Welcome to our Friends Standard weekly e-mail. 

We are now focussed on the big themes for the next legislative period - targeting the interaction of the driving forces of politics and economics as they force the required changes in over-arching financial regulation (including ESG and Fin Tech). Details of these services are here

My video invitation to the 158th Brussels for Breakfast on 14th January 2020 is here. Some seats are available at the live meeting at CISI, and I would be delighted to hear suggestions for topics that should be covered. E-mail me: Graham@grahambishop.com

Interested in Continuing Professional Development (CPD)? Please click here for our CPD services

This is the last weekly of the year, so Merry Christmas from the GrahamBishop.com team, and a very happy 2020!
We will be back on January 9th.

Euro Summit - European Council press

General Policy

Euro Summit statement : EU27 leaders took stock of progress made on the implementation of the June 2019 Statement of the Euro Summit, including the revision of the ESM Treaty, the budgetary instrument for convergence and competitiveness (BICC), and technical work on the strengthening of the banking union. View Article

Banking Union

EBA publishes 2020 EU-wide stress test templates after testing them with banks : The EBA published the templates for the 2020 EU-wide stress test, after the feedback received by banks during the testing phase. The stress test exercise will be formally launched in January 2020. View Article

ISDA launches consultation on fallbacks for Euro LIBOR and EURIBOR : ISDA has launched a supplemental consultation on the spread and term adjustments that would apply to fallbacks for derivatives referencing euro LIBOR and EURIBOR in the event those benchmarks are permanently discontinued.  View Article

Bank of England: Stress testing the UK banking system: 2019 results : The 2019 stress test shows the UK banking system is resilient to deep simultaneous recessions in the UK and global economies that are more severe overall than the global financial crisis. The core of UK financial system could also face a worst-case disorderly Brexit, says the report. View Article

So you think the banking crisis is over? Sorry to spoil your Christmas! : Policymakers say they have learnt the lessons and the new rules ensure that the previous crisis cannot be repeated. However, there is a large light that is flashing ever-stronger orange: the stock markets are sending a strong message about the poor health of EU banks, warns Graham Bishop. View Article

Financial Institutions

ESMA issues second pan-EU overview on the use of supervisory sanctions for UCITS : ESMA issued its second annual report on sanctions (penalties and measures) imposed by NCAs under the Undertakings for Collective Investments in Transferable Securities (UCITS) Directive. This report covers the year 2018. View Article

EIOPA publishes the results of the 2019 Occupational Pensions Stress Test : The EIOPA published the results of its 2019 Institutions for Occupational Retirement Provisions (IORPs) Stress Test. A stress test of pension schemes across the European Union wiped out €270 billion or almost a quarter of investments at funds that took part. For the first time, this European stress test exercise covered the analysis of ESG factors for IORPs. View Article

Capital Markets Union

FSB sets out 2020 work programme : The FSB’s work priorities for 2020 reflect the evolving nature of the global financial system and associated risks to financial stability. View Article

Recent Developments in European Capital Markets: Key findings from the 2018 ECMI Statistical Package : The key trends obtained from the Package on equity markets, debt securities, exchange-traded derivatives, over-the-counter derivatives and asset management are outlined in this report. View Article

ESMA: Procedural rules for penalties imposed on Third-Country CCPs, TRs and CRAs : This consultation paper sets out ESMA’s preferred options for the procedural rules on penalties imposed on TC-CCPs and TRs. In order to ensure alignment, the consultation paper sets out also ESMA’s proposed amendments to the existing procedural rules for penalties imposed on CRAs. View Article

Environmental, Social, Governance (ESG)

 

Sustainable Finance - Reghub

 

Council of the EU: Sustainable finance: EU reaches political agreement on a unified EU classification system : The EU will soon have in place a common classification system to encourage private investment in sustainable growth and contribute to a climate neutral economy. EU ambassadors today endorsed a political agreement reached between Finland's presidency of the Council and the European Parliament on a EU-wide classification system, or "taxonomy". View Article

Fin Tech Regulation

ESBG: Expert group submits recommendations to EU Commission : An international group of experts, with the participation of Sparkassen-Finanzgruppe – the WSBI-ESBG member in Germany – has addressed the question of how banking regulation should deal with this and presented its recommendations to the European Commission. View Article

Friends' Standard Services

Video invitation to 158th Brussels for Breakfast : Brussels for Breakfast (158): A round-table discussion on EU regulatory affairs, with Graham Bishop (grahambishop.com), Allie Renison (IoD) and TBC. To be held on Tuesday, 14th January, 2020, 8.30-10.00am. With support from the CISI. View Article

48th Brussels for Brunch Webinar December 2019 :  View Article

Brexit

POLITICO: EU ‘ready’ for trade talks after UK election, says Charles Michel : The EU is "ready for the next steps" on Brexit following the UK general election result, said European Council President Charles Michel. View Article

The Independent: Battle for UK to remain in the EU is now lost and rejoining won't be prospect for 20 years, admits Lord Heseltine : The battle for UK membership of the European Union is lost and the question will not be reopened for 20 years, Europhile former deputy prime minister Michael Heseltine has said. View Article

Boris Johnson - Foreign Policy

The Guardian: Boris Johnson wins huge majority on promise to 'get Brexit done' : Britain’s prime minister, Boris Johnson, secured a crushing victory in the UK’s general election as voters backed his promise to “get Brexit done” and take the country out of the European Union by 31 January next year. View Article

The Guardian: UK must be loyal on standards in return for market access – Macron : French PM Emmanuel Macron has warned Boris Johnson that the UK must remain “loyal” to EU standards post-Brexit for British companies to maintain access to the European market. View Article

The Guardian: UK not 'match fit' for Brexit talks, says former May aide : Raoul Ruparel said that Whitehall is not ready to negotiate a wide-ranging agreement with the EU. View Article

BBC: Brexit bill to rule out extension to transition period : The government is to add a new clause to the Brexit bill to rule out any extension to the transition period beyond the end of next year. View Article

Financial Times: Britain says EU trade deal will be brokered by end of 2020 : Boris Johnson insists he can broker a trade deal with the EU by the end of 2020 even as Brussels ramps up warnings that it may be impossible to complete the negotiations in time, creating the risk of an economic “cliff edge”. View Article

POLITICO: David Davis: UK will diverge from EU trade rules : Prime Minister Boris Johnson will diverge from EU trade rules once the UK leaves the bloc, especially in emerging industries, former Brexit Secretary David Davis said. View Article

European Council (Art.50) conclusions : On 13 December 2019 the Special European Council (Art. 50) adopted conclusions on Brexit. View Article

BBC: Brexit: Free trade deals 'won't offset leaving EU' : Post-Brexit trade deals will not make up for the economic damage inflicted on the UK from leaving the EU, analysis for BBC Newsnight has suggested. View Article

Ursula Von der Leyen - EurActiv

Financial Times: Brussels warns UK will suffer more from lack of EU trade deal : Britain will suffer more than the EU if the two sides cannot broker a trade deal by the end of next year, the president of the European Commission has warned in a response to Boris Johnson after the UK prime minister ruled out extending talks. View Article

The Independent: Election result: 52% of votes go to pro-referendum parties despite decisive victory for the Tories : Analysis of election vote share reveals nearly 52% supported parties in favour of a Final Say vote such as Labour, the Liberal Democrats, the Greens and the SNP, compared with 47% who supported Brexit-backing parties, such as the Tories and the DUP. View Article

Financial Times: EU confirms one-year Brexit reprieve for clearing houses : The EU has confirmed it will grant the derivatives industry more time to prepare for a potential no-deal Brexit, saying that emergency access to crucial UK market infrastructure would last for one year after Britain drops out of the bloc. View Article

	Graham Bishop #FBPE @GrahamBishopcom
Here's my video invitation to 158th Brussels for Breakfast, in which i suggest - and request - ideas for the next #B4B debate on January 14th 2020. With my best wishes for a happy Xmas! ow.ly/vzIF50xDW1N
Graham Bishop #FBPE retweeted
	POLITICO @politico
Replying to @politico The House voted to impeach President Donald Trump, branding him as only the third president in U.S. history to face such a harsh punishment from Congress politi.co/34x48g9 pic.twitter.com/1FeqF97LaO
Graham Bishop #FBPE retweeted
	Michel Barnier @MichelBarnier
“Our new relationship should be as close as possible. For the sake of all Europeans who stretched their lives across the Channel” Pres @vonderleyen @Europarl_EN The future EU-UK partnership will clearly be different. But the EU will never fall short on common ambition. pic.twitter.com/ArsHv6oBKE
Graham Bishop #FBPE retweeted
	Federal Trust @FedTrust
Replying to @Brendandonn @Usherwood and 28 others 4/4 "Pessimism is premature. An effective Labour leader, working with the SNP and Liberal Democrats, (could) expose the damaging compromises Johnson will be forced to accept if he is to have any longer-term agreement on trade and security with the EU." pic.twitter.com/t9T0nM4B1K
Graham Bishop #FBPE retweeted
	Federal Trust @FedTrust
Replying to @Brendandonn @Usherwood and 19 others 3/4 "The now inevitable British withdrawal from the EU in early 2020 creates, however, a new situation in which those who sought to prevent Brexit will need to choose between accommodation and resistance." @Brendandonn fedtrust.co.uk/brexit-the-end… pic.twitter.com/JDUlVHLhqJ
Graham Bishop #FBPE retweeted
	Jennifer Rankin @JenniferMerode
Ursula von der Leyen says Brexit timetable "extremely challenging" and "we will face a cliff edge situation" if no deal by 2020. She said no deal "will harm the UK more than us" as the EU will continue to benefit from single market, customs union and 700+ intl agreements.
Graham Bishop #FBPE retweeted
	Sky News @SkyNews
No-deal is back on the table as PM plans to beef up his Brexit legislation to outlaw delays to the transition period beyond 2020 po.st/pfFnlw
Graham Bishop #FBPE retweeted
	Bloomberg Brexit @Brexit
The U.K. government will introduce its Brexit bill to Parliament on December 20 bloom.bg/2PQUiAr
Graham Bishop #FBPE retweeted
	POLITICO Europe @POLITICOEurope
U.N. climate negotiations ended in disarray, exposing deep rifts among industrialized nations, fast-growing economies like China and India and the poorest countries politi.co/34jeW1f
Graham Bishop #FBPE retweeted
	Jennifer Rankin @JenniferMerode
The Brexit choice to come, spelt out by Emmanuel Macron. "If Boris Johnson wants a very ambitious trade deal, there has to be very ambitious regulatory convergence. Be me guest.” twitter.com/jimbrunsden/st…
Graham Bishop #FBPE retweeted
	Fabian Zuleeg @FabianZuleeg
Many UK commentators/politicians seem to believe that this domestic victory gives the UK more leverage in the phase 2 negotiations. It does not. EU27 won't change approach & it is still the UK that needs a phase 2 deal more
Graham Bishop #FBPE retweeted
	Siraj Datoo @dats
Jo Swinson started the campaign telling @SophyRidgeSky that she was a candidate to be Prime Minister. Now she's no longer even an MP
Graham Bishop #FBPE retweeted
	Bloomberg Brexit @Brexit
Jeremy Corbyn said he will stand down as leader of the U.K.’s opposition Labour Party after a comprehensive rejection of his bid to lead the country bloom.bg/35i5lt2
Graham Bishop #FBPE retweeted
	Bloomberg Brexit @Brexit
BREAKING: Boris Johnson wins a decisive U.K. election with his promise to deliver Brexit, a vote marking the biggest political shifts in decades bloom.bg/2EbUGEr pic.twitter.com/3DMLcNOifC