This week in "Brussels"

27 July 2017

Non-Performing Loans, Europe’s banking union, Payment Services Directive, EMIR, ICS, CSDs, IORPs, Money Laundering and Terrorist Financing, Brexit, cost of no Brexit deal, citizens' rights, UK-US post-Brexit trade deal and more.

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Banking Securities Insurance
Asset Management Corporate Governance/Accounting Financial Services Policy
International/G20 Financial Structured CPD: Workbook Brussels4Brunch
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  Articles from 20 July 2017 - 27 July 2017

  Banking
 
 
Financial Times: Hazardous non-performing loans obstruct Europe’s banking union
Enjoying the best macroeconomic environment since the crisis, Europe may be at the onset of a few golden years. But the global financial crisis left a legacy of high debts and bad loans clogging bank balance sheets in several countries, among which Italy is the largest.   View Article
Financial Times: How Italian banks are disadvantaged by new MREL rules
The author writes that time is ripe for authentically shared solutions, starting with a federal bad bank charged to purchase EU banks’ NPLs at reasonable prices and re-engineer their risks through well-thought securitisation schemes.   View Article
Financial Times: Steven Mnuchin’s bank reforms carry a warning for Europe
The review of bank regulation published last month by US Treasury Secretary Steven Mnuchin is essential reading for every European central banker and any policymaker who cares about the competitiveness of Europe.   View Article
ECB details approach to implement Foreign Exchange Global Code of Conduct
The European Central Bank (ECB) invites foreign exchange trading counterparties to publicly commit to the principles set out in the FX Global Code by endorsing the Statement of Commitment annexed to that code of conduct by the end of May 2018.   View Article
EBA consults on the future EBA register under the Payment Services Directive
The EBA launched a public consultation on the draft RTS and ITS on the EBA electronic central register under the Payment Services Directive (PSD2), which respectively set requirements on the development, operation and maintenance of the register and the information to be contained in it.   View Article
OMFIF: Banking, fintech: a potent force
Fintech companies are turning to partnerships with banks so as to benefit from their expertise, capital and networks. In return banks want access to fintech companies’ agility, customer-focus and inventiveness.  View Article
 
  Securities
 
 
Insurance Europe: Feedback provided on EC proposal for changes to EMIR
Insurance Europe has provided feedback to the European Commission on its proposal for amending key areas of the European Market Infrastructure Regulation (EMIR) regulation.   View Article
 
  Insurance
 
 
IAIS releases ICS version 1.0 for extended field testing
The International Association of Insurance Supervisors (IAIS) announced the release of Insurance Capital Standard (ICS) Version 1.0 for extended field testing. This represents an important step towards the development of ICS Version 2.0 by late-2019.  View Article
Commercial Risk Europe: Insurance Capital Standard not fit for purpose, says ABI, as IAIS launches field testing
The Association of British Insurers (ABI) has insisted that the International Association of Insurance Supervisors’ (IAIS) Insurance Capital Standard (ICS) is not fit for purpose, and has called for a longer timeline for implementation.  View Article
Commercial Risk Europe: Insurers urged to radically change approach to cyber and shift focus to risk not line of business
Insurers must rethink their approach to cyber risk insurance, according to a new research report by KPMG, which warns that the industry is currently lacking innovative solutions and is “playing catch-up” with the pace of cyber threats.   View Article
 
  Asset Management
 
 
ESMA: Asset segregation and application of depositary delegation rules to CSDs
ESMA‘s conclusion, following consultation, was that there cannot be a one size fits all solution so ESMA decided not to adopt any of the segregation method options previously presented but rather to recommend changes to the text of AIFMD and the UCITS Directive.   View Article
EIOPA streamlines the reporting of occupational pensions information
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on EIOPA’s quarterly and annual information requests towards the national supervisory authorities (NSAs) regarding the provision of occupational pensions information.   View Article
Investment & Pensions Europe: Pension funds back FCA's push for consultancy competition review
The UK’s pension scheme trade body has voiced support for the regulator’s push for a competition review of the investment consulting sector.  View Article
EFAMA, ICMA: ‘no systemic risk’ from leverage in EU-based funds
Global regulators’ work on leverage and systemic risk in investment funds should use the existing European regulatory framework when addressing these issues, according to two European industry associations.  View Article
Hedgeweek: Regulation and security increases the need for risk management
Increased regulatory requirements have pushed alternative fund managers to think more about risk, which has become multi-faceted: it is no longer about evaluating market risk ex post, but monitoring counterparty risk, liquidity risk, cyber risk, compliance risk and technology risk.   View Article
 
  Corporate Governance/Accounting
 
 
Bank of England: Strengthening accountability: extension of the Senior Managers & Certification Regime to insurers
The PRA has published proposals to extend the Senior Managers and Certification Regime to insurers. They seek to implement a consistent but proportionate regulatory framework to strengthening individual accountability and promoting effective corporate governance for all PRA-regulated firms.  View Article
Accountancy Europe: The role of professional accountants in tax
The role of professional accountants in the functioning of tax systems has raised a lot of questions from all actors in the tax environment. Accountancy Europe answers these questions in its Q&A position paper.  View Article
 
  Financial Services Policy
 
 
European Commission: Public consultation on transparency and fees in cross-border transactions in the EU
The Commission is launching a public consultation on ways to reduce the costs of cross-border payments within the European Union in currencies other than the Euro.  View Article
Financial regulation and supervision - Lords Committee launches new inquiry
The EU Financial Affairs Sub-Committee launches a new inquiry into the future of financial regulation and supervision following Brexit.  View Article
Christine Lagarde: Stepping up the Fight Against Money Laundering and Terrorist Financing
Managing Director Lagarde writes that the IMF has contributed to the progress made so far by working closely with members and the standard setter, the Financial Action Task Force. But there is more work to be done to ensure that financial systems support needed economic growth without being misused.  View Article
 
  International/G20
 
 
Bloomberg: IMF sees US fading as global growth engine
The world is leaning less on its biggest economy to sustain the global recovery, according to the International Monetary Fund.  View Article
 
  Financial
 
 
Financial Times: Banking union will transform Europe’s politics
Bail-in rules introduced five years ago have far-reaching consequences for the bloc, writes Martin Sandbu.  View Article
 
  Structured CPD: Workbook Brussels4Brunch
 
 
24th Brussels for Brunch: Workbook July 2017
This is the monthly Brussels for Breakfast Roundup that accompanies the Brussels for Brunch Webinar   View Article
 

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