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We may not be members of the EU, but (for the moment) we are of the Single Market. More than that, London is still the major financial centre in Europe - but it is clearly under threat, and not just from Michel Barnier. The European Commission has a new Financial Services Commissioner, who is by no means sympathetic to the City. There is a short extension for UK clearing houses, but the pressure on institutions to move substantial amounts of real business into the EU27 is intense. There is also a revision of MIFID coming up - perhaps the first major piece of legislation where the UK has a keen interest, but where we won't be represented around the table. That could hurt. On the other hand, a rewrite of Solvency 2 is very likely to incorporate some (at least) of the key elements of the recent High Court judgement on pandemic insurance; the Commission will be keen to make sure contracts actually 'do what it says on the tin'. Beyond that, look for a much more active role in EU standard-setting, particularly in the ESG area. An unexpectedly lively discussion on regulatory developments in Brussels and beyond with three very active Euro-watchers.
(selected from www.GrahamBishop.com)
General: People (new Fin Service Commissioner - Mairead McGuinness; ECB’s Mersch expires in December); SOTEU (six legislative proposals for financial services)
Banking: Banking problems (market perceptions are weakening again – see chart in video); Rising `doom loop’ fears, cross- border mergers; AML/continued decline in correspondent banking relationships
Capital Markets Union: ECB blog (fully-fledged CMU needed more than ever); Pandemic insurance; MIFID II - research
ESG: Five standard setters produce a shared vision; Stakeholders want synergy between the different bits of legislation