This week in "Brussels"
22 March 2018
ECB's addedum to its guidance on NPLs, euro unsecured overnight interest rate, credit risk mitigation framework, FSB presses pause on new rules, ESMA's Maijoor on MiFID II, PRIIPs and the CMU and ESAs review, Solvency II, FinTech, Big Data and the regulatory treatment of sovereign exposures.
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Articles from 15 March 2018 - 22 March 2018 |
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Banking Union |
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ECB sets out its supervisory expectations for new NPLs
The ECB has published the addendum to the ECB Guidance to banks on non-performing loans (NPLs). The addendum supplements the qualitative NPL guidance, published on 20 March 2017, and specifies the ECB’s supervisory expectations for prudent levels of provisions for new NPLs. View Article |
ECB launches a second consultation on a new euro unsecured overnight interest rate
The European Central Bank calls for input on the detailed features of the new unsecured overnight interest rate. View Article |
EBA published an assessment of the current credit risk mitigation framework
This Report is part of the 4th and last phase of the EBA's roadmap on the IRB approach, which also includes a review of supervisory practices, a harmonised definition of default and clarifications on modelling approaches to be used by institutions. View Article |
Financial Times: Global financial regulator presses pause on new rules
The FSB will pause from making new regulations and instead evaluate whether its post-crisis reforms are having any unintended consequences. View Article |
EBA highlights progress in the work of supervisory colleges in 2017
The Report on the functioning of supervisory colleges in 2017, concludes that significant improvements have been achieved over the last couple of years in college interactions, responsiveness, and in the quality, coverage and reasoning of the joint decision documents. Further efforts are expected. View Article |
FCA sets out its Approach to Supervision and Enforcement
When the FCA launched its Mission, it committed to publishing a series of documents that would explain its approach to regulation in more depth. These articulate how the FCA carries out its main activities, aiming to provide transparency to its thought process and decision-making. View Article |
BBC: Financial crisis rules for banks eased by US Senate
The US Senate has passed a bill to roll back banking regulations put in place in the wake of the 2008 financial crisis. The bill exempts banks with less than $250bn in assets from strict oversight under the Dodd-Frank Act of 2010. View Article |
BIS: New members join Committee on Payments and Market Infrastructures
The central banks of Argentina, Indonesia and Spain are joining the Committee on Payments and Market Infrastructures (CPMI), the global standard setter for the payment, clearing and settlement systems that underpin global financial markets. View Article |
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Capital Markets Union |
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ESMA's Maijoor on CMU, Brexit and ESA review – What’s next?
Mr Maijoor’s remarks focused on issues related to Brexit and ESMA's work on delegation, as well as costs and charges linked to MiFID II, PRIIPs and the CMU and ESAs review. View Article |
ESMA: High risks persist for European securities markets and investors
European securities markets, infrastructures and investors remain at risk, the European Securities and Markets Authority said in its latest Trends, Risks, and Vulnerabilities (TRV) Report. View Article |
ESMA clarifies treatment of packages under MiFIR’s trading obligation for derivatives
ESMA issued an opinion providing further guidance on the treatment of packages under the trading obligation for derivatives which the Markets in Financial Instruments Regulation introduced on 3 January 2018. View Article |
Homogeneity of underlying exposures in securitisation - EBF reaction to the EBA consultation
Well established securitisations considered as high–quality under current market practices must be preserved and considered as simple, transparent and standardised under the new securitisation framework, highlights the EBF in its response to the EBA consultation. View Article |
IMF: Central Counterparties Resolution—An Unresolved Problem
Recovery and resolution regimes are being developed for central counterparties (CCPs). Economists at the IMF analyse current resolution tools in the context of policy, which is to restore the critical functions of a failed CCP. View Article |
ESMA publishes responses to its Consultation on draft RTS under the new Prospectus Regulation
ESMA published the responses received to its Consultation on draft RTS under the new Prospectus Regulation. View Article |
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Clients Union |
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Insurance Europe: GDPR data breach reporting templates developed by insurance industry
Insurance Europe has developed a template that could help companies meet the obligation under the General Data Protection Regulation (GDPR) to notify their competent supervisory authority about personal data breaches. View Article |
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Insurance |
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European Council: EU-US insurance agreement concluded
The Council adopted a decision concluding an agreement with the United States on insurance and reinsurance. View Article |
Mitigating systemic risk through Solvency II: EIOPA publishes the second paper of a series on systemic risk and macroprudential policy
The European Insurance and Occupational Pensions Authority published the second in a series of papers with the aim of contributing to the debate on systemic risk and macroprudential policy. View Article |
Insider: Interview with EIOPA’s Dimitris Zafeiris
Interview with Dimitris Zafeiris, EIOPA’s Head of Risks and Financial Stability Department, covering mitigating systemic risk, macroprudential policy and EIOPA‘s stress test. View Article |
Commercial Risk Europe: Regulators need to strike balance between data protection and risk innovation: Geneva Association
The use of big data analytics in insurance offers huge potential benefits for the way risks are assessed and priced, thus reducing costs and making cover more readily available and affordable for individuals and businesses alike. If applied well, the whole emphasis of the insurance sector should shift from pure risk protection towards risk prediction, management and prevention. View Article |
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Asset Management |
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PLSA comments on The Purpose of Asset Management paper
The Pensions and Lifetime Savings Association (PLSA) has commented on The Purpose of Asset Management paper, published by Pension Insurance Corporation. View Article |
ALFI statement following the publication of the European Commission’s Proposal amending UCITS and AIFM Directives
ALFI acknowledges the intention and efforts of the European Commission in its recently published proposal amending Directive 2009/65/EC and Directive 2011/61/EU to remove barriers to cross-border distribution of collective investment funds while ensuring the requirement for a high level of investor protection. View Article |
Investment & Pensions Europe: Pension funds worried about EIOPA power, oversight under EC plan
European pension funds are worried that levying the industry to fund the European Insurance and Occupational Pensions Authority would lead to less oversight of the authority from EU institutions and member states, according to PensionsEurope. View Article |
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Corporate Governance/Accounting |
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Commission: Fitness check on the EU framework for public reporting by companies
The fitness check of the EU framework on public reporting by companies aims to assess whether the EU reporting framework is still fit for purpose. View Article |
EFRAG requests comments on its draft endorsement advice on Plan Amendment, Curtailment or Settlement
EFRAG is consulting on its assessment of Plan Amendment, Curtailment or Settlement (Amendments to IAS 19) both against the technical criteria in the EU and whether those amendments are conducive to the European public good. View Article |
Accountancy Europe: Organisation of the Public Oversight of the Audit Profession in Europe
Accountancy Europe´s survey presents the impact of the new rules. Its findings show that the national public oversight bodies now carry out many activities previously in the competence of the professional bodies. View Article |
Accountancy Europe: Pensions proposal - EU overview and US profession’s services
Accountancy Europe´s factsheet provides an overview of the latest pension products initiative at the European level. It also expands on the profession’s role in providing assurance to private pension plans in the United States which has a long tradition in private retirement plans. View Article |
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Anti-Money Laundering |
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ACCA supports Flag it Up campaign to highlight the threat of money laundering
ACCA will be taking part in a UK Home Office campaign along with the Law Society, Solicitors Regulation Authority (SRA) and other law enforcement and government departments and agencies, to highlight the damaging effects of money laundering. View Article |
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Financial Services Policy |
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EBA publishes its Roadmap on FinTech
The European Banking Authority published a FinTech Roadmap setting out its priorities for 2018/2019. The Roadmap also sets out the establishment of a FinTech Knowledge Hub to enhance knowledge sharing and foster technological neutrality in regulatory and supervisory approaches. View Article |
ESAs weigh benefits and risks of Big Data
The ESAs published their final report on Big Data analysing its impact on consumers and financial firms. Overall, the ESAs have found that while the development of Big Data poses some potential risks to financial services consumers, the benefits of this innovation currently outweigh these. View Article |
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Grahams Articles, Comments & Speeches |
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“The regulatory treatment of sovereign exposures” Comments by Graham Bishop on BCBS Discussion Paper
The BCBS paper relates solely to the countries that use the euro as their “domestic currency”, but the fundamental difference in the obligations of Eurozone states is that they issue their bonds in a currency beyond their control and they can't instruct the ECB to lend euros to repay its bonds. View Article |
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Temporary Eurobill Fund (TEF) |
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“The regulatory treatment of sovereign exposures” Comments by Graham Bishop on BCBS Discussion Paper
The BCBS paper relates solely to the countries that use the euro as their “domestic currency”, but the fundamental difference in the obligations of Eurozone states is that they issue their bonds in a currency beyond their control and they can't instruct the ECB to lend euros to repay its bonds. View Article |
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Political |
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Remarks by President Donald Tusk following the Tripartite Social Summit
Council President Tusk said that an important part of the EU27's exchange was devoted to the European Council, where he plans to address the "risks stemming from the US approach on trade, Brexit negotiations and Russia's actions." View Article |
Council agrees dates for the 2019 European Parliament elections
The Council has agreed that it wants the next European Parliament elections to take place on 23-26 May 2019. View Article |
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Economic |
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MEPs approve new EU corporate tax plan which embraces “digital presence”
Firms would be taxed where they earn their profits under a proposed harmonised corporate tax system which uses the online activities of digital firms to calculate their tax bills. View Article |
European Commission: EU anti-tax avoidance requirements on financing and investment operations
International Financial Institutions, development financial institutions and other eligible counterparties entrusted with the implementation of EU budget funds are required to ensure that the use of EU funds is in line with the EU objective of tackling tax avoidance. View Article |
Multilateral investment court: Council gives mandate to the Commission to open negotiations
The Council adopted the negotiating directives authorising the Commission to negotiate, on behalf of the EU, a convention establishing a multilateral court for the settlement of investment disputes. The Council also decided to make the negotiating directives public. View Article |
Euro area international trade in goods surplus €3.3 bn
The first estimate for euro area (EA19) exports of goods to the rest of the world in January 2018 was €178.6 billion, an increase of 9.1% compared with January 2017 (€163.7 bn). View Article |
Annual inflation down to 1.1% in the euro area
Euro area annual inflation rate was 1.1% in February 2018, down from 1.3% in January. In February 2017, the rate was 2.0%. European Union annual inflation was 1.3% in February 2018, down from 1.6% in January. A year earlier the rate was 2.0%. View Article |
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Graham's tweets |
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© Graham Bishop
Banking Union