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This week in "Brussels"

06 September 2018

Banking Union, EDIS, CMU, MIFID II, Solvency II, Benchmarks regulations, STS.

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Articles from 19 July 2018 - 06 September 2018

	Banking Union

Elisa Ferreira: Banking Union at a crossroads
The Vice-Governor of the Bank of Portugal warns that the lack of political will to build the third pillar for completing Banking Union in accordance with the agreed timelines has seriously jeopardised the project's key benefits. View Article

Financial Times: Europe’s banking union lacks the key element of deposit insurance
A guarantee scheme is crucial, writes economic advisor to German government Isabel Schnabel. View Article

Financial Times: EU-wide deposit insurance is the best antidote to populism
If Italian households felt more secure about their bank deposits because of EU-level insurance, they would be less susceptible to the siren song of populism. View Article

BIS: Peter Praet: Creating an enabling environment for pan-European banks in the Banking Union
In his speech Mr Peter Praet, Member of the Executive Board of the European Central Bank, points to a number of obstacles that hinder the fungibility of capital and liquidity of banking groups. Very often, these obstacles relate to regulatory fragmentation and ring-fencing of national markets. View Article

BIS: Banking Union: experience so far and future prospects
Remarks by the Senior Deputy Governor of the Bank of Italy and President of the Institute for the Supervision of Insurance (IVASS) Salvatore Rossi regarding experience with SSM and Banking Union and challenges ahead. View Article

EBA Risk Dashboard confirms steady improvements in the management of NPLs across the EU but banks profitability remains a key challenge
The EBA published the periodical update to its Risk Dashboard, which summarises the main risks and vulnerabilities in the EU banking sector using quantitative risk indicators, along with the opinions of banks and market analysts from its Risk Assessment Questionnaire. View Article

EBA updates on monitoring of CET1 capital instruments
This list is accompanied by an updated CET1 Report, which includes information on the underlying objectives of the monitoring as well as on the consequences of including or excluding instruments in or from the CET1 list. The EBA's monitoring of capital instruments contributes to the enhancement of the quality of institutions' capital across the EU. View Article

EBA publishes final guidance to strengthen the Pillar 2 framework
The three reviewed Guidelines focus on stress testing, particularly its use in setting Pillar 2 capital guidance (P2G), as well as interest rate risk in the banking book (IRRBB). View Article

EBA sees progress in the functioning of resolution colleges in 2017 but continued effort is needed
The Report summarises the EBA's assessment of the quality of the colleges' organisation, discussions held and general output. Overall, the Report finds that good progress has been achieved since the introduction of the BRRD in 2015, also considering that most colleges are only in their second year of operation. View Article

BIS: Pillar 3 disclosure requirements - regulatory treatment of accounting provisions
The Committee released a technical amendment on additional Pillar 3 disclosure requirements for those jurisdictions implementing an expected credit loss (ECL) accounting model as well as for those adopting transitional arrangements for the regulatory treatment of accounting provisions. View Article

EBA updates on monitoring of Additional Tier 1 instruments
The EBA's monitoring of capital instruments has been beneficial in the implementation of the Capital Requirements Regulation and the provisions laid down in the related RTS on own funds and has contributed to the enhancement of the quality of institutions' capital across the EU. View Article

The EBA updates data used for the identification of global systemically important institutions (G-SIIs)
The European Banking Authority published 12 indicators and updated the underlying data from the 35 largest institutions in the EU, whose leverage ratio exposure measure exceeds EUR 200 bn. View Article

EBA updates XBRL taxonomy 2.8
The European Banking Authority published a corrective update to the XBRL taxonomy that Competent Authorities shall use for the remittance of data under the Implementing Technical Standards (ITS) for reference dates of 31 December 2018 onwards. View Article

Financial Times: Deutsche chief calls for ‘unified regulation in Europe’
Deutsche Bank’s chief executive said he views Europe’s still fragmented banking regulation as a roadblock for cross-border mergers on the continent. View Article

CFS survey: German financial industry takes a critical view of ICOs, calls for stronger regulation
The German financial regulator BaFin is currently biding its time before taking a clear stance on cryptocurrencies and ICOs, although it does rate ICOs as highly speculative financial assets. View Article

OECD: Financial system risk is elevated and global standards are essential in managing cross-border infrastructure investment
The OECD's 2018 Business and Finance Outlook notes that the gradual normalisation of monetary policy in an environment of growing debt will be a major test of whether the Basel III regulatory reforms have achieved their goal of ensuring safety and soundness in the financial system. View Article

ECB: Results of the July 2018 euro area bank lending survey
Easing credit standards and increasing demand across all loan categories continued to support loan growth. Banks expect continued net easing of credit standards in all segments for the third quarter. Tightening impact on credit standards from banks’ non-performing loans is diminishing. View Article

EBA updates the Joint Committee Guidelines on complaints-handling to extend their scope of application
This extension will ensure that an identical set of requirements for complaints-handling continues to apply to all financial institutions across the banking, investment and insurance sectors. This will provide consumers with the same level of protection, irrespective of which regulated product or service they are purchasing and which regulated institution they are purchasing it from. View Article

EBA launches consultations on supervisory reporting for the reporting framework 2.9 and prepares for its modular release
The proposed changes to the ITS on supervisory reporting aim to keep reporting requirements in line with changes in the regulatory framework and with the evolving needs for Supervisory Authorities' risk assessments. The EBA is also publishing its forward schedule of the modular release to help users in their planning. View Article

Bank of England: Bank confirms SONIA’s compliance with IOSCO benchmark principles
The Bank has published its Statement of compliance with the IOSCO principles for Financial Benchmarks. This shows the Bank complies with the principles, and therefore with international best practice, in its administration of SONIA. The statement has been independently assured by Ernst and Young. View Article

EU code of conduct on withholding tax procedures: EBF position on the EC proposal
The EBF commends the Commission on its efforts for having brought together a small number of EU Member States to discuss the long outstanding issue of withholding tax (WHT) relief/refund procedures which resulted in the publication of the Code of Conduct on WHT in December 2017. View Article

Financial Times: European Investment Bank bows to calls for reform
The European Investment Bank has agreed to start talks to become independently supervised by the European Central Bank after EU governments demanded sweeping governance changes at the lender after Brexit. View Article

EBA replies to claims concerning Common Equity Tier 1 classification of UniCredit capital instruments
The EBA published its reply to claims by Caius Capital LLP that the ECB has breached Union law by not disqualifying the Common Equity Tier 1 classification of Unicredit capital instruments due to arrangements involving a transaction known as CASHES. View Article

ECB sanctions Crédit Agricole Corporate and Investment Bank for breaching the procedure for classifying capital between 2015 and 2016
The European Central Bank (ECB) has imposed an administrative pecuniary penalty in the amount of €0.3 million on Crédit Agricole Corporate and Investment Bank. View Article

ECB sanctions Crédit Agricole, S.A. for breaching the procedure for classifying capital between 2015 and 2016
The European Central Bank (ECB) has imposed an administrative penalty in the amount of €4.3 million on Crédit Agricole, S.A. View Article

ECB sanctions CA Consumer Finance for breaching the procedure for classifying capital in 2016
The European Central Bank (ECB) has imposed an administrative pecuniary penalty in the amount of €0.2 million on CA Consumer Finance. View Article

Financial Times: US regulators warned against reducing bank capital requirements
A group of former government officials, executives and financial experts has warned US regulators against softening a crucial leverage metric for banks. View Article

Financial Times: Fed debates banks’ capital buffers as markets surge
Jay Powell faces an intensifying debate within the Federal Reserve over calls for the central bank to boost big banks’ capital requirements to rein in financial risks — a move that would trigger fierce political blowback from Republicans eager to ease regulation. View Article

EBF letter to the US Treasury regarding Section 871(m) and FATCA
The EBF has reiterated its concerns to the US Treasury about some unintended consequences of FATCA and the side effects of Section 871(m) of the Internal Revenue Code (IRC). View Article

EBA publishes final Guidelines on fraud reporting under PSD2
These Guidelines, which the EBA developed in close cooperation with the European Central Bank and which are addressed to payment service providers and competent authorities, are aimed at contributing to the objective of PSD2 of enhancing the security of retail payments in the EU. View Article

EBA publishes final draft technical standards on home-host cooperation under PSD2
The European Banking Authority published final draft regulatory technical standards specifying the framework for cooperation and the exchange of information between competent authorities under the revised Payment Services Directive (PSD2). View Article

ECB: Strengthening the European financial industry amid disruptive global challenges
ECB official Yves Mersch focuses on disruptive challenges that are arising in a particular area of business: digital technology. Such technology is becoming ever more important in banking and is opening the door to competition from non-banks in core areas such as payments. View Article

European Parliament: Better protection against non-cash payment fraud
New EU rules to protect EU citizens against non-cash payment fraud, such as credit card theft, skimming or phishing, were approved in committee. View Article

Financial Times: Regulators club together to form global ‘fintech sandbox’
Watchdogs from around the world, including the UK, US and Hong Kong, have announced a new alliance as part of plans to encourage the growth of fintech, allowing companies to trial new products in multiple countries at a time. View Article

Financial Times: Seven out of 10 people in UK now bank online
While email is still the most common reason people use the internet, online banking is the fastest-growing use. According to a survey by the Office for National Statistics — looking at the UK population, not just internet users — 69 per cent said they banked online, almost double the proportion recorded 10 years ago (35 per cent). View Article

Financial Times: Field for ECB top job widens after Weidmann setback
Germany will most likely not push its leading candidate, Jens Weidmann, to succeed ECB head Mario Draghi when he steps down at the end of October 2019. The shift has thrown attention on to other potential candidates to fill Mr Draghi’s shoes. View Article

	Capital Markets Union

Capital Markets Union: Commission provides guidance on protection of cross-border EU investments
The Commission issued guidance to help EU investors to invoke their rights before national administrations and courts and to help Member States to protect the public interest in compliance with EU law. View Article

Euractiv: Time to measure progress to complete Capital Markets Union
Capital Markets Union needs renewed momentum to see it reach fruition and deliver on the promise of deep and well-integrated EU capital markets. Simon Lewis outlines why now is the moment to assess its progress so far. View Article

ECMI: A supervisory architecture fit for CMU: Aiming at a moving target?
Marco Lamandini in his commentary says that CMU features an extreme heterogeneity of i) market players (issuers, intermediaries, infrastructures, service providers) and ii) products, and a ‘variable geometry’ of their European regulation and national or European supervision. View Article

IOSCO: Study highlights continued central clearing interdependencies
FSB, CPMI, IOSCO and BCBS published the second report that maps interdependencies between central counterparties and their clearing members and other financial service providers. View Article

ECMI - Recovery and Resolution of CCPs: Obsessing over regulatory symmetry?
The reason why an international approach, and not just a national or regional one, is necessary for recovery and resolution is clear: many CCPs are globally systemic, in that they clear derivatives in global markets and their members and clients’ members are from across the world. View Article

ESMA issues clarifications on the clearing obligation and trading obligation for pension scheme arrangements
ESMA issued an updated statement on the clearing obligation and trading obligation for pension scheme arrangements (PSAs). View Article

FSB and standard-setting bodies consult on effects of reforms on incentives to centrally clear over-the-counter derivatives
The evaluation will inform relevant standard-setting bodies, and if warranted, could provide a basis for fine-tuning post-crisis reforms, bearing in mind the original objectives of the reforms. View Article

IOSCO: Jurisdictions progress towards implementing standards for payment, clearing and settlement
The report shows that further progress has been made among some participating jurisdictions that had not completed the adoption of their implementation measures at the time of the 2017 update. View Article

CFTC unanimously approves a proposal to amend the clearing requirement to help end-users
CFTC unanimously approved a swap clearing requirement proposed rule that would reduce unnecessary burdens on bank holding companies, savings and loan holding companies, and community development financial institutions. View Article

ECB: Results of the June 2018 survey on credit terms and conditions in euro-denominated securities financing and OTC derivatives markets
Credit terms had the largest tightening in a year, in contrast to the easing expected in the previous survey round. Survey participants expect price and non-price conditions to tighten further. Liquidity and general trading conditions for OTC derivatives deteriorated slightly. View Article

IOSCO: Call for comments on governance of OTC derivatives data
The document, Governance arrangements for critical OTC derivatives data elements (other than UTI and UPI), identifies key criteria, functions and bodies for the governance arrangements for critical data. View Article

Steven Maijoor addresses ECON committee on securitisation
Mr. Maijoor focused on the main elements of ESMA’s recent activities under the EU Securitisation Regulation and gave an overview of ESMA’s remaining deliverables under this regulation in the upcoming months. View Article

PCS plans its future
In line with their publicly stated intent, PCS is working with regulatory authorities and market participants with a view to becoming authorised as a third party certification agent under the STS Regulation. View Article

EBA publishes final draft technical standards defining the homogeneity of the underlying exposures in securitisation
Homogeneity is one of the crucial requirements for a securitisation transaction to be assessed as simple, transparent and standardised and to be eligible for more risk-sensitive risk weights under the new EU securitisation framework. View Article

ESMA defines disclosure standards under Securitisation Regulation
ESMA issued a set of draft regulatory and implementing standards under the Securitisation Regulation, which concern the details of a securitisation to be made available by the originator, sponsor and SSPE, as well as the format and templates for doing so. View Article

EBA publishes final draft technical standards on risk retention for securitisation transactions
These final draft RTS, which replace the current Commission Delegated Regulation on risk retention, aim to provide clarity on the requirements relating to risk retention, thus reducing the risk of moral hazard and aligning interests. View Article

ESMA updates validation rules under EMIR
ESMA updated its validation rules regarding the European Markets Infrastructure Regulation with regards to the revised technical standards on reporting under Article 9 of EMIR. View Article

Financial Times: Boutique researchers hit by EU markets rules
“Aggressive lowball pricing” from investment banks is beginning to squeeze boutique research providers’ business models following the introduction of new EU markets rules. View Article

MiFID II: ESMA makes new bond liquidity data available
ESMA made available new data for bonds subject to the pre- and post-trade requirements of the Markets in Financial Instruments Directive and Regulation through its data register. View Article

ESMA updates equity derivatives, equity and equity-like instruments' transitional transparency calculations for MiFID II/ MiFIR
ESMA published an updated version of the MiFID II/MiFIR transitional transparency calculations (TTC). View Article

ICMA publishes position paper on MiFID II Trading suspensions from the perspective of fixed income instruments
The paper highlights scenarios where a blanket suspension of trading in debt instruments or related derivatives could be damaging to investors’ interests and the orderly functioning of the market. View Article

MiFID II: ESMA publishes data for the systematic internaliser calculations for equity, equity-like instruments and bonds
ESMA published data for the systemic internaliser calculations for equity, equity-like instruments and bonds under the Markets in Financial Instruments Directive and Regulation. View Article

ESMA updates the Questions and Answers on ESMA’s temporary product intervention measures
ESMA updated its Questions and Answers on ESMA’s temporary product intervention measures on the marketing, distribution or sale of CFDs and binary options to retail clients based on Article 40 of MiFIR. View Article

EBF comments on the draft RBA guidance for the securities sector
The EBF welcomes the opportunity to provide comments on the FATF Public Consultation on the Draft Risk-Based Approach (RBA) Guidance for the Securities Sector and has several suggestions. View Article

ESMA publishes opinion on proposed amendments to SFTR technical standards
ESMA published an Opinion in response to the European Commission’s proposed amendments of the technical standards on reporting under the Securities Financing Transactions Regulation. View Article

AFME views on priority areas in the trilogue negotiations on the Risk Reduction Measures package
In this paper, AFME provides views on the ongoing negotiations and makes recommendations aimed at achieving financial stability, supporting the EU growth agenda and CMU, and removing fragmentation within Banking Union. View Article

IOSCO issues recommendations to help trading venues manage extreme volatility
The Board of the International Organization of Securities Commissions published eight recommendations to assist trading venues and regulatory authorities in the implementation of mechanisms to manage extreme volatility and preserve orderly trading. View Article

EBA publishes its assessment of European Secured Notes
The EBA published a report presenting the outcome of its assessment to the EC's call for advice on the European Secured Notes (ESNs). In addition, it puts forward recommendations on key aspects for the European Commission to consider when possibly designing the legislative framework for SME ESNs. View Article

ECB seeks feedback on draft ECB Regulation on money market statistics
Amending Regulation aims to simplify reporting scheme and improve quality of euro money market statistics reported to European System of Central Banks (ESCB). ECB asks for feedback by 10 September 2018. View Article

ESMA fines five banks €2.48 million for issuing credit ratings without authorisation
ESMA fined Danske Bank, Nordea Bank, SEB, Svenska Handelsbanken and Swedbank and issued five public notices for negligently breaching the Credit Rating Agencies Regulation (CRAR). View Article

ESMA consults on revising CRAs’ periodic reporting
ESMA issued a consultation paper for revised Guidelines on the information that is to be periodically reported to ESMA by credit rating agencies (CRAs) for supervisory purposes. View Article

ESMA registers Moody’s Investors Service (Nordics) AB as credit rating agency
ESMA, the EU’s direct supervisor of credit rating agencies (CRAs), registered Moody’s Investors Service (Nordics) AB as a CRA under the CRA Regulation. View Article

Nordic Credit Rating AS registered as Credit Rating Agency
This decision comes into effect on 3 August 2018. NCR is based in Oslo, Norway, with a branch in Stockholm, Sweden. NRC intends to issue corporate ratings. View Article

CFTC proposes rule update for U.S. markets in security futures products
CFTC unanimously approved a proposal to update a rule impacting exchanges that list security futures products SFPs. The proposal has the potential to provide greater liquidity in SFP trading, which would facilitate risk management for entities using SFPs. View Article

Commission refers Slovenia and Spain to the Court of Justice for failing to fully enact EU rules on markets in financial instruments
The European Commission decided to refer Slovenia and Spain to the Court of Justice of the EU for failing to fully implement European rules on markets in financial instruments (MiFID II) as well as its supplementing Directive. View Article

	Clients Union

IFAC: Global ethics board resets expectations of professional accountants regarding inducements
The IESBA released new enhancements to its global ethics code which address more fully the responsibilities of professional accountants around the offering and accepting of inducements. View Article

	Insurance

European Supervisory Authorities publish further guidance on the Key Information Document for PRIIPs
The guidance seeks to promote common supervisory approaches and practices based on ongoing work to monitor the implementation of the Key Information Document. It supplements material published last year prior to implementation. View Article

EIOPA publishes the third paper of a series on systemic risk and macroprudential policy in the insurance sector
Until now, the debate has mainly focused on the banking sector due to its prominent role in the recent financial crisis. Through this series of papers, EIOPA will ensure that any further extension of the debate to the insurance sector fully reflects the industry's specific nature. View Article

EIOPA’s risk dashboard for the first quarter 2018 shows broadly unchanged risk levels for the European Union insurance sector
The results of the first quarter 2018 show that the risk exposure of the insurance sector in the European Union remains stable overall with a decline in macro and insurance risks and an increasing trend in market risks. View Article

IAIS releases overall ComFrame including ICS Version 2.0 for public consultation
The IAIS started the public consultation on overall ComFrame including the Insurance Capital Standard (ICS) Version 2.0. ComFrame which consists of both quantitative and qualitative supervisory requirements tailored to the complexity and international scope of IAIGs. View Article

Insurance Europe: Insurers comment on FSB work on regulatory barriers to infrastructure finance
Insurance Europe welcomed the FSB’s work and specifically its assessment of the unintended impacts of financial regulation. It reiterated that this kind of analysis should also be done before regulation is implemented, not just afterwards. View Article

Commercial Risk Europe: Fitch expects flat reinsurance renewals but revises sector outlook to stable
Fitch expects most reinsurance renewals to be flat for the remainder of this year and into next as rate increases lose momentum. However, despite this prediction and 2017’s heavy losses, the ratings agency has revised its outlook for the sector to stable from negative, citing more modest but less volatile returns for the market. View Article

EIOPA publishes discussion paper on national insurance guarantee schemes
The EIOPA published its discussion paper on resolution funding and national insurance guarantee schemes as a follow-up to the EIOPA Opinion on the harmonisation of recovery and resolution frameworks for (re)insurers across the Member States published in 2017. View Article

Insurance Europe: Insurers welcome investEU proposal to increase supply of suitable long-term investments
Insurance Europe has published its response to the European Commission’s consultation on its proposed investEU programme, which aims to bring together various EU financial instruments and expand the Investment Plan for Europe. View Article

EIOPA joins the Sustainable Insurance Forum
The European Insurance and Occupational Pensions Authority (EIOPA) recently became a member of the Sustainable Insurance Forum (SIF), a network of insurance supervisors and regulators from around the world working together on sustainability challenges facing the insurance sector. View Article

EIOPA publishes updated technical RFR documentation for the Danish krone and Denmark reflecting adjustments to the representative portfolios
The updates are based on the results of an in-depth analysis of the composition of the average Danish undertakings' portfolio and the average Danish krone denominated (sub-)portfolio. The analysis provided further insight on the legal and economic background of the Danish covered bond market and confirmed that these assets dominate the relevant portfolios. View Article

ESAs report finds automation in financial advice slowly growing but scale of market remains limited
The three ESAs published the results of their monitoring exercise on automation in financial advice. The report shows that while the phenomenon of automation in financial advice seems to be slowly growing, the overall number of firms and customers involved is still quite limited. View Article

EIOPA: Deeper understanding of cyber risk needed – A core challenge for the European Insurance Industry
The EIOPA published its report "Understanding Cyber Insurance - A Structured Dialogue with Insurance Companies" (EIOPA Understanding cyber insurance). Although based on a limited sample, the report addresses important key findings, such as the clear need for improved understanding of cyber risk. View Article

Insurance Europe: Insurtech: Same rules needed for both established insurers and new market entrants
Insurance Europe has published its response to a European Insurance and Occupational Pensions Authority (EIOPA) consultation, which will feed into its work on mapping supervisory approaches to insurtech and identifying possible regulatory barriers to financial innovation. View Article

GFIA comments on FSB consultation on a cyber lexicon
GFIA has published its response to a consultation on the cyber lexicon. GFIA welcomes the efforts of the Financial Stability Board (FSB) to enhance cross-border cooperation in addressing cyber risk and, as part of that effort, the FSB’s work on a cyber lexicon. View Article

GFIA: Concerns over IAIS cyber-security paper
The GFIA has warned against the introduction of potentially restrictive measures as part of the supervision of insurer cybersecurity. The GFIA says these could limit the ability of insurers and supervisors to innovate in the face of rapidly changing cyber threats, and such inflexible supervision could rapidly become obsolete and introduce vulnerabilities. View Article

Geneva Association: Advancing accumulation risk management in cyber insurance
A study by the Geneva Association concludes that growth in the cyber insurance market should not be taken for granted because accumulation risks must be addressed. View Article

AM Best: Cyber insurance market: Stress testing the future
An AM Best special report has found that a modelled single-event cyber catastrophe would generate meaningful to significant gross losses for just three of the top 20 cyber insurance providers, ranging from 15% to 119% of these companies’ estimated 2022 policyholder surplus under a stress-test scenario. View Article

Insurance Europe: EC proposal for sustainable investment and risk disclosures must take account of existing rules
Insurance Europe has published its response to a consultation on the European Commission’s proposal for a regulation on disclosures for sustainable investments and sustainability risks. As Europe’s largest institutional investors, insurers invest their assets with a long-term perspective and sustainability is a key factor in their investment decisions. View Article

Insurance Europe: Insurers welcome EC proposal to establish sustainability taxonomy
Insurance Europe recommended that, since sustainability has different meanings to investors in different markets, reaching a shared understanding of sustainability must be the key priority for the Commission. View Article

	Asset Management

Economic and Monetary Affairs MEPs backed portable personal pensions
MEPs approved creating a European market for additional personal pensions to increase investment choices for retail clients and provide a safe way to boost their retirement savings. View Article

ESMA finds shortcomings in national supervision of efficient portfolio management by UCITS
ESMA found that national regulators need to improve their supervision of Undertakings for Collective Investments in Transferable Securities engaging in efficient portfolio management techniques. View Article

ESMA updates UCITS and AIFMD Q&As
The European Securities and Markets Authority (ESMA) has today updated its Questions and Answers on the application of the UCITS) and the AIFMD. View Article

ESMA responds to EIOPA questions on AIFMD
ESMA has sent a letter to the European Insurance and Occupational Pensions Authority in response to certain AIFMD-related questions raised by EIOPA relating to the AIF definition and leverage. View Article

ESMA writes to European Commission on share cancellation under MMFR
ESMA believes that clarity on this issue to investors and market participants is essential to ensure a proper and consistent interpretation and implementation of the MMFR. View Article

Investment & Pensions Europe: EC fires starting gun on development of ESG integration rules
The European Commission has asked two of the EU’s financial supervisory bodies for technical advice on potential amendments to EU rules to require the integration of sustainability risks in investment decision-making. View Article

EFAMA publishes position papers on sustainable finance package expressing support for European Commission package
From the outset, EFAMA has supported the Commission’s ambition to encourage and facilitate sustainable investments and be a global leader in sustainable finance policymaking. EFAMA welcomes the work done by the Commission on the different elements of its sustainable finance package: taxonomy, disclosures and positive-carbon/low-carbon impact benchmarks. View Article

PLSA comments on corporate governance guidelines
The Pensions and Lifetime Savings Association (PLSA) has responded to the Department for Business, Energy & Industrial Strategy’s (BEIS) update on its consultation on insolvency and corporate governance. View Article

Investment & Pensions Europe: EC reveals full membership of pension expert group
The European Commission has named the individuals who will be joining Matti Leppälä, secretary general of PensionsEurope, as members of the Commission’s high level expert group on pensions. View Article

	Corporate Governance/Accounting

ECA: EC oversight of Member States’ application of EU Law to be strengthened
Opportunities exist for the EC to further strengthen its oversight of the way EU law is applied in the Member States, according to a new Landscape Review by the ECA. The review also points to the need for transparency, accountability and audit in applying EU law. View Article

IASB/Hans Hoogervorst: Japan and IFRS Standards
Chairman of the IASB Hans Hoogervorst spoke about adoption of IFRS Standards around the world and the IASB's work on Goodwill and Better Communication. View Article

EFRAG: Accounting policy changes – proposed amendments to IAS 8
EFRAG has published its comment letter and its feedback statement in response to the IASB's ED/2018/1 Accounting Policy Changes (Proposed amendments to IAS 8). View Article

EFRAG: Letter to the IASB on IFRS 17
EFRAG has written to the IASB to highlight certain aspects of IFRS 17 that merit further consideration by the IASB on the basis of EFRAG's activities in preparation for a draft endorsement advice. View Article

IFAC: IPSAS 41 released to improve financial instruments reporting
The IPSASB has released IPSAS 41, Financial Instruments. IPSAS 41 substantially improves the relevance of information for financial assets and financial liabilities. View Article

FRC: Revised guidance on the strategic report
The FRC has published its revised Guidance on the Strategic Report, which encourages companies to consider wider stakeholders and broader matters that impact performance over the longer term. View Article

EFRAG: Summary of responses – equity instruments – impairment and recycling
Due to a technical issue with the prior version of this news item, EFRAG is republishing the news item concerning summary of responses received from constituents on the Discussion Paper Equity Instruments - Impairment and Recycling. View Article

EFRAG: Draft comment letter on the distinction between liabilities and equity
EFRAG has published its draft comment letter in response to the IASB's Discussion Paper Financial Instruments with Characteristics of Equity and seeks constituents' views on the proposals. View Article

Accountancy Europe: EC’s proposal for amending the Directive on cross-border conversions, mergers and divisions
Accountancy Europe has responded to the EC’s proposal for amending the Directive on cross-border conversions, mergers and divisions. View Article

IFAC and IAESB to transition standard-setting board to different model
IFAC and the IAESB announce a new path forward for global accountancy education and professional development. View Article

EBF comments on the EU Blocking Regulation
The EBF has published its comments to the EC on the EU Blocking Regulation. The EBF recommends the EC to provide a number of clarifications in its forthcoming Implementation Guidance. View Article

IASB: Ten educational modules to support the IFRS for SMEs Standard
The IFRS Foundation is developing educational modules for the 2015 version of the IFRS for SMEs Standard. These materials have been designed to provide stakeholders with additional support in preparing and reading financial statements prepared in accordance with the Standard. View Article

IFAC: Two new IAESB accounting education insights published on professional scepticism
The IAESB has published two new Accounting Education Insights articles on professional scepticism that address underlying challenges to professional scepticism and becoming better sceptics. View Article

Accountancy Europe: Member States’ implementation of new EU audit rules (August ’18 update)
About two years after the implementation deadline, Accountancy Europe presents an updated state of play of this process in 30 European countries, including 28 EU Member States. View Article

In the black: Rebuilding trust through integrated reporting
Financial misconduct has been widely exposed after a series of bombshells, causing many to question the ethics of big institutions. Can IR (integrated reporting) restore trust?, wonders Tony Kaye. View Article

ECIIA: Risk in Focus 2019 - hot topics for internal auditors
The ECIIA has published the third edition of Risk in Focus defining hot topics for Internal Auditors. This edition is the result of a collaborative effort between seven European institutes of internal auditors in France, Germany, Italy, the Netherlands, Spain, Sweden and the UK and Ireland. View Article

ACCA: Technology and values are essential to future business model innovation
A new report published by ACCA identifies 12 characteristics behind business model design, that are being combined by organisations in different ways to create new sources of value. View Article

	Anti-Money Laundering

Reuters: Dutch bank ING fined $900 million for failing to spot money laundering
Dutch bank ING Groep NV admitted criminals had been able to launder money through its accounts and agreed to pay 775 million euros to settle the case. View Article

Financial Times: Scandal-hit Danske branch handled $30bn of Russian money
An independent investigation into the money-laundering scandal at Danske Bank found that as much as $30bn of Russian and ex-Soviet money flowed through its Estonian branch in a single year. View Article

	Market Structure

CPMI-IOSCO assessment concludes that Canada has broadly implemented the PFMI
An assessment report published today concludes that Canada´s legal, regulatory and oversight frameworks for financial market infrastructures (FMIs) are generally complete and consistent with the Principles for financial market infrastructures (PFMI), with some exceptions. View Article

	Financial Services Policy

ESMA to renew prohibition on binary options for a further three months
ESMA agreed to renew the prohibition of the marketing, distribution or sale of binary options to retail clients, in effect since 2 July, from 2 October 2018 for a further three-month period. View Article

AFME’s Response to the EC proposal for a Regulation on the establishment of a framework to facilitate sustainable investment
AFME agrees that a lack of clarity as to what constitutes “sustainability” is a key obstacle for increasing and directing capital flows towards sustainable investments, which as a small and nascent market requires appropriate and proportionate impetus. View Article

ESMA review finds improvements with NCAs’ supervision of the suitability requirements
The Report identifies enhancements in supervising the requirements and greater deployment of enforcement action by some NCAs. These improvements should lead to an increased level of EU-wide supervisory convergence of the suitability requirements. View Article

	Grahams Articles, Comments & Speeches

Money Laundering: a Sixth Directive after 27 years of failure?
Graham Bishop writes that pooling even more of member states' nominal sovereignty to regain their sovereignty from organised crime would be the most powerful way of illustrating the longer-term integrative effect of the euro as it obliges the euro-area states to move towards an ever-closer union. View Article

	Friends Services

Save the date for next Brussels for Breakfast!
CSFI/Graham Bishop would like to invite you to the leading monthly forum for discussing EU financial services regulation, which will be held on next Thursday 11th September. View Article

	Political

Reuters: Polls point to anti-EU surge in European Parliament
Eurosceptic parties could expand their strength in the European Parliament by over 60 percent at elections next May, adding pressure on EU leaders pressing for deeper integration after Brexit, a survey by Reuters of national opinion polls suggests. View Article

Striving for unity: The European Council, May 2016 to June 2018, report by President Donald Tusk
The report "shows how the Union's political unity was maintained and strengthened in the face of multiple threats and challenges: unprecedented migratory pressures, shifts in geopolitics, a sustained terror threat, an uncertain economic outlook and the decision by British voters to leave." View Article

ACCA welcomes the start of the Austrian Presidency, and supports its ambitious priorities
On 1st July 2018, Austria took over the Presidency of the Council of the European Union for the third time, under the motto ‘Europe that protects’. View Article

	Financial

Greece begins a new chapter following the conclusion of its stability support programme
Greece has successfully concluded a three year European Stability Mechanism (ESM) stability support programme with its place at the heart of the euro area and European Union secured. View Article

	Economic

Vox EU: Delivering a safe asset for the euro area: A proposal for a Purple bond transition
This column illustrates how a 20-year Purple bond transition could address issues relating to the complexity of splitting the existing sovereign debt stock and concerns on contagion amongst senior and junior debt structures, which impede a single safe asset, and offer a path to genuine Eurobonds. View Article

Bruegel: The ECB is compromising the attractiveness of euro-area sovereign bonds
The ECB should refine its collateral framework in order to continue protecting its balance sheet without putting at risk the safe-asset status of sovereign bonds of the euro area, write authors Grégory Claeys and Inês Goncalves Raposo. View Article

Financial Times: Germany cools on Macron eurozone budget proposal
Germany is cooling on the idea of a eurozone budget, one of French president Emmanuel Macron’s central demands, saying priority should be given to other initiatives to boost the currency bloc’s resilience. View Article

Vox EU: Whither a fiscal capacity in EMU
This column argues that the introduction of a fiscal capacity proposed by the team of economists in a CEPR Policy Insight would repeat the mistakes made at the introduction of EMU, with later steps towards European integration being attempted before the necessary first steps have been taken. View Article

IMF executive board concludes 2018 Article IV consultation on euro area policies
This year, the consultation also included a discussion of the findings of the Financial Sector Assessment Program (FSAP) exercise for the euro area. Results show that the euro area expansion, while still vigorous, is slowing to a more moderate pace. View Article

2019 EU budget: Council adopts its position
The Council adopted its position on the 2019 EU budget, confirming the agreement reached by EU ambassadors in July. View Article

EBF position on the EU code of conduct on withholding tax procedures
The EBF has published its position to the EC on its efforts for having brought together a small number of EU Member States to discuss the long outstanding issue of withholding tax (WHT) relief/refund procedures which resulted in the publication of the Code of Conduct on WHT in December 2017. View Article

ECA: Selection and monitoring for ERDF and ESF projects in the 2014–2020 period are still mainly outputs-oriented
For the Cohesion policy funds during the 2014–2020 programme period, the ECA examined how well Member States focus on results in selecting projects and how well the Commission and Member States can demonstrate, through their monitoring, that the EU budget is well spent. View Article

POLITICO: Oettinger: 50-50 chance of a budget deal before 2019 election
European Budget Commissioner Günther Oettinger sees a “50-50” chance and “100 percent good arguments” for the EU to reach a budget deal before the 2019 European Parliament election. View Article

Volume of retail trade down by 0.2% in euro area
In July 2018 compared with June 2018, the seasonally adjusted volume of retail trade decreased by 0.2% in the euro area (EA19) and remained unchanged in the EU28, according to estimates from Eurostat. View Article

Euro area unemployment at 8.2%
The euro area (EA19) seasonally-adjusted unemployment rate was 8.2% in July 2018, stable compared with June 2018 and down from 9.1% in July 2017. This is the lowest rate recorded in the euro area since November 2008. View Article

August 2018: Economic Sentiment slightly down in the euro area, stable in the EU
In August, the Economic Sentiment Indicator (ESI) decreased slightly in the euro area (by 0.5 points to 111.6), while it remained stable in the EU (at 112.3). View Article

Annual inflation up to 2.1% in the euro area
The euro area annual inflation rate was 2.1% in July 2018, up from 2.0% in June 2018. A year earlier, the rate was 1.3%. European Union annual inflation was 2.2% in July 2018, up from 2.1% in June. A year earlier, the rate was 1.5%. These figures are published by Eurostat. View Article

Euro area international trade in goods surplus €22.5 bn
The first estimate for euro area (EA19) exports of goods to the rest of the world in June 2018 was €198.6 billion, an increase of 5.7% compared with June 2017 (€187.9 bn). View Article

GDP up by 0.4% in both euro area and EU28
Seasonally adjusted GDP rose by 0.4% in both the euro area (EA19) and the EU28 during the second quarter of 2018, compared with the previous quarter, according to a flash estimate published by Eurostat. View Article

Volume of retail trade up by 0.3% in euro area
In June 2018 compared with May 2018, the seasonally adjusted volume of retail trade increased by 0.3% in the euro area (EA19) and remained stable in the EU28, according to estimates from Eurostat. View Article

Euro area unemployment at 8.3%
The euro area (EA19) seasonally-adjusted unemployment rate was 8.3% in June 2018, stable compared with May 2018 and down from 9.0% in June 2017 View Article

July 2018: Economic Sentiment broadly stable in the euro area and the EU
In July, the Economic Sentiment Indicator (ESI) remained virtually unchanged in the euro area (−0.2 points to 112.1)and the EU (+0.1 points to 112.3). View Article

Accountancy Europe response to the European Commission consultation on the evaluation of invoicing rules
Accountancy Europe has responded to the Commission’s public consultation on the evaluation of invoicing rules. View Article

Graham's tweets

Money Laundering: a Sixth Directive after 27 years of failure? -- my latest for @_FinancialWorld #moneylaundering #AML https://t.co/y0kMQRuv1Y

— Graham Bishop #FBPE (@GrahamBishopcom) 3 de septiembre de 2018

Don't miss the first #BrusselsforBreakfast of the new term! Graham Bishop, Angus Canvin @UKFtweets & Mark Foster @KreabEU will discuss what #Brexit means for #financialservices in EU&UK #moneylaundering #LIBORs #PEPP #PRIIPS #auditor concentration https://t.co/b61vPIjvRM

— Graham Bishop #FBPE (@GrahamBishopcom) 3 de septiembre de 2018

It's the rentrée, with a new edition of the leading monthly forum for discussing EU financial services regulation. Save the date for next #BrusselsforBreakfast! - @CSFI1 and Graham Bishop invite you to the next debate on 11 September #Brexit #euroclearing https://t.co/6D5xu5i1Nh

— Graham Bishop #FBPE (@GrahamBishopcom) 3 de septiembre de 2018

Elements of White Paper pave the way to constructive talks on close security cooperation & an ambitious FTA, said @MichelBarnier, before asking questions on workability and compatibility w/ EU principles of WP proposals. And that is “music to the ears” of “no deal brexiteers”? https://t.co/nEXbgEZcX6

— Stefaan De Rynck (@StefaanDeRynck) 21 de julio de 2018

See below today's Press Statement given by the EU Chief #Brexit Negotiator, @MichelBarnier @EUCouncil.
We have translated into English the main points for you of the latest developments in the Brexit negotiations. @EUlondonrep @EP_Edinburgh @EPinUK @EUOfficeNI @DanielFerrie pic.twitter.com/0qQPaDrAd6

— EUCommissionScotland (@EUCommScotland) 20 de julio de 2018

Today, we published a Communication on preparing for the UK's withdrawal from the EU. As #Brexit will have repercussions for citizens, businesses and administrations, we call on EU countries and private parties to step up preparations for all scenarios → https://t.co/55aJ4mW352 pic.twitter.com/4z0JFPQv3p

— European Commission ???? (@EU_Commission) 19 de julio de 2018

Today, @EU_Commission published a communication on preparedness - for all outcomes in the #Brexit negotiations. National authorities & economic operators called on to step up preparations. More details here: https://t.co/rhhYWl94lM #Brexit pic.twitter.com/YTHnhG7XAk

— Daniel Ferrie (@DanielFerrie) 19 de julio de 2018

This week in "Brussels"

06 September 2018

© Graham Bishop