The Brexit stand-off continues – despite the UK government’s admission of the possibility of 7000 lorries in a two-day queue at Dover…. The Commission gave a time-limited extension of permission to use UK CCPs - for a simple reason “give market participants the time needed to reduce their exposure to UK CCPs”
Articles from 18 - 24 September 2020
General Financial Policy
EU financial regulators assess risks to the financial sector after the outbreak of COVID-19 and call for enhanced cooperation : The three ESAs have issued their first joint risk assessment Report of the financial sector since the outbreak of COVID-19. The Report highlights further amplified profitability concerns across the board and heightened liquidity challenges in segments of the investment fund sector.
OECD: Building confidence crucial amid an uncertain economic recovery : After an unprecedented collapse in the first half of the year, economic output recovered swiftly following the easing of containment measures and the initial re-opening of businesses, but the pace of recovery has lost some momentum more recently.
FT Brexit and the City: Brussels’ new battle to rival London in finance : The EU believes it needs to have a stronger financial sector but will find it hard to replicate the UK's capabilities
Banking Union
SSM: Technology exposes banks’ vulnerabilities : Speech by Pentti Hakkarainen, Member of the Supervisory Board of the ECB, at the Institute of International Finance Digital Interchange: The Global Dialogue on Digital Finance
IFAC and ICAEW Release First Installment of Six-Part Anti-Money Laundering Educational Series : The publication is part of a 6-month short series helping professional accountants enhance their understanding of how money laundering works, the risks they face, and what they can do to mitigate these risks and make a positive contribution to the public interest.
EDPB’s consultation on the interplay of the PSD2 and the GDPR: EBF response : EBF has responsed to the European Data Protection Board’s (EDPB) consultation on the draft guidelines on the interplay of the PSD2 and GDPR. We welcome the EDPB’s efforts to clarify uncertainties that persist between these two essential legislative frameworks for the banking sector.
Capital Markets Union
S&P: EU will be big new player in bond market with likely triple-A asset : The European Union's planned issuance of €750 billion in bonds to fund its recovery program will create a major new player in bond markets for the long term, and it could also ease pressure on the "doom loop" that has bedevilled weaker EU banks and economies, according to market participants.
Financial stability: Commission adopts time-limited decision giving market participants the time needed to reduce exposure to UK central cou : On 1 January 2021, the UK will leave the Single Market. Today's temporary equivalence decision aims to protect financial stability in the EU and give market participants the time needed to reduce their exposure to UK CCPs.
CRE: FCA tells insurers to settle BI claims as quickly as possible : The UK regulator has told insurers to settle Covid-19 business interruption (BI) claims clarified in last week’s High Court judgment “as quickly as possible”, and warned against “creating additional barriers or delays to paying valid claims”.
CEPS: Fostering capital market integration : Is there a role for a CMU equity market index? The EU has been struggling to integrate its capital markets for decades. Despite the broad public support shown for a Capital Markets Union (CMU) since its launch in 2015, progress in realising it has been very limited.
Environmental, Social, Governance (ESG)
Accountancy Europe welcomes cooperation by sustainability reporting bodies : A crucial step towards global standards for non-financial information (NFI) reporting: that’s how we view the joint statement that CDP, CDSB, GRI, IIRC and SASB issued on 11 September 2020.
CDSB welcomes call from global investor groups to reflect climate-related risks in financial reporting : CDSB welcomes the letter by investor groups yesterday confirming the view that “climate-related risks are considered a material factor and thus should be reflected appropriately in financial statements.”
Protecting Customers
EURACTIV: Commission fears UK data protection regime ‘may change in the future’ : The European Commission has concerns that certain aspects of the UK’s data protection regime may change in the future and negatively impact the safety of EU personal data when transferred to the country, Commission sources have informed EURACTIV.
Fin Tech Regulation
SUERF: A Journey through the Monetary Cyber World : A guide through the swift evolution in the concept of digital money since early 2009, when Bitcoin was launched with the project, still not implemented, to replace legal tender. Stablecoins, have emerged more recently, and aim to remedy the shortcomings in the first generation of crypto-assets.
EURACTIV: LEAK: Commission plans new revolution for “open finance” in 2022 : The European Commission wants financial firms and other companies to share more customer data to create a “broader open finance space” with new services for citizens, according to a draft of the Digital Finance Strategy seen by EURACTIV.
Economic Policies Impacting EU Finance
POLITICO: Vestager faces risks in potential appeal of Apple ruling : EU competition chief Margrethe Vestager seems to have no intention of letting go of her €13 billion Apple case, but a potential appeal of the July court verdict against her is fraught with risk, both legal and political.
Brexit
Bloomberg: JPMorgan to Move $230 Billion Assets to Germany Under Brexit : Migration will make the U.S. firm a top 10 bank in the country; Head of the Frankfurt unit has taken on more responsibilities
