Regulation Correspondent, Europe
Huw's Feed
Jul 30, 2015

Regulator delays decision on whether big funds systemically important

LONDON, July 30 (Reuters) – Global work by regulators on
whether big asset managers should face tougher rules because of
their size has been put on hold to focus on their ability to
cope in volatile markets, a task force set up for the Group of
20 leading economies said on Thursday.

The Financial Stability Board (FSB) had proposed a method
for identifying large asset managers that could then face extra
scrutiny, a move which has been fiercely opposed by the sector.

Jul 30, 2015

U.S. must wait for EU hedge fund ‘passports’ – EU watchdog

LONDON (Reuters) – Hedge funds from Guernsey, Jersey and Switzerland should be allowed to serve investors across the 28 country European Union, the bloc’s securities watchdog said on Thursday.

The European Securities and Markets Authority (ESMA) also said it has not yet reached a view on whether hedge funds and other alternative investment funds from the United States should be given a “passport”.

Jul 29, 2015

Outside auditors should check bank capital, UK industry body says

LONDON, July 29 (Reuters) – Asking outside auditors to vouch
for the accuracy of a bank’s key measure of health could help
restore investor trust in the sector, a London-based accounting
body said on Wednesday.

The Institute of Chartered Accountants in England and Wales
(ICAEW) kicked off a public consultation on how accountants
could check on bank capital ratios, a measure of capital a
lender holds in relation to risky assets such as loans.

Jul 29, 2015

Banks have not fully learned lessons from Libor scandal -UK watchdog

LONDON, July 29 (Reuters) – Banks are failing to meet new
standards for compiling market benchmarks despite the record
fines imposed over the Libor and foreign exchange scandals, a
review by Britain’s financial watchdog said on Wednesday.

Lenders have been fined billions of dollars by regulators
for attempting to rig the London interbank offered rate, or
Libor, an interest rate benchmark used to price an estimated
$450 trillion of financial contracts worldwide.

Jul 28, 2015

BoE’s Cunliffe says no turning back the ‘regulatory dial’

LONDON (Reuters) – Banks must make painful adjustments to how they operate in a post-crisis world and not rely on policymakers turning back the overall “regulatory dial”, Bank of England Deputy Governor Jon Cunliffe said on Tuesday.

Asking whether regulators have gone too far in imposing tougher capital requirements after the 2007-09 financial crisis, Cunliffe said some reforms will need “fine tuning”.

Jul 28, 2015

Banks fail to persuade regulators to dilute new buffer rules

LONDON, July 28 (Reuters) – Rules will soon be finalised
forcing the world’s top banks to hold enough liquid assets to
cover between 16 and 20 percent of their liabilities, after
industry lobbying failed to persuade regulators to relax the
plan.

The Financial Stability Board (FSB) coordinates financial
regulation for the Group of 20 economies and will finalise the
rules by the end of September for endorsement by G20 leaders in
November.

Jul 27, 2015

Payday lender Cash Genie faces 20 mln pound compensation bill

LONDON, July 27 (Reuters) – Payday lender Cash Genie has
agreed to put aside 20 million pounds ($31 million) to
compensate more than 92,000 customers for unfair practices,
Britain’s Financial Conduct Authority said on Monday.

The watchdog said Cash Genie, part of Ariste Holding
Limited, had agreed to provide 10 million pounds in redress
after having voluntarily written off 10.3 million pounds of fees
and interest.

Jul 24, 2015

London Stock Exchange unit in talks to operate Plato venue

LONDON, July 24 (Reuters) – A nascent consortium of asset
managers, banks and brokerages is in talks with a London Stock
Exchange Group (LSEG) unit to provide technology for its
planned trading platform, conceived as a venue for off-market
trading of large blocks of shares.

Plato Partnership said on Friday it was in exclusive
discussions on a commercial collaboration with LSEG’s majority
owned Turquoise unit, which already operates a so-called “dark
pool” venue for large block trades.

Jul 23, 2015

EU watchdog to soften pay rules for small asset management firms

LONDON, July 23 (Reuters) – Managers of smaller investment
funds in the European Union will be exempt from new curbs on pay
in their industry, the bloc’s markets watchdog said on Thursday,
a move welcomed by investment managers.

The watchdog’s rejection of a “one size fits” all rule for
asset managers, whether big or small, differs from the situation
in the banking industry where the EU banking watchdog has not
exempted smaller banks from its regulations to curb pay.

Jul 22, 2015

UK watchdog says up to courts to decide on rate swaps spats

LONDON, July 22 (Reuters) – Britain’s financial regulator
has rejected criticism of how small firms are compensated for
mis-sold interest rate hedging products, saying it was now up to
the courts to rule on disagreements over payouts.

The products were meant to protect smaller companies against
rising interest rates, but when rates fell to very low levels
after the financial crisis, companies had to pay extra charges,
typically running into tens of thousands of pounds.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
    • Follow Huw