Regulation Correspondent, Europe
Huw's Feed
Aug 28, 2015

Think-tank WEF calls for rethink of anti money-laundering rules

LONDON (Reuters) – Regulators and central bankers should rethink how rules are applied to stop extremist financing and money laundering, or some emerging market economies risk grinding to a halt, an official of the World Economic Forum (WEF) think-tank said.

Anders Borg, the former Swedish finance minister who chairs a WEF initiative to improve how the financial system can foster long-term growth, said quick action was needed.

Aug 26, 2015

Greece deal points to flexible approach to bank rescues in EU

LONDON (Reuters) – European Union rules to shield taxpayers from having to rescue ailing banks should be applied flexibly because of broader economic imperatives highlighted by the latest Greek rescue package, analysts and lawyers say.

That flexibility may mean that European taxpayers cannot be given cast-iron guarantees that they will not be called upon again to bail out banks as during the financial crisis.

Aug 20, 2015

EU draft law would let banks self-certify pooled debt

LONDON, Aug 20 (Reuters) – Banks would in future need to
declare publicly that their pooled debt is of top quality in
order to benefit from lower capital charges, according to a
draft European Union law seen by Reuters that is raising
concerns from some investors.

The proposal is significant because pooled debt, which
merges masses of loans like mortgages into asset-backed
securities (ABS), was at the heart of the global financial
crisis. ABS based on poor-quality U.S. home loans became
untradable in 2007, triggering a string of bank failures.

Aug 19, 2015

Global tagging system proposed for derivatives trades

LONDON (Reuters) – Global regulators and central bankers
have proposed a common tagging system for off-exchange
derivatives transactions to spot more easily which banks could
be at risk in a market crisis.

Regulators were left in the dark when Lehman Brothers went
bust in September 2008, unable to see who was on the other side
of the U.S. bank’s derivatives transactions, adding to
uncertainty that fuelled a global markets meltdown.

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.

    • 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."
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