Friends 'Weekly' Newsletter
25 May 2017
CET1 instruments, CRD CRR review, valuation in resolution, CMU, MiFID II, IFRS 17 launch, EIOPA's 2nd IORPs stress test, Commission's review of financial stability and integration, ECOFIN, Council authorised the start of Brexit talks, dispute over 'Brexit bill', euro-clearing battle and more.
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Articles from 18 May 2017 - 25 May 2017 |
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Banking |
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EBA updates on monitoring of CET1 instruments
The European Banking Authority published its fifth updated list of capital instruments that Competent Supervisory Authorities (CAs) across the European Union have classified as Common Equity Tier 1 (CET1). |
EBA publishes an Opinion on own funds in the context of the CRD CRR review proposal
The EBA calls for a possible strengthening of the Authority's role in assessing issuances of CET1 instruments. In addition, the Opinion elaborates on restrictions on distributions in the context of capital conservation measures and suggests introducing a general anti-circumvention principle. |
EBA publishes final technical standards on valuation in resolution
These draft RTS are a crucial piece of regulation for the resolution framework as they aim to provide the independent valuer with common criteria for the valuation, which will inform the decisions made by resolution authorities, thus promoting a consistent approach to such valuations across the EU. |
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Securities |
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ECB's Constâncio: Synergies between banking union and capital markets union
Banking union and CMU are undoubtedly the two central policy initiatives to catalyse financial integration in the EU. Consequently, they received a great deal of attention in the ECB’s report on Financial Integration in Europe and stood at the centre of European Financial Integration conference. |
ESMA clarifies "traded on a trading venue" under MiFID II
ESMA issued an opinion regarding the implementation of MiFID II and MiFIR. The opinion clarifies the concept of “traded on a trading venue” (TOTV), which is relevant for a number of provisions under MIFID II and MiFIR. |
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Insurance |
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Insurance Europe: IASB releases a new global basis for insurance contracts accounting
Olav Jones, deputy director general of Insurance Europe, commented on the publication of the International Financial Reporting Standard for insurance contracts (IFRS 17) by the International Accounting Standards Board. |
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Asset Management |
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EIOPA launches its second EU-wide occupational pensions stress test
The European Insurance and Occupational Pensions Authority (EIOPA) launched an EU-wide stress test for the Institutions for Occupational Retirement Provision (IORPs). EIOPA’s stress test provides insight into the risks and vulnerabilities of the European occupational pensions sector. |
EFAMA reiterates its support for a Pan-European Personal Pension product
In a short briefing document published, the European Fund and Asset Management Association outlined its vision for how the young generation of European citizens will benefit from the PEPP – and reaffirmed its support for the project. |
EFAMA publishes the 9th edition of its Asset Management Report
The report focuses on the value of assets managed by regulated third-party asset managers in Europe, providing detailed data on the location of the asset management activity, the asset owners, the evolution of the asset allocation, and the contribution of the industry in terms of employment. |
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Financial Services Policy |
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Commission presents 2017 annual review of EU's financial stability and integration
The report highlights a positive trend in the recovery of the European economy, in spite of the challenging economic and political environment. It identifies private consumption as the main driver for growth, supported by improved bank funding and a better regulatory and supervisory framework. |
ECB: Risk of further bond market repricing persists but financial market stress is contained
Systemic stress indicators for the euro area have remained low over the past six months, according to the latest Financial Stability Review of the European Central Bank. |
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Economic |
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Main results of the Economic and Financial Affairs Council
The Council agreed on a new system for resolving double taxation disputes between member states and discussed a proposal for a common corporate tax base (CCTB) in the EU, aimed at reducing the administrative burden of multinational companies. |
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Brexit & UK |
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Council (Art 50) authorises the start of Brexit talks and adopts negotiating directives
The Council, meeting in an EU27 format, adopted a decision authorising the opening of Brexit negotiations with the UK and formally nominating the Commission as EU negotiator. The Council also adopted negotiating directives for the talks. |
The Guardian: Brexit talks could collapse over UK divorce bill, says EU negotiator
The EU’s chief Brexit negotiator, Michel Barnier, fears the refusal of member states to soften their demands over the size of Britain’s “divorce bill” could lead to a collapse in talks and the UK crashing out of the EU without a deal, minutes of a meeting of the European commission reveal. |
Open Britain/CEBR: Lost access to the Single Market in services could cost the UK economy £36 billion a year
A new report lays bare the potential cost to the UK economy of the Prime Minister’s decision to pull Britain out of the Single Market. If access to the market in services is restricted, the ‘upside’ scenario is a 1.4% gross loss in GDP, while the downside is a 2% gross loss in GDP. |
Bloomberg: LSE raises estimate for loss of London clearing to $100 billion
Banks and investors will end up $100 billion worse off if the European Union forcibly repatriates the clearing of euro-denominated derivatives after Brexit, according to London Stock Exchange Group Plc’s Chief Executive Officer Xavier Rolet. |
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Graham's tweets |
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Tag Cloud |
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© Graham Bishop
Banking