This week in "Brussels"

01 October 2009




©GrahamBishop.com 2009Jump directly to articles on:-
Financial Services PolicyBankingSecuritiesAsset Management
Corporate GovernanceCompetition issues in financial ServicesEdited Minutes of key legislative BodiesFinancial stability - policy analysis
About this email
Articles from 24 September 2009 - 01 October 2009
Financial Services Policy Back to top 

Preparation of Eurogroup and Informal Economic and Finance Ministers Council, Göteborg, 1-2 October
Ministers are expected to be de-briefed on last week's G20 meeting and to begin preparing for the IMF /WB annual meetings on 3-4 October. Ministers are also set to continue discussions, started in July, on the effect of the crisis on potential growth.  View Article

McCreevy: remuneration practices within banks will be brought under the supervisory spotlight
There is now international consensus that this situation cannot continue. Banks will be required to have sound remuneration policies that comply with balanced principles about the calculation and payment of bonuses, or else face supervisory sanctions.   View Article

City of London research - Global Financial Centres Index 6
This research, based on an independent survey of financial services professionals, tracks changing perceptions of competitiveness of the leading financial centres globally, in combination with data from a set of external indices.   View Article

G20 summit in Pittsburgh: sweeping reforms in capital, liquidity, remuneration and resolution
Leaders committed to act together to raise capital standards, to implement strong international compensation standards aimed at ending practices that lead to excessive risk-taking, to improve the over-the-counter derivatives market.  View Article

Single Euro Payments Area (SEPA): Commission consultation shows general support for end-date for SEPA migration
Respondents generally expressed support for fixing at EU level a deadline for the full migration to SEPA. The Commission will discuss this matter with Member States before taking a decision on how best to proceed.  View Article

Taplin: Developments in attitudes by new Japanese government to international financial issues
The new Japanese government is starting to grapple with the major issues raised by the loss of Japanese weight in moving from G8 to a G20 formation that includes China. Perhaps closer arrangements with the EU can help offset US influences.  View Article

IMF: G20 backs sustained crisis response and a shift in IMF representation
The leaders asked the IMF to support G20 efforts under their new Framework for Strong, Sustainable and Balanced Growth through the Fund’s surveillance of countries’ policy frameworks and their collective implications for financial stability.  View Article

Barroso at the G20 Summit in Pittsburgh: it is important to take specific action to rein in exorbitant bonuses
He highlighted that, from the beginning, the European Union has supported the G20 Summit process, but that interdependence is key to resolving the financial crisis. There is a need to achieve global responses to global problems.  View Article



Banking Back to top 

Jaime Caruana: core principles for effective deposit insurance
It is essential, in the interests of financial stability, that these robust insurance frameworks are built sufficiently in advance during economic good times, given that it is often too late to improvise once the problems occur.   View Article



Securities Back to top 

BIS: Report on Special Purpose Entities
This paper serves two broad objectives. It provides background on the variety of special purpose entities (SPEs) found across the financial sectors and it suggests policy implications for consideration by market participants and the supervisory community.  View Article

McCreevy’s speech: we're here to talk about "weapons of mass destruction", as derivatives have come to be known
There is a “transatlantic consensus” in areas such as the standardisation of OTC products and that Central data repositories should enable supervisors to get a complete overview of where the risks are in the system.  View Article

CESR consults on Trade Repositories in the European Union
The purpose of this consultation is to collect the stakeholders’ views on trade repositories, including their functions, data and transparency requirements, their location and the legal framework.  View Article

CESR’s response to the European Commission’s consultation on the UCITS depositary function
CESR Members do not feel that the AIFM provisions as currently drafted, and which are in any case subject to change, represent a sound basis for the requirements that should apply to UCITS depositaries.  View Article

Final report of the Review Panel concerning the updated self- assessment and peer review of CESR's Standard No.1 on financial information
The peer review shows that less than half the 29 Member States fully applied Standard No. 1 on financial information, and 6% of the membership either did not apply this standard or did not contribute to the review.  View Article



Asset Management Back to top 

EVCA: policymakers must focus on the regulatory impact of SMEs and start-ups
Studies such as the European Central Bank’s August paper have shown that private equity and venture capital are essential sources of finance for SMEs and start-ups. In Europe, private equity firms represent an overall portfolio of over 30,000 companies.  View Article

IFSL: UK funds under management down 12% in 2008 to £3.7 trillion, signs of recovery in 2009.
The UK is the second largest fund management market after the US and by far the biggest centre in Europe. London, however, continues to be the leading centre for international fund management with over a third of its funds under management.  View Article



Corporate Governance Back to top 

IFAC supports G20 Initiatives and calls for corporate governance reforms and early adoption of global standards
IFAC supports the reform of executive compensation packages, the adoption of a single set of high-quality global accounting standards, and increased resources for the World Bank and international development banks.  View Article



Competition issues in financial Services Back to top 

State aid: Commission approves Polish support scheme for financial institutions
The Polish scheme foresees two categories of support measures: State Treasury guarantees for the issuance of new senior debt by banks and liquidity support measures in the form of Treasury bonds, either as a loan or to be sold with deferred payment.  View Article



Edited Minutes of key legislative Bodies Back to top 

ECON meeting 29 September
In the ECON committee there was an exchange of views with Competition Commissioner Kroes in which she highlighted the importance of more market discipline in state aid issues. Enforcement is the core business of DG COMPT.  View Article

ECON meeting 28 September
The US and the EU are working together on certain aspects of accountancy standards; in April they jointly set up a financial accounting board composed of experts offering advice on the future of accounting standards.  View Article



Financial stability - policy analysis Back to top 

BBA: regulator commits to calculating cost of change
UK banks have welcomed the Financial Services Authority's decision to cost the overall economic impact of its reforms to the global and capital regimes, together with other proposed changes to banking regulation.  View Article

FSA publishes feedback to the Turner Review and associated discussion paper
Respondents generally agreed with the analysis of the Turner Review and the broad approach it proposed. The majority offered clear support for the analysis of causes, the main recommendations and the FSA’s supervisory approach.  View Article

IMF says financial surveillance needs to be more focused
To keep pace with rapid changes in global finance, the IMF is improving its ability to monitor countries’ financial stability. It plans to make its reports more focused and candid after drawing lessons from the global crisis.  View Article

IMF: global financial system shows signs of recovery
Risks to the global financial system have subsided as a result of unprecedented policy actions. But the report also warns of significant policy issues on the road to financial recovery.  View Article

Trichet tells MEPs: time not yet right for exit from money market support
Regarding the proposal to create a European Systemic Risk Board to warn of potential future crises ahead of time, Trichet said: "it is the right step to set up a body specifically responsible for the macro-prudential oversight at the European level."   View Article

Financial Stability Board reports on improving financial regulation
The FSB and its members are taking forward a major programme of financial reforms based on clear principles and timetables for implementation that are designed to ensure that a crisis on this scale never happens again.   View Article

FSB: G20 leaders endorse the Financial Stability Board’s Charter
In collaboration with the international financial institutions, the FSB will address vulnerabilities affecting financial systems in the interests of global financial stability.  View Article





© Graham Bishop