pledges imminent PEPP proposal, sustainability leadership
A legislative proposal for a PEPP is one of the most important measures for the European Commission’s Capital Markets Union mid-term review and will be put forward by the end of the month, according to the commission’s vice-president Valdis Dombrovskis. View Article |
Investment & PensionsEurope: EIOPA reassures on persistent IORP solvency funding rule fears
The European Insurance and Occupational Pensions Authority is not intent on introducing solvency funding requirements for pension funds, the supervisory authority’s executive director has said. View Article |
EFAMA: European funds industry maintains momentum in Q1 2017 with strong sales
The European Fund and Asset Management Association has published its latest Quarterly Statistical Release describing the trends in the European investment fund industry in the first quarter of 2017. View Article |
|
|
|
|
|
Corporate Governance/Accounting |
|
|
|
|
|
|
European Parliament: Multinationals could be required to disclose tax information
Large firms must make information about the tax they pay in each country in the world, publicly available, say the Economics and Legal Affairs committees. View Article |
ECB: Comment letter to the European Parliament on IFRS 9
The ECB has published its comment letter to the European Parliament on transitional arrangements towards the full application of IFRS 9. View Article |
EFRAG's feedback statement on prepayment features with negative compensation
EFRAG has published a feedback statement following the publication of its final comment letter on the IASB's Exposure Draft ED/2017/3 Prepayment Features with Negative Compensation (Proposed amendments to IFRS 9). View Article |
EBA issues 2018 EU-wide stress test methodology for discussion
The EBA published its 2018 EU-wide stress test draft methodology and templates for discussion with the industry. The methodology covers all relevant risk areas and, for the first time, will incorporate IFRS 9 accounting standards. View Article |
EFRAG's draft comment letter on principles of disclosure
EFRAG has published its draft comment letter in response to the IASB's Discussion Paper DP/2017/1 Disclosure Initiative - Principles of Disclosure and seeks for constituents' views on the proposals. View Article |
IASB issues Interpretation on IAS 12 Income Taxes
The IASB has issued IFRIC 23 Uncertainty over Income Tax Treatments to specify how to reflect uncertainty in accounting for income taxes. View Article |
ECIIA: Internal auditors need strongest protection
“Everything possible should be done to strengthen the role, position and independence of chief audit executives in all organisations and in all sectors across Europe,” the ECIIA has said in its response to recent EU’s DG Justice and Consumers consultation on whistleblowing. View Article |
ICAEW: What's next for corporate reporting: time to decide?
The report captures the views of key stakeholders on the topic, puts forward principal policy options and invites further debate. View Article |
Accountancy Europe: Standard setting in the 21st century
Accountancy Europe took a thorough look at how standard setting for financial reporting and auditing is organised now, and what could be improved to keep this process relevant for the needs of the 21st century. View Article |
|
|
|
|
|
Financial Services Policy |
|
|
|
|
|
|
More effective rules to counter money laundering - Council agrees on its position
The Council adopted its position on the proposed Directive on countering money laundering by criminal law. View Article |
IOSCO Task Force issues report on the regulation of wholesale market conduct
The report describes the tools and approaches that IOSCO members use to discourage, identify, prevent and sanction misconduct by individuals in wholesale markets. View Article |
|
|
|
|
|
International/G20 |
|
|
|
|
|
|
POLITICO: EU, Japan launch big push to seal trade deal by July
Diplomats say the priority is to convene a leaders’ summit before the G20 in Hamburg on July 7. View Article |
|
|
|
|
|
Grahams Articles, Comments & Speeches |
|
|
|
|
|
|
CCP Location: The Endgame Arrives as EU27 Safeguards its Financial Stability
UK commentators and media seem to be unaware of the solid rationale for the EU to propose fresh legislation to safeguard its financial stability upon the departure of a major member that is home to the key parts of its financial infrastructure. View Article |
Europe is the sword of Damocles poised to split British politics yet further - soon
The British people have rejected the hardest of hard Brexits – but what are the practical alternatives? There aren’t any – except to stay in the EU. View Article |
The Brexit boot moves decisively to the EU27 foot – 131st Brussels for Breakfast
May's gamble to secure an absolute majority ended up in a hung Parliament that may yet change the UK's stance in Brexit negotiations. The EU27 toughened its language in the Council authorisation for starting the Brexit talks. ESMA's plan to ban “letterbox” entities signals real trouble for the City. View Article |
|
|
|
|
|
Friends Services |
|
|
|
|
|
|
The Brexit boot moves decisively to the EU27 foot – 131st Brussels for Breakfast
May's gamble to secure an absolute majority ended up in a hung Parliament that may yet change the UK's stance in Brexit negotiations. The EU27 toughened its language in the Council authorisation for starting the Brexit talks. ESMA's plan to ban “letterbox” entities signals real trouble for the City. View Article |
|
|
|
|
|
Financial |
|
|
|
|
|
|
Commission - Completing the Capital Markets Union: Building on the first round of achievements
The Commission is taking further steps to drive forward the Capital Markets Union, a pivotal project of the Juncker Commission to boost jobs and growth in Europe. View Article |
The Commission publishes a feedback statement on the results of the public consultation on the capital markets union mid-term review
The consultation offers an opportunity for stakeholders to provide targeted input to complement and advance the actions put forward in the CMU action plan, ahead of the 2017 mid-term review of the action plan. View Article |
Financial Times: Spain urges sweeping reforms on eurozone to correct flaws
Spain is calling for “aggressive” and rapid reforms of the single currency area, including the creation of a powerful pan-European treasury and a mechanism to force through labour market and other reforms in recalcitrant member states. View Article |
|
|
|
|
|
Economic |
|
|
|
|
|
|
European Parliament: Double taxation of companies - better resolution mechanism
Firms in the EU are a step closer to having an effective and timely mechanism to resolve disputes resulting in their being taxed twice by different Member States. View Article |
Deutsche Bundesbank projection: German economy's solid upswing to continue
The economic upturn in Germany is likely to be sustained. "Thanks to the very healthy labour market situation, private consumption, together with general government demand and investment in housing, will ensure an ongoing solid underlying pace," said the Bundesbank's President Jens Weidmann. View Article |
Bloomberg: Schaeuble calls for end to ‘ultra loose’ monetary policy
German Finance Minister Wolfgang Schaeuble called for central banks to end “ultra loose” monetary policy to avoid stoking global imbalances, saying that while they were beginning to take steps in that direction it was harder for the European Central bank to do so. View Article |
ECB working paper: The macroeconomic impact of the ECB's expanded asset purchase programme (APP)
This paper provides empirical evidence on the macroeconomic impact of the expanded asset purchase programme announced by the European Central Bank in January 2015. View Article |
|
|
|
|
|
Structured CPD: Workbook Brussels4Brunch |
|
|
|
|
|
|
22nd Brussels for Brunch: Workbook May 2017
This is the monthly Brussels for Breakfast Roundup that accompanies the Brussels for Brunch Webinar View Article |
|
|
|
|
|
Graham's tweets |
|
|
© Graham Bishop
Banking