This week in "Brussels"
09 May 2019
Basel III implementation progress report, EBA launches consultation on technical standards on the standardised approach for counterparty credit risk, accounting body proposes relief on Libor transition, private equity investment in Europe hits new record and more.
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Articles from 02 May 2019 - 09 May 2019 |
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Banking Union |
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Basel Committee reports on Basel III implementation progress
The progress report sets out the adoption status of Basel III standards for each Committee member jurisdiction as of end-March 2019. It includes the Basel III post-crisis reforms published by the Committee in December 2017 and the finalised market risk framework published in January 2019. View Article |
EBA launches consultation on technical standards on the standardised approach for counterparty credit risk
These draft technical standards specify key aspects of the SA-CCR and represent an important contribution to its smooth harmonised implementation in the EU. The draft technical standards were developed based on the mandates included in the latest available version of proposed amended Capital Requirements Regulation (CRR2). View Article |
Financial Times: Accounting body proposes relief on Libor transition
The main global accounting body is planning to modify standards for how banks and companies treat Libor-related deals on their balance sheets, in a rare shot of leniency for an industry grappling with the reform of global benchmarks. View Article |
Bank of England's Ramsden: Resilience and innovation in post-trade
Dave Ramsden, Deputy Governor for Markets & Banking, spoke about technological developments and resilience at the Association for Financial Markets in Europe 12th Annual European Post Trade Conference. View Article |
ECB: Monetary policy, credit institutions and the bank lending channel in the euro area
This paper provides an overview of developments in the euro area banking sector and of how monetary policy – both standard and non-standard – has been transmitted through banks to the non-financial private sector. View Article |
José Manuel Campa takes up his position as Chairperson of the EBA
José Manuel Campa officially assumed his new post as Chairperson of the European Banking Authority (EBA) on 1 May 2019, after the European Parliament confirmed his nomination by the EBA's Board of Supervisor on 14 March 2019. View Article |
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Capital Markets Union |
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The Autorité des marches financiers publishes its 2018 annual report
During the presentation of the AMF’s activity report to the press, Robert Ophèle, the Chairman,discussed the priorities for the next European term from the regulator’s perspective. He also reviewed the new responsibilities assigned to the AMF under the PACTE draft law. View Article |
ISDA: Focus IM rules on risk and readiness
Scott O’Malia writes that it’s imperative that regulators work now to align the rules with the key policy objective of mitigating systemic risk in advance of the phase-five deadline. View Article |
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Insurance |
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Insurance Europe: No justification for major new measures on systemic risk for EU insurers
Insurance Europe says there is no justification for new macroprudential measures for EU insurers. This comes in response to a question raised by the European Commission to the EIOPA on whether the existing provisions of the Solvency II framework allow for an appropriate macro-prudential supervision. View Article |
Insurance Europe: Insurers warn against overly narrow criteria for financial products Ecolabel
Insurance Europe has published its response to a consultation by the European Commission on its proposals to extend the EU Ecolabel to retail financial products. View Article |
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Asset Management |
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Invest Europe: Private equity investment in Europe hits new record
Private equity investment in European companies reached a new record of €80.6 billion in 2018, a 7% year-on-year increase, according to data released by Invest Europe. Private equity funds invested in over 7,800 companies, also a new record, with 86% of the total made up by small and medium-sized enterprises (SMEs). View Article |
EIOPA calls for candidates to join Expert Panel on Pan-European Personal Pension Product Regulation
The European Insurance and Occupational Pensions Authority issued a call for candidates to join an Expert Panel on the Pan-European Personal Pension Product (PEPP) regulation. View Article |
ECMI: Ceci n’est pas un PEPP
Karel Lannoo writes that not much is left of the Personal European Pension Product (PEPP) as intended by the European Commission in June 2017. View Article |
ESMA submits technical advice on Sustainable Finance to the European Commission
ESMA published its technical advice to the European Commission on Sustainable Finance initiatives to support the EC’s Sustainability Action Plan in the areas of investment services and investment funds. View Article |
EIOPA submits advice on Sustainable Finance to the European Commission
The European Insurance and Occupational Pensions Authority (EIOPA) published its advice to the European Commission on sustainability in the areas of risk management, investment strategy, stewardship and product oversight. View Article |
EFAMA comments on JRC technical report on EU Ecolabel
EFAMA welcomes the European Commission’s initiative to develop an EU Ecolabel for retail financial products. EFAMA sees this as an opportunity to create a coherent European approach and promote sustainable investments among retail investors. Given the wider context and current focus of the “Ecolabel”, EFAMA believes it makes most sense to confine the label to environmental sustainability. View Article |
Investment & Pensions Europe: Hedge funds warn regulators over ineffective ESG regulation
Any responsible investment regulation is likely to fall short of its goal if it only targets asset managers, according to hedge fund industry body AIMA. View Article |
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Corporate Governance/Accounting |
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FRC: Consultation on revising standards for investment reporting
The FRC is launching a consultation on revisions to the Standards for Investment Reporting (SIRs) 1000-5000 and on an exposure draft for a new SIR 6000 dealing with Quantified Financial Benefits Statements. View Article |
EFRAG consultation on equity instruments
EFRAG is launching a public consultation to gather constituents' views on whether alternative accounting treatments to those in IFRS 9 Financial Instruments are needed to portray the performance and risks of equity and equity-type instruments held in long-term investment business models. View Article |
IASB: Proposed amendments to IFRS 9 and IAS 39 in response to IBOR reform
The IASB has published for public comment proposed changes to the old and new financial instruments Standards, IAS 39 and IFRS 9, in light of the reform of interest rate benchmarks such as interbank offer rates (IBORs). View Article |
ECA's 2018 activity report
The Luxembourg-based EU auditors are increasing their focus on assessing performance in EU action to ensure the Union delivers and that citizens get value for money, according to a new activity report by the ECA. View Article |
ESBG: Response on DP Non-exchange transfers a role for societal benefit?
ESBG commented on the EFRAG Discussion Paper Non-Exchange Transfers. ESBG agrees that entities may engage because of different reasons in transfers whereby they receive a different value. View Article |
Audit&Risk: Innovation the transformation imperative
“When business environments evolve at the speed of risk, innovative internal auditors must be willing to venture beyond process improvement to envision complete process transformation,” writes Richard F Chambers, president and CEO of IIA Global. View Article |
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Financial Services Policy |
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FCA begins review of financial advice market
FCA launched a Call for Input asking for feedback on its proposed approach to reviewing the Retail Distribution Review (RDR) and the Financial Advice Market Review (FAMR). View Article |
UK Finance: Riding the currents of regulatory change
Amidst a backdrop of technological evolution, macro-economic turbulence and demographic change, financial services firms are finding their business models shaped by intense currents of regulatory change. If firms wish to get ahead of this and start proactively driving change, they need to be well acquainted with the regulator’s priorities. View Article |
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Grahams Articles, Comments & Speeches |
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The [EU] times they are a changin’…
It is a time for some introspection about what has been achieved in the last five-year political cycle but – more importantly, where might the EU27 journey in the next five years (though it may yet be EU28 making the journey.) View Article |
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Political |
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Financial Times: EU to prepare for post-Brexit era with pledge to speak with ‘one voice’
EU leaders will pledge to stay united “through thick and thin” at a summit next week that aims to move the bloc beyond a decade of crisis management and into a more assertive global role. View Article |
European Commission: Strength in unity: EU leaders to look ahead to common future at Sibiu summit
EU leaders will meet in Sibiu, as suggested by President Juncker in his 2017 State of the Union address, to discuss the EU's next strategic agenda for the period 2019-2024. View Article |
Paul Goldschmidt: Has the Juncker Commission been up to the JOB?
Goldschmidt writes that one cannot judge the Juncker Commission record to have reached the goals it had set five years ago or fulfilled the hopes that it generated. View Article |
EurActiv: Juncker points the finger at Germany, Austria, Netherlands for impeding eurozone reform
The Netherlands, Austria “and all too often Germany” are preventing deeper eurozone integration, European Commission President Jean-Claude Juncker told German newspaper Handelsblatt. View Article |
EurActiv: Pro-European candidates for EU election identify Council as the ‘common enemy’
An oddly uncontroversial debate between the lead candidates of the four major pro-European political families at this month’s EU elections took place in Florence. View Article |
Fondation Robert Schuman: European issues at stake in 2019
As every five years the European Union will find itself in a particularly important year in 2019,because its main institutions are to be renewed. View Article |
Scottish Centre on European Relations: The Future of Europe: Disruption, Continuity and Change
New strategy report that sets out the big future challenges for the EU – and Scotland’s contribution to that European future. View Article |
UK in a Changing Europe: The European elections and Brexit
This report is meant to guide on the basics of the European elections, what they mean, what to expect and what changes it may bring about to the European Union in the next 5 years. View Article |
POLITICO: EU needs new treaty and ‘generational change’ in Brussels, says Kurz
The EU must negotiate a new treaty with stronger collective rules and tougher sanctions for member countries that step out of line while at the same time reining in expansive projects such as an EU army, Austrian Chancellor Sebastian Kurz told Die Presse. View Article |
POLITICO: Marine Le Pen plugs Eurosceptic supergroup in Brussels
France’s far-right leader Marine Le Pen called on Belgians to vote for the Flemish far-right party Vlaams Belang in the European Parliament election during a campaign stop in Brussels. View Article |
Open Europe: The Netherlands looks set to send a strong Eurosceptic contingent to the European Parliament
Ahead of the European Parliament elections in the Netherlands, Open Europe’s Pieter Cleppe assesses the political scene and the prospects for the country’s Eurosceptic parties. View Article |
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Economic |
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European Commission: Spring 2019 Economic Forecast: Growth continues at a more moderate pace
The European economy is forecast to continue expanding for the 7th year in a row in 2019, with real GDP expected to grow in all EU Member States. As global uncertainties continue to weigh, domestic dynamics are set to support the European economy. Growth is expected to gather pace again next year. View Article |
Bertelsmann Stiftung: EU Single Market boosts per capita incomes by almost 1,000 euros a year
The EU Single Market has not only led to the elimination of border controls, but has also brought Europeans a plus in their wallets. On average, the Single Market increases the incomes of its citizens by around 840 euros per person per year, according to a comprehensive study. View Article |
New Europe: ECB affirms willingness to relaunch quantitative easing
The European Central Bank’s (ECB) zero interest rate policy will remain in place for the “foreseeable future,” said Vice-President Luis de Guindos. View Article |
Volume of retail trade unchanged in euro area
In March 2019 compared with February 2019, the seasonally adjusted volume of retail trade remained unchanged in the euro area (EA19), and increased by 0.3% in the EU28, according to estimates from Eurostat. View Article |
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Graham's tweets |
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© Graham Bishop
Banking Union